List of top Entrepreneurship Questions on Forms of Business Organizations

Aruna, passionate about baking, opened a bakery shop. She borrowed ₹50,000 from her father and took a loan of Rs. 1,00,000 from a bank to start the business. To attract customers, she set the prices too low. Later, she noticed that the revenue earned was not enough to cover the costs. When the loan became due, she was unable to pay. The bank recovered the loan from Aruna’s personal assets, including her savings and property. Can Aruna’s personal property be called upon to pay her business debts? Give reason in support of your answer. State the feature of sole proprietorship highlighted in the above case.
Deepa, Guddi and Vani are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Deepa wants to transfer half of her share in favour of her son Deepak without the consent of Guddi and Vani. Can Deepa transfer her share? Give reason in support of your answer. State the feature of partnership highlighted in the above case.
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Sudershan has undergone skill development training for maintenance of electronic items, from an institute started under the ‘Skill Development Mission’ by the Government of India. He wants to start his own small business in his locality with<1,00,000 given by his father as capital. He himself wants to manage and control this business, employing some assistants, if required. Out of the following, suggest the form of business organisation he can adopt:
‘The business of partnership firm can be carried on by all the partners or any one of them acting for all.’ This statement indicates which of the following characteristic of partnership?