FORMS OF BUSINESS ORGANISATIONS(PRIVATE)

FORMS OF BUSINESS ORGANISATION
(PRIVATE)
BUSINESS ORGANISATION
 Any organization which is engaged in some business or commercial activity is known as
business organization.
 It combines the factors of production (land, labour and capital) in a plant for the purpose
of producing goods or services and selling them at profit.




DIFFERENT TYPES



Sole joint stock
partnership
proprietorship comapny


joint hindu
cooperative
family
society
business




 SOLE PROPRIETORSHIP

Owned, managed and controlled by a single individual

e.g- beauty parlour, barbershop, general store etc.

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, Features

 Owned by a one person.
 No legal formalities required to start and close sole proprietorship firm.
 Unlimited liability
 Easy to form
 No separate legal business entity
 Owner keeps all the profit and bear all the risk.
 Small in size



Advantages

 Quick decision making
 Confidentiality of information.
 Easy to form and close
 Direct incentives (direct relation between efforts and rewards)



Disadvantages

 Limited resources
 Limited life of business
 Unlimited liability
 Limited managerial ability




 PARTNERSHIP



It is a Kind of business where a formal agreement between two or more people is made and they
agreed to be co owners, distribute responsibilities for an organisaation and share the income or
losses that the business generates.



Partners pool their managerial and financial resources for the purpose.


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