Forms of Business Organization as per NCERT of I Year PU Karnataka Board. By Prof. Chidanand B Nagarjuna PU College chidanandgowda55@gmail.com chidanandb@nagarjunapucollege.co.in 9945852135

1. WELCOME

2. Business organization
A Business (also called a Company, enterprise
or firm) is a legally recognized organization
designed to provide goods or services to
consumers.

3. Various forms of
Business organization

4. Various forms of Business organization form
which one can choose the right one
 Sole Proprietorship
 Joint Hindu Family business
 Partnership
 Cooperative societies
 Joint stock company

5. Sole proprietorship
The word “sole” means “only or one” and
“proprietor” means “owner”.
Its refers to a form of business origination which is
owned, managed and controlled by an individual
who is the recipient of all profits and bearer of all
risks.

6. Sole proprietorship
Example - general store,
barbershop, sweet shop
etc..,

7. Sole proprietorship
Merits
Quick decision making
Confidentiality of information
Ease of formation and closure
Demerits
Limited life of a business concern
Limited managerial ability

8. Joint Hindu Family business
Joint Hindu family business is a specific form of business organization found
only in India. It is one of the oldest (1868) forms of business organization in the
country.
It refers to a form of business organization which is owned and carried on
jointly by the members of the Hindu Undivided Family (HUF). It is also known
as Hindu Undivided Family Business.
Karta
Coparcener

9. Joint Hindu Family business
Example- Reliance Industries,
Tata Sons Industries, Mahindra
& Mahindra etc..,

10. Joint Hindu Family business
Merits
Effective control
Continued business existence
Increased loyalty and cooperation
Demerits
Dominance of karta
Limited managerial skills

11. Partnership
The Indian Partnership Act, 1932 defines 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.”
As per Rule 10
Minimum 2 and Maximum 50

12. Partnership
Example - Burger King &
McDonald’s, Nike & Apple,
GoPro & Red Bull etc..,

13. Partnership
Merits
 Sharing of risks
 Balanced decision making
 Flexibility
Demerits
 Lack of continuity
 Possibility of conflicts

14. Cooperative societies
Cooperative society is compulsorily required to
be registered under the Cooperative society act
1912.
The cooperative means a voluntary association
of person who are financially strong, They come
together with an aim not to get profits but to
overcome from disability

15. Cooperative societies
Example- Amul, Mother Dairy,
Indian Farmers Fertiliser
Cooperative etc..,

16. Cooperative societies
Merits
Stable existence
Support from government
Ease of formation
Demerits
Government control
Differences of opinion

17. Joint stock company
A joint-stock company is a business owned by
its investors, with each investor owning a share
based on the amount of stock purchased.

18. Joint stock company
Example- Indian Oil,
State Bank of India,
Dabur etc..,

19. Joint stock company
Merits
Transfer of interest
Scope for expansion
Professional management
Demerits
Complexity in formation
Delay in decision making