Business Structures and Their Characteristics

The video tutorial covers the emergence of different business organizations, focusing on sole trading concerns, partnership firms, and Hindu undivided family businesses. It discusses the merits and limitations of each type, the process of forming partnership firms, and the unique aspects of Hindu undivided family businesses. The tutorial also highlights the advantages of registering a partnership firm and provides insights into small-scale business organizations.

What is the term for a business owned and managed by a single individual?

• Partnership Firm

• Sole Trading Concern

• Hindu Undivided Family

• Corporation

In which year was the Indian Partnership Act enacted?

• 1965

• 1932

• 1947

• 1956

Which of the following is a small-scale business organization?

• Corporation

• Sole Trading Concern

• Public Limited Company

• Multinational Company

How do sole trading concerns benefit consumers?

• By offering discounts

• By understanding consumer preferences

• By providing loans

• By offering a wide range of products

What is a key merit of sole trading concerns?

• Shared losses

• Quick decision-making

• Limited liability

• High capital investment

What is a limitation of sole trading concerns?

• Multiple owners

• Limited managerial ability

• Unlimited capital

• Easy transfer of ownership

Which type of partner does not participate in daily business activities?

• Sleeping Partner

• Active Partner

• Minor Partner

• Nominal Partner

What is a merit of partnership firms?

• Division of labor

• Single owner

• Easy transfer of shares

• Unlimited liability

What is an advantage of registering a partnership firm?

• No need for legal documentation

• Limited liability

• Cannot file a suit in court

• Ability to file a suit against third parties

Who manages the Hindu undivided family business?

• The eldest male member

• The youngest family member

• A board of directors

• A hired manager