Which statement is NOT correct about the company form of business organisation?a)Company form of business organisation can be incorporated with a minimum of two members.b)Company has an access to huge capital resources.c)Company is a legal person.d)Company has a separate legal entity.Correct answer is option 'A'. Can you explain this answer?

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Which statement is NOT correct about the company form of business organisation?

a)
Company form of business organisation can be incorporated with a minimum of two members.
b)
Company has an access to huge capital resources.
c)
Company is a legal person.
d)
Company has a separate legal entity.

Correct answer is option 'A'. Can you explain this answer?

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Test: Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)

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Which statement is NOT correct about the company form of business orga...

Company form of business organisation can be incorporated with a minimum of 7 members.

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Which statement is NOT correct about the company form of business orga...

Incorrect Statement:
The statement "Company form of business organisation can be incorporated with a minimum of two members" is incorrect.

Explanation:
The company form of business organization is a popular and widely used form that provides several advantages to its owners. However, there are certain requirements and regulations that need to be fulfilled in order to incorporate a company. One such requirement is the minimum number of members required for incorporation.

Minimum Number of Members:
In most countries, including India, a company can be incorporated with a minimum of two members. These members can be individuals or corporate entities. The Companies Act, 2013 in India specifies this requirement. The idea behind having a minimum number of members is to ensure a certain level of accountability and transparency in the company's operations.

Access to Huge Capital Resources:
One of the advantages of the company form of business organization is that it provides access to huge capital resources. Unlike other forms, such as sole proprietorship or partnership, a company can raise capital by issuing shares to the public. This allows companies to attract investments from a large number of individuals or institutions, thereby increasing their overall capital base.

Legal Person and Separate Legal Entity:
Another key characteristic of a company is that it is considered a legal person and has a separate legal entity from its owners. This means that a company can enter into contracts, sue, and be sued in its own name. It also implies that the company's shareholders have limited liability, meaning their personal assets are generally not at risk in case the company faces financial difficulties.

Conclusion:
In conclusion, the statement that the company form of business organization can be incorporated with a minimum of two members is incorrect. The correct statement should be that a company can be incorporated with a minimum of two members in most countries, including India.

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Which statement is NOT correct about the company form of business organisation?a)Company form of business organisation can be incorporated with a minimum of two members.b)Company has an access to huge capital resources.c)Company is a legal person.d)Company has a separate legal entity.Correct answer is option 'A'. Can you explain this answer?

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Which statement is NOT correct about the company form of business organisation?a)Company form of business organisation can be incorporated with a minimum of two members.b)Company has an access to huge capital resources.c)Company is a legal person.d)Company has a separate legal entity.Correct answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Which statement is NOT correct about the company form of business organisation?a)Company form of business organisation can be incorporated with a minimum of two members.b)Company has an access to huge capital resources.c)Company is a legal person.d)Company has a separate legal entity.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which statement is NOT correct about the company form of business organisation?a)Company form of business organisation can be incorporated with a minimum of two members.b)Company has an access to huge capital resources.c)Company is a legal person.d)Company has a separate legal entity.Correct answer is option 'A'. Can you explain this answer?.

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