KSEEB Solutions Class 8 Business Studies Chapter 3 Forms Of Business Organisations Points To Remember
Today we see different forms of business organizations. They are:
- Sole trading Concerns,
- Partnership firms,
- Hindu undivided family firms,
- Co-operative Societies.
- Joint stock companies.
- Sole Trading Concerns is run by a single person. He enjoys all the profits and is fully responsible for losses Sole trader takes the help of his family members or appoints some.
- No legal formalities are required to commence the business.
- Sole trading concerns are not free from some disadvantages. They are: Capital is limited and they cannot expand the business. Since it is run by a single person, managerial ability is limited.
- The limitations of sole trading concerns lead to the formation of partnership firms. Partnership firms were passed in 1932.
- There are several types of partners, but generally, we find Active or working partners, Sleeping partners, Nominal partners, and minors There shall be a deed of partnership.
- Generally, it is in writing, duly stamped, and signed by all the partners.
- No legal formalities are required for the formation of partnership firms.
- Partnership firms are formed by more than two persons, so the capital investment is more.
- The liability of partners is unlimited, so it leads to an increase the credit worthiness.
- Partnership firms can be dissolved easily. Any partner can apply for dissolution by giving fourteen days’ notice or with the consent of all the partners it can be dissolved.
- There is no provision for registration of sole trading concern. The Indian Partnership Act of 1932 provides for the registration of partnership firms.
Kseeb Solutions For Class 8 Business Studies Chapter 3 Pdf
Forms Of Business Organisations Exercises
Fill in the blanks in the following sentences with appropriate words:
- The business concern that is owned and managed by a single person is called Sole Trading Concerns
- The Indian Partnership Act was passed in the year 1932 to regulate the affairs of partnership firms.
- The minimum number of partners in a line that carries out banking business is 10
- The Head of the Hindu undivided family business is known as “KARTA”.
- The only business concern under private business organizations found in India.
Answer the following questions in one or two sentences each:
Question 1. Which are the small-scale business organizations?
Answer:
The small-scale business organizations are:
- Sole trading Concerns.
- Partnership firms
- Hindu undivided family firms.
- Co-operative Societies.
- Joint stock companies
Kseeb Solutions Class 8 Business Studies Chapter 3 Notes
Question 2. How do sole trading concerns help consumers?
Answer: They understand the likes and dislikes of the customers and supply goods accordingly they pay rates, taxes, and duties to the government.
Class 8 Business Studies Forms of Business Organisations KSEEB Notes
Question 3. What are partnership firms?
Answer: The firms established by more than 2 members are called partnership firms.
Question 4. Who is the sleeping or dormant partners?
Answer: They contribute capital but do not take an active part in the day-to-day transactions of the firm. The profits and losses are shared in proportion to their capital contribution.
Question 5. How is the dissolution of a partnership firm easy?
Answer: Any partner can file a case against the firm or other partners for the dissolution of the firm or for the settlement of accounts.
Forms Of Business Organisations Answer the following questions:
Question 1. Mention any four merits of sole trading concerns.
Answer:
- No legal formalities are required to commence the business.
- It can be started by own capital.
- No difficulties arise in day to day running of the business.
- The owner enjoys all the profits and bears all the losses.
- They directly come into contact with the consumers.
- They render some social services also.
- They provide employment to some people.
- They help in the 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.
Kseeb Class 8 Business Studies Chapter 3 Important Questions
Question 2. Mention any four limitations of sole trading concerns.
Answer: Capital is limited and they cannot expand the business. Since it is run by a single person, the managerial ability is limited All the losses are to be borne by a single person. Life of the sole trading concerns may be short, with the death or insolvency of the sole trader, the trading concerns will be closed.
Question 3. How are partnership firms started? Explain briefly.
Answer: The limitations of sole trading concerns lead to the formation of partnership firms. In these firms, two or more persons join together and carry out the business. Partnership firms Act was passed in 1932. According to section 4 of the 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. The maximum number of partners is fixed to Ten if they carry out the banking business and twenty in case of carrying out general business.
Question 4. Who are the different types of partners?
Answer: There are several types of partners, They are: Active or working partners, Sleeping partners, Nominal partners, and Minor partners.
Question 5. Mention any four merits of partnership firms.
Answer:
- Easy to form
- More capital
- Better efficiency
- Creditworthiness
- Sharing of business loss
- Secrecy of business
- Simple dissolution
Karnataka Class 8 Social Science Chapter 3 Forms Of Business Organisations Solutions
Question 6. Mention any four demerits of partnership firms.
