Business Forms and Partnerships

This video tutorial explores the differences between sole proprietorship and partnership, two common forms of business organization. Sole proprietorship is characterized by single ownership, where one person manages and controls the business. In contrast, a partnership involves two or more individuals who share profits and losses. The video provides a detailed comparison of these business forms, covering aspects such as legal governance, ownership, liability, decision-making, and financial scope.

What is one of the oldest and simplest forms of business organization?

• Partnership

• Sole Proprietorship

• Corporation

• Limited Liability Company

Who is responsible for managing and controlling a sole proprietorship?

• Board of Directors

• Shareholders

• Sole Proprietor

• Partners

In a partnership, what do the partners agree to share?

• Neither profits nor losses

• Only profits

• Only losses

• Profits and losses

Which business form is governed by the Indian Partnership Act of 1932?

• Sole Proprietorship

• Corporation

• Limited Liability Company

• Partnership

What is the minimum number of owners required for a partnership?

• Two

• Four

• One

• Three

In which business form is the liability borne by a single individual?

• Limited Liability Company

• Corporation

• Partnership

• Sole Proprietorship

How are decisions typically made in a partnership?

• By a majority shareholder

• Mutually among partners

• By a board of directors

• By a single owner

What happens to a sole proprietorship if the owner becomes incompetent?

• It becomes a partnership

• It is taken over by the government

• It is dissolved

• It continues with a new owner

Which business form has a higher scope for raising finance?

• Corporation

• Sole Proprietorship

• Partnership

• Limited Liability Company

In which business form is business secrecy maintained only by the owner?

• Limited Liability Company

• Sole Proprietorship

• Partnership

• Corporation