Business Studies - Module 2

Gopal runs a grocery shop in the local market. He buys goods from the wholesale market and sells it to the customers as per their requirement. By doing so he earns some profit. He had started his business two years ago by investing Rs. 1 lakh, which he had borrowed from his friend. Today, he is running his business successfully, earning a good profit, and has been able to pay back the borrowed money. He has also employed two persons to help him in the shop. Gopal is the owner of

• Partnership

• Sole Proprietor

• Joint Stock Company

• None

______ form of business organisation refers to a business enterprise exclusively owned, managed and controlled by a single person with all authority, responsibility and risk.

• Partnership

• Sole Proprietorship

• Joint Stock Company

A textile factory is going to be started in the nearby area where Gopal is carrying on his business. As a businessman, he is now in a jubilant mood. He is thinking that once the textile factory is set up, he will get more customers; the sales will increase and he will earn more profit. But, for all these, he will have to expand his business, and for this he needs more money. The major problem is how to arrange the additional funds. He has the option of getting loans from the banks. But the fear of loss comes to his mind again and again. He does not want to take that risk. Another option is that he may join hands with some other person. By doing so, more resources can be raised, work can be shared, and business can be run in a better way. The risk of loss will also be shared. But this involves a new form of business organisation known as _________

• Joint Stock Company

• Sole Proprietorship

• Partnership

There must be an agreement among the partners to carry on the business and share the profits and losses. This is called as Partnership Deed

• Agree

• Disagree

Those partners who do not participate in the day-to-day activities of the business

• Active Partners

• Sleeping Partners

______allow the firm to use their name as partner, They neither invest any capital nor participate in the day-to-day operations

• Nominal partners

• Partners in profits

• Active partners

• idk

A minor in a business is an example of ________

• Nominal parnters

• Partners in profits

• I dont care

This type of partners is found in Limited Partnership firms in some European countries and USA

• Limited Partners

• General Partners

A person who behaves in the public in such a way as to give an impression that he/she is a partner of the firm

• Partner by holding out

• Partner by Estoppel;

• General Partner

• Limited Partner

if a partner or partnership firm declares that a particular person is a partner of their firm, and such a person does not disclaim it, then he/she is known as

• Partner by estoppel

• Partner by holding out

• Nominal partner

• Partner in profits