There are three main types of business undertakings: private, public, and joint sector. Private undertakings include sole proprietorships, partnerships, joint ventures, joint stock businesses, cooperatives, and private companies. Public undertakings are owned and operated by government authorities, and can take the form of departmental organizations, public corporations, or government companies. Joint sector undertakings involve a partnership between private and public sectors, with private sector generally managing operations while government maintains oversight through board representation.

1. FORMS OF
BUSINESS
UNDERTAK
INGS

2. – A number of forms of organizations exist to
suit requirements of different business
undertakings.
There are three types of business
undertakings.
– Private undertakings
– Public undertakings
– Joint Sector undertakings

3. PRIVATE UNDERTAKINGS
– These undertaking have the following types of organizations:
– Sole proprietorship
– Partnership
– Joint Venture
– Joint stock business
– Co-operative society
– Private companies

4. Sole Proprietorship
– In this form of organization a single individual
promotes and controls the business undertaking
and bears the whole risk himself.
– He supplies the entire capital for starting and
running the business. He takes all profits and
bears all the risks alone.
– This is the simple form of organization requiring
no formalities to set it up.

5. Partnership
–Partnership is an association of two
or more persons to carry on, as co-
owners, a business and share its
profits and losses. Partnership deed
can be a gentleman agreement used
to run business together.

6. Joint Venture Business
– This is the form of business that is
transactional only, two or more persons
come together in a certain opportunity to
share profits and losses, as the transaction
ends the persons distribute their capitals
and gain or losses as agreed at the start of
business.

7. Joint Stock Business
– Is association of many persons who
contribute stock to a common stock and
employ it in some business and share the
profit and loss arising there from.

8. Co-operative societies
– These are voluntary associations with the
aim of service to members.
– The co-operative societies are registered
under the co-operative societies act and
have governmental control than other
organizations in private sector.
– None of the members has personal
liability for the enterprise liabilities

9. Private companies
– The company which is incorporated through
registration with the registrar of companies
under the companies act is called a ‘Registered
Company’.
– The companies act contains comprehensive
provisions with regard to establishment,
management and dissolution etc.

10. PUBLIC UNDERTAKINGS
– Business undertakings owned and operated by
public authorities. In these undertakings, either
whole or most of investment is done by the
government.
– Departmental organization
– Public corporations
– Government companies

11. Departmental organizations
In this organization the enterprise work as a
part of government and management is in the
hands of civil servants.
The minister is accountable to parliament for
the working of the department. Example in
Tanzania is MSD

12. Public corporations
– They are created by special statute of state or
government.
– The legislative act is passed by defining the
sphere of work and mode of management of the
undertakings.
– It is a separate legal entity created for specific
purpose.

13. Government companies
– The companies owned by state/government.
– Either whole or majority shares are owned by the
government.
– In these no special statute is required to form
government companies.

14. – JOINT SECTOR UNDERTAKINGS
– This is a form of partnership between
private and government where
management will be generally be in the
hands of private sector.
– The general or overall supervision will lie on
the Board of Directors giving adequate
representation to government
representatives.