Registration of Firms

  • by sadiq

Prior to the year 1932, there was no arrangement for the registration of firms in India. But after the enforcement of the Partnership Act, 1932, provisions for registration of firms were made. But for partnership firms, registration was made voluntary and not compulsory, or registration of the firm is dependent on the will of the partners. Nonregistration of the firm creates a number of difficulties. Therefore registration of the firm is very beneficial.Read More »Registration of Firms

Rights of Partner in a Partnership Firm

  • by sadiq

A partnership is a voluntary organization of two or more persons who agree to earn profits from a lawful business and share it among themselves. The persons who participate in this business are individually called ‘Partners’ and cumulatively called a ‘Firm’. The name in which the business is carried on is called ‘the name of the firm’.

The partner who has invested more in partnership business and directly involves in business activities is called an active partner. The partners who have invested money but involve in business activity is called sleeping partner. The partner who has invested money but nominated as a partner is called a nominal partner. The partner who is retired from the business but investment is not written is called quasi-partner.

A partnership firm is different from a Sole Proprietorship in terms of the rights of a partner.

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Partnership : Definition and Its Characteristics

Introduction and Meaning

 

Partnership is the mutual relationship between two or more persons, who make a contract to share profits and losses among themselves from the exercises of a specific business. In other words, when two or more persons agree to carry on a business for mutual profits, it is said that they have formed a partnership.

The rights of a partner in a partnership firm are different from the counterpart of a sole proprietorship firm.

One man’s business is best in the world if that one man is big enough to manage everything.

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Sole Proprietorship : Demerits and Limitations

  • by sadiq

Definition of Sole Proprietorship

Sole Proprietorship definition according to Prof Hynes

Sole Proprietorship is that form of business which has a single owner, who has the total responsibility of the business, who runs the business and also bears the risk on the failure of business.

Despite high mortality, the sole entrepreneur survives.

In the words of Dr. John A Shubin

Under the Sole Trader-ship Business, a single man is an organizer; he is the owner and runs the business by his own name.

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Proprietorship Advantages, Merits and Importance

One man’s business is best in the world if that one man is big enough to manage everything.

Meaning of Sole Proprietorship

Sole trader-ship (proprietorship) is that form of business organization whose owner is just one person, who is called the sole trader. This person invests capital in the business and is solely responsible for all the profits and losses of the business. The same person is the manager and organizer of the business.

Advantages, Merits, and Importance

Following are the merits (or importance) of the sole proprietorship system
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Proprietorship : Definition and Its Characteristics

Introduction to Sole Proprietorship

Sole trader-ship or proprietorship is the oldest form of business in all the countries of the world. Along with the progress of the business, its form has also been changing. But due to its simplicity, quick formation, and easiness, this form is the most popular and in practice in the world.

One man’s business is best in the world if that one man is big enough to manage everything.

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Law of Equi-Marginal Utility : Criticism and Limitation

CRITICISMS, LIMITATIONS OR EXCEPTIONS OF LAW OF EQUI-MARGINAL UTILITY

Following are the main reasons for the criticism of the Law of Equi-marginal utility by H. H. Gossen. Although, it is a basic law of economics and consumers knowingly or unknowingly are compelled, to follow this law. This law is applicable in every field of economic analysis.
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Definition of Law of Equi-Marginal Utility

  • by sadiq

How is the Law of “Equi-marginal utility” helpful in maximizing the utility of a consumer?

INTRODUCTION OF LAW OF EQUI-MARGINAL UTILITY

We know that the wants of every man are unlimited. Wants arise again and again but man has limited means (income) to fulfill his wants and means have alternative uses. Thus, man always faces the problem of distribution of limited means of alternative uses, on his wants; so that, he may get maximum satisfaction (or utility). Law of Equi-Marginal Utility presents the solution to this problem. This law states that if a person, wishes to get maximum satisfaction from his income, he should spend his income on different items, in such a way that the utility of the last unit of money spent on each commodity, should be equal or almost equal. This law of consumption was propounded by a French Economist, H. H. Gossen in 1854 and it is also known as the Second Law of Gossen.
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