CBSE · Class 11 · Business Studies · Forms of Business OrganisationsWhich of the following possesses a separate legal entity distinct from its members?
Step-by-Step Solution
A Joint Stock Company has a separate legal entity, perpetual succession, and a common seal, making it distinct from its members.
Detailed Options Breakdown
Option : Sole Proprietorship
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Forms of Business Organisations.
Option 1: Partnership
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Forms of Business Organisations.
Option 2: Joint Stock Company (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Joint Hindu Family Business
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Forms of Business Organisations.
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