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Chapter 11 business firm


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Chapter 11 business firm

  1. 1. Forms of Business Organization ModifiedMajor Minor corporateforms forms forms Sole Joint stock cooperative proprietorship company Mutual partnership Joint venture company Corporation Business trust
  2. 2. Business Aspects Sole Proprietorship Partnership Corporation1. Liability to Unlimited Limited/ Limitedowners unlimited2. Ease of Not easy Not easy Easyexpansion3. Life of firm Dependent on the Dependent on Bot dependent on owner the partner the owner4. Decision making Can be made easily Tends to be Tends to be slower slowest5. Taxation of Once Once Twiceincome6. Ease of Easiest Easy Not easyformulation
  3. 3. Type of organization Financing SourceSole proprietorship - owner’s personal funds - Borrowings from private persons or banksPartnership - partner’s personal fund - Borrowing from private person or banksCorporation - Sale of share of stocks - Borrowing through issuance of debt instruments like bonds and promissory notes - Borrowings from bank