This presentation makes an attempt to help a lay man understand briefly the various forms of business organisations prevalent in the Indian Business world.
This presentation makes an attempt to help a lay man understand briefly the various forms of business organisations prevalent in the Indian Business world.
This presentation will help you to:
• explain the concept of business organisation;
• state the meaning and characteristics of Sole Proprietorship and Joint Hindu Family Business
• identify the merits and limitations of these forms of business organisation;
• describe the suitability of these forms of business organisation; and
• explain the steps in the formation of these business organisation.
This presentation is about various Forms of Business Organisations and their features, merits and demerits. It also guides an entrepreuner on how to make a choice among various forms of Business Organisations.
This is the first module in the Canadian Small Business Course.
In this module, we examine the forms of organization that a business can take in Canada. Well look at proprietorships, partnerships and corporations.
We analyze the advantages and disadvantages of each form, along with the tax filing requirements for each. Also reviewed are the tax planning opportunities that are available under each form. Most importantly, we go over the decision process that you should go through when choosing the proper method.
'Sole' means single.
‘Proprietorship' means ownership.
It means only one person or an individual becomes the owner of the business.
A Sole Proprietorship is the ownership of a business by one person, who receives all of the profit, but is responsible for all debts and obligations.
An asset is a property or resource having monetary value, which is capable of producing some future economic benefit, owned by an individual or entity
Simply stated, assets represents the value of ownership/possession that can be converted into cash
In financial accounting concept, assets are resources that can generate cashflow
The balance sheet of a firm records all the current as well as non-current assets owned by the firm
Current Assets
Current assets are short-term economic resources that are expected to be converted into cash within one year
Examples_
Stock
Inventories
Prepaid Expenses
Marketable Securities
Short-term Investments
Fixed Assets
These assets are long-term resources that cannot be easily converted into cash instead are utilized to generate economic benefits for longer period of time
Examples -
Land
Building
Plant & Equipment
Furniture
Machinery
Tangible Assets
A tangible asset is an asset that has a physical form. It could be either fixed or current
Examples-
Land
Building
Furniture
Plant & Equipment
Inventory
Cash
Intangible Assets
An intangible asset is an asset that is not physical in nature. Examples-
Goodwill
Patent
Copyright
Franchisee Agreement
Trademark
Operating Assets
These are the assets required for day to day business transactions. These assets are used in core production process. These assets are like cash, bank balance, inventory
Non-operating Assets
These are the assets owned by business but not used in daily operational activity instead are hold for selling or using them in future. These non-operating assets can provide diversification and act as a financial support
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Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. It identifies transactions and events of a specific entity. A transaction is an exchange in which each participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity means an economic unit that performs economic activities.
This presentation will help you to:
• explain the concept of business organisation;
• state the meaning and characteristics of Sole Proprietorship and Joint Hindu Family Business
• identify the merits and limitations of these forms of business organisation;
• describe the suitability of these forms of business organisation; and
• explain the steps in the formation of these business organisation.
This presentation is about various Forms of Business Organisations and their features, merits and demerits. It also guides an entrepreuner on how to make a choice among various forms of Business Organisations.
This is the first module in the Canadian Small Business Course.
In this module, we examine the forms of organization that a business can take in Canada. Well look at proprietorships, partnerships and corporations.
We analyze the advantages and disadvantages of each form, along with the tax filing requirements for each. Also reviewed are the tax planning opportunities that are available under each form. Most importantly, we go over the decision process that you should go through when choosing the proper method.
'Sole' means single.
‘Proprietorship' means ownership.
It means only one person or an individual becomes the owner of the business.
A Sole Proprietorship is the ownership of a business by one person, who receives all of the profit, but is responsible for all debts and obligations.