Answer:
- Sometimes the disunity among the partners may hamper business and leads to disputes.
- Since the number of partners is limited, the capital contribution is also limited.
- Liability is unlimited, so it discourages many people to join as partners.
- Reckless and foolish decisions of some partners may lead to heavy setbacks
- Partnership firms lack continuity; the death or insolvency of one partner may lead to the dissolution
- It is difficult to transfer the share of partners to others.
- Owing to the lack of control by the government and publishing of accounts, partnership firms can not gain public support.
- The secrecy of the business cannot be maintained since there are two or more two partners.
Question 7. What are the advantages of registering a partnership firm?
Answer:
- A Registered firm can file a suit in a court of law against a third party. But it is not possible in the case of an unregistered firm.
- A Registered firm can file a case against the other partners for the loans they owe to 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 other partners for the dissolution of the firm or for the settlement of accounts.
KSEEB Class 8 Business Studies Chapter 3 Questions And Answers
Question 8. Explain briefly about “Hindu undivided family business”.
Answer: They are found only in India. They are formed owned and managed by Joint Hindu families in accordance with “HINDU LAW”. They are the firms that consist of all the male members of the Hindu family, descendants from a common male ancestor. Only three successive generations of male members namely, sons, grandsons, and great-grandsons acquire the birthright or interest in the ancestral property. The eldest or senior member of the family manages the business and he is called “KARTA”. And he is the head of the family. The liability of Karta is unlimited. But the liability of other members is limited to the extent of their share in the business.
Forms Of Business Organisations Additional Questions And Answers
Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:
Question 1. The business where a person is an owner and the manager is
- Sole trading Concerns
- Partnership firms.
- Hindu undivided family firms.
- Co-operative Societies.
Answer: 1. Sole trading Concerns.
Question 2.The limitations of the sole trading concerns lead to the formation of
- Joint stock companies.
- Partnership firms
- Hindu undivided family firms.
- Co-operative Societies.
Answer: 2. Partnership firms
Question 3.The Partnership firms Act was passed in
- 1935
- 1950
- 1932
- 1951
Answer: 3. 1932
Kseeb Class 8 Social Science Business Studies Chapter 3 Mcqs
Question 4. The partner who takes part in day-to-day business is called
- Working partners
- Sleeping partners
- Nominal partners
- Minor partners
Answer: 1. Working partners
Question 5. The partner who contributes capital but does not take an active part in the day-to-day transactions of the firm is called
- Working partners
- Sleeping partners
- Nominal partners
- Minor partners
Answer: 2. Sleeping partners
KSEEB Business Studies Chapter 3 Class 8 Multiple Choice Questions
Question 6. The Indian Partnership Act was passed in the year
- 1932
- 1935
- 1947
- 1931
Answer: 1. 1932
Forms Of Business Organisations Answer the following questions in four to five sentences each:
Question 1. What is Certification of Registration?
Answer: The Registrar after satisfaction that all the provisions have been complied with, issues a certificate called “Certificate of Registration”.
Question 2. What is a partnership deed?
Answer: An agreement that is in writing, duly stamped, and signed by all the partners.
Question 3. Who are the Sleeping Partners?
Answer: They contribute capital but do not take an active part in the day-to-day transactions of the firm. The profits and losses are shared in proportion to their capital contribution.
Question 4. Who are the Nominal Partners?
Answer: They neither contribute capital nor take active participation in the day-to-day transactions of the firm. They are not entitled to any share in profit but they are liable for business losses.
Question 5. Who are the Active Partners?
Answer: Active Partners contribute a fixed amount of capital, share profits and losses in proportion to their capital contribution and take an active part in carrying out the day-to-day affairs of the business.
Kseeb Class 8 Business Studies Chapter 3 Forms Of Business Organisations Question Answers
Question 6. Mention the name of different forms of business organizations.
Answer:
- Sole trading Concerns.
- Partnership firms
- Hindu undivided family firms.
- Co-operative Societies.
- Joint stock companies.
Question 7. What are the features of Sole trading Concerns?
Answer:
The features of Sole trading Concerns are:
- It is one of the oldest and simplest forms of business organization.
- It is owned and managed by a single person.
- It is easy to start this kind of business.
- These concerns are run by the sole traders for profits.
- The sole trader uses his own skill and is responsible for all the losses.
- A sole trader takes the help of his family members or appoints some workers to help him in business.
- Generally, they are small in size.