Thursday, 3 October 2019

Registration of Partnership - ICSE Class 9 | NCERT/CBSE Class 11

Is the registration of partnership firm mandatory?

The answer is NO. The registration of a partnership firm in India is optional.

However, it is always advisable to get the partnership firm registered. This is because if you don't register the partnership firm, there are a lot of drawbacks.

If the partners want to get the partnership firm registered, they have to submit a statement in the prescribed form along with the registration fees to the registrar of the firms. Details to be mentioned in the statement includes name of the firm, the principal or the main place of the business, name of other places where the firm runs the business, name in full and permanent addresses of all the partners, the date when each partner joined the firm, duration of partnership (if any), etc.

Once the registrar is satisfied with the details provided by the partners, a certificate of registration will be issued by the registrar.

This is how the firm gets registered.




What are the consequences of non-registration?

As already mentioned, there are a lot of drawbacks of not getting the partnership firm registered.

1. Claim against a third party - If a partnership firm is not registered, it cannot enforce its claim against any third party in the court of law. Third-Party means an outsider.

So, if the partnership firm has to receive a certain amount from a debtor and if that debtor doesn't pay the partnership firm, in such a situation the partnership firm cannot approach the court of law.

2. If a partnership firm is not registered, it cannot even sue its partners. Similarly, even partners cannot sue the firm. Partners cannot file a case against an unregistered partnership firm to enforce their claims. Partners even cannot file a case against each other.

4. The partnership firm which is not registered cannot claim adjustment of a claim more than Rs.100/-

What does this mean?

Let's assume that 'A' represents an unregistered partnership firm. Suppose 'A' has to pay Rs.500/- to some other entity 'B'
and the same entity 'B' has to pay Rs.400/- to 'A'.

So, instead of 'A' paying Rs.500/- to 'B'
and  'B' paying Rs.400/- to 'A',.'A' can simply pay Rs.100/- to 'B' and settle the transaction.

So 'A' will only pay the net amount Rs.100/ to 'B'. This is claim adjustment.

But suppose, 'A' has to pay Rs.1,000/- to 'B' and 'B' has to pay Rs.500/- to 'A'. Since 'A' represents an unregistered partnership firm, it cannot claim an adjustment of a claim exceeding Rs.100/-.  So in this scenario, 'A' and 'B' can adjust only Rs.100/- and not more than that. So 'A' will have to pay Rs.900/- to 'B' because Rs.100/- is going to be adjusted. Rs.100/- is the adjustment of the claim. So even 'B' will pay Rs.100/- less to A. So 'B' will pay Rs.400/- instead of Rs.500/- here to 'A'.

Thus, we can see that there are some very serious drawbacks of not getting a partnership firm registered.




Related Article - Partnership: Features, Merits and Demerits

The non-registration of partnership firm doesn't affect the following rights-

1. Right of a third party to file a suit against an unregistered firm as well as against its partners:

If a partnership firm is not registered, that doesn't mean that a third party or an outsider cannot file a suit against the firm. An outsider can very well file a case against an unregistered firm as well as against its partners. An outsider has the right to file a case or a suit against the partners also.

2. Right of an unregistered firm to file a suit or claim set-off where the claim doesn't exceed Rs.100:

This point has already been discussed. An unregistered firm can file a suit where the claim amount does not exceed Rs.100/ or it can even claim a set-off in case the claim does not exceed Rs.100/-

3. Right of partners of an unregistered firm to file a suit for dissolution of the firm and for realizing the property of the firm:

So even if the firm is unregistered, still any partner can approach the court for dissolution of the firm. Any partner can file a suit for dissolution of the firm and for realizing the property of the firm. Realizing of the property of the firm means selling off the assets or the properties of the dissolved firm. Any partner can approach the court for selling off the property of the unregistered firm.

4. Right to file suit against infringement of the firm's patent rights:

Even if the firm is not registered that doesn't mean that the firm's patent rights can be violated by any 3rd party. An unregistered firm still has a right to file a suit against infringement of the patent rights of the firm.