An asset is a property or resource having monetary value, which is capable of producing some future economic benefit, owned by an individual or entity
Simply stated, assets represents the value of ownership/possession that can be converted into cash
In financial accounting concept, assets are resources that can generate cashflow
The balance sheet of a firm records all the current as well as non-current assets owned by the firm
Current Assets
Current assets are short-term economic resources that are expected to be converted into cash within one year
Examples_
Stock
Inventories
Prepaid Expenses
Marketable Securities
Short-term Investments
Fixed Assets
These assets are long-term resources that cannot be easily converted into cash instead are utilized to generate economic benefits for longer period of time
Examples -
Land
Building
Plant & Equipment
Furniture
Machinery
Tangible Assets
A tangible asset is an asset that has a physical form. It could be either fixed or current
Examples-
Land
Building
Furniture
Plant & Equipment
Inventory
Cash
Intangible Assets
An intangible asset is an asset that is not physical in nature. Examples-
Goodwill
Patent
Copyright
Franchisee Agreement
Trademark
Operating Assets
These are the assets required for day to day business transactions. These assets are used in core production process. These assets are like cash, bank balance, inventory
Non-operating Assets
These are the assets owned by business but not used in daily operational activity instead are hold for selling or using them in future. These non-operating assets can provide diversification and act as a financial support
Thank You For Watching
Subscribe to DevTech Finance
Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making. It identifies transactions and events of a specific entity. A transaction is an exchange in which each participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity means an economic unit that performs economic activities.
Types of Business Organization, Meaning of Business Organization, Characteristics of Business Organization
Forms of Business Organization
Sole Proprietorship
Meaning of Sole Proprietorship
Features of Sole Proprietorship
Merits of Sole Proprietorship
Demerits of Sole Proprietorship
Hindu Undivided Family
Meaning of Hindu Undivided Family
Features of Hindu Undivided Family
Merits of Hindu Undivided Family
Demerits of Hindu Undivided Family
Partnership
Meaning of Partnership
Features of Partnership
Merits of Partnership
Demerits of Partnership
Types of Partners
Company
Meaning of Company
Features of Company
Merits of Company
Demerits of Company
Types of Companies
Limited Liability Partnership (LLP)
Meaning of LLP
Features of LLP
Merits of LLP
Demerits of LLP
Co-operatives
Meaning of Co-operatives
Types of Co-operatives
Features of Co-operatives, Merits of Co-operatives
Demerits of Co-operatives
Multi-National Corporations
Meaning of Multi-National Corporations
Features of Multi-National Corporations
Merits of Multi-National Corporations
Demerits of Multi-National Corporations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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2. WHAT IS A BUSINESS ORGANISATION?
The term "business organization" refers to how a
business is structured.
It refers to a commercial or industrial enterprise
and the people who constitute it.
3. WHAT IS THE RIGHT FORM OF
OWNERSHIP ?
• There really is not one right form of ownership.
• The correct form depends of the type of
company, the goals of the owners, and the plans
of what the company may become.
• Factors such as tax considerations, liability
exposure, capital requirements and structure
and ownership control all play a role is
determining which form is correct for a
business.
5. TYPES OF BUSINESS
ORGANISATIONS
• Private Sector
• Sole Proprietorship
• Joint Hindu Family Business
• Partnership Firm
• Joint Stock Company
1) Private Limited
2) Public Limited
• Company
• Co-operative Society
7. Choosing a Form of Business Organization
The choice of the form of business is governed by
several interrelated and interdependent factors :-
• The nature of business is the most important
factor
• Scale of operations i.e. volume of business ( large,
medium, small) and size of the market area (local,
national, international)
8. • The degree of control desired by the owner(s)
• Amount of capital required for the establishment
and operation of a business
• The volume of risks and liabilities as well as the
willingness of the owners to bear it
• Comparative tax liability
9. • Choice of Suitable form of ownership –
A Crucial Decision
• The form of ownership determines the -
• Division of Profits
• Extent of liability
• Extent of Risk
• Division of Power
• Control of Owner
10.
11. SOLE PROPRIETERSHIP
When the ownership and management of a business are
in control of one individual the form of business is called
sole proprietorship.
12. SOLE PROPRIETERSHIP
• The most common form of business organization.
• Owned by one person, who performs most roles and
owns everything
• Very few legal requirements for setting it up.
