THE COMPANIIES ACT‚‚ 1956 THE COMPAN ES ACT 1956 01 Q. Define a Company. Explain the essential features of a Company. Section 3(1) of the Companies Act‚ 1956 defines a company as “An association of individuals form for some purpose and registered under the present Companies Act or an earlier Indian Companies Act.” The following are the essential features of a company 1) Separate Legal Entity - A company on registration has a separate identity of its own which is different and distinct from
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profit (or loss) of the business. •Whether or not you need to re-invest earnings into the business. •Your need for access to cash out of the business for yourself. An overview of the four basic legal forms of organization: Sole Proprietorship; Partnerships; Corporations and Limited Liability Company follows. Sole Proprietorship The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person‚ usually the individual who has day-to-day responsibility for
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Q1 - Internal Controls (lecture 3): 15 Marks. ------------------------------------------------- He said he will ask either a petty cash question or a bank reconciliation one but not both. The question will also probably test us on e-controls or cash control for cash receipts and cash payments. What is internal control? It is the organisational plan and all the related measures that an entity adopts to: * safeguard assets * encourage adherence to company policies * promote operational
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within the firm. We start by examining the origins of the marketing management framework‚ the generally accepted paradigm of the marketing discipline for the past three decades then the shifting managerial practice is examined with close emphasis on dissolution of hierarchical bureaucratic structures in favour of networks of buyer seller relationships and strategic alliances. Within those new forms of organisation the changing role of marketing is discussed and a reconceptualisation of marketing as a
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advantage of the partnership form is that the personal assets of the partners are protected from creditors in case of legal action- False 2. A partnership is considered an “entity” for accounting purposes- True 3. “Mutual agency” means that one partner can legally bind all the other partners to a contract if it appears that he or she is acting appropriately- True 4. Partners are taxed on their drawings regardless of their share of the income. False 5. If a partnership agreement is silent
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LIT 1 Task 1 Sole Proprietorship A sole proprietorship is the most common type of business in the United States. It is formed when a person starts a business‚ but does not register it as a corporation‚ or a limited liability company. Most contractors‚ consultants‚ and home businesses operate under this form of business. Sole proprietorships are easy to form‚ and provide the owner with total control over the business. All of the profits belong to the owner‚ because the business and the owner
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written agreement‚ or mere conduct‚ express or implied agreement\unlimited personal liabilities for all partnership obligations\1owners manage directly or can agree to appoint managing partner. 2. inflexible: important action such as Admission of new members or amendment to partnership requires unanimous consent. ordinary matters of business require majority vote.3. equal rights to control partnership and share profit and loss equally if they did not provide how they would share profit and loss\partners
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Analysis for Lone Pine Café The Lone Pine Café case involves a partnership of three people who initially invested $16‚000 cash each in the venture. The first transaction resulted in a one year lease being signed for $1‚500 per month or $18‚000 per annum. The owners occupied quarters above the Café. No rental amount was assigned to this apace. The owners then borrowed $21‚000 from a local bank and then utilized $35‚000 of the initial capital invested in the firm to purchase $53‚200 of
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Nearly a quarter century ago‚ Denmark broke down barriers to become the first nation to legally recognize same-sex couples through registered partnerships. Same-sex marriage is currently legally recognized nationwide in eleven nations – Argentina‚ Belgium‚ Canada‚ Denmark‚ Iceland‚ the Netherlands‚ Norway‚ Portugal‚ South Africa‚ Spain and Sweden (The Economist‚ 2012). In the United States‚ the decision is made at the state level. After the 2012 elections‚ there are now nine states (Connecticut‚
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2013-14 Reference: Accounting 2nd edition. Waren‚C.‚ Reeve‚ J.‚and Duchac‚ J. ( with slight modifications) Case 1. Partnership agreement Jose Reyes‚ M.D. and Joseph Luke‚ M.D. are sole owners of two medical practices that operate in the same medical building. The two doctors agree to combine assets and liabilities of the two businesses to form a partnership. The partnership agreement calls for dividing income equally between the two doctors. After several months‚ the following conversation
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