DEFINE JOINT STOCK COMPANY? WHAT ARE ITS MERITS AND DEMERITS?

Characterize Joint Stock Company? What are its benefits and faults? 

A business entity is an organization whose capital is separated into shares and the risk of whose shareholder is constrained to the standard estimation of the shares individually held by them. Business entities fall under two unmistakable classifications. The main class comprise of an organization whose promoters secure a part of its offer capital by method for exchanging shares to the general population and such an organization is known as an open organization. The second class comprise of an organization whose offer capital, in its totally, is secured by its promoters and such an organization is called privately owned business.

Meaning of Joint Stock Company:

A business entity is a simulated individual perceived by law with a particular name, a typical seal a typical capital involving transferable conveying restricted risk and having an interminable progression. It is shaped and controlled under the organization law of the state. It is an exceptionally well known type of association.

Points of interest OF JOINT STOCK COMPANY:

Taking after are the essential focal points of business entity:

1.Expansion of Business: 

A business entity offers the offer bonds and debenture on expansive scale. So it can gather an extensive capital and can extend its business.

2. Constrained LIABILITY: 

If there should arise an occurrence of misfortune the obligation of the shareholders is constrained to the sum, they have contributed. So their private property stays safe if there should arise an occurrence of misfortune.

3.TRANSFER OF SHARES: 

The offer of general society organization can be effectively exchanged or arranged off. There is no confinement on it.

4.LARGER CAPITAL: 

There is no issue of capital lack around here association in light of the fact that there is no restriction for most extreme number of individuals. So it gathers the capital from every one of the general population.

5.DURABILITY: 

This kind of association is more steady and strong in light of the fact that the life of organization is not influenced by the passing or bankruptcy of any part.

6.ECONOMICS OF LARGE SCALE: 

The organization builds the measure of business and appreciates every one of the economies on huge scale.

7.BETTER MANAGEMENT: 

A business entity is administrated by the chose executives. These are for the most part experienced and qualified individuals, so productivity of the organization moves forward.

8.EXPERTS SERVICES: 

Because of sound money related assets a business entity may employ the administrations of qualified and specialized specialists.

9.PROVIDE EMPLOYMENT: 

Business entity are paying extremely viable part in diminishing the unemployment in the nation.

10.FLEXIBILITY: 

There is adaptability around here. New changes can be made effortlessly with the evolving circumstances.

Burdens OF JOINT STOCK COMPANY:

Followings are the principle weaknesses of Joint stock organization:

1.COMPLICATED PROCESS: 

The development of Joint stock organization is an extremely troublesome procedure. Numerous legitimate customs are watched be the originators. A considerable measure of time and cash is squandered.

2.DIFFERENCE OF OPINION: 

Here and there distinction of feeling happens on some imperative issue among the chiefs and officers of the organization. It turns into the reason for misfortune.

3.LACK OF RESPONSIBILITY: 

There is absence of individual hobby and obligation in the matter of an organization. If there should be an occurrence of any error each body tries to exchange its obligation to other individual.

4.NEPOTISM: 

General Directors of organization utilize their unable relatives and companions on key occupations. Because of this expense of creation increments and organization endure a misfortune.

5. CENTRALIZATION OF POWERS: 

Every one of the forces of the business entity are in few hands since shareholder can not take enthusiasm for the organization issues. So chiefs take profits by the organization.

6.GROWTH OF MONOPOLY: 

Business entity needs a monopolistic control over the business sector while syndication is dependably against people in general hobby.

7.LACK OF SECRECY: 

An organization can't keep up this mystery since it presents the different report to enlistment center. At some point it influence the goodwill of the firm gravely.

8.CORRUPTION: 

Here and there executive of the organization don't demonstrate the genuine photo of the organization to general society and they bamboozle them.

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EXPLAIN TH DIFFERENT KIND OF JOINT STOCK COMPANY

Clarify Th Different Kind of JOINT STOCK COMPANY 

Followings are the vital sorts of Joint Stock Company:

1.Chartered Company. 

2.Statutory Company. 

3.Registered Company. 

1.CHARTERED COMPANY: 

An organization which is made by the Royal request is called contracted organization. Its forces, Rights and Functions are Governed by the contract. In the present age this kind of organization is not preferred by the general population. Presently every one of the organizations are enlisted.

Example:East India Company, Chartered Bank of England, Reserve Bank of India.

2.STATUTORY COMPANY: 

An organization which is framed bye the request of Governor General, President of Prime Minister ob by the Special demonstration of parliament is called statutory organization. These organizations are sorted out for the object of social welfare business. Government gives full insurance to these organizations. These organizations have a restraining infrastructure in their business. The offer holders have a restricted risk.

Illustrations: State Bank of Pakistan, National Bank of Pakistan.

3. Enlisted COMPANY: 

Those organizations which are framed under the organization's statute 1984 are called enlisted organizations. Enrolled organization has separate element from its individuals.

Samples: Colony Textile Mills Limited, Adam Jec Industries Limited.

Enrolled Company has taking after sorts:

i.Unlimited Company.

ii.Company Limited by Shares.

iii.Company Limited by surety.

I.UNLIMITED COMPANY: 

The shareholders of the boundless organization are subject to pay the obligations and different commitments of the business. So the risk of the individuals is boundless.

Samples: Karachi Stock Exchange.

II.COMPANY LIMITED BY SHARES: 

In this organization the obligation of every part is boundless to the measure of the shares which he holds. It has two sorts.

a.Private restricted organization. 

b.Public restricted organization. 

A. PRIVATE LIMITED COMPANY: 

It can be framed at any rate by two persons however add up to participation can not surpass than fifty. Neither it can issue the shares nor would it be able to exchange the shares. Organization likewise utilizes the word restricted with its name.

Obligation of the offer holders is additionally restricted.

Example:Azhar Corporation Private Limited.

B. Open LIMITED COMPANY: 

No less than seven individuals can shape the general population restricted organization however there is no restriction to the most extreme part. Organization can offer the shares to the general population. The shares can without much of a stretch exchange. It can issue the debenture to acquire the capital.

Sample: Chenab Textile Public Limited.

III. Organization LIMITED BY GUARANTEE: 

In this organization every part gives an insurance to contribute a predefined sum on its twisting up. So risk of the shareholders is constrained to that ensure which they have given. These sorts of organizations are for the most part framed for Clubs to advance social welfare exercises.

Example:Faisalabad Chamber of Commerce.

