Forms of Business Organisation
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Presentation Transcript
Slide 1:
Forms of Business Organisation (Indian Context) Sourav Sinha
Forms of Business Organisation :
While establishing a business the most important task is to select a proper form of organisation. This is because the conduct of business, its control, acquisition of capital, extent of risk, distribution of profit, legal formalities, etc. all depend on the form of organisation. The most important forms of business organisation are as follows: Sole Proprietorship Joint Hindu Family Business Partnership Joint Stock Company Private Limited Public Limited Co-operative Society Forms of Business Organisation
Sole Proprietorship :
Sole Proprietorship When the ownership and management of business are in control of one individual, it is known as sole proprietorship or sole tradership. It is seen everywhere, in every country, every state, every locality.
Sole Proprietorship: Characteristics :
Sole Proprietorship: Characteristics 1. Ownership : The business enterprise is owned by one single individual, i.e. the individual has got legal title to the assets and properties of the business. The entire profit arising out of business goes to the sole proprietor. Similarly, he also bears the entire risk or loss of the firm. 2. Management : The owner of the enterprise is generally the manager of the business; he is the sole decision maker. 3. Source of Capital : The entire capital of the business is provided by the owner. 4. Legal Formalities : In the setting up, functioning and dissolution of a sole proprietorship business legal formalities are minimal.
Sole Proprietorship: Characteristics :
Sole Proprietorship: Characteristics 5. Legal Status : The proprietor and the business enterprise are one and the same in the eyes of law. There is no difference between the business assets and the private assets of the sole proprietor. The business ceases to exist in the absence of the owner. 6.
Presentation Transcript
Slide 1:
Forms of Business Organisation (Indian Context) Sourav Sinha
Forms of Business Organisation :
While establishing a business the most important task is to select a proper form of organisation. This is because the conduct of business, its control, acquisition of capital, extent of risk, distribution of profit, legal formalities, etc. all depend on the form of organisation. The most important forms of business organisation are as follows: Sole Proprietorship Joint Hindu Family Business Partnership Joint Stock Company Private Limited Public Limited Co-operative Society Forms of Business Organisation
Sole Proprietorship :
Sole Proprietorship When the ownership and management of business are in control of one individual, it is known as sole proprietorship or sole tradership. It is seen everywhere, in every country, every state, every locality.
Sole Proprietorship: Characteristics :
Sole Proprietorship: Characteristics 1. Ownership : The business enterprise is owned by one single individual, i.e. the individual has got legal title to the assets and properties of the business. The entire profit arising out of business goes to the sole proprietor. Similarly, he also bears the entire risk or loss of the firm. 2. Management : The owner of the enterprise is generally the manager of the business; he is the sole decision maker. 3. Source of Capital : The entire capital of the business is provided by the owner. 4. Legal Formalities : In the setting up, functioning and dissolution of a sole proprietorship business legal formalities are minimal.
Sole Proprietorship: Characteristics :
Sole Proprietorship: Characteristics 5. Legal Status : The proprietor and the business enterprise are one and the same in the eyes of law. There is no difference between the business assets and the private assets of the sole proprietor. The business ceases to exist in the absence of the owner. 6.