to know about what is business and its forms of business organisation

1. PRESENTED
BY
G. ESWARI
FORMS OF BUSINESS
ORGANISATION

2. INTRODUCTION :
If one is planning to start a business or is interested in
expanding an existing one, an important decision relates to
the choice of the form of organisation .
Various forms of business organisations from which one
can choose the right one include:
1. Sole proprietorship
2. Joint Hindu Family business
3. Partnership
4. Cooperative societies
5. Joint stock company

3. 1. Sole proprietorship :
Sole proprietorship is a popular form
of business organisation and the most suitable
form for businesses ,especially in their initial years
of operation. sole proprietorship refers to a form of
business organisation which is owned ,managed
and controlled by an individual who is the
recipient of all profits and bearer of all risks.

4. FEATURES OF SOLE PROPRIETORSHIP
1. Formation and closure
2. Sole risk bearer and profit recipient
3. Control
4. No separate entity
5. Lack of business continuity

5. MERITS :
Sole proprietorship offers many advantages.
Some of the important ones are as follow :
1. Quick decision making .
2. Confidentiality of information.
3.Direct incentive.
4. Sense of accomplishment .
5.Ease of formation and closure.

6. 2. Joint Hindu Family Business :
It refers to a form of organisation
where in the business is owned and carried on by the
members of the HUF . It is governed by the Hindu
Law.
FEATURES :
1. Formation
2. Liability
3. Control
4. Continuity
5. Minor member

7. MERITS :
The advantages of the joint Hindu Family Business
are as follows:
1. Effective control
2. Continued business existence
3. Limited liability of members
4. Increased loyalty and cooperation

8. 3.Partnership:
The Indian Partnership Act, 1932
define 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.”
FEATURES :
1.Formation
2. Liability
3.Risk bearing
4. Continuity
5. Number of partner

9. MERITS :
The following points describe the advantages of a
partnership firm.
1.Ease of formation and closure
2. Balanced decision making
3. More funds
4. Sharing of risks
5. Secrecy

10. 4.Cooperative society
The cooperative society is a voluntary
association of persons, who join together with the
motive of welfare of the members.
FEATURES
1. Voluntary membership
2. Legal status
3. Limited liability
4. Control
5. Service motive

11. MERITS :
Some of the advantages of the
cooperation form of organisation are as follows.
1. Equality in voting status
2. Limited liability
3. Stable existence
4. Economy in operations
5.Support from government

12. 5. Joint stock company :
a company is an association
of person formed for carrying out business activity and
has a legal status independent of its members.
FEATURES
1. Artificial person
2. Separate legal entity
3. Formation
4. Perpetual succession
5. Control

13. MERITS :
The company form of organisation
offers a multitude of advantages .
1. Limited liability
2. Transfer of interest
3. Perpetual existence
4. Scope for expansion
5. Professional management

14. THANK YOU