Revision Notes for CBSE Class 11 Business Studies Chapter 7 - Free PDF Download
FAQs on Formation of a Company Class 11 Notes CBSE Business Studies Chapter 7 (Free PDF Download)
1. Who is a promoter of a company?
A corporate promoter is a person or an organization who is responsible for performing the preliminary works that are involved in the process of formation of a company. The promoter of a company performs different types of activities, some of which are promotion, incorporation, floatation, and motivating people to invest money in the company. All these activities are executed when the company is getting registered. Class 11 Business Studies Chapter 7 Formation Of A Company notes give a detailed knowledge of the promoters for students to learn more simply and efficiently.
2. What is a memorandum of association?
Memorandum of association is considered one of the most important documents that are required for the formation of a company. This document informs about the object for which the company is getting incorporated. The document contains the rights, privileges, and powers of the company. It is responsible for determining the relationship of the company with the outsiders. Students can find it difficult to understand every aspect of a memorandum of association, but with the help of the Chapter 7 Business Studies Class 11 notes students can easily understand the details and applications of the document.
3. What do you mean by the formation of a company?
Formation of a company refers to the process of registering or establishing a fresh company according to the laws of the state. This process is also known as the incorporation of a new corporation. After doing the registration of a company under the given laws of a state, it becomes a legal organization that is owned by an individual or a group of individuals. Hence, it has private ownership. The government can’t interfere in their working process as it is not a government-owned entity. For study material related to Business Studies Class 11 Chapter 7, students can visit the vedantu app.
4. What is a business enterprise? Write its types.
A business enterprise is a form of organization or a company that is indulged in any commercial activity or engaged in some business. Every business enterprise has different and separate units of business. There are five types of business enterprises. These are
Sole Proprietorship- A form of business that is regulated, owned and controlled by a single person.
Joint Family Business- This type of business is usually owned and managed by the male members of a family.
Partnership- This business is owned by a group of individuals whose members are ready to share their profits.
Co-operative Societies- The aim of these businesses is to provide help to other people or businesses. They don’t focus on earning money.
Joint-Stock Company- This sort of business is established to earn profit through stocks.
5. What are the common contents of a partnership deed?
The common contents of partnership deeds are;
Organization name
Name and address of the owners
Type of business the organization does
The contribution given by each member of the organization
The ratio of profit-sharing between the members of the cooperate
Responsibilities or duties of the owners
Mode and method used to maintain accounts
The percentage of interest charged on the owners on their capital
Techniques of solving issues at the workplace
To revise the notes, download the CBSE Class 11 Business Studies Chapter 7 free of cost from the vedantu website (vedantu.com).
Q4. Write types of partners in business.
Ans: There are six types of partners in business.
Active partners- These partners help to manage the firm. Their responsibilities include managing activities within the firm.
Dormant or sleeping partner- A dormant partner doesn’t perform any management related activity.
Secret partner- A partner whose relations with the company aren’t disclosed to the world.
Nominal partners- These partners aren’t the real owners of the company. Only their name and reputation is used to earn profit.
Estoppel partners- These partners display themselves as members of the company through their initiative and behaviour.
Holding partner- A holding partner represents himself as the partner of the organization.
6. What is a private company?
As per the Company Amendment Law passed in the year 2000, a private company has the following features.
A private should have at least two members or a maximum of 50 members excluding the workers.
Protect the rights of all members including employees and provide their shares.
It shouldn’t provide shares to the local public.
It shouldn’t allow common people to invest in their company.
The company should have at least one lakh as paid-up capital.