Question

Name the following:
(a) A person who lends his name and goodwill to benefit a partnership firm.
(b) A business organization with the least legal formalities.
(c) An organization where members associate together to promote mutual goals and welfare of consumers.
(d) A type of industry to which manufacturing battery operated cars, belongs to.

Answer 1

(a) Nominal Partner- A person who neither has ownership rights or active involvement in the firm's affairs, but has a strong interest in the success of the partnership firm. Often a well known, well-connected individual whose association lends credibility and recognition to the firm is suited to the role of a nominal partner.
(b) Sole Proprietorship- The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
(c) Cooperative organisation- A cooperative is a private business organization that is owned and controlled by the people who use its products, supplies or services. Although cooperatives vary in type and membership size, all were formed to meet the specific objectives of members, and are structured to adapt to member's changing needs.
(d) Joint Stock Company Forms of Business Organisations - it is a business organisation that is owned jointly by all its shareholders. All the shareholders own a certain amount of stock in the company, which is represented by their shares.