Answer in brief

1) State any four features of Sole Trading Concern.
Ans: The features of sole trading concern are:
(I) Suitable for some Special Business: Sole trading concern Is suitable for business where personal attention and Individual skill Is needed e.g., Beauty parlour, groceries, fashion designing, sweet shops, tailoring, restaurants etc.
(II) Unlimited Liability: Liability of the sole trader is unlimited. In case business assets are not sufficient to meet business expenses, private property of the sole trader will be used. There is no difference made between private property and business property of sole trader.
(III) No Sharing of Profits and Risks: A sole trader enjoys all the profits of business. As he is the single owner of business he assumes full responsibility in business. He alone bears all the losses or risks involved in business.
(IV) Business Secrecy: Maximum business secrecy can be maintained in a sole trading concern. A sole trader Is responsible only to himself. He need not discuss any matter of business with outsiders. Moreover, there Is no legal compulsion for sole trader to publish books of accounts of business.
(V) Local Market Operations: A sole trader has limited capital and limited managerial skills, which forces him to operates in local are market only.

2) State any four types of partner
Ans: The different Iyaufsartners are:
(I) Active or Working Partners: In practice one or two partners take active part In the Management such partners are called active or working partners. They contribute capital, shares profits or losses, and has unlimited, joint and several liability. They take an active Interest in the day to day working of the firm. These partners are also known as ordinary / general / actual partners.
(II) Dormant or Sleeping Partners: A dormant or sleeping partner is one who contributes capital to the firm. He does not take any active part In the management of the firm. He shares the profits and losses of the firm like any other partner. He voluntarily surrenders the right of management. However, he Is liable for the debts of the firm.
(III) Nominal Partners: A nominal partner is one who does not contribute any capital to the firm. He lends his name to the firm. He is simply obliging his friends by allowing the firm to use his name as a partner. He may or may not be given any share in the profits of the firm. His goodwill Is used to attract business. However, he is liable for the debts of the firm.
(IV) Minor as Partner: According to the Indian Contract Act 1872, a person below 18 years is called a minor. But according to the Indian Partnership Act 1932, a minor can be admitted for the benefit of the firm with the consent of all other partners. He has a right to inspect the books of accounts. Minor partner has limited liability and is not liable for losses. He has the option to continue as a full-fledged partner or discontinue as a partner on attaining the age of majority. If he Wishes to discontinue, he must give a public notice within 6 months from the age of majority.
(V) Partner In Profits only: A partner may clearly state that he Will have a share only in the profits of the firm and that he will not share losses. Such a partner is known as “Partner in Profits Only”. He has no rights of management. He may not take active participation In the management of the firm.

3) Describe any four types of Co-operative Society 
Ans: Types of Co-operative Society are as follows.
(I) Consumer Co-operative Societies: A consumer co-operative is a business owned by Its customers. They purchase In large quantities from Wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.
(II) Credit Co-operative Societies: Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.
(III) Producer’s Co-operatives: Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and Increase production. These societies are of two types:
(a) industrial Service Co-operatives: This society supply raw materials, tools and machinery to the members. The producers work Independently and sell their Industrial output to the co-operative society. The output of members Is marketed by the society.
(b) Manufacturing Co-operatives: In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or In their houses. The society sells the output in the market and its profits is distributed among the members.
(IV) Marketing Co-operatives Societies: These cooperatives find better markets for members produce. They also provide credit and other Inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.
(V) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural fall operations are carried out Jointly. They make use of scientific method of cultivation.

4) State any four merits of Joint Hindu Family Business
Ans: (I) Easy Formation: Joint Hindu Family Firm can be easily formed. The formation is simple. Registration is also not compulsory. There is no limit on minimum or maximum members in the business. Family members become co-parceners by birth in the family.
(II) Quick Decision: Only the Karta is Involved in the decision making process. This helps to take quick decisions in business. If decisions are taken quickly there can be prompt actions.
(Ill) Business Secrecy: Complete business secrecy can be maintained. All decisions are taken by Karta only. Co-parceners cannot even Inspect books of accounts. There is no compulsion to publish books of accounts.
(IV) Co-parceners Liability: The liability of co-parceners is limited. It is to the extent of their share in Joint Family Business. Private property of co-parceners cannot be attached to business property.

5) State any four demerits of Joint Stock Company.
Ans: The demerits of Joint Stock Compsmarrg as follows’
(I) Rigid Formation: The formation of a Joint stock company Is lengthy, difficult and time consuming. There are many legal formalities for starting business. Promoters have to prepare documents like Articles of Association, Memorandum of Association, etc. A private company has to go through two stages in formation. A public company has to go through four stages in formation.
(II) Delay in Decision Making Process: In company form of organization no single individual can make a policy decision. All Important decisions are taken by Board of Directors. Decision taking process is time consuming. Business may lose opportunities because of delay in decision making.
(III) Lack of Secrecy: The management of companies remain in the hands of many persons. Everything is discussed in the meetings of Board of Directors. All important documents are available at registered office for inspection. Thus, there is no secrecy in business matters.
(IV) Excessive Government Control: A large number of rules are framed for the working of companies. The companies will have to follow rules for internal working. The government tries to regulate the working of the companies because large public money is Involved. In case regulations are not complied with, large Penalties are involved.
(V) High Cost of Management: The management of Joint stock company form of organization Is costly. Services of experts like share brokers, underwriters, solicitors, bankers is needed which Is costly. Highly qualified staff is needed. They are paid good salaries. Dissolution of the firm Is also costly.