If an unregistered firm has acquired some patent rights for some product, and if some other company also starts selling the same product under a different brand name, then the firm has the right to approach the court for infringement of the firm's patent rights. The firm has the right to approach the court to file a case against the company which is selling the product for which the partnership firm has the patent rights.




What are the advantages of registration of a partnership firm?

1. A registered firm can file suits. If a firm is not registered, then it cannot enforce its claims against a third party in the court of law.  Neither it can file a case against any of its partners.

2. If a partnership is registered then even the partners can file the suits. Partners of a registered partnership firm can file suits against each other or even against the outsiders.

Partners of an unregistered firm cannot sue the firm to enforce their claims. They cannot even file a suit against each other.

3. In the case of a registered partnership, if there is a new partner who is going to join the partnership, he can get all the information about the firm from the registrar's office. Before joining the firm, he can get all the required information from the registrar's office and he will be more confident about joining the firm.

Even the third parties who are interested in dealing with the partnership firm can get information about the firm from registrar's office.

4. No liability of the retiring partner after retirement - What this means is that, in case of a registered partnership, when any partner is retiring he does not have to give public notice of his retirement. The retiring partner can retire peacefully after informing the registrar about his retirement.

Related Article: 

Difference between LLP and General Partnership 

Friday, 20 September 2019

Difference between Balance of Trade and Balance of Payment - Class 12

Difference between Balance of Trade and Balance of Payment is as follows-

(1) Balance of Trade records those economic transactions with the rest of the world which are related to trade of goods only. Transactions pertaining to services are not included in Balance of Trade.

Balance of Payment records all economic transactions with the rest of the world.

(2) Balance of Trade account does not record transactions of capital nature. Balance of Payment account records transactions of capital nature also.

(3) Balance of trade is a narrow concept as it is just a component of the balance of payment. Balance of trade is a part of the balance of payment. Balance of payment is a wider concept. It includes Balance of Trade. Balance of Trade is a part of the balance of payments.

(4) Balance of trade is only a partial record and hence it is not a true indicator of economic relations with other countries. Balance of payment is a complete record of all economic transactions with other countries and hence it provides a true picture of economic relations with other countries. In the balance of payment, we also record service transactions and not only the transactions of goods. For example, borrowings from abroad will not be a part of the balance of trade but it will be a part of the balance of payment as this is a capital transaction and capital transactions are not included in the balance of trade, but they are included in the balance of payments

Wednesday, 18 September 2019

How to be successful in blogging?

Blogging is hot these days. Its the "in thing". It gives you the ease of earning money from the comforts of your home. All you need  to have is a smart phone with a internet connection and you are good to go.

How to become a successful blogger?

But are all bloggers successful and earning tons of money working from the comforts of their home? The answer clearly is No. Grass always looks greener on the other side.

There are a few things you need to keep in mind if you want to be successful at blogging. Following are some of the tips that can help you become a successful blogger-

1. Don't run behind money and let it run behind you -

First and foremost, you should not run after money (certainly not at least at the beginning of your blogging career) and be as much patient as you can. Once things start rolling, the money will follow. Patience is very important. Make it your best friend on your blogging journey. Keep in mind, you can't get rich overnight. Perseverance is the key.

2. Write for readers and not for google.

Your first target should be to learn to write good blogs which can help people find a solution to their problems or at least you need to make sure their reading of your blogs give them a pleasing time. Don't directly jump on SEO bandwagon. SEO can help but not without great content. Content is the king. Write your heart out.


3. Hard Work: If you want to do blogging for a long time, then you need to work hard. You will not get success in blogging soon.  If you work hard, then too you will take atleast a year to find a bit of success. If you work hard, you will get your first income in 3 to 6 months. So you need to keep writing. Don't lose hope or interest. There are no free lunches.