4. Different COMPANIES: 

I. Affiliation NOT FOR PROFIT: 

This sort of affiliation appreciates every one of the advantages of a restricted organization without utilizing the word Limited.

These are framed for the advancement of trade and religion and so forth.

Case: Sahara Life Trust.

II. HOLDING COMPANY: 

An organization controlling fractional or complete enthusiasm for another organization. On the other hand an organization which holds more than half of shares other organization.

Illustration: Nestle Pakistan.

III.SUBSIDIARY COMPANY: 

An organization having more than half of its stock possessed by another organization.

Samples: Polka by Walls.

IV. GOVERNMENT COMPANY: 

The organizations Act characterizes a Government Company as "any organization in which at the very least 51% of the offer capital is held by the Central Government or by any state Government or mostly by one or more state Governments and incorporates an organization which a backup of a Government Company as in this manner characterized".

Samples: WAPDA and Pakistan Railway. 

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WRITE A NOTE ON MODES OF DISSOLUTION OF PARTNERSHIP AND FIRM?

Presentation: 

A current organization breaks down at whatever point the reconstitution of the current firm is brought about by confirmation, retirement or demise of an accomplice. Be that as it may, the disintegration of the accomplice does not prompt the disintegration of the firm following the two circumstances are distinctive. If there should be an occurrence of disintegration of organization, the firm proceeds is broken up however the firm likewise loses its presence, after disintegration of firm, the firm doest not stay in business.

Disintegration of a Partnership: 

The connection of association among various accomplices is changed without changing the organization firm.

In this manner, if there should be an occurrence of disintegration association, the financial premise of relationship of accomplices is reconstituted without influencing the solidarity of the firm which keeps on staying in business as ever some time recently. An organization is broken up by change of shared contract in the accompanying cases:

1. Change in benefit sharing proportion among accomplices.

2. Affirmation of another accomplice.

3. Retirement of an accomplice, where no less than two accomplices stay as accomplices.

4. Passing of an accomplice.

5. Settling of an accomplice as in indebted.

6. Consummation of an endeavor if association is framed for that.

7. Expiry of the time of organization if association is for a for each decided period.

Disintegration of a Firm: 

Disintegration of a firm happens in the accompanying cases:

1. Disintegration bye understanding:

A firm is broken down in the event that:

a. Every one of the accomplices offer agree to it,

b. According to the term of organization assention.

2. Mandatory disintegration:

A firm is disintegrated obligatory in the accompanying cases: 

a. Where every one of the accomplices or all aside from one accomplice, get to be wiped out or crazy rendering them bumbling to sign an agreement.

b. Where the business get to be illicit.

c. Where every one of the accomplices with the exception of one choose to resign from the firm.

d. Where every one of the accomplices or all aside from one accomplice bites the dust.

e. Expiry of the period for which the association was shaped;

f. Culmination of the particular wander or venture for which the firm was framed.

3. Disintegration by notification: 

In the event of association voluntarily, the firm might be break up if any of the accomplices give a notification in composing to different accomplices implying his expectation of looking for disintegration of the firm.

4. Disintegration by court: 

A court, may arrange an association firm to be broken down (under area 44), if there should be an occurrence of a suit by an accomplice in the accompanying circumstances:

a. An accomplice gets to be crazy;

b. An accomplice turns out to be forever unequipped for performing his obligations as an accomplice;

c. An accomplice intentionally and reliably confers break of understandings identifying with the administration of the firm;

d. An accomplice's behavior is liable to unfavorably influence the matter of the firm;

e. The accomplice exchanges entire of his enthusiasm for the firm to an outsider;

f. The matter of the firm can't be continued, aside from at a misfortune;

g. The court, on any ground, respects disintegration to be just and impartial.

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DISCUSS PROCEDURE OF THE REGISTRATION OF THE FIRM AND EXPLAIN THE ADVANTAGES OF REGISTRATION?

Examine method of the Registration of the Firm and clarify the benefits of enrollment? 

Presentation: 

Enrollment of structure is not obligatory by law. However, by and large the firm looks for enlistment to stay away from specific inabilities. The accompanying essential data must be given on recommended from to the recorder for the enrollment:

1. Name of the firm under which the business is to be gone ahead.

2. Chief spot of business of the firm.

3. Name of sub-office where the firm may direct business.

4. Nature of business.

5. The term of firm.

6. The name of accomplices, their lasting locations and different particulars.

7. The date of joining of every accomplice in the firm.

Technique OF THE REGISTRATION OF THE FIRM:

1.SIGNATURE AND VERIFICATION OF PRESCRIBED FORM: 

The announcement of recommended from might be marked by every one of the accomplices and appropriately checked.

2.PRESCRIBED FEE AND SUBMISSION OF FORM: 

Essential endorsed expense will be paid and shape will be submitted to the neighborhood enlistment center's office alongside duplicates of Chelan.

3.ENTRY OF REGISTRATION: 

At the point when the recorder of firm is fulfilled that the prerequisites of enrollment have been appropriately consented to, he should request that the concerned individual record the announcement in an enlistment center is known as the register of firm.

4.CHANGES IN THE FORM: 

It is additionally prudent that each adjustment in the quantity of individuals, their locations or spot of business ought to be properly advised on an endorsed structure to the enlistment center.

Favorable circumstances OF REGISTRATION:

The benefits of enrollment might be gathered into:

a. Lawful Advantages. 

Lawful ADVANTAGES OF THE REGISTRATION OF THE FIRM: 

1. SETTLEMENT OF CLAIMS: 

Enlisted firm can record suit against the outsiders. So the privileges of enrolled firms are sheltered protected by law. In any case, an unregistered firm or its accomplice can't implement its case against the outsiders or its co-accomplice.

2. Assurance OF RIGHTS: 

The rights and benefits of new accomplice are likewise ensured in enrolled firms. In any case, if approaching accomplice neglects to enlist himself, he will cause awesome danger, since he won't be in a position to record suit for his duty against his organizations or his co-accomplices.

3.PROTECTION OF PROPERTY: 

The property of the resigned or perished accomplice keeps on being obligated for the demonstration firm does after his demise or retirement until open notification is served for the change to enlistment center, so there is solid prompting for accomplices of enrolled firms to have the progressions noted in the recorder. Be that as it may, there is unregistered firms, the private property of the out-going accomplice will be viewed as subject to charge the obligations disregarding retirement.

