Suresh returned to srilanka from the Switzerland who worked 10 years there. He started a business inhis name of wife usha store with using of five million from his earning. The main business of hisbusiness is buying and selling of textile. After that who admit his friend bala who expert in textileindustry for expanding his business. After that the name changed as Selva & Co.(i) A) Under which sector the first business was included.B) Weather he need to register is business? State the reason ( Marks)(ii) A) Under which act and where it should be register the first business?B) State the documents need to register those businesses. ( Marks)(iii) State two advantages and disadvantages of changing the usha store as Selva & Co( Marks)(iv) A) In order to overcome the drawback of Selva & Co what type of business is suitable.B) State the advantages of converting the those business.(v) State four characteristics of Company limited by guarantee
Question
Suresh returned to srilanka from the Switzerland who worked 10 years there. He started a business inhis name of wife usha store with using of five million from his earning. The main business of hisbusiness is buying and selling of textile. After that who admit his friend bala who expert in textileindustry for expanding his business. After that the name changed as Selva & Co.(i) A) Under which sector the first business was included.B) Weather he need to register is business? State the reason ( Marks)(ii) A) Under which act and where it should be register the first business?B) State the documents need to register those businesses. ( Marks)(iii) State two advantages and disadvantages of changing the usha store as Selva & Co( Marks)(iv) A) In order to overcome the drawback of Selva & Co what type of business is suitable.B) State the advantages of converting the those business.(v) State four characteristics of Company limited by guarantee
Solution
(i) A) The first business was included under the retail sector as it involved buying and selling of textiles. B) Yes, he needs to register his business. The reason is that it is a legal requirement for all businesses to be registered in order to operate legally. It also helps in getting legal rights and protections.
(ii) A) The first business should be registered under the Companies Act in the country where the business is located, in this case, Sri Lanka. B) The documents needed to register these businesses include: a completed application form, proof of identity, proof of address, a detailed business plan, and a certificate of incorporation.
(iii) Advantages of changing the Usha store to Selva & Co include: a new brand identity which could attract new customers and the expertise of Bala in the textile industry which could lead to business expansion. Disadvantages include: potential confusion among existing customers due to the name change and possible disagreements between Suresh and Bala as they now share business decisions.
(iv) A) To overcome the drawbacks of Selva & Co, a partnership business might be suitable. This allows for shared responsibility and decision making. B) Advantages of converting the business include: shared financial responsibility, increased resources and skills, and shared risk.
(v) Four characteristics of a Company limited by guarantee are: limited liability, non-profit distribution, separate legal entity, and asset lock.
Similar Questions
Suresh returned to srilanka from the Switzerland who worked 10 years there. He started a business inhis name of wife usha store with using of five million from his earning. The main business of hisbusiness is buying and selling of textile. After that who admit his friend bala who expert in textileindustry for expanding his business. After that the name changed as Selva & Co.(i) A) Under which sector the first business was included.B) Weather he need to register is business? State the reason ( Marks)(ii) A) Under which act and where it should be register the first business?B) State the documents need to register those businesses. ( Marks)(iii) State two advantages and disadvantages of changing the usha store as Selva & Co( Marks)(iv) A) In order to overcome the drawback of Selva & Co what type of business is suitable.B) State the advantages of converting the those business.(v) State four characteristics of Company limited by guarantee
a) Mr. Suresh commenced business with cash Rs. 40,000
Rural caseLakha Singh belongs to a small villagenear Meerut in Uttar Pradesh. Hisfamily doesn’t own any land, so theydo odd jobs for the big farmers. Workis erratic and so is income. At timesthey get paid Rs 50 for a hard day’swork. But often it’s in kind like a fewkilograms of wheat or dal or evenvegetables for toiling in the farmthrough the day. The family of eightcannot always manage two squaremeals a day. Lakha lives in a kuchhahut on the outskirts of the village.The women of the family spend theday chopping fodder and collectingfirewood in the fields. His father aTB patient, passed away two yearsago due to lack of medication. Hismother now suffers from the samedisease and life is slowly ebbing away.Although, the village has a primaryschool, Lakha never went there. Hehad to start earning when he was 10years old. New clothes happen oncein a few years. Even soap and oil area luxury for the family.
Read the following passage and answer the questions given belowRahul, Ravi, and Raju are the parteners of a business. They started a partnership business in the textiles. Their capital were Rs 4,00,000 Rs 3,00,000 And Rs 1, 00,000 respectively. They decided to share the profit and losses in the ratio of 4:3:1.They decided to expand their business, The new partner was admitted Ramesh in the firm for 1/5th of share in the profit. On Ramesh admission the goodwill of the firm was valued at 3 years. Purchase of last 5 years average profit. The profit during last 5 year were Rs 5,00,000 , 4,00,000 and 2,00,000 , 1,00,000 . Ramesh brought Rs 2,00,000 his capital and Also his share of goodwill 1) What amount of capital will be brought by Ramesh1 point1,00,0002,00,00050,0003,00,0002) What is the total capital of the firm at the time of started the business1 point2,00,0001,00,0008,00,0005,00,0003) Who is the new partner of the firm1 pointKavinRameshRaniKeshavOther:4) On the Ramesh admission the goodwill of the firm is valued at ______ year*1 point5327Other:BackNextClear form
Q-1: Journalise the following transactions:Jan-1 Ramesh started business with cash Rs. 50,000.Jan-4 Purchased goods for cash Rs. 7,000.Jan-5 Sold goods for cash Rs. 5,000.Jan-7 Purchased goods from Mohan on credit worth Rs. 4,500.Jan-12 Sold goods to Sohan on credit worth Rs. 2,000.Jan-16 Paid wages amounted to Rs. 4,000.Jan-17 Paid salaries to Rs. 2,500Jan-22 Received commission Rs. 2,000.Jan-25 Goods returned by Sohan worth Rs. 1,500.Jan-28 Returned goods to Mohan Rs. 1,000.Jan-30 Cash Received from Sohan Rs. 1,200.Jan-31 Purchased furniture from Deepak worth Rs. 5,000.
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