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Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:
Q. The form of business organisation formed by Sambal Singh is:
- a)Joint Stock Company
- b)Partnership
- c)Sole Proprietorship
- d)Co-operative Society
Correct answer is option 'C'. Can you explain this answer?
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Direction: Manish is a student pursuing final year B.Tech. from IIT K...
The form of business organisation formed by Sambal Singh is Sole Proprietorship. A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.
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Direction: Manish is a student pursuing final year B.Tech. from IIT K...
The form of business organisation formed by Sambal Singh is: Sole Proprietorship.
Explanation:
A sole proprietorship is the simplest form of business organization where an individual owns and runs the business on his own. In this case, Sambal Singh owned and operated the general store in Jaipur, making it a sole proprietorship.
Characteristics of Sole Proprietorship:
1. Single Ownership: In a sole proprietorship, there is only one owner who makes all the decisions and takes full responsibility for the business.
2. Unlimited Liability: The owner has unlimited liability, which means their personal assets are at risk in case of any business debt or liability.
3. Sole Decision Making: The owner has complete control over the business and can make all the decisions without any interference from others.
4. Ease of Formation: Sole proprietorship is the easiest form of business to start as it requires minimal legal formalities and capital investment.
5. Profits and Losses: The owner is entitled to all the profits generated by the business but also bears all the losses incurred.
6. Lack of Continuity: The business does not have a separate legal existence, and it ceases to exist upon the death, retirement, or insolvency of the owner.
Relevance to the Given Case:
In the given case, Sambal Singh owned and operated the general store as a sole proprietorship. This means that he had complete control over the business and was solely responsible for its operations and finances.
Conclusion:
Based on the information provided, it can be concluded that the form of business organization formed by Sambal Singh is a Sole Proprietorship.
Explanation:
A sole proprietorship is the simplest form of business organization where an individual owns and runs the business on his own. In this case, Sambal Singh owned and operated the general store in Jaipur, making it a sole proprietorship.
Characteristics of Sole Proprietorship:
1. Single Ownership: In a sole proprietorship, there is only one owner who makes all the decisions and takes full responsibility for the business.
2. Unlimited Liability: The owner has unlimited liability, which means their personal assets are at risk in case of any business debt or liability.
3. Sole Decision Making: The owner has complete control over the business and can make all the decisions without any interference from others.
4. Ease of Formation: Sole proprietorship is the easiest form of business to start as it requires minimal legal formalities and capital investment.
5. Profits and Losses: The owner is entitled to all the profits generated by the business but also bears all the losses incurred.
6. Lack of Continuity: The business does not have a separate legal existence, and it ceases to exist upon the death, retirement, or insolvency of the owner.
Relevance to the Given Case:
In the given case, Sambal Singh owned and operated the general store as a sole proprietorship. This means that he had complete control over the business and was solely responsible for its operations and finances.
Conclusion:
Based on the information provided, it can be concluded that the form of business organization formed by Sambal Singh is a Sole Proprietorship.
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Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer?
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Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer?.
Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Direction: Manish is a student pursuing final year B.Tech. from IIT Kharagpur. His father Mr. Sambal Singh who owned a small general store in Jaipur had a heart attack and became completely paralysed. There was no other source of income for the family, so, Manish left his studies and decided to take charge of his father’s general store. While checking the books of accounts, he found that his father had taken a loan of ₹ 2 lakhs from Bank of Baroda to be repaid this year only, but the business is running into losses due to his father’s illness. Hence, his mother advised him to close the business and to look for a job outside. On the basis of the given case, answer the following questions:Q. The form of business organisation formed by Sambal Singh is:a)Joint Stock Companyb)Partnershipc)Sole Proprietorshipd)Co-operative SocietyCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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