• Owner gets all profits, takes all the losses → called
unlimited liability
• Easiest and least expensive to set up
• Easiest for tax purposes → income recorded under
personal income
13. CHARACTERISTICS
• Oldest form of business organization
• The business enterprise is owned by one
single individual (i.e. both profit and risk
belong to him)
• Owner is the Manager
• Owner is the only source of Capital
• The proprietor and business enterprise are
same in the eyes of the law.
14. CHARACTERISTICS
• Liability of sole proprietor is unlimited
• Sole proprietorship business is free from
many legal formalities subjected to the
general law of the land
• Proprietor makes all decisions pertaining to
the business
• Limited scope of operations.
15. ADVANTAGES
OF
SOLE
PROPREITORSHIP
• Ease in formation
• Discretion in start and dissolution
• Flexibility
• Free from legal Formality
• Independence of proprietor
• Quick decesions
16. ADVANTAGES OF
SOLE PROPREITORSHIP
• Facilitate Coordination
• Personal contacts with customers
• Secrecy
• Perfect Control
• Economy in operation
• Ease to borrow funds
• Direct relation between effort and rewards
• Successors benefited by inherited business
• Social advantage
17. DISADVANTAGES OF SOLE
PROPREITORSHIP
• Limited managerial
capacity
• Hasty decisions
• Secrecy causes
suspicion
• Owner has unlimited
liability
• Limited financial
resources
18. DISADVANTAGES OF SOLE
PROPREITORSHIP
• Loss in absence
• Difficulty in attracting and retaining good
employees
• High morality rate
• Lack of stability
• Unfit for medium and large businesses
19. Is the sole proprietorship the best
form of business ownership ?
• To understand this statement we can divide it
into following two parts:-
• One man control is the best
• It is the best provided certain conditions are
satisfied.
20. One man control is the best
• Ease in formation
• Discretion in start and end
• Flexibility
• Free from legal formalities
• Quick decisions
• Facilitate coordination
• Personal contacts with customers
• Secrecy
• Perfect control
21. One man control is the best
• Economy of operation
• Easy to borrow funds
• Direct relation between efforts and reward
• Successors benefited by inherited business
• Social advantages
22. Provided certain conditions are
satisfied
• It mean sole proprietorship business suffers from
many limitations or demerits. These are-
• Limited managerial capacity
• Hasty decisions
• Secrecy causes suspicion
• Unlimited liability
• Limited financial resources
• Loss in absence
• Lack of stability
• Unfit for medium and large business
23. JOINT HINDU FAMILY BUSINESS
• A Hindu Undivided Family (HUF) or Joint
Hindu Family (JHF) consist of all persons who
lineally descended from a common ancestor
and includes their wives and unmarried
daughters (Hindu Law).
• When a joint Hindu family carries on a
business, it is called a joint Hindu family firm.
• The members of such firm are not called
partners, but known as coparceners.
24. JOINT HINDU FAMILY BUSINESS
• Comes into existence as per
the Hindu Inheritance Act of
India
• This form of business found
only in India
• All members of the Hindu
Undivided Family(HUF) own
the business jointly
• The affairs of the business
are managed by head of the
family called “Karta”. All
other members are called
“Coparceners”
25. • Membership is restricted only to
members of the Joint family. No
outsider can become the
member
• Karta has unlimited liability
while all other members have
limited liability
• The share of each member keeps
on fluctuating
• Business continues to exist upon
the death of any member or
Karta.
26. ADVANTAGES OF HUFs
• Every coparcener has an assured
share in profits
• The business has continued
existence
• Decision making is quick as the
powers are with the Karta
• No corporate tax
• People use it mostly for tax
benefits these days
27. DISADVANTAGES OF HUFs
• Absolute power in the hands
of Karta.
• Instability
• Limited Resources can be
raised
• Scope for conflict
29. Meaning of Partnership
• A partnership is an association of two or
more persons who agree to carry on business
for earning and sharing profit among them.
• According to Indian Partnership Act,
“Partnership is the relation between persons
who have agreed to share the profits of a
business carried on by all or any of them
acting for all.”
30. CHARACTERISITCS OF PARTNERSHIP
• Minimum 2 number of partners and maximum 20
partners. All of must be competent to contract.
