12. Active Partner
• A partner who takes an active part
in the conduct of the partnership
business
• Contributes in capital
• Shares profit and loss
• Unlimited liability
• Entitled to manage its affairs, all may
not do so
13. Sleeping Partner or Dormant
Partner
• Such a partner contributes capital
• shares in the profits or losses of the
firm
• Does not take part in the
management of the business.
• He may not be known as a partner
to the outsiders; yet he is liable to
third parties to an unlimited extent as
any other partner.
14. NOMINAL PARTNER
• Such a partner neither contributes any capital
nor is he entitled to manage the affairs of the
business.
• Only lends his name to the firm because
• of his reputation, the firm may attract
additional business and raise funds easily.
• liable for all the acts and debts of the firm as if
he were a real partner
• Though he does not get any share in the firm’s
profit.
15. SECRET PARTNER
One whose association is not
known to the general public.
Other than this distinct feature,
he is like rest of the partners in
all respects.
16. MINOR PARTNER
Under the Indian Majority Act, person who
has not completed 18 years of age is a minor.
However, he will continue to be a minor till
he completes 21 years if a guardian has been
appointed to the minor.
Partnership arises as a result of contract. But
a minor has no contractual capacity.
Though a partnership cannot be created with
a minor as a partner, a minor can be
admitted to the benefits of a partnership
which is already in existence. The consent of
all partners is a ‘must’ for such admission.
17. Partner in Profits only
• When a person joins a firm as a partner on
the condition that he is entitled to a specified
share of the firm’s profit only, he is called a
partner in profits only.
• It means that he will not be called upon to
bear any portion of the losses sustained.
• He will, however, be liable to third parties
for all the debts of the firm like any other
partner.
18.
19.
20. FEATURES
• Exists only in India
• Formation
• Membership
• Joint Ownership
• Good Credit Standing
• Management
• Profit sharing
27. Voluntary Association and
Open Membership
Democratic Principle
Management
Registration
Separate Legal Status
Limited Liability
Number of members
Equal Voting Rights
Service Motive
34. MEANING
• A Joint Stock Company is a voluntary
association of persons who generally
contribute capital.
• They carry on a particular type of business,
which is established by law.
• The total capital of Joint Stock Company is
known ‘Share Capital’. It is divided into
small units called ‘Shares’. Every member
holds some shares. These, members are
called as ‘Shareholders’.
• In India, every joint stock company is
registered as per “The Companies Act, 2013”.
35. Voluntary Association
Registration
Registered Office : The address of
registered office of company is mentioned
in Memorandum of Association. All the
important document of a company are
kept in the registered office.
Artificial Legal Person : A company
is an artificial person created by law.
It can enter into contract with third
parties after registration
Separate Legal Status
36. Common Seal.
Limited Liability : Shareholders is limited
upto the extent of unpaid face value of shares
held by them.
Private property of shareholders is not used
for the payment of company’s liabilities.
Transferability of Shares
Public company –Shares Freely transferable
Private company -Shares are not freely
transferable
Separate Ownership and
Management
Perpetual Succession
Membership
Public limited company –min 7 there is no
limit for maximum number of members.
Private limited company, minimum number
of persons are 2 and maximum are 200
37. Large amount of Capital
Professional Management
More Scope for expansion
Public Confidence
Relief in Taxation
Expert Services
Perpetual Succession
40. ONE WORD FOR....
• An elected body of representatives of co-operative Society for
its day to day administrations.
• The owner is the sole manager and decision maker of his
business.
• One man Show type of business organisation.
• The members of the Joint Hindu Family firm.
• A partner who gives his name to the partnership firm.
• There is a free transferability of shares in this company.
• The motto of the co-operative society.
41. COMPLETE THE SENTENCE
• Private sector enterprises are owned and managed by the _____________
• There is only one owner in _____________
• Admission of new individual into existing business has given birth to
_____________
• A partner who takes active participation in the day to day working of the
business
• is known as _____________
• When there is no provision in partnership agreement regarding time period
for partnership then it is known as _____________.
• The management of Co-operative society is based on _______________.
• The rule for voting in Co-operative society is __________.
• The face value of the shares of Co-operative society is very _______.
42. CASE STUDY
• Mr. Raghunath is running a business from the last
30 years. This business is ancestoral business of
Mr. Raghunath. Kiran and Naman, two sons of Mr.
Raghunath are helping him along with their wives.
• Find out the type of business.
• Who is Raghunath?
• What Kiran and Naman are called?
43. • Mr. Jumbo a Chartered Accountant by profession
and Mrs. Timbo, an Architect by professing
running a firm namely ‘Buildsheet’ in Nagpur.
• Identify a business in the above example.
• Comment on it?
• Which two professions are mentioned here?
