Chapter 5 of 20
Revision Notes
Company form of Business Organisation — Revision Notes
Telangana Open School (TOSS) · Class 12 · Business Studies
Company form of Business Organisation revision notes for Telangana Open School (TOSS) Class 12 Business Studies: 4 topics in quick points.
45 questions30 flashcards5 concepts
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Key Topics to Revise
1
Meaning and Definition of a Company
- A company is an artificial person created by law with a separate legal identity.
- It is formed under the Companies Act, 2013, and must be registered to exist legally.
- According to Prof. L.H. Haney, a company is 'an artificial person created by law, having separate entity, with a perpetual succession and common seal.'
2
Characteristic Features of a Company
- Incorporated association: Must be registered under the Companies Act.
- Separate legal entity: Distinct from its members; can own property and sue/be sued.
- Artificial person: Exists only in law, not a natural being.
3
Types of Companies
- Private Company: Minimum 2 members, maximum 200, restricted share transfer, cannot invite public subscription.
- Public Company: Minimum 7 members, no upper limit, free transfer of shares, can issue shares to public.
- One Person Company (OPC): Only one member, must be an Indian citizen and resident.
4
Merits and Limitations of a Company
- Merits: Large resources, limited liability, perpetual existence, professional management, easy transfer of shares, scope for R&D.
- Limitations: Difficult formation, excessive government control, delay in decision-making, lack of secrecy, risk of monopoly.
Get complete notes with diagrams and examples
Full NotesKey Concepts
A company is a voluntary associationA private company restricts share transferCompany formation involves four stagesAn MNC operates in multiple countriesPublic enterprises are owned and managed
Frequently Asked Questions
What are the important topics in Company form of Business Organisation for Telangana Open School (TOSS) Class 12 Business Studies?
Key topics in Company form of Business Organisation include Meaning and Definition of a Company, Characteristic Features of a Company, Types of Companies, Merits and Limitations of a Company. Study these first, then practise questions on each for the Telangana Open School (TOSS) Class 12 board exam.
How should I revise Company form of Business Organisation for the Telangana Open School (TOSS) Class 12 board exam?
Learn the core ideas first, then work through the 45 practice questions on Company form of Business Organisation. Revise definitions regularly and use flashcards for quick recall before the exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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