NTA UGC NET/JRF Exam, June 2020 Commerce (Evening-Shift)

Monopolistically competitive market- it refers market situation in which there are large no. of firm which sell closely related but different product.
Features-
A large no. of sellers.
Differential product.
Unrestricted entry and exit.
The firm are small relative to the total market.
Incomplete knowledge of the market.

The span of management, also called the span of control refers to the ability of a superior to efficiently manage a number of subordinates. In other words, the manager has a group of subordinates who report directly to firm is called a span of management.
Span of management are determined by various factors like:
Manager's training
Manager's personal qualities
Subordinates training
Nature of work
The degree of planning
Staff assistance
Centralization of authority
Delegation of authority

The closure is the term used when a business decides to discontinue or shut down its activities of the organization.

A closure may be a result of bankrupted, where the business has fewer funds to continue its operations, or when some other organization (or a competitor) decides to take over the firm and shut down as superfluous.

Closure can be two types, voluntary or involuntary where voluntary closure of organizations are much rare as compared to involuntary closures of organization.
Closing down of the business and it involves:

No buying or selling of goods and services.
No manufacturing of products.
Assets to be sold or disposed of to pay the debt of the organization.
Returning capital to the owners after the organization decides to liquidate assets.

According to the partnership act, 1932:
1. All partners are bound the carry on the business of the firm to the greatest common advantage and shall not, obtain a private advantage at the expense of the firm and if a partner carries on a rival business in competition with the partnership, the other partners are entitled to restrain him.

2. Where a partner is entitled to interest on the capital subscribed by him, such interest on capital is an appropriation and shall be payable only out of the profits of the firm.

3. Every outgoing partner or the estate of any partner]| who ceased to be a partner has the right to claim either a share in the profits of the firm till his account is finally settled or an interest rate property till his account is finally settled.

4. Expulsion of partner- section 33 of the partnership act, 1932:

Vouching refers to reviewing documentary evidence to see if it properly supports entries made in the accounting records while vouching and the auditor is looking for any errors in the amount recorded in the accounting records as well as ensuring that the transactions are recorded in the correct accounts.
Vouching of sales includes:
Sales book.
Dispatch of good.
Debit notes.
Credit notes.