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Forms of Business Organization
Question
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'A co-opeative society is not setup for making profit'. Discuss.

Answer

  • A co-operative form of business organisation is different from other forms of organisation.
  • It is a voluntary association of persons for mutual benefit and its objectives are accomplished through self help and collective effort.
  • The main principle undergoing a cooperative organisation is mutual help.
  • A minimum of ten people are required to form co-operative society.
  • The capital of a co-operative society is raised from its members by way of share capital.
  • The main aim of these types of societies is to provide different goods and services at a cheap rate to its members.
  • They are also called non-proift organisation.

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Some More Questions From Forms of Business Organization Chapter

Define company.

What do you understand by a Private Company?

What do you understand by a Public Company?

Under what circumstances, is a partnership form of business organisation suitable ?

Write a short note on 'implied agency', one of the important characteristics of partnership and also true test of partnership.

Would you say that the sole proprietorship involves a lengthy and expensive procedure for its registration?

Explain whether the liability of a sole proprietorship is limited to the extent of his share in business.

Only the Karta has unlimited liability in HUF. Explain.

Define 'Partner by Holding Out'.

Explain how the company is an artificial person.