What went wrong when the king rode under the arch?

It was too low and knocked off his crown

How does the chain of blame unfold in the poem?

Each accused person blames another, ending with the king's own changes

What is a sole proprietorship?

A form of business organisation owned, managed and controlled by a single individual who is the recipient of all profits and bearer of all risks.

Why does a sole proprietor have unlimited liability?

Because there is no separate legal entity; the owner's personal assets can be used to repay business debts if the business assets are insufficient.

The eldest member of the Hindu Undivided Family who controls and manages the joint Hindu family business and has unlimited liability.

Partnership is the relation between persons who have agreed to share the profit of a business carried on by all or any one of them acting for all.

What is mutual agency in partnership?

It means every partner is both an agent (binding the others by his acts) and a principal (bound by the acts of others).

Name the types of partners.

Active partner, sleeping or dormant partner, secret partner, nominal partner and partner by estoppel.

What is a partnership deed?

A written agreement specifying the terms and conditions governing the relationship among partners, including profit sharing and conduct of business.

What is perpetual succession?

A feature of a company by which its existence continues unaffected by the death, insolvency or insanity of its members.

State the difference between a private and a public company in terms of members.

A private company has a minimum of 2 and a maximum of 200 members, while a public company has a minimum of 7 and no upper limit.

Forms of Business Organisation

Q: List the features of a cooperative society.

Voluntary membership, compulsory legal registration, limited liability, democratic control (one member, one vote) and a service motive.

Class 11 Business Studies · Business Studies · Chapter 2

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CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

Marks booster + cheatsheet: key concepts in 2 lines each, common traps
20 marks: finance and MSME units
20 marks: internal and international trade
Five comparison tables, insurance to retail
Case cues for each chapter
Common traps, corrected

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CBSE Class 11 · Business Studies

Every merit and limitation of 11 chapters

Marks booster + cheatsheet: key concepts in 2 lines each, common traps
20 marks: finance and MSME units
20 marks: internal and international trade
Five comparison tables, insurance to retail
Case cues for each chapter
Common traps, corrected

Page 1 free about 8 min read, Full kit about 55 min read

₹159See the full kit

View all 44 amazing Marks Booster kits →

Summary

When starting or expanding a business, an important decision is the choice of the form of organisation, weighing the merits and limitations of each. The main forms are sole proprietorship, joint Hindu family business, partnership, cooperative society and joint stock company. A sole proprietorship is owned, managed and controlled by one individual who bears all risk and gets all profit; it offers ease of formation, quick decisions and confidentiality but suffers unlimited liability, limited resources and lack of continuity. A joint Hindu family business, found only in India, is owned by members of a Hindu Undivided Family by virtue of birth and controlled by the eldest member, the karta, who alone has unlimited liability while the co-parceners have limited liability. A partnership, governed by the Indian Partnership Act 1932, is the relation between persons who agree to share the profits of a business carried on by all or any of them acting for all; its features include unlimited liability, mutual agency and a partnership deed, with various types of partners and optional registration. A cooperative society is a voluntary association formed for mutual welfare, with compulsory registration, limited liability, democratic control and a service motive. A joint stock company is an artificial person created by law with a separate legal entity, perpetual succession, limited liability and transferable shares, and may be private or public. The choice depends on cost, liability, continuity, management ability, capital and control.

Choice of form of business organisationSole proprietorship — features, merits, limitationsJoint Hindu family business and the kartaPartnership — features and partnership deedTypes of partners and registrationCooperative society and its typesJoint stock company — features and typesFactors affecting choice of form

Key terms

Sole proprietorship

A form of business owned, managed and controlled by one individual who is the sole recipient of profit and bearer of risk, with unlimited liability.

Joint Hindu family business

A business found only in India, owned by members of a Hindu Undivided Family by birth and controlled by the karta.

Karta

The eldest member of a joint Hindu family who manages and controls the business and alone has unlimited liability.

Partnership

The relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all (Indian Partnership Act, 1932).

Mutual agency

A feature of partnership where every partner is both an agent and a principal, able to bind and be bound by the acts of the other partners.

Cooperative society

A voluntary association of persons who join to protect their economic interests, with democratic control and a service motive.