Class 11 Business Studies - Long Answer Questions
1) According to Partnership Act 1932, it is not compulsory for a partnership firm to get itself
registered, then why do partners prefer to get the firm registered? Explain the requirements &
procedure of registration.
Though registration of a partnership firm is not compulsory, partners prefer to register the firm because of the
following benefits:
- A registered firm can file a case against partners or outsiders.
- It helps in settling disputes legally.
- It increases trust among parties and outsiders.
Procedure for Registration:
1. Fill an application in the prescribed form.
2. Submit to the Registrar of Firms with the required fees.
3. Provide details like name of firm, names and addresses of partners, and partnership date.
4. If everything is correct, the Registrar records it and issues a Certificate of Registration.
2) "It is said to be an artificial person created by law, having a separate entity with perpetual
succession and a common seal". What is it? Elaborate with features.
This refers to a company.
A company is an artificial person created by law. It has a separate legal identity, meaning it is different from
its members.
Features:
1. Artificial Person - Exists in the eyes of law.
2. Separate Legal Entity - Can own property and sue in its name.
3. Perpetual Succession - Continues even if members die or leave.
4. Common Seal - Official signature of the company.
5. Limited Liability - Shareholders' risk is limited to their share value.
Class 11 Business Studies - Long Answer Questions
3) State the difference between Memorandum of Association and Articles of Association on the basis
of - Nature, Scope, Status, Legal Effect, Compulsion, Relationship and Alteration.
| Basis | Memorandum of Association (MOA) | Articles of Association (AOA) |
|----------------|------------------------------------------------------|------------------------------------------------|
| Nature | Main document of the company | Subsidiary document |
| Scope | Defines company's objectives and powers | Deals with internal rules and
management |
| Status | Supreme charter | Subordinate to MOA |
| Legal Effect | Acts beyond MOA are invalid | Acts beyond AOA but within MOA can be
valid |
| Compulsion | Mandatory for registration | Not compulsory in some cases |
| Relationship | Company's relation with outsiders | Relation between company and its members
| Alteration | Difficult to alter, needs special procedure | Easier to alter by passing special resolution |
