forms of business xi ncert business studies

1. FORMS OF
BUSINESS ORGANISATION

2. FORMS OF
BUSINESS
SOLE
PROPRIETOR
SHIP
PARTNERSHIP
CO-
OPERATIVE
SOCIETY
JOINT STOCK
COMPANY
JOINT HINDU
FAMILY

3. MEANING
A FORM OF BUSINESS ORGANISATION
OWNED AND OPERATED BY A SINGLE
PERSON

4. “SOLE PROPRIETORSHIP IS DEFINED AS
THE BUSINESS RUN BY AN INDIVIDUAL
WITH HIS OWN CAPITAL OR THE
AMOUNT BORROWED FROM OTHERS
UNDER HIS OWN RESPONSIBILITY”

5.  FORMATION AND CLOSURE
 LIABILITY
 SOLE RISK BEARER AND PROFIT RECEIPIENT
 CONTROL
 NO SEPARATE LEGAL ENTITY
 LACK OF BUSINESS CONTINUITY

6.  QUICK DECISION MAKING
 CONFIDENTIALITY OF INFORMATION
 DIRECT INCENTIVE
 SENSE OF ACCOMPLISHMENT
 EASE OF FORMATION AND CLOSURE

7.  LIMITED RESOURCES
 LIMITED LIFE OF A BUSINESS CONCERN
 UNLIMITED LIABILITY
 LIMITED MANAGERIAL ABILITY

8. “PARTNERSHIP IS THE RELATION BETWEEN
TWO OR MORE PERSONS WHO HAVE
AGREED TO SHARE THE PROFITS OF A
BUSINESS CARRIED ON BY ALL OR ANY OF
THEM ACTING FOR ALL”

9.  FORMATION
 LIABILITY
 RISK BEARING
 DECISION MAKING AND CONTROL
 CONTINUITY
 MEMBERSHIP
 MUTUAL AGENCY

10.  EASE OF FORMATION AND CLOSURE
 BALANCED DECISION MAKING
 MORE FUNDS
 SHARING OF RISKS
 SECRECY

11.  LIMITED RESOURCES
 UNLIMITED LIABILITY
 POSSIBILITY OF CONFLICTS
 LACK OF CONTINUITY
 LACK O F PUBLIC CONFIDENCE