4. Pick up the right Niche: Nobody goes to a semi-qualified doctor. Pick up a niche where you have a certain degree of expertise. Pick up a niche which you find interesting to write on. It is important that even you should enjoy writing. Else you are bound to give up too early. Remember, Rome was not built in a day.

5. Don't overspend early on: Start blogging on free platforms like blogger. You can later switch to Wordpress anytime.

6. Copy-Paste is strict No-No: It is most tempting thing to do but search engines don't like it. Be original, be yourself. Have your own originial ideas and content.

I hope these suggestions would be of help for beginners in the field of blogging.

Happy Blogging

Saturday, 14 September 2019

Training of employees - Benefits to the organisation or employees | Class 12 | Business Studies

Training of employees

Benefits to the organisation or employees-

(i) Training enhances productivity of the employee.

(ii) It improves skills and knowledge of the employee.

(iii) Employee becomes more efficient in the handling of machinery and equipments.

(iv) It leads to improvement in overall performance of the employee.

(v) It increases the morale of the employee and reduces absenteeism.

(vi) It leads to reduction in wastage of effort and money

(vii) It equips future managers

(viii) It helps in obtaining effective response to fast changing environment.

Advantages and Disadvantages of formal communication - Class 12, Business Studies

Advantages of Formal Communication:

1. The formal communication is very systematic. It ensures orderly flow of information.

2. The source of information can easily be traced.

3. In formal communication fixing responsibilities of different employees is easy since there is proof for the information.

4. Formal communication makes it easy to exercise control over the work performance of different employees.

Disadvantages:

1. The information is passed on slowly as generally scalar chain is followed while passing of information.

2. In formal communication the information is conveyed in an impersonal manner.

3. The information may not be transmitted accurately to avoid the unfavourable effect of communication.

Friday, 13 September 2019

Economic and Non-Economic Activities | ICSE | Class 9 | Economics

Economic Activities refer to all those activities which are concerned with money or wealth.

The main purpose of such activities is to satisfy human wants. For example, a person running a shop or a person doing a job. Both these activities are economic activities as both these activities are carried out with an intention to earn some money. Also, both these activities are carried out with an intention of satisfying human wants like Food, Clothing, Shelter, etc. These wants are satisfied by money earnt by carrying out the above-mentioned economic activities.

Any economic activity has to be carried out within rules and regulations of the society.

Elements of economic activities-

1. Economic activities are human activities which are concerned with money or wealth.

2. The main objective of any economic activity is to satisfy human wants.

3. It is an activity which is concerned with the production, consumption, distribution and exchange of economic goods. Economic goods are goods which possess utility and are scarce as in comparison to their demand

Non-Economic Activities- These are the activities which are not concerned with money or wealth.




Non-Economic activities can be-

1. Social Activities like attending a marriage

2. Political Activities like activities performed by political parties like BJP, Congress, etc.

3. Charitable Activities like helping poor

4. Religious Activities like worshipping

5. Recreational Activities like playing cricket

6. Parental Activities like activities carried out by parents for their children out of love and affection.

If any of the above activities involve money or wealth, such an activity will become an economic activity. For example, footballer playing football just for recreation is a non-economic activity. But when he plays a football match for money, it is an economic activity.

In economics, we are concerned only with economic activities.



Sectors of an economy - ICSE, Class 9, Economics

An economy can be broadly classified into the following three sectors-

1. Production Sector- Production Sector refers to the sector where goods and services are produced. This sector produces goods and services with the help of various factors of production namely Land, Labour, Capital and Enterprise.

2. Consumption Sector- This sector is also referred to as the household sector. This sector provides all the factors of production to the production sector and in return gets paid for these services (in the form of rent, wages, interest and profit). This income is then spent by the people of this sector on buying goods and services produced by the production sector.

3. Government Sector- Government these days plays a very important role in the economy. It acts both as a producer as well as consumer in the economy. As a producer, it hires various factors of production for production of goods and services like health, education, defence etc which are consumed by the entire society. As a consumer, it purchases various goods and services from the production sector which are consumed collectively by the entire society.