4. Security TO CREDITORS: 

Enlisted firms needs to keep up right, finish and a la mode record of its accomplices who will be subject for the commitment of the firm. The announcement recorded in the register in regards to constitution of firm would manage the cost of a solid protection against untrue refusal of organization and the avoidance of liabilities to individual who need to manage the firm.

GENERAL/ADVANTAGES OF THE REGISTRATION OF THE FIRM: 

1. GOVERNMENT FACILITIES: 

Government gave numerous offices and benefits to firms. It offers security to business and creation, which makes it more beneficial.

2. Open CONFIDENCE: 

Individuals have more trust in the enlisted firm than unregistered firm, since they imagine that these organizations are working under the supervision of the administration and there are no odds to extortion or deception in the interest of enrolled firms. In this way they make business contract with them with no apprehension.

3.CREDIT FACILITIES: 

Bank and other budgetary organization give credit to enrolled firms with no dithering. As these organizations comply with the administration tenets and regulations, so they have full trust on them.

4.LEGAL PROTECTION: 

Enlisted firms has full legitimate assurance as looked at unregistered firms. As they work entirely as per government rules and regulations,so they have no apprehension from government to run their work illicit.

5. BUSINESS REPUTATION: 

Enrolled adds to notoriety. Different firms can't duplicate their items. Such firms utilize their exchange marks which are enrolled and no different firms enlisted or non enlisted can utilize this mark.but not items.

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WHAT ARE THE DIFFERENT KIND OF PARTNERS IN PARTNERSHIP?

Ans: The followings are the significant grouping of the organization: 

1.Active Partner: 

A man who takes dynamic part, in the issues and administration of the business is called dynamic accomplice.

He contributes his shares in the capital and is additionally at risk to pay the commitments of firm.

2.Nominal Partner: 

He is not in all actuality an accomplice but rather his name is utilized as he is individual from the firm. The individual who has great Repute and status is given, the position of ostensible accomplice.

3.Sub-Partner: 

The individual who gets an offer of benefit from one of the consistent accomplice is known as the Sub-Partner.

He isn't subject to pay the obligation of the firm.

4.Silent Partner: 

It is that sort of accomplice who doesn't not take an interest in the issues of the business but rather is referred to considers as an accomplice of the firm. He is subject to pay the obligations of the firm like different accomplices.

5.Secret Partner: 

It is dynamic in the running existence of the firm however open does not know him as accomplice of the firm. He contribute his offer in the capital and is at risk to settle the leasers of the firm.

6.Sleeping Partner or Dormant Partner: 

A man who does not lead the administration of the firm by and by (b) is not referred to the pariahs as an accomplice of the firm, is called resting accomplice. Be that as it may, he put his sum in the business and is at risk to clear the obligations of the firm.

7.Minor Partner: 

There is no confinement to join the minor in the organization by law. In spite of the fact that he may get to be accomplice however with the assent of every single existing accomplice. For this situation, he can be admitted to the benefit of the firm just yet not misfortunes. He is not by and by at risk for the commitments of the firm. In any case, minor has the privilege to review the records of the firm.

8.Quasi Partner: 

A man who has resigned from the running administration life of the firm however he doesn't pull back his capital from the business is known as semi accomplice. So his capital is considered as a credit and he gets enthusiasm at the rate fluctuating with the benefit. Truly he is not an accomplice but rather he is a Deferred Creditor.

9. Senior Partner: 

A man who brings extensive segment of capital in the business is called senior accomplice. He has unmistakable position in the firm because of his experience, expertise, vitality, age and different capacities.

10.Junior Partner: 

He put minor part of the capital in the business thus he has little partake in the benefit. He is junior to other accomplice in the firm because of his age and experience.

11. Holding out Partner: 

A man who pronounces by listening in on others' conversations as accomplice of the firm is gotten holding out accomplice. As a general rule he is not a consistent accomplice so he is not qualified for get offer of benefit. Such individual are at risk to those gatherings who have given credit on the confidence of such representation.

12.Salaried Partner: 

A person who does not bring anything i.e. sum or products in the firm yet has right to get compensation or offer in the benefit or both is named as pay rates accomplice.

13.Income Partner: 

A man who is recently admitted to the firm with the assent of the considerable number of gatherings is called approaching accomplice. He is not obligated for any demonstration of the firm done before he turned into an accomplice unless he concurs.

14.Retired Partner: 

A man who leaves a firm because of certain occasion or reason is known as resigned or out going accomplice. In this circumstance the remaining accomplices keep on carrying on the business. Resigning accomplice is at risk for every one of the commitments and obligations acquired before the retirement. Be that as it may, he will likewise be at risk to outsiders notwithstanding for future exchange, on the off chance that he doesn't give open notification of his retirement.

15.Partners in Profit Only: 

He is a person who gets an offer of the benefit just without being obligated for the misfortunes. He doesn't take an interest in the administration of the business. He will be at risk to untouchables for all demonstrations of the firm.

16. Restricted Partner: 

A man who has not to pay any commitment more than the offer he holds in the firm is called restricted accomplice. He can not participate in the administration of the firm. This sort of accomplice exist in constrained organization. In any case, this association is uncommon in our nation.

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DEFINE CO-OWNERSHIP AND PARTNERSHIP? MAKE DIFFERENCE BETWEEN THEM?

ans: Co-Ownership: 

The relationship utilize their cash with a specific end goal to possess property. At the end of the day, it is the joint responsibility for by two or more persons. This proprietorship is for the most part made by the operation of law and also from status. Assertion is not vital for its development. The individual who shape his sort or association are exclusively known as co-proprietors and are all things considered named as co-possession.

Organization: 

Organization is the relationship between two or more persons who consented to share benefit of the business carried on by all or any of them representing all. The quantity of the accomplices must not surpass twenty in conventional business and not more than ten in keeping money business. It can be shaped with no legitimate conventions. Like individual possession it is easy to frame and simple to run. Two or more persons may begin this business with a moderate capital and new accomplices might be conceded for getting extra capital. In Pakistan, it is controlled under the organization demonstration 1932.

Distinction BETWEEN CO-OWNERSHIP AND PARTNERSHIP 

1.Creation: 

Co-ownership:It is for the most part emerged by the operation of law or status. Understanding is not crucial for the arrangement of co-possession.

Organization: It must be made by the understanding or contract. No agreement no association. Understanding might be communicated or suggested.

2.Sharing of benefit: 

Co-Ownership: There is no understanding of group sharing of benefit or misfortune in co-possession.

