Forms and Formation of a Business Enterprise

All these are different types of business organisations in India.

General partnership and limited partnership are types of partnerships on the basis of liability.

A partnership is an arrangement in which parties agree to cooperate to advance their mutual interests. Under common law legal systems, the basic form of partnership is a general partnership in which all partners manage the business and are personally liable for its debts. In partnership, every member acts both as an agent and as a principal.

Yes, it is correct. In the case of a public company, five members must be present personally to constitute quorum.

Promotion, Incorporation, Capital subscription and Commencement of business are the different stages in the formation of a company. This is the correct option.

A person who is represented as a partner and despite knowing this does not deny this impression, is known as a partner by holding out. This is the correct statement.

Minimum number of members required to form a private company is 2.

In India, the Registrars of Companies (ROC), are vested with the primary duty of registering companies floated in the respective states and the union territories and ensuring that such companies comply with statutory requirements under the Act. The name of the company, with which the company will be known has to be approved by the Registrar of Companies. 

These are voluntary associations of independent producers who want to sell their output at remunerative prices. The output of different members is pooled and sold through a centralised agency to eliminate middlemen. The sale proceeds are distributed among the members in the ratio of their outputs. Marketing societies are set up generally by farmers, artisans and small producers who find it difficult to face competition in the market and to perform necessary marketing functions individually. The National Agricul­tural Cooperative Marketing Federation (NAFED) is an example of marketing cooperative in India.

SEBI approval is required at the time of Capital Subscription, at the time the public company raises funds from the public.

Though a company is an artificial person, it can still enter into contracts and buy and own property. Hence, this is the only incorrect statement.

This is the correct option. Promoter is not the trustee of the company but he stands in a fiduciary relationship. A fidiuciary relationship is a relationship of utmost faith. A promoter should not carry out any activity which is against the interest of the company. For instance, a promoter should not make any undisclosed profits from the company being promoted.

This is the correct option. In case of the subscription becoming void, the money received from the applicants has to be returned within 80 days, not 50. This statement is incorrect and thus, this is the correct option.

This is the correct option. A partner of an unregistered firm cannot file a suit against the firm or any of the partners. The firm cannot file a suit against third parties and against one of the partners.

This is the correct answer. Of all the given options, company has a separation of management and ownership.

Both these statements are correct. Notice of the exact address must be submitted within 30 days of the receipt of incorporation. The Memorandum of Association must be signed by at least 7 persons in case of public company and 2 persons in case of private company.

The Statutory declaration has to be submitted to the Registrar of Companies. Hence, this is incorrect.

The MOA also contains Liability clause, Capital clause and Association clause apart from the Name clause, the Objects clause and the Registered Office clause. Thus, this is the correct option.

Sole proprietorship gives maximum degree of control for the owner.

The Securities and Exchange Board of India or SEBI is the regulator for the securities market in India to protect the interest of investors. Prior approval from SEBI is compulsory before going ahead with raising funds from public.