Forms of agribusiness organisation

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Forms of agribusiness organisation

  1. 1. 1 FORMS OF AGRIBUSINESS ORGANISATIONS05/09/12 AEC & RI, KUMULUR, TNAU - 621712
  2. 2. AGRIBUSINESS2  Agribusiness is defined as all business enterprises that buy from or sell to farmers.  Transaction may involve either an input or a produce or service and  Encompasses items such as: Productive resources Agricultural commodities Facilitative services 05/09/12
  3. 3. Agribusiness Organisation3 Involves in  Production  Distribution  Retailing  Franchising  Professional services  Financial services 05/09/12
  4. 4. Legal Forms of Agribusiness Organization4 Sole Proprietorship Partnership Coop. Society Joint Stock Company Pvt. Ltd Company Public Ltd Company State Enterprise 05/09/12
  5. 5. Sole Proprietorship5  A business owned by a single individual.  Owner maintains title to the firm’s assets.  Owner has unlimited liability. 05/09/12
  6. 6. Partnership6  Similar to a sole proprietorship, except that there are two or more owners.  All partners have unlimited liability. 05/09/12
  7. 7. Cooperatives7  Minimum of 10 members  No maximum limit  Regulates by RCS  Elected Board  One man one vote  Dividend  Bonus based on business turnover 05/09/12
  8. 8. Cooperatives8  Advantages: Limited liability Easy to start  Disadvantages: Raising funds is limited Political Influence 05/09/12
  9. 9. Private Ltd Company9  Distinct legal entity from its members  Shareholders can’t be held liable for actions of the company  Public can’t be invited to subscribe capital  Members: 2 to 50  Liability: Limited  Shares: Not transferable 05/09/12
  10. 10. Pvt. Ltd Company10  Advantages: Limited liability Promoters enjoy control  Disadvantages: Tax rate is higher (income, dividend) Shares are not transferable Raising funds is limited 05/09/12
  11. 11. Public Ltd Company11  Members: Minimum : 7 Maximum : unlimited  Invite public to subscribe capital  Limited liability  Free transfer of shares 05/09/12
  12. 12. Public Ltd Company12 Advantages: Unlimited life Limited liability Company can raise funds Disadvantages: Income taxed Dividend taxed Setting up procedures more 05/09/12
  13. 13. State Enterprise13  Owned by the government is public undertaking or state enterprise. 05/09/12
  14. 14. State Enterprise14 Started for the following reasons:  It brings about rapid economic development.  It ensures that the benefits of development are shared by all the people.  The state can raise huge capital, which could not be raised by the private sector.  As a monopoly enterprise, it enjoys several advantages. 05/09/12
  15. 15. Factors affect the business form15  Nature & type of organization  Exposure to financial risk  Ability to raise capital  Tax treatment of income  Regulatory frame work 05/09/12
  16. 16. Thank you16 05/09/12

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