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 MGT211 ASSIGNMENT NO 1 SOLUTION

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PostSubject: MGT211 ASSIGNMENT NO 1 SOLUTION   Tue Nov 02, 2010 12:34 pm

ASSINMENT

1) What was the original form of business?
Sole proprietor ship, single person owning and running the business.

2) What form of business will be created between Mr. Akram and Mr. Ajmal?
Partnership
Partnership means a lawful business owned by two or more persons. The profit of
the business shared by the partners in agreed ratio. The liability of each
partner is unlimited. Small and medium size business activities are performed
under this organization.
(Keeping in mind that his father has died and he cannot leave his job at the
moment)

3) what will be the Akram’s Status in this business?
Sleeping partner
a partner who only contributes is the capital but does not take part in the
management of the business is known as sleeping partner. He is liable to pay
the obligations of the firm.

4) What will be the Ajmal’s status in this business?
Active Partner
A partner who takes active part in the affairs of business and its management
is called active partner. He contributes his share in the capital and is liable
to pay the obligations of the firm.

5) How Mr. Akram will benefit from this form of business?
10. Flexibility
it is flexible business and partners can change their business policies with
the mutual consultation at any time.
Moral promotion:
Partnership is the best business for small investors. It promotes moral courage
of partners.
Secrecy: In partnership it is not compulsory to publish the accounts. So, the
business secrecy remains within partners. This factor is very helpful for
successful operation of the business





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