Class 12 Exam > Class 12 Questions > Samy and Tanmay want to start a business but ...
Start Learning for Free
Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.
What form of business enterprise would you suggest them?
What form of business enterprise would you suggest them?
- a)Partnership
- b)Joint stock company
- c)Statutory corporation
- d)Co-operative society
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Samy and Tanmay want to start a business but both are from under privi...
Suggested Answer:
Starting a business with limited financial resources can be challenging, but it is not impossible. In the given scenario, where Samy and Tanmay have a tech business idea but lack significant funds, a joint stock company would be the most suitable form of business enterprise.
Joint Stock Company:
A joint stock company is a type of business organization that allows multiple individuals to pool their resources and invest in the company's shares. It is a legal entity separate from its shareholders and provides limited liability protection. Here's why a joint stock company would be the best option for Samy and Tanmay:
1. Limited Liability:
One of the main advantages of a joint stock company is limited liability. This means that the personal assets of the shareholders are protected, and their liability is limited to the amount they have invested in the company. In the case of Samy and Tanmay, this would be beneficial as they are from underprivileged areas and do not have substantial financial resources.
2. Access to Capital:
A joint stock company can raise capital by issuing shares to the public. This allows Samy and Tanmay to raise funds from a large number of investors, including institutional investors, without the need for substantial personal investment. By selling shares, they can generate the necessary funds to start their tech company and bring their revolutionary idea to the market.
3. Professional Management:
A joint stock company typically has a board of directors and professional managers who are responsible for the day-to-day operations. This relieves Samy and Tanmay from the burden of managing every aspect of the business and allows them to focus on their core competencies and the development of their tech product.
4. Transferability of Shares:
Shares in a joint stock company are easily transferable, which means that Samy and Tanmay can sell their shares to raise additional capital or exit the business if desired. This flexibility allows for future growth and expansion opportunities.
5. Credibility and Market Perception:
A joint stock company is considered a more credible and trustworthy form of business organization compared to other forms. This could be advantageous for Samy and Tanmay when approaching potential investors, partners, or customers. It can help in building trust and attracting more business opportunities.
In conclusion, a joint stock company would be the most suitable form of business enterprise for Samy and Tanmay considering their limited financial resources, the need for access to capital, limited liability, and the potential for future growth.
Starting a business with limited financial resources can be challenging, but it is not impossible. In the given scenario, where Samy and Tanmay have a tech business idea but lack significant funds, a joint stock company would be the most suitable form of business enterprise.
Joint Stock Company:
A joint stock company is a type of business organization that allows multiple individuals to pool their resources and invest in the company's shares. It is a legal entity separate from its shareholders and provides limited liability protection. Here's why a joint stock company would be the best option for Samy and Tanmay:
1. Limited Liability:
One of the main advantages of a joint stock company is limited liability. This means that the personal assets of the shareholders are protected, and their liability is limited to the amount they have invested in the company. In the case of Samy and Tanmay, this would be beneficial as they are from underprivileged areas and do not have substantial financial resources.
2. Access to Capital:
A joint stock company can raise capital by issuing shares to the public. This allows Samy and Tanmay to raise funds from a large number of investors, including institutional investors, without the need for substantial personal investment. By selling shares, they can generate the necessary funds to start their tech company and bring their revolutionary idea to the market.
3. Professional Management:
A joint stock company typically has a board of directors and professional managers who are responsible for the day-to-day operations. This relieves Samy and Tanmay from the burden of managing every aspect of the business and allows them to focus on their core competencies and the development of their tech product.
4. Transferability of Shares:
Shares in a joint stock company are easily transferable, which means that Samy and Tanmay can sell their shares to raise additional capital or exit the business if desired. This flexibility allows for future growth and expansion opportunities.
5. Credibility and Market Perception:
A joint stock company is considered a more credible and trustworthy form of business organization compared to other forms. This could be advantageous for Samy and Tanmay when approaching potential investors, partners, or customers. It can help in building trust and attracting more business opportunities.
In conclusion, a joint stock company would be the most suitable form of business enterprise for Samy and Tanmay considering their limited financial resources, the need for access to capital, limited liability, and the potential for future growth.
Free Test
| FREE | Start Free Test |
Community Answer
Samy and Tanmay want to start a business but both are from under privi...
Resources and the life span of both sole proprietorship and partnership form of organisation stands limited with liabilities being unlimited. To comply with these growing needs, the demand was on rise for:
- Capital
- Managerial talent and skills
- Limited liability
Thus, joint stock company as a modern form of business organisation emerged to meet the requirements of large sized business.
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer?
Question Description
Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. 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 Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. 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 Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer?.
Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. 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 Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. 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 Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Samy and Tanmay want to start a business but both are from under privileged areas, both of them does not have huge amount of money to start a business but have an idea of a tech company that can bring revolution in the market. You are a chartered accountant friend of Samay and Tanmay. They come to you for an advice about how to start their business after telling you the whole situation.What form of business enterprise would you suggest them?a)Partnershipb)Joint stock companyc)Statutory corporationd)Co-operative societyCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup