Que5.1. What do you mean by sole dealer? What are legal aspect and liability of sole dealer? Also mention the advantages and disadvantages. Answer 1. A sole dealer- also known as a sole procurement- is a simple business arrangement, in which one individual run and owns the entire business. 2. In sole procurement there’s no legal distinction between the proprietor and the business reality. 3. A sole procurement isn’t inescapably registered or incorporated. 4. It’s the most ideal form of business organisation and the ideal choice to run a small or medium scale business. 5. numerous sole possessors do business under their own names because creating a separate business or trade name isn’t necessary. Legal aspect and Liability 1. The important aspect of the sole procurement is that there exists a lack of legal formalities. There’s no separate law to govern it. 2. The proprietor is the only threat deliverer in a sole procurement. 3. Also, he’s the one who enjoys all the gains with any other stakeholders. 4. In legal terms, the business and the proprietor are one and the same. There’s no separate legal identity. 5. The liability of a sole owner is unlimited. 6. This means that a sole owner is subject to implicit losses grounded on the company’s scores. Advantages of sole dealer/ procurement 1. Easy Establishmenti. It’s easy to establish. The identity of the owner is used as the legal identity of the business as well. ii. The visage and Aadhar cards of the protagonist can be used to gain the identity of the business. 2. Easy Operation i. Since there’s only one single person who’s operating the entire business, it’s easy to operate business without any hassles and external hindrance. ii. owner becomes the sole decision- maker and doesn’t need to consider any other opinions. 3. gainsi. Being a sole owner, an individual becomes the sole devisee of all the gains. 4. Taxation and Compliances i. The Taxation and compliance conditions of procurement enterprises are veritably minimum. 5. Confidentiality i. The owner is the sole proprietor of the business undertaking. ii. This means that there’s no leakage of any information to the third party in any way. iii. The sequestration of business is easily maintained. Disadvantages of sole dealer/ procurement 1. Unlimited Liability i. This means that at the circumstance of any loss the owner has to meet all the arrears. ii. The particular means of owner may get used for discharging any arrears and debts. 2. carrying financesi. It’s easy for a registered company to raise loan whereas it’s extremely delicate for the sole owner to raise the same. ii. This is due to the threat factor which is associated with the owner. 3. Advanced levies i. A owner can also be subject to the prevalence of payment of advanced levies. ii. Proprietorship enterprises are tested as if the existent is being tested. 4. No Business Write- Offs i. There are no business write- offs which live in a procurement. Que5.2. What do you understand by the term cooperation? What are the features of cooperation? Also mention the types of mates. Answer 1. A cooperation is an arrangement between two or further people to oversee business operations and partake its gains and arrears. 2. The mates in a cooperation may be individualities, businesses, interest grounded associations, seminaries, governments or combinations. 3. The law relating to cooperation establishment in India is specified in the Indian Partnership Act of 1932. 4. This Act lays down the rights and duties of the mates between themselves and other legal relations between mates and third persons, which are incidental to the conformation of a cooperation. Features of Partnership 1. conformation Partnership Agreement i. According to the act, a establishment must be formed via a legal agreement between all the mates. So a contract must be entered into to form a cooperation establishment. ii. Its business exertion must be legal, and the motive should be one of profit. 2. Unlimited Liability i. All mates have unlimited liability in the business. ii. The mates are all collectively and concertedly liable for the establishment and the payment of all debts. iii. This means that indeed particular means of a mate can be liquidated to meet the debts of the establishment. 3. durability i. A cooperation can not carry out in infinity. ii. The death or withdrawal or ruin or bankruptcy or insanity of a mate will dissolve the establishment. iii. Also, the cooperation of a father can not be inherited by hisson.However, he can be added on as a new mate, If all the other mates agree. 4. Number of Members i. There should be a minimum of two members. ii. The maximum number may vary according to a many conditions. 