There are different types or form of business.
But according to syllabus only three types of business are mentioned; they are:
1. Sole proprietorship
2. Partnership firm
3. Joint Stock Company
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Joint Stock Company is also known public limited company.
It is the largest company among all other types of company.
Joint Stock Company is established with equity share or common stock.
The minimum shareholders must be five but maximum shareholders depend on share capital.
Joint Stock Company has separate legal existence.
There are two types of Joint Stock Company.
They are Service Provider Company and Productive Company.
For the development of the country, productive joint stock companies are required.
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Click on link for YouTube videos of Class 11: |
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Accounting Equation |
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Basic Journal Entries in Nepali |
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Basic Journal Entries |
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Journal Entry and Ledger |
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Ledger |
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Subsidiary Book |
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Cash Book |
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Trial Balance & Adjusted Trial Balance |
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Bank Reconciliation Statement (BRS) |
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Depreciation |
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Final Account: Class 11 |
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Adjustment In Final Account |
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Capital and Revenue |
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Single Entry System |
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Non-Profit Organization (Non-Trading Concern) |
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Government Accounting |
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Goswara Voucher (Journal Voucher) |
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Keep in Mind
Company Acts in SAARC |
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Countries |
Company Act |
Afghanistan |
Afghanistan Company Act 2018 |
Bangladesh |
Bangladesh Company Act 2013 |
Bhutan |
Bhutan Company Act 2016 |
India |
Indian Company Act 2013 |
Maldives |
Maldives Company Act 1996 |
Nepal |
Nepal Company Act 2017 (2074 BS) |
Pakistan |
Pakistan Company Act 2017 |
Sri-Lanka |
Sri-Lanka Company Act 2017 |
The main characteristics of Joint Stock Company are as follows:
A company is an artificial person created by law and having a separate existence of its own.
Like a real person, it can buy or sell the property in its own name.
It can sue and can be sued by others.
It can conduct a lawful business and enter into contracts with others.
A company is a separate legal entity from its owners.
A company cannot be held liable for the actions of its owners and similarly a shareholder cannot be held liable for the acts of the company.
A company is created by law and only law can liquidate it.
The death, insolvency, inability or lunacy of members does not affect the life of a company.
Members may come and go, but the company runs perpetually.
The liability of every owner or shareholder of a company is limited to the extent of the face value of the shares purchased.
Even if, the assets of the company are not sufficient to pay the claims of the creditors, no owners or shareholders bound to pay anything more than the face or nominal value of the shares held by them.
The capital of the company is divided into a number of units, which are called shares.
These shares are transferable.
A shareholder is free to withdraw his membership from the company by transferring shares.
The holding of shares can be transferred from one person to another mainly by selling.
Being an artificial person, the company cannot act and sign itself.
It acts through its officers.
A common seal is the official signature of a company.
All the acts of the company are authorized by its common seal.
All the documents are attested by the common seal for making valid documents.
There is a separation between ownership and management of a company.
Shareholders do not participate directly in day-to-day activities of the company.
Therefore, they elect their representatives from among themselves. These representatives manage the company on behalf of the shareholders.
They are called directors. The directors are the legal representatives of the shareholders.
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