SEBA Class 9 An Introduction to Commerce Chapter 2 Business Organisation

SEBA Class 9 An Introduction to Commerce Chapter 2 Business Organisation Solutions in English Medium to each chapter is provided in the list so that you can easily browse throughout different chapters SEBA Class 9 An Introduction to Commerce Chapter 2 Business Organisation Question Answer, SEBA Class 9 Elective An Introduction to Commerce Notes in English Medium and select need one.

SEBA Class 9 An Introduction to Commerce Chapter 2 Business Organisation

Also, you can read the SCERT book online in these sections Solutions by Expert Teachers as per SEBA (CBSE) Book guidelines. SEBA Class 9 An Introduction to Commerce Chapter 2 Business Organisation Notes. These solutions are part of SCERT All Subject Solutions. Here we have given Elective An Introduction to Commerce Class 9 SEBA Solutions for All Chapters, You can practice these here.

Business Organisation

Chapter – 2

UNIT – I BUSINESS STUDIES

Questions

1. Show the different forms of Business Organisation.

Ans: The different forms of Business Organisation are mentioned below: 

(a) Sole Proprietorship: Sole means only and proprietor refers to the owner. Hence, Sole Proprietor means one who is the only owner of a business. It is the type of business which is controlled and managed by a single person who invests money in the form of capital, takes entire risk of business and accepts both profit and loss of the business. It is also called Sole Trade or Sole Trader.

The major features of the sole proprietorship are:

(i) Individual Ownership: The basic characteristic of sole proprietorship is that it is owned, run and controlled by one individual. He is the sole owner of all the assets and resources of business.

(ii) Sole Management: In the sole proprietorship, the owner performs all the functions of management but with the increase in the size and volume of business he can appoint managers.

(iii) Unlimited Liability: The liability of sole proprietor can be more than the capital invested. It means, in case of heavy losses, if it is not possible to make payment with the help of the assets of the business, not only the domestic assets of the sole trader can be utilized for this purpose, but can be declared bankrupt and held personally responsible.

(iv) Freedom in Selection of Business: A sole proprietor can select any trade or business as per his will. The selection of trade from among the many other forms can be made with the suggestions of many people.

(b) Hindu Undivided Family (HUF) Business: Hindu Undivided Family (HUF) business is a business which is run, controlled and managed by the eldest male member of the family, known as Manager (Karta) and other male members are known as coparceners. This is the oldest type of business that prevails only in India.

The features of Hindu Undivided Family (HUF) business are:

(i) Operating According to Hindu Law: Hindu Undivided Family (HUF) business is directed according to the Hindu Law.

(ii) Management: The joint Hindu family business is normally managed by a senior member of the family. He is known as Manager (Karta or Mukhiya).

(iii) Only Male Members: Only male members can be the Coparcener in the Hindu Undivided Family (HUF) business.

(iv) Registration: There is no need of any registration of the Hindu Undivided Family (HUF) business.

(c) Partnership: Partnership is an agreement between two or more persons to carry a similar business together, have agreed to share the profits of the business. It can be defined as, “the relationship between two or more persons who have agreed to share the profits of a business carried on by all or any one of them acting for all.”

Characteristics of Partnership are:

(i) More than One Person: Partnership needs a minimum of two persons because a single individual cannot be his own partner.

(ii) Existence of Business: The joining of two or more persons can be called partnership only when they agree to run business together.

(iii) Contractual Relationships: Partnership comes into existence only on the basis of a contract between the partners. Hence, it is important to have an agreement between the partners.

(iv) Profit Motive & Sharing of Profit: One of the main characteristic of partnership is to earn profit. In a partnership firm, profit is divided among the partners according to their agreement.

2. What do you mean by Sole Proprietorship Business?

Ans: A sole proprietorship is a non-registered, unincorporated business run solely by one individual proprietor with no distinction between the business and the owner.

3. Write essential features of Sole Proprietorship Business.

Ans: The major features of the sole proprietorship Business are mentioned below: 

(i) Individual Ownership: The basic characteristic of sole proprietorship is that it is owned, run and controlled by one individual. He is the sole owner of all the assets and resources of business.

(ii) Sole Management: In the sole proprietorship, the owner performs all the functions of management but with the increase in the size and volume of business he can appoint managers.

(iii) Unlimited Liability: The liability of sole proprietor can be more than the capital invested. It means, in case of heavy losses, if it is not possible to make payment with the help of the assets of the business, not only the domestic assets of the sole trader can be utilized for this purpose, but can be declared bankrupt and held personally responsible.

(iv) Freedom in Selection of Business: A sole proprietor can select any trade or business as per his will. The selection of trade from among the many other forms can be made with the suggestions of many people.

4. What do you mean by Hindu Undivided Family (HUF)?

Ans: Hindu Undivided Family (HUF) business is a business which is run, controlled and managed by the eldest male member of the family, known as Manager (Karta) and other male members are known as coparceners. This is the oldest type of business that prevails only in India.

5. Write the essential features of Hindu Undivided Family (HUF).

Ans: The Essential features of Hindu Undivided Family (HUF) are:

(i) Operating According to Hindu Law: Hindu Undivided Family (HUF) business is directed according to the Hindu Law.

(ii) Management: The joint Hindu family business is normally managed by a senior member of the family. He is known as Manager (Karta or Mukhiya).

(iii) Only Male Members: Only male members can be the Coparcener in the Hindu Undivided Family (HUF) business.

(iv) Registration: There is no need for any registration of the Hindu Undivided Family (HUF) business.

6. What is Partnership Business?

Ans: Partnership is an agreement between two or more persons to carry a similar business together, and have agreed to share the profits of the business. 

7. Write the characteristic of a Partnership Business.

Ans: The characteristic of a Partnership Business are mentioned below: 

(i) More than One Person: Partnership needs a minimum of two persons because a single individual cannot be his own partner.

(ii) Existence of Business: The joining of two or more persons can be called partnership only when they agree to run business together.

(iii) Contractual Relationships: Partnership comes into existence only on the basis of a contract between the partners. Hence, it is important to have an agreement between the partners.

(iv) Profit Motive & Sharing of Profit: One of the main characteristic of partnership is to earn profit. In a partnership firm, profit is divided among the partners according to their agreement.