Question. X and Y are best friends. They decided to start a business.

Both of them contributed equal

amount in the business. Being good friends, they did not sign any agreement. After some time
conflicts rose between them. They start arguing with each other because of difference in opinions.
This affected their business adversely.
(a) Name and state the form of business they have started.
(b) What mistake they have done?

Question. Rohit operates a textile business. His family is joint and has a lot of ancestral property.
All the 15 family members are a part of this business. He is the eldest male member in the family so
he heads the business. He is liable to all the creditors of the business as he is the decision-maker.
Rohit’s grandson has just born a few days ago and he is also the member of the business.
(a) Which form of business is being undertaken by Rohit?
(b) Identify the features of this form of business highlighted in the above para.

Question. What is the minimum number of persons needed to form following forms of business
organisation:
(a) Sole proprietorship. (b) Joint Hindu Family Business.
(c) Private company. (d) Cooperative society.
(e) Partnership. (f) Public company.

Question. For which of the following types of business do you think a sole proprietorship form of
organisation would be more suitable, and why?
(a) Grocery store. (b) Medical store.
(c) Legal consultancy. (d) Craft centre.
(e) Internet cafe. (f) Chartered accountancy firm.

Question. Money Ltd. issues 1,00,000 shares of ₹ 10 each for public subscription. Application
(along with money) are received for 80,000 shares. Can the company allot these shares? Explain.

Question. Name the following:

(a) The most important or fundamental document of a company.
(b) The document containing the rules and regulations for the internal management of the affairs of
a company.
(c) The amount of money which must be raised before allotment of shares.
(d) The clause specifies the maximum capital which the company will be authorised to raise
through the issue of shares.
(e) The document called ‘Doctrine of Indoor Management’.