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Company form of Business Organisation

Telangana Open School (TOSS) · Class 12 · Business Studies

Quick revision notes for Company form of Business Organisation — Telangana Open School (TOSS) Class 12 Business Studies. Key concepts, formulas, and definitions for last-minute revision.

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.

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Full Notes

Key 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?
Company form of Business Organisation covers several key topics that are frequently asked in Telangana Open School (TOSS) Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Company form of Business Organisation — Telangana Open School (TOSS) Class 12 Business Studies?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and 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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