Recommended
More Related Content
Similar to INTRODUCTION TO BUSINESS.ppt
Similar to INTRODUCTION TO BUSINESS.ppt (20)
Recently uploaded
Recently uploaded (20)
INTRODUCTION TO BUSINESS.ppt
- 1. Introduction to Business • Business means the activity which is legal and beneficial to society. • Business activities should be abided by the rules and regulations of the country. • And pay taxes and duties as per norms
- 2. • Business is an activity whose main motive is to earn profit. • Business perspective is the study of all related factors.
- 3. Forms of business organization • Sole traders • Partnership Firms • Joint Stock Companies(Pvt Ltd company, Public Limited Company.) • Co-Operative Societies • Public Sector Enterprises • Private Enterprises
- 4. Sole Trading Concerns • In this category the title of assets, liabilities are in a single persons name. • It could be any type of business of production. • He will manage with the help of others • He is only responsible for the profits and losses
- 5. Advantages of Single ownership firms • Can be started in small way with lesser capital • Organization will be small and simple. Can be enlarged later • Centralized decision making • Profits enjoyed by one person- so that effort will be more. • The business secrets can be maintained like cost, pricing, profits margins etc
- 6. • Paper works can be reduced • Formalities and legal works can also be maintained • The suitable business for this kind – repair centers, provision stores, canteens, wholesaler, traders and various types of services
- 7. Disadvantages • Loss is a major hit • Maintenance of accounts is difficult • Liability of debts and losses are more • The employee satisfaction will entirely depend on knowledge and attitude of the owners • Present and future of business entirely depend on longevity of the owner
- 8. Partnership Firms • Two or more people together can form a partnership firms • Minimum is two maximum is 20 • For registered partnership firms minimum is 7 maximum is twenty. • The work can be divided in to production, marketing, finance, purchase etc
- 9. Definition of partnership firm • “Partnership is defined as the relation between persons who are agreed to share the profits of a business carried on by all or any of them for all” • Usually friends, relatives and common friends join together as partners and contribute their funds, skills, knowledge for the purpose of making profits.
- 10. • Normally the share, percentage of profits and other things are pre decided well in advance and documented • In partnership firms it is assumed that all the partners will have mutual trust and respet • Accounts and dealings will be opened and no hide and seek efforts will be made
- 11. Advantages of Partnership Firms • Poling of funds will be easier • Variety of talents and skills will be readily available • Formation of company is easy • There is a legal binding to share profits and losses • Profits is arrived after interest and income tax is apportioned and will be distributed among partners
- 12. Continued.. • This type of business is best suited for poly clinics, engineering units and legal firms and trading firms and large bsines.
- 13. Disadvantages of partnership firm • Management will be difficult • The difference of opinion may hamper the work • It main partner is sick it effects the over all business • Partners will have interest if the business is making profit, if los they may loose the interests