• The relation between the partners is created in the
form of a contract. Written contract is called
“Partnership Deed.”
• The firm means partners, the partners mean the
firm
• The profit is divided in any as ratio as agreed
• No partner can sell/transfer his interest in the firm
to anyone without the consent of other partners
31. CHARACTERISITCS OF PARTNERSHIP
• The relation of partnership arises from a valid
agreement.
• The liability of partners is unlimited.
• To constitute a partnership, there must be a
relation of mutual agency between the partners.
• The relation of partnership is founded upon
mutual trust and confidence. Therefore, every
partner is bound to be faithful to each other.
• A firm does not have separate legal existence from
its partners. Firm is not a person in the eye of law.
• The registration of partnership is not compulsory
in India.
32. Test of Partnership
• There must be an agreement between two or
more persons.
• There must be a business of partnership.
• The partners must have agreed to share the
profits of the business.
• The business must be carried on by all or any
one
33. ADVANTAGES OF PARTNERSHIP
• Easy Formation
• Larger Resources
• Greater Management Talent
• Flexibility of Operation
• Prompt Decision
• Balanced decisions
• Sharing Of Risk and liability
• Personal care and
supervision of business
34. ADVANTAGES OF PARTNERSHIP
• Secrecy
• Direct relation between work and reward
• More possibility of growth and expansion
• Protection of minority interest
• Easy dissolution
35. DISADVANTAGES OF PARTNERSHIPS
• Unlimited Liability
• Limited resources
• Limited managerial skill
• Fear of Dispute
• Instability
• Non- transferability of
interest
• Lack of public interest
• Risk of mutual agency
relations
36. Partnership Deed
• When the contract of partnership is made in
writing, it takes the form of a document.
Thus, the document which contains the terms
of contracts of partnership is called the deed
of partnership.
• It must contain all the important terms of
partnership agreed by the partners.
37. Contents of deed
• Name of the firm
• Name of the partners
• Nature and place of business
• Date of commencement of partnership
• Duration of the partnership/ firm.
• Capital employed or to be employed by each partner.
• Profit and loss sharing ratio
• Interest on capital
• Limit of drawing and interest on it
• Interest on loans by and to partners
• Salary or commission, if payable, to the partners
38. Company
• According to companies act 1956, “Company”
means a company formed and registered
under this act or an existing company formed
and registered under any of the previous
companies law.
• According to Prof. Haney, “ A company is an
artificial person created by law, having
separate entity with a perpetual succession
and common seal.”
39. CHARACTERISITCS OF COMPANY
• Registered voluntary association/ body corporate
• Members/ Subscriber
• Artificial person
• Separate legal entity
• Perpetual succession
• Common seal
• Limited liability
40. CHARACTERISITCS OF COMPANY
• Share Capital
• Transferable shares
• Separate property
• Capacity to sue and be sued
• Management team
• Governance by majority
• Nationality
• Not a citizen and has no fundamental rights
41. ADVANTAGES OF COMPANY
• Limited Liability
• Huge financial resources
• Perpetual existence or stability
• Transferability of shares
• Sound management
• Diffusion of risk
• Economy in operation
42. ADVANTAGES OF COMPANY
• Democratic management
• Scope of expansion and growth
• Public confidence
• Encourages capitalization
• Social advantages
43. DISADVANTAGES OF COMPANY
• Difficulty in formation
• Regulation and Control
• Oligarchy of directors
• Neglect of minority interests
• Lack of Secrecy
44. DISADVANTAGES OF COMPANY
• Delay in decisions
• Lack of motivations
• Tax Burden
• Difficulty in winding up
• Insider trading
45. MEANING OF A CORPORATION
• The term ‘Co-operation’ has been derived by
adding a prefix ‘Co’ with the word ‘operation’. ‘Co’
means together and ‘operation’ means work.
Therefore the literal meaning of the term co-
operation is to work together.
• Co-operation means working together for a
common good of all.
46. CO-OPERATIVE SOCIETY
It is a voluntary
association of
people or
business to
achieve a an
economic goal
with a social
perspective
47. DEFINITION OF A CORPORATION
• A