Partnership:Sharing of benefit is the premise object of the arrangement of the association.

3.Object: 

Co-Ownership:Under this type of association "business" could conceivably be led.

Organization: Various sort of accomplices are joined to bear on a 'business'.

4.Position: 

Co-Ownership: As one co-proprietor is not an operators of another co-proprietor, he can't tie another by his demonstration.

Partnership:On accomplice is an operators of another accomplice and he can tie all persons by this demonstration.

5. Exchanging Right: 

Co-Ownership:A co-proprietor can exchange his offer, right and enthusiasm to other individual without the assent of the current co-proprietor.

Association: An accomplice can't exchange his offer or right to an outsider without the assent of other accomplice.

6.Maximum Limit: 

Co-Ownership: There is no limitation for the most extreme number of co-proprietor in the co-possession business.

Association: There is confinement for minor to wind up a general accomplice as per organization act. 1992.

7. Minor: 

Co-Ownership:Minor can get to be consistent co-proprietor in the co-possession business.

Partnership:There is limitation for minor to wind up a general accomplice as indicated by association Act. 1992.

8. Division of Property: 

Co-Ownership: A co-proprietor can request division of property for his own advantage.

Organization: An accomplice has no privilege to parcel of property however he can request offer of benefit out of the properties.

9.Lien Position: 

Co-Ownership: A co-proprietor not being a specialists of other co-proprietor so he has no lien on the co-possession property.

Association: As one accomplice is a specialists of another accomplice, he has lien on the business property.

10. Right of Dissolution: 

Co-Ownership: The matter of the co-proprietorship can't be broken down by the demise or retirement of any co-proprietor.

Organization: The life of the association is influenced by the demise, retirement or bankruptcy of any accomplice.

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WHAT ARE THE RIGHTS, DUTIES AND LIABILITIES OF PARTNERS IN PARTNERSHIP?

Presentation: 

The association deed contains the shared rights, obligations and commitments of the accomplices, in specific cases; the organization Act additionally makes a required procurement as respects to the rights and commitments of accomplices. At the point when there is no Deed, then rights and commitments as gave in the association Act should apply.

Privileges of a Partner: 

The privileges of an accomplice are as per the following: 

i. Right of the accomplice to partake in the everyday administration of the firm.

ii. Right to be counseled and heard while taking any choice in regards to the business.

iii. Right of access to books of records and call for duplicate of the same.

iv. Right to share the benefit similarly or as settled upon by the accomplices.

v. Right to get enthusiasm on capital contributed by the accomplices to the firm.

vi. Right to profit enthusiasm on advances paid by the accomplices for business reason.

vii. Right to be reimburse in admiration of installment made or liabilities caused or for shielding the firm from misfortunes.

viii. Right to the utilization of organization property only for association business just not himself.

ix. Perfectly fine of the firm and inferred power to tie the firm for any demonstration done in conveying the business.

x.Right to counteract affirmation of new accomplices/ejection of existing partners.xi.Right to resign with the assent of different accomplices and as per the terms and states of deed.

Obligations of a Partner: 

The obligations of an accomplice are as per the following:

i. To bear on the business to the best regular point of preference: 

Each accomplice will undoubtedly bear on the matter of the firm to the best normal point of interest. As it were, the accomplice must utilize his insight and ability in the behavior of business to secure most extreme advantages for the firm.

ii. To be just and reliable to each other: 

Each accomplice must be just and unwavering to different accomplices of the firm. Each accomplice must watch great confidence and decency towards different accomplices in business action.

iii. To render genuine records: 

Each accomplice must render genuine and legitimate records. Every single passage in the books must be suppotred by vouchers and clarifications if requested by different accomplices.

iv. To give full data: 

Each accomplice must give full data of exercises influencing the firm to the next co-accomplices. No data ought to be hidden, kept mystery.

v. To go to determinedly to his obligations: 

Each accomplice will undoubtedly go to constantly to obligations in the behavior of the business.

vi. To work without compensation: 

An accomplice is not qualified for get any sort compensation for joining in the behavior of the business. Be that as it may, by and by, the working accomplices are for the most part paid compensation according to assertion, so likewise commission for some situation.

vii. To repay for misfortune brought on by extortion or unyielding disregard: 

In the event that any misfortune is brought on to the firm on account of accomplice's unyielding disregard in the behavior of the business or extortion confer be him against an outsider then such accomplice must repay the firm for the misfortune.

viii.To hold and utilize association property solely for the firm: 

The accomplices must hold and utilize the association property solely with the end goal of business of the firm not for their own advantage.

ix. To represent individual benefits: 

In the event that an accomplice gets any individual benefit from organization exchange or the association's name, he should represent such benefit and pay it to the firm.

x. Not to bear on any contending business: 

An accomplice must not convey contending business to that of the firm. On the off chance that he continues and gains any benefit then he should represent the benefit made and pay it to the firm.

xi. To share misfortunes: 

It is the obligation of the accomplices to hold up under the misfortunes of the firm. Accomplice share the misfortunes similarly when there is no understanding or according to their benefit offer proportion.

xii. To act inside of power: 

Each accomplice will undoubtedly act inside of the extent of power. In the event that he surpasses his power and the firm experiences any misfortune, he should have remunerated the firm for such misfortune.

xiii. Obligations to be at risk together and severally: 

Each accomplice is together and separately subject to the outsiders for all demonstration of the firm done while he is an accomplice.

3. Liabilities of a Partner: 

The accompanying are the liabilities of an accomplice to outsiders: 

1. Accomplices will undoubtedly bear on the matter of the firm:

a. To most noteworthy basic favorable position,

b. Be just and steadfast to each other,

c. To render genuine records and full data for goodness' sake influencing the firm to any accomplice, his beneficiary or legitimate delegate.

2. In the event that he infers any benefits for himself from any exchange of the firm, or from the utilization of the property or business association of the firm, he might represent that benefit and pay it to the firm.

3. In the event that he carries on any business of the same nature as and rivaling that of the firm, he should represent and pay to the firm for any misfortune brought on to it by his persistent disregard in the behavior of the matter of the firm.

4. Reimbursement the firm for any misfortune brought about to it by his headstrong disregard in the behavior of the matter of the firm.

5. Indeed, endless supply of a firm, the accomplices keep on being obligated accordingly to outsiders for any demonstration done by any of them which would have been a demonstration of the firm, if done before the disintegration, until open notification is given of the disintegration.

