Forms of Business Organisation and Business Combination concepts
Forms of Business Organisation
1. Sole Proprietorship
o Owned and managed by a single person.
o Unlimited liability.
o Easy to start and manage.
o Example: Small shops, freelancers.
2. Partnership Firm
o Owned and managed by two or more people.
o Governed by a partnership deed.
o Shared profits and losses.
o Unlimited liability (unless LLP).
o Example: Law firms, consulting businesses.
3. Joint Stock Company
o Owned by shareholders, managed by a board of directors.
o Separate legal entity, limited liability.
o Two types: Private Limited Company (Pvt. Ltd.) and Public Limited
Company (Ltd.).
o Example: Tata Steel, Reliance Industries.
Forms of Business Organisation
1. Sole Proprietorship
o Owned and managed by a single person.
o Unlimited liability.
o Easy to start and manage.
o Example: Small shops, freelancers.
2. Partnership Firm
o Owned and managed by two or more people.
o Governed by a partnership deed.
o Shared profits and losses.
o Unlimited liability (unless LLP).
o Example: Law firms, consulting businesses.
3. Joint Stock Company
o Owned by shareholders, managed by a board of directors.
o Separate legal entity, limited liability.
o Two types: Private Limited Company (Pvt. Ltd.) and Public Limited
Company (Ltd.).
o Example: Tata Steel, Reliance Industries.
