Forms of Business Organization as per NCERT of I Year PU Karnataka Board.
By
Prof. Chidanand B
Nagarjuna PU College
chidanandgowda55@gmail.com
chidanandb@nagarjunapucollege.co.in
9945852135
2. Business organization
A Business (also called a Company, enterprise
or firm) is a legally recognized organization
designed to provide goods or services to
consumers.
4. Various forms of Business organization form
which one can choose the right one
Sole Proprietorship
Joint Hindu Family business
Partnership
Cooperative societies
Joint stock company
5. Sole proprietorship
The word “sole” means “only or one” and
“proprietor” means “owner”.
Its refers to a form of business origination which is
owned, managed and controlled by an individual
who is the recipient of all profits and bearer of all
risks.
7. Sole proprietorship
Merits
Quick decision making
Confidentiality of information
Ease of formation and closure
Demerits
Limited life of a business concern
Limited managerial ability
8. Joint Hindu Family business
Joint Hindu family business is a specific form of business organization found
only in India. It is one of the oldest (1868) forms of business organization in the
country.
It refers to a form of business organization which is owned and carried on
jointly by the members of the Hindu Undivided Family (HUF). It is also known
as Hindu Undivided Family Business.
Karta
Coparcener
9. Joint Hindu Family business
Example- Reliance Industries,
Tata Sons Industries, Mahindra
& Mahindra etc..,
10. Joint Hindu Family business
Merits
Effective control
Continued business existence
Increased loyalty and cooperation
Demerits
Dominance of karta
Limited managerial skills
11. Partnership
The Indian Partnership Act, 1932 defines partnership as
“the relation between persons who have agreed to
share the profit of the business carried on by all or any
one of them acting for all.”
As per Rule 10
Minimum 2 and Maximum 50
13. Partnership
Merits
Sharing of risks
Balanced decision making
Flexibility
Demerits
Lack of continuity
Possibility of conflicts
14. Cooperative societies
Cooperative society is compulsorily required to
be registered under the Cooperative society act
1912.
The cooperative means a voluntary association
of person who are financially strong, They come
together with an aim not to get profits but to
overcome from disability
17. Joint stock company
A joint-stock company is a business owned by
its investors, with each investor owning a share
based on the amount of stock purchased.
19. Joint stock company
Merits
Transfer of interest
Scope for expansion
Professional management
Demerits
Complexity in formation
Delay in decision making