6. In boundless association, each is at risk, mutually with the various accomplices furthermore severally, for all demonstrations of the firm done while he is an accomplice. You can be considered by and by in charge of another accomplice's carelessness or imprudence. This implies if your association firm is inadequate to meet its money related commitments, you may need to utilize your own resources for pay off account holders, despite the fact that you by and by may not be at flaw.
So these are the rights and duties of partners in partnership.

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DEFINE PARTNERSHIP DEEDS? WHAT ARE ITS MAIN CONTENTS?

Presentation:

Association is shaped by an assention. The assention might be verbal or in composing or might be deduced from the behavior of the accomplices. To maintain a strategic distance from future debate and contrasts between the accomplices it is desireable to have a composed understanding. The composed assention between or among the accomplices is known as " Partnership Deed" also called "Article of the Partnership". It must be marked all accomplices and stamped as per the demonstration.

Definition:

The organization deed typically conveys the name of the business the location of business and a short outline of the business the accomplices expect to work.

Substance of Partnership Deed:

1.Name of the Firm:

Name of the firm under which the business is to be directed.

2. Nature of Business:

Nature of the business to be directed by the accomplices.

3. Area:

Area of the business where it is to be worked.

4. Rundown of Partners:

Rundown of accomplices their names address and different particulars.

5.Duration of Partnership:

Length of organization; whether it is unequivocal timeframe or inconclusive period.

6.Date of Commencement:

Date of the Commencement of the business.

7. Complete Capital:

The aggregate capital of the firm and the offer of every accomplice in the capital.

8. Proportion of Profit:

The proportion of sharing benefit and misfortunes of every accomplice.

9. Measure of Drwaing:

The sum that every accomplice should be permitted to pull back in suspicion of benefit.

10. Enthusiasm on Capital and Drawings:

Whether enthusiasm to be permitted on capital and charged on drawings and at what rates.

11. Measure of Salary:

The measure of any pay payable to accomplices.

12. Division of Work:

The division of work sum the accomplices for the administration of the firm.

13. Measure of Profit:

The obsession of the measure of benefit payable to any representative other than compensation.

14. Head Office and Branches:

Assignment of the spot for head office a branches.

15. Managing Bank:

The name of the managing bank.

16. Extra Capital:

How further capital, if nexessary is to be presented.

17. Review of Accounts:

Procurements with respect to the arrangement review and marking of records.

18. Guidelines of Admission and With Drawls:

Rules with respect to retirement, obligations and confirmation of accomplice, including minor.

19. Determination of Good Will:

How the estimation of positive attitude decided and records will be cleared of resigned accomplices.

20. Perido of Acoounts:

Period after which last records are to be readied.

21.Rights and Duties of Partners:

Classes with regards to the rights and obligations of every accomplice.

22. Credit and Interest:

Procurements with respect to sum to be gotten by and the accomplices by method for credits and enthusiasm there on.

23. Settlement of Accounts:

Settlement of records at the disintegration of firm.

24.Arbitration:

Procurement for assertion if there should arise an occurrence of debate among the accomplices.

25.Deficiency in Capital:

How the insufficiency in capital will be secured at the indebtedness of any accomplice.

26. Witness:

The date an observers of assention.

27.Ways of Dissolution:

The way under which the firm might be broken down. Some other statement or conditions which might be discovered important whenever might be contained here by the shared assent of the considerable number of accomplices.

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SOLE PROPRIETORSHIP

ANS. Taking after are the principle sorts of business association:

1.Sole Proprietorship:

A sole proprietorship is a business possessed by one individual for benefit. The proprietor may work the business alone or may utilize others. the proprietor of the business has boundless liabilities for the obligations acquired by the business.

2. Association:

An association is a business possessed by two or more individuals. In many types of association, every accomplice has boundless obligation for the obligations caused by the business.

3. Organization:

An organization is a constrained obligation business that has a different lawful identity frame its individuals.

Organization is a constrained obligation business that has a different lawful identity from its individuals. Company can be either government-claimed or exclusive, revenue driven enterprise is possessed by shareholders who choose a top managerial staff to coordinate the organization and contract its administrative staff.

4. Land Business:

Land organizations produce benefit from the offering, leasing, and advancement of properties containing land, private homes and these sorts of structures.

5. Agribusiness and Mining:

Agribusiness and mining organizations is worried with the generation of crude material, for example, plants or minerals.

6. Monetary Business:

Monetary organizations incorporate banks and different organizations that create benefit through speculation and administration of capital.

7. Data organizations :

Data business create benefits fundamentally from the resale of protected innovation and incorporate motion picture studios, distributers and bundled programming organizations.

8. Producers:

Makers organizations items, from crude material or segment parts, which they offer at a benefit. Organizations that make physical merchandise, for example, autos or channels, are considered makers.

9. Co-agents:

Frequently alluded to as a "center", a helpful is a constrained risk business that can arrange for benefit or not for benefit. An agreeable varies from a revenue driven partnership in that it has individuals, rather than shareholders,who offer basic leadership power. Cooperatives are normally named either shopper cooperatives or laborers cooperatives.

10. Retailers and Distributors:

Retailer and merchants go about as center men in getting products delivered by makers to the proposed shopper, creating a benefit as a consequence of giving deals or conveyance administrations. Most purchaser arranged stores and list organizations are wholesalers pr retailers.

11. Administration Businesses:

Administration business offer impalpable products or administrations and regularly create a benefit by charging for work or different administrations gave to government, different organizations, or customers. Association extending from house decorators to counseling firms, and eateries are sorts off administrations organizations

12. Transportation Business: 

Transportation organizations conveys products and people from area to area, creating a benefit on the transportation costs.

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WHAT IS PARTNERSHIP? WHAT ARE ITS ADVANTAGES AND DISADVANTAGES?

Presentation: 

An organization is a course of action where parties consent to participate to propel their shared hobby.

Since people are social creatures, association between people, business, interest-based association, schools and Govt. Organization is framed between one or more business in which accomplices offer benefits and misfortunes. Association exist inside, and over, parts. Non-benefit, religious, and political associations may accomplice together to improve the probability of each.

Definition in Civil Law: 

An organization is a name contract between people who, in a soul of participation, consent to bear on an endeavor; add to ot by joining property, learning or exercises; and share its benefit.

As indicated by Jim Riley "An organization is a business where there are two or more proprietors of the endeavor. Most associations are somewhere around two and twenty individuals".