5. collective Agency i. In this type of organisation, the business must be carried out by all the mates together. ii. Or it can be carried out by any of the mates( one or several) acting on behalf of all of them. iii. This means every mate is an agent as well as the star of the cooperation. Types of mates 1. Active Partner i. He takes active participation in the business of the establishment. ii. He contributes to the capital, has a share in the profit and also participates in the diurnal conditioning of the establishment. iii. His liability in the establishment will be unlimited. 2. Dormant Partner i. Also known as a sleeping mate, he’ll not share in the diurnal functioning of the business. ii. But he’ll contribute to the capital. In return, he’ll have a share in the gains. iii. His liability in the establishment will be unlimited. 3. Secret Partneri. He’ll not represent the establishment to outside agents or parties. ii. His participation with respect to capital, gains, operation and liability is same as all the other mates. 4. Nominal Partner i. This mate is only a mate in name. ii. He allows the establishment to use the name of his establishment, and the attached goodwill. iii. He doesn’t contribute to the capital and hence has no share in the gains. iv. His liability in the establishment will be unlimited. 5. Partner by Estoppel i. One who isn’t an factual mate but presents himself to be the mate of the establishment. ii. His liability in the establishment will be unlimited. Que5.3. Mention the advantages and disadvantages of cooperation. Answer Advantages of Partnership Firm The following are the major advantages of a cooperation establishment 1. Easy to Starti. Partnership enterprises are one of the easiest to start. ii. The only demand for starting a cooperation establishment is a cooperation deed. Hence, a cooperation can be started on the same day. iii. An LLP enrollment takes about 5 to 10 working days. Business Associations &E-Governance 5 – 6 P( NCC- Sem- 5 & 6) 2. Decision Makingi. Decision making in a cooperation establishment could be briskly as there’s no conception of the end of judgments . ii. The mates in utmost cases can take over any sale on behalf of the cooperation establishment without the concurrence of other mates. 3. Raising of finances i. When compared to a procurement establishment, a cooperation establishment can fluently raise finances. ii. Banks also fluently permission credit installations to cooperation establishment rather of a procurement establishment. 4. Sense of Ownershipi. People in a cooperation establishment are united for a common cause. ii. Power creates a advanced sense of responsibility, which paves the way for a active pool. Disadvantages of Partnership Firm The disadvantages of a cooperation establishment are as follows 1. Unlimited Liabilityi. Every mate is liable tête-à-tête for the losses of a cooperation establishment. ii. The liability created by a mate will also make each of the other mates tête-à-tête liable. iii. To limit the liability of mates, the LLP structure was created by the Government. 2. Number of Members i. The maximum number of members a cooperation establishment can have is confined to 20. 3. Lack of a Central Figurei. Combined power takes down the possibility of leadership and lack of leadership leads to directionless operations. 4. Trust of the General Public i. A cooperation establishment is easy to start and also operates without important of a structure or regulations. Hence, it frequently leads to mistrust amongst the general public. 5. Abrupt Dissolution i. A cooperation establishment would be dissolved due to the death or bankruptcy of a mate. ii. Such an abrupt dissolution will hinder a business. Que5.4. What’s Companies Act, 2013? What are the salient features of Companies Act, 2013? Answer 1. The Companies Act 2013 is an Act of the Parliament of India on Indian company law. 2. The act regulates the objectification, liabilities, directors and dissolution of a company in India. 3. The Companies Act, 2013 offers a number of vittles for governing all the listed as well as unrecorded associations in India. 4. The Act provides further power to the shareholders and emphasizes more on Commercial Governance. Salient features of Companies Act, 2013 Some of the Salient features of the Companies Act, 2013 are as under 1. Republic of Shareholders. 2. Supremacy of Shareholders. 3. Strengthening Women benefactions through Board Room. 4. Commercial Social Responsibility. 5. National Company Law Tribunal. 6. Cross Border Combinations. 7. Prohibition on forward dealings and bigwig trading. 8. Increase in number of Shareholders. 9. Limit on Maximum mates. 10. One Person Company. 11. Entrenchment in Articles of Association. 12. Electronic Mode. 13. Independent Directors. 14. Serving Notice of Board Meeting. 15. Duties of Director defined. 16. Liability on Directors and Officers. 17. Gyration of Adjudicators. 18. Adjudicators performingNon-Audit Services. 19. Financial Year. 20. Rehabilitation and Liquidation Process. 21. Restriction on Composition. 22. Fast Track Combinations.
