Forms of Business Organisations Class 8 Questions and Answers KSEEB 8th Social Science
I. Fill in the blanks in the following fences with appropriate words.
The concerns that is owned and managed by a single person in called ________________ .
Sole trading concerns
The Indian partnership Act was passed in the year ____________ to regulate the affairs of the partnership firms.
The maximum number of partners in a firm which carries out banking business is ____________ .
The head of the Hindu undivided family business is known as ____________ .
The only business concern under private business organisation found in India is ____________ .
Hindu undivided family concerns
II. Answer the following questions in one or two sentence each.
Which are the small scale business organisation?
The business organisation classified into various types. They are ____________ .
Sole trading concerns, partnership firms, Hindu undivided family firms, cooperative societies, Joint stock companies.
How do sole trading concerns help the Consumers ?
Sole trading concerns directly come into contact with the consumers. Sole trading concerns directly come into contact with the consumers.
They render some social Services also they provide employment to some people they help in distribution of wealth. They understand the likes and dislikes of the customers and supply goods accordingly they pay rates, taxes and duties to the government They are in a position to take quick decision regarding business. They maintain business secrets.
What are partnership firms ?
Partnership farms two or more persons Join together and carry out the business, partnership firms Act was passed in 1932. Active or working partners, sleeping partners, nominal partnership and minor partner.
Who are sleeping or dormant partners?
They contribute capital but do not take active part in day to day transactions of the firm. The profits and losses are shared in proportions to their capital contribution.
How is the dissolution of partnership firm easy?
Partnerhip firms, can be disolved easily. Any partner can apply for dissolution by giving 14 days notice or with the consent of all the partners it can be dissolved.
III. Answer the following questions
Mention any four merits of sole trading concers.
- They directly come into contact with the consumers.
- They render some social services.
- They proride employment to some people
- They help in distribution of health.
- They unterstand like and dislike of the customers and supply goods accordingly they pay rates, takes and duties.
Mention any 4 limitations of sole trading concerns.
Capital is limited and they cannot expand the business.
Since it is run by a single person the managerial ability it limited. All the losses one to be borne by a single person. Life of the sole trading concerns maybe short, with the death or insolvency of the sole trader, the trading concerns will be closed.
How are partnership firm started ? explain briefly.
In partnership firms, two or more persons join together and carry out the business, partnership firms Act was passed in 1932. According to the section 4 of partnership act, the partnership firm is defined as the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Who are the different types of partners.
The different types of partner are
- Active Partnership
- Sleeping partners.
- Nominal partners and
- Minor partner.
Mention any four merits of partnership firms Easy to firm: No legal formalities are required for the formation of partnership firms. Therefore the partnership firms are started easily.
More capital: Partnership are formed by more than two persons, so the investment is more.
Better Efficiency. There are more than one person as partners, so there is better managerial ability and it increases efficiency, credit worthiness. The liability of partners is unlimited. So it leads to increase in credit worthiness. Sharing of business loss. All the partners have to share the profits and losses. Security of business. The partnership firms need not publish their accounts.
Simple dissolutions: Partnership firms can be dissolved easily by giving 14 days notice or with the consent of all the partners.
Mention any 4 demerits of partnership firms.
(a) Sometimes the disunity among the partners may hamper business and it leads to dis-
(b) Since the number of partner is limited the capital contribution is also limited.
(c ) Liability is un limited, so it discourages many people to join as partners.
(d) Reckless and foolish decisions of some partner may lead to heavy setback.
(e) It lacks continuity.
(f) It is difficult to transfer the share of partners to others.
(g) It cannot gain public support
(h) The secrecy of the business cannot be maintained.
What are the advantages of registering a partnership firm?
A registered firm can file a suit in the court can against third party.
A Registered firm can file a case against the other partner against the loans they took For the firm. However third parties can file a case against an unregistered firm for the recovery of loans. Any partner can file a case against the firm or partners for the dissolution of the firm or for the settlement of accounts.
Explain briefly about “Hindu undivided family business”?
Hindu undivided family business concerns are found only in India. They are in accordance with “Hindu law”. They are the firms which consist of all the male members of the Hindu family, descendents from a common made ancessor, only three sucessive generation of male members namely sons, grandsons on and great grandsons acquire the birth right or interest in the ancestral property.
The eldest or senior most members of the family manage the business and he is called ‘KARTA’
Additional Questions and Answers
1. The registrar after satisfaction that all the provisions have been compiled with issues. A certificate called certificate of registration.
2. Hindu undivided family concerns found only in India.
3. The partners who have not yet attained the age of 18 years are called minor partners.
What are partnership firms? (TBQ)
The business that is carried out with two or more persons join together is called partnership firm.
What is partnership deed?
Partnership deed is in writtend duly stamped and signed by all the partners.
When was partnership firm act passed?
Partnership firms act passed in 1932.
What are the main features of sole trading concerns?
(a) It is one of the oldest and simplest forms of business organizations.
(b) It is owned and managed by a single person.
(c) It is easy to start a business.
What are the advantages of sole trading concerns?
(a) No legal formalities are required to commence the business.
(b) It can be started by own capital
(c) The owner enjoy all the profits and bears all the losses.