Question

CASE STUDY 2.4
Question
ір
The two friends, Soniya and Raman started a business
by the name of 'Soniyo Fancy Dress Shoppy'. Both of
17
them invested equal capital in the business. At the
ra start of the business, Soniya had placed one condition
before Raman that if unfortunately they suffered a
of heavy loss in their business, she would not be able to
give anything except the capital invested in the
business, Raman had accepted this condition on the
in
terms and condition that Soniya would not enjoy the
right to participate in the management of the firm
Their business was gradually growing well and they
were fully satisfied with their business,
(a) To what form of business organisation is
concerned the above para?
(b) Identity and explain the type of the form of
3 marks
organisation identified in (a).
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Answer 1

Answer:

The two friends, Soniya and Raman started a business

by the name of 'Soniyo Fancy Dress Shoppy'. Both of

17

them invested equal capital in the business. At the

ra start of the business, Soniya had placed one condition

before Raman that if unfortunately they suffered a

of heavy loss in their business, she would not be able to

give anything except the capital invested in the

business, Raman had accepted this condition on the

in

terms and condition that Soniya would not enjoy the

right to participate in the management of the firm

Their business was gradually growing well and they

were fully satisfied with their business,