KSEEB Solutions for Class 8 Business Studies Chapter 3 Forms of Business Organisations
KSEEB Solutions for Class 8 Business Studies Chapter 3 Forms of Business Organisations
Karnataka State Syllabus Class 8 Social Science Business Studies Chapter 3 Forms of Business Organisations
Class 8 Social Science Forms of Business Organisations Textual Questions and Answers
I. Fill In The Blanks:
Question 1.
The concern business that is owned and managed by a single person is called _____
Answer:
Sole trading concerns.
Question 2.
The Indian partnership Act was passed in the year _____ to regulate the affairs of the partnership firms.
Answer:
1932.
Question 3.
The Maximum number of partners in a firm which carries out banking business is _____
Answer:
Ten (10).
Question 4.
The Head of the Hindu undivided family business is known as _____
Answer:
Karta.
Question 5.
The only business concern under a private business organization found in India is _____
Answer:
Hindu undivided family concerns.
II. Answer The Following Questions
Question 1.
Which are the small scale business organizations?
Answer:
The small scale business organizations are sole trading concern, partnership firm, and Hindu undivided family firms.
Question 2.
How do sole trading concerns help consumers?
Answer:
The sole trading concerns which are run by a single person have more concern on consumers. They directly come into contact with the consumers. They understand the likes and dislikes of consumers.
Question 3.
What are partnership firms?
Answer:
According to the partnership Act of 1932, the partners have agreed to share the profits of a business carried on by all or any one of them acting for all. In these firms tow or more persons join together to carry out the business.
Question 4.
Who are sleeping dormant partners?
Answer:
Sleeping partners 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 investment.
Question 5.
How is the dissolution of the partnership firm easy?
Answer:
Partnership firms can be dissolved easily. Any partner can apply of dissolution by giving fourteen days notice or with the consent of all the partners, it can be dissolved.
III. Answer The Following Questions:
Question 1.
Mention any four merits of sole trading concerns.
Answer:
Merits of sole trading concerns:
- No legal formalities are required to commence the business.
- The owner or the investor enjoys all the profits and bears all the losses. So he would work carefully.
- The owner of the concern directly comes into the contact with consumers and he tries to fulfill their wishes thereby the concern develops a lot.
- Being a single owner he is in a position to make quick decisions regarding the business.
- They maintain business secrets.
Question 2.
Mention any four limitations of sole trading concerns.
Answer:
There are certain limitations in sole trading concerns.
- Capital is limited and they can not expand the business.
- It is run by a single person so the managerial ability is limited.
- All the losses are to be borne by a single person.
- Life of the sole trading concerns is very short. For different reasons, it may be closed.
Question 3.
How are partnership firms started? Explain briefly.
Answer:
Partnership firms are the firms started by two or more members who are interested in a particular business. The partners made an agreement in a stamped paper. Which contains all the terms and conditions of the firm. In the agreement, they mentioned the name of the firm, type of partnership, address of the firm and the partners etc.
In India, the Partnership Act of 1932 and its section 4 partnership firm’s terms and conditions are defined. The maximum number of partners is fixed to ten. If they carry out the banking business and twenty for general business.
Question 4.
Who are the different types of partners?
Answer:
The different types of partners in the partnership firms are as follows:
- Active partners: By contributing their capital, they take an active part in carrying out the day-to-day affairs of the business.
- Sleeping partners: They contribute capital but do not take an active part in the day-to-day transactions of the firm.
- Nominal partners: They neither contribute capital nor take part in day-to-day transactions of the firm.
- Minor partners: By mutual acceptance of the partners a minor can be admitted as a partner. They are eligible for profits but not eligible for defaults or losses.
Question 5.
Mention any four merits of partnership firms.
Answer:
Merits of partnership firms are as follows:
- No legal formalities are required for the formation of partnership firm.
- It is formed by more than, two persons, so capital investment is more.
- Division of labour can easily be adopted.
- There is a scope for maintaining secrets of business.
Question 6.
Mention any four demerits of partnerships firms.
Answer:
- Since the number of partners is limited, the capital contribution is also limited.
- Liability is limited, so it discourages many people to join as partners.
- Reckless and foolish decisions of some partners may lead to heavy setbacks.
- It is difficult to transfer the share of partners to others.
Question 7.
What are the advantages of registering a partnership firm?
Answer:
- A Registration firm can file a suit in the court of law against third party. But it is not possible in case of an unregistered firm.
- A registered firm can file a case against the other partners against the loans they owe to the firm.
- Third parties can file a case against an unregistered firm for the recovery of loan.
- Any partner can file a case against the firm or other partners for the dissolution of the firm or the settlement of accounts.
Question 8.
Explain briefly about “Hindu undivided family business”.
Answer:
They are only found in India. They are in accordance with ‘Hindu Law’. They are the firms which 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-most member of the family manages the business and he is called ‘Karta’. The liability of Karta is unlimited.
Class 8 Social Science Forms of Business Organisations Additional Questions and Answers
I. Multiple Choice Questions:
1. A business run by a single person is called.
(a) Single person business
(b) Business
(c) Individual business
(d) Sole trading concerns.
Answer:
(d) Sole trading concerns.
2. Insole trading concerns, the person who enjoys all the profits and bears the loses is the,
(a) Consumer
(b) Worker
(c) Owner
(d) Labour
Answer:
(c) Owner
3. The Indian Partnership Act was passed in the year.
(a) 1932
(b) 1933
(c) 1935
(d) 1945
Answer:
(a) 1932
4. The partners who have not attained the age of 18 years are called.
(a) Minor partners
(b) Major partners
(c) Junior partners
(d) Senior partners.
Answer:
(a) Minor partners
5. The eldest or senior-most member of the family manages the business and he is called.
(a) Leader
(b) Head
(c) Karta
(d) Registrar
Answer:
(d) Registrar
6. Who issues a certificate called the certificate of registration.
(a) The collector
(b) Taluk officer
(c) Revenue officer
(d) Registrar
Answer:
(d) Registrar
7. Hindu undivided family is only found in.
(a) Bhutan
(b) Bangladesh
(c) India
(d) Nepal
Answer:
(c) India
II. Answer The Following Questions:
Question 1.
What are the features of sole trading concerns?
Answer:
It is one of the oldest and simplest forms of business organizations. It is owned and managed by a single person. It is easy to start a business. These concerns are run by the sole traders for profits.
Question 2.
Who are nominal partners?
Answer:
They neither contribute capital nor take active participation in day to day transactions of the firm. They are not entitled for any share in profit but they are liable for business losses.
Question 3.
Who are minor partners?
Answer:
The partners are those who have not yet attained the age 18 years.
Question 4.
What is a partnership deed?
Answer:
The partnership deed is written duly stamped and signed by all the partners.
Question 5.
Who issues the certificate called “Certificate of registration”?
Answer:
The Registrar issues the certificate of Registration.
III. Multiple Choice Questions
1. All the losses are to be borne by a single person. It is one of disadvantage of _______
a) Minor partners
b) Nominal partners
c) Partnership firms
d) Sole trading concerns
Answer:
d) Sole trading concerns
2. Partnership firms act was passed in _______
a) 1948
b) 1932
c) 1955
d) 1935
Answer:
b) 1932
3. They contribute capital but do not take active part _______
a) Active partners
b) Nominal partners
c) Sleeping partners
d) Minor partners
Answer:
c) Sleeping partners
4. The main merit of partnership firms is _______
a) Easy to form
b) More capital
c) Sharing of Business loss
d) All the above options
Answer:
d) All the above options
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