Points of interest of Partnership: 

Taking after are the upsides of organization: 

i. Simple Resources: 

The arrangement of organization is simple. Just an assertion among the accomplices is oral or composed words can bring an association into presence. It incorporate extremely lawful conventions and costs.

ii. Vast Resources: 

An organization is in a position to aggregate expansive assets as more than one contributes capital. The additional money related quality of the accomplices can be used to expand the size of operation of the business. New accomplices can be confessed to meet the extra prerequisite of asset.

iii. Advantages of boundless Liability: 

Since the liability of the accomplices is boundless it goes about as extraordinary check against theoretical exercises and accomplices should not be imprudent in dealing with the business.

iv. Sharing of Risk: 

The misfortunes of the firm and other related danger in business are shared by the accomplices. Subsequently, the offer of danger of every accomplice is less in contrast with sole proprietorship.

v. Close Supervision: 

Association take dynamic part in the administration of the business. The nearby supervision of the accomplices wipes out wastage and prompts more noteworthy productivity.

vi. Various Skill and Expertise: 

Organization gives a degree to relationship of persons with different aptitudes and mastery. Accomplices having mastery and abilities can deal with the business proficiently.

vii. Adaptability of Operations: 

Like that of sole proprietorship the association can get changes its operation effortlessly and rapidly taking a gander at the evolving circumstances.

viii. Immediacy in Decision Making: 

Since the association meet often, they can touch base at choices immediately. Along these lines, business opportunities requiring speedy choice should not be lost.

ix. Diminished Management Cost: 

Since various utilitarian territories are overseen by the accomplices themselves, the gigantic administrative costs can be spared all things considered.

x. Mystery: 

There is no statutory commitment with respect to organization to distribute the records of the firm. Thus, the business mystery can be kept up to a specific degree.

Hindrances of Partnership: 

The followings are a percentage of the imperative inadequacies of organization:

i.Limited Capital: 

There is an utmost to the greatest number of accomplices in an association. Along these lines; the capital that can be raised from the accomplices is restricted.

ii. Boundless Liability: 

Like that of the sole proprietorship, boundless risk is an essential downside of association. The danger of loss of private property of the organization impacts the accomplices to keep away from further hazard and play safe.

iii. Flimsiness: 

There is precariousness in presence in light of the fact that an effective firm can be break up on the demise of an accomplice.

The distinction of feeling may likewise achieve conclusion of the business.

iv. Absence of Industry Authority: 

Proprietor goes about as an operators of the firm and he acts tie the firm and different accomplices. An exploitative or skilled accomplice may lead the firm in challenges.

v. Absence of Harmony: 

Contrast of supposition is the normal outcome in organization. The absence of agreement among the accomplices may not be advantageous for the business.

vi. Non-transferability of Interest: 

No accomplice can move his enthusiasm for a firm to outsider without the assent of alternate accomplices. Thus, an accomplice can not change over his enthusiasm into money.

vii. Absence of Public Confidence: 

There is no legitimate tying on the firm to open records. Accordingly, the general population may not hand-off upon this kind of firm.

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QUALITIES OF A GOOD BUSINESSMAN?

Presentation: 

In the advanced age we can see the different changes in the business recorded. Because of innovative headway it is important that a decent representative ought to have the essential ability and learning about his business.

Characteristics of a Good Businessman: 

Taking after are the critical characteristics of a decent specialist:

A.Professional Qualities: 

1.Business Ability: 

For the achievement of any business it is crucial that a business must have the information of business sector, item, innovative improvement, experimental developments, and association and business laws.

2.Ability of Planning: 

It is an essential nature of a businessperson that he ought to have the capacity to arrange his business. For instance there are different choices like what to deliver? Where to create? How to create?

3.Ability of Financial Management : 

A decent specialist tries to meet the budgetary needs from inward and outside sources. He utilizes the money as a part of such a path in his business that it gives him most extreme benefit. A fruitful business has a quality that he can deal with the fund effortlessly.

4. Capacity of Innovation: 

In the present day age new items pulls in the client effectively. So a decent specialist ought to have a capacity to create new merchandise and administrations as indicated by his new thoughts.

5. Research on Business: 

A decent businessperson dependably gives careful consideration to the examination work. He likewise utilizes his encounters to minimize the expense of creation.

6.Technical Skill: 

An agent ought to have specific learning and specialized expertise for understanding and finishing the procedure of generation. In the event that he has no specialized ability about business, he can not turn into a decent business.

7.Courtesy : 

Politeness is to business what oil is to hardware. It costs only wins a notoriety.

So agent needs to win the heart of everybody with his neighborly mannrs.

8.Dependability: 

The fruitful business ought to have the limit of steadfastness. He ought to utilize each push to hold it consistent and trustworthy, so it keeps him much to win the hearts of both clients and laborers.

9.Alertness: 

A representative must be aware of the opprtunities encompassing his business. He should stay in contact with the world. He ought to move about and see what is happening for he needs to assess new needs ans new innovations for making new requests.

10. Friendliness: 

Another striking nature of a decent agent is capacity to blend with anybody inside of a moment. He should get himself acquainted with obscure individual inside of a brief span.

B.Personal Qualities: 

1.Honest: 

It is the main nature of a decent agent that he ought to legit and genuine openly managing. There ought to be no extortion and business pay off in business.

2.Efficient and Hard Worker: 

A decent specialist must be diligent employee and fit for working for extend periods of time. An apathetic and wasteful specialist can not contend the business sector.

3. Great Appearance: 

Great appearance is an uncommon quality and relies on upon a blend of numerous different characteristics of head and heart. It is the limit of drawing in and impacting other individuals without cognizant exertion.

4.Careful about Future: 

A specialist ought to be watchful about the future desires. In the event that he neglects to evaluate the future interest for his item then he will endure a misfortune.

5. Unfaltering: 

In a business there is a need of persistence. A good agent ought to be valiant and relentless.

In the event that he neglects to confront the business issues on the essential stage then he will confront misfortune.

6.Co-Ordination: 

A decent businessperson ought to have the capacity to facilitate the different branches of his business.

7.Sympathetic Attitude: 

A decent businessperson dependably adores his specialists. He Should know about the disposition, sentiments and confinements of his laborers. He ought to dependably take enthusiasm for the issues of his specialists and attempt to understand them.

8.Good Reputation: 

In business dealings great notoriety is an advantage for the agent. A decent businessperson dependably enhances his goodwill and exhaust the business.

