a) State five features each of the following business units:
- Cooperative Society;
- Mail Order Business.
b) Explain five ways by which partnership could be brought to an end.
Explanation
(a) (i) Features of Cooperative Society:
- One man one vote no matter the amount contributed/operated on democratic principle;
- Profits are shared based on patronage;
- Management is by the elected committee;
- It has no maximum number of members;
- It has perpetual existence;
- It is a legal entity;
- It is privately owned by people with a common interest.
(ii) Features of Mail Order Business:
- It is a form of large scale trading;
- It requires no retail outlet but a large warehouse;
- Goods are sold with the use of catalogue;
- The post office is used to deliver goods to customers;
- Goods are sold on cash on delivery or cash with order;
- It deals on durable goods;
- It employs few workers.
(b) Ways by which partnership could be brought to an end:
- By admission of new partners;
- By the expiration of agreed period/completion of a project;
- By court order/liquidation/bankruptcy;
- If the partnership continued to make losses for a long time/insolvency;
- If the object of the partnership becomes illegal;
- By mutual agreement of the partners;
- If any of the partners retires as a result of ill-health or incapacitation/insanity;
- If any partner dies.