Question 7: An organization`s operating assets amount to Rs 50,000, but the debts that are not paid are Rs 80,000. What approach do creditors have, if (c) what role will their decision to go nationally in choosing the form of organization? (d) What legal formalities does it have to complete for its activities as a business? Answer: c) Business – In a business, ownership and management are two distinct aspects of the business. In a company, management and ownership are in the hands of different people. A company is owned by shareholders, but its management is managed by a group of elected persons, known as the board of directors. A share is part of the capital of a company divided into number of shares. The separation structure of ownership and management is called Answer – Sole Firm ship is managed by one person. It`s the owner and the manager. He invests exclusively in the company, takes advantage of it and takes full responsibility for the losses. Merits owner-company- Answer: It will have to go through the registration processes of the company. She`s going to have to form a board of directors. For all of this, it will need the services of experts; such as accountants and lawyers. Answer: An owner`s trade agreement is binding on others in a partnership company.
In the case of an affiliate, a partner`s decision is binding on all other members, as each partner`s liability is unlimited. Answer: A form of business owned, managed and controlled by a person that receives all profits and bears all losses resulting from the transaction is called an individual business. Individual businesses are adapted to groceries, medical stores, craft centers and internet cafes. This is because these companies need limited capital and limited leadership to carry out their day-to-day operations. Only one person can make decisions. A partnership company is a form of business organization between two or more people who have agreed to share the profits of the company supported by the whole or by a company acting for all. Legal counsel and the audit firm required a high level of supervision to deal with the diversity of activities and the range of activities. These require joint decision-making and risk-taking in order to maximize profits.