9.Follows the Ethics: 

A decent agent dependably takes after the morals tenets and he never tricks the others. He loathes the business gift and never utilizes the unscrupulous practices.

10. Foresighted: 

It is the most essential quality for the fruitful specialist. A businessperson must watch out for what's to come. He might have the capacity to foresee for future.

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DIFFERENT KINDS OF BUSINESS ORGANIZATIONS

In this article you will get the knowledge of Different kinds of business organizations
ANS. Taking after are the principle sorts of business association:

1.Sole Proprietorship: 

A sole proprietorship is a business possessed by one individual for benefit. The proprietor may work the business alone or may utilize others. the proprietor of the business has boundless liabilities for the obligations acquired by the business.

2. Association: 

An association is a business possessed by two or more individuals. In many types of association, every accomplice has boundless obligation for the obligations caused by the business.

3. Organization: 

An organization is a constrained obligation business that has a different lawful identity frame its individuals.

Organization is a constrained obligation business that has a different lawful identity from its individuals. Company can be either government-claimed or exclusive, revenue driven enterprise is possessed by shareholders who choose a top managerial staff to coordinate the organization and contract its administrative staff.

4. Land Business: 

Land organizations produce benefit from the offering, leasing, and advancement of properties containing land, private homes and these sorts of structures.

5. Agribusiness and Mining: 

Agribusiness and mining organizations is worried with the generation of crude material, for example, plants or minerals.

6. Monetary Business: 

Monetary organizations incorporate banks and different organizations that create benefit through speculation and administration of capital.

7. Data organizations : 

Data business create benefits fundamentally from the resale of protected innovation and incorporate motion picture studios, distributes and bundled programming organizations.

8. Producers: 

Makers organizations items, from crude material or segment parts, which they offer at a benefit. Organizations that make physical merchandise, for example, autos or channels, are considered makers.

9. Co-agents: 

Frequently alluded to as a "center", a helpful is a constrained risk business that can arrange for benefit or not for benefit. An agreeable varies from a revenue driven partnership in that it has individuals, rather than shareholders,who offer basic leadership power. Cooperatives are normally named either shopper cooperatives or laborers cooperatives.

10. Retailers and Distributors: 

Retailer and merchants go about as center men in getting products delivered by makers to the proposed shopper, creating a benefit as a consequence of giving deals or conveyance administrations. Most purchaser arranged stores and list organizations are wholesalers pr retailers.

11. Administration Businesses: 

Administration business offer impalpable products or administrations and regularly create a benefit by charging for work or different administrations gave to government, different organizations, or customers. Association extending from house decorators to counseling firms, and eateries are sorts off administrations organizations

12. Transportation Business: 

Transportation organizations conveys products and people from area to area, creating a benefit on the transportation costs.

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THE OBJECTIVES AND FUNCTIONS OF BUSINESS

Destinations of Business: 

Business alludes to the general creation or buy and offer of merchandise attempted with a goal to win benefit and obtaining riches through the fulfillment of human needs. Each business requires some type of speculation and an adequate number of clients to whom its yield can be sold at benefit this is the principle target of a business.

Meaning of Objectives: 

As per Louis Allen,"Objectives are objectives set up to manage the exertion of the organization and each of its part".

As per Dalton E. McFarland, : Objectives are the objectives, points or purposes that an association wishes to accomplish over changing timeframe".

1. Benefit Earning: 

Without gaining benefit no business can get by in the focused business sector, benefit making is the essential goal for which the business cam into presence. Benefit must be procure to quantify the survival of business, its development, and extension extra time.

2.Innovations: 

Developments mean changes, that acquire change items, procedure of creation and circulation of merchandise. Through advancements business can lessen its expense of by receiving better techniques.

3.Optimum Use of Resources: 

As business needs heaps of asset like men, material, money,machinery and so on to run its operations.

Because of the restricted assets business must utilize it an ideal way.

4.Productivity: 

A business can succeed just in the event that it can deliver most extreme yield with constrained assets.

5.Development of Human Resource : 

Business ought to create appropriate preparing and improvement for enhancing the aptitudes of labor.

Better abilities of create will prompt flourishing of the business.

6.Supply of Quality Goods: 

The goals of the business ought to be to create better quality merchandise. Business ought to charge reasonable costs as indicated by the nature of the merchandise.

7.Creation of Customers: 

Business can't survive unless there are clients to purchase the items and administrations. To gain the benefit, a business needs to create merchandise and administrations at sensible costs. For pulling in clients agents has receive different promoting methodologies.

8.Creation of Employment: 

Business ought to likewise center towards the formation of vocation opportunities. This can be accomplished by building up new specialty units, consuming business sector, and so on.

Different Objectives:

Some different destinations of business are :

9.Public Image: 

The activites of the business towards the welfare of society will procure goodwill and its notoriety. in the event that business draws in itself in different welfare program for the general public then individuals will want to purchase the items.

10.Government Regulation: 

To maintain a strategic distance from the administration regulations business must be mindful towards the general public.

On the off chance that a specialist disregards the administration regulations then it might drive the firm to shut down its business.

11.Employees Satisfaction: 

Other than getting products pay and working in the solid environment, representatives require some different offices like preparing, transportation, instruction and so on. Every one of these offices straightforwardly influence the creation and thriving of the association.

12. Purchaser Awareness: 

Presently a days purchaser is particularly mindful about their rights. It is compulsory for the business to secure the enthusiasm of the general public by giving quality products at most aggressive cost.

Elements Of Business: 

There are two sorts of Business capacities:

1. Inner FUNCTION

2. Outside FUNCTION

1.Internal Functions are those which are praises of the organization.

2.External Functions are those which are supplied by an outside office.

Creating FUNCTION:

i)Research and Development: 

Creates generation. Outline and directing trials and tests. Translates information, oversees ventures, composes report, and stays up with the latest with new advancements.

ii) Production and quality: 

Deals with the creation process. Plans creation plans. Guarantee that hardware, staff and materials are effectively used. Screens wellbeing, security and environment issues.

iii) Distribution/Logistics: 

Deals with all the store network forms from crude material to where the final items is utilized.

Facilitates supply, dispersion and capacity of products. Oversees transport and appropriation focuses including drivers and distribution center staff.

2.SELLING FUNCTION: 

i) Sales: 

Exhibits and introduces items to clients. Oversees spending plans. Find out about new items. Ensures that the items meets the client's necessities.

ii)Marketing: 

Arranges every one of the components included in effectively advancing and offering an item : statistical surveying , estimating, bundling, publicizing, deals, dispersion. Includes anticipating, Budgeting and arranging, usage of arrangements.

3.SUPPORTING FUNCTIONS: 

i) Management: 

Gives the data required to the money related security and arranging of organizations. Gets ready bookkeeping records and administration data.

ii) Computing: 

Outlines, actualizes and keeps up cmputer frameworks to meet necessities of clients. Gives registering backing to staff. Keeps up database and systems.

iii) HR/Personnel: 

Initiates and chooses new staff. Included with contracts of businesses, sets of responsibilities, preparing, administration

advancement, mechanical relations and disciplinary matters.

iv) Buying: 

Finds and keeps up associations with suppliers, of items. Arranges costs, conveyance dates and item particulars.

Outside FUNCTIONS: 

a. Sanctioned Accountants: 

Visits customers as a feature of a review group; surveys their business operations and money related records to build up the legitimacy of the organization's records. Exhorts on assessment risk.

b. Administration Consultants: 

Recognizes and explores, issues worried with arrangement, association, techniques and strategies for associations. Prescribes proper activity and actualize.

c. Enrollment Agency: 

Matches work seekers with businesses opportunities. Evaluates applicant abilities and businesses necessities.

d. Publicizing: 

Liaises with and instructs customers on all viewpoints regarding showcasing interchanges; presents recommendations to customers; oversees promoting spend spending plan; stays up with the latest.

e. Statistical surveying: 

This should be possible by the showcasing division inside an organization, or by an outside statistical surveying office. Plans statistical surveying ventures in the interest of the customer.

f. Advertising: 

All parts of media and advertising for customers: e,g. corporate pamphlets and displays stands.

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How money removed the difficulties of barter sysytem

Removal of Difficulties :

Under the following headings we understand how money removes the problems of barter system:

1. Double Coincidence of wants:

Money as medium of exchange has removed the double coincidence of wants. Under monetary system money is exchanged for goods and services when people buy things gods and services are exchanged for money when people self things, there is no necessity for a double coincidence of wants in the presence of money.

2. Common Measure of Value:

Money has overcome the difficulty of common measure of value by acting as a standard of value. In a money economy the value of any commodity can easily be expressed in terms of money.

3.Store of Value:

Money has removed the difficulty of future payments. Future payments are made in terms of money.
There is no problem in receiving and making payments in future.

4. Future payments:

Money has overcome the difficulty of future payments. Future payments are made in terms of money.
There is no problem in receiving and making payments in future.

5. Sub Division:

Money has solved the problem of sub-division of commodities because money is easily divisible. With the help of money one can exchange individual commodity of great value for a commodity of less value. Money has make it possible to buy goods of both high and low value.

6. Transfer of Value:

Money has made easy the transfer of wealth from one place to an other place. A person can sell his immovable and movable property or things at one place and transfer his wealth to another place in terms of money.

7. Standard of Value:

Under the system of exchange i.e sales and purchase the value of each commodity is expressed in terms of standard of value. So money is used as standard of value.

8. Tax collection:

Money has removed the difficulty of tax collection. Tax can easily be collected in the form of money.
Government can easily utilize the revenue received for development and non- development purpose.

9. Capital Formation: 

Money has encourage the capital formation. One can easily store one's wealth in the form of money without suffering loss.


So these were the headings which describe how money removed the difficulties of barter system.

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Define Barter System? What are the difficulties of barter system? How money removed these difficulties?

Define Barter System? What are the difficulties of barter system? How money removed these difficulties? 

Introduction:

   Barter means the exchange of goods or commodities. In ancient times when money was not invented trade as a whole was on barter system. It consist if a bargain of commodity with out the help of another of exchange , such as money. Therefore, we can say that buying goods against goods is called barter system.

Definition:

R.H.Parker : "Barter is the Direct exchange of goods and services without the use of money as either the means of payment or a unit of account.

S.H.S Sloan:

"Barter is the direct exchange of commodity or service for another without the use of money".

In simple words 

  "Barter is a system in which goods and services are exchanged for other goods and services without the use of money".

Difficulties of Barter system:

The main inconveniences of barter system are as under:

1.Lack of double coincidence of wants:

The main difficulty of barter system is the lack of double coincidence of wants. In a barter system a person who wants to exchange his goods must find some person who is willing to exchange his commodity with his commodity. For example, a person possessed wheat, which he wanted to exchange for cloth. He could not succeed in acquiring cloth until he met some one who not only had cloth but was also willing to exchange with wheat.

2. Lack of common Measure:

The second short coming of barter system is the lack of any common unit in terms of which to measure the values of goods and services. In the absence of any common measure of value, the value of each commodity in the market can not be expressed as one quantity.

3.Lack of sub-division:

The third serious difficulty of barter system is the lack of sub-division of commodities. there are certain commodities which can be divided without loss of value. For example the owner of cow wants to have 5 kg of sugar. The barter between the person having cow and sugar will not take place because the value of cow is much more than 5 kilo of sugar. As it is not possible to divide his cow, so no exchange will be possible between the two persons.

4. Lack of Store of Value:

The barter system suffered the lack of storing the value. There is no way of storing of wealth for a long period. Some commodities lose their value with the passage of time. Some commodities, such as milk, fish, vegetable, wheat, and cotton lose value with the passage of time. Such commodities could not store for a long period.

6. Difficulty of Future Payments:

The barter system suffered the difficulty of the future payments. When goods are lent to another person, the payment had to be stated in terms of certain goods. This gave rise to many problems.

7. Difficulty of Transfer of Wealth:

Under barter system there is difficulty of transfer of wealth from one place to another place. Immovable property cannot be transferred to another place. The transfer of movable property is very difficult and costly. Suppose a person wants to shift one hundred heads of cattle from Faisalabad to Karachi. You can well imagine the difficulties he would face,

8. Difficulties in Tax Collection:

The difficulty of barter system is the imposing and collection of tax in the form of goods. If the government is able to collect the tax in the form of goods, there would be problem of the storage of goods. If so possible, the government will face difficulties to utilize the revenue for development and non-development purpose.

9. No Capital Formation:

Under barter system people are concerned with their current needs. They do not save and there is no capital formation. The difficulty of store of wealth hinders from saving ans capital formation .Thus, there is no capital formation under the barter system.

10. No Investment:

The barter system suffered the lack of store of value so, there was no saving.Hence investment could not be made.

Next: How money removed the difficulties of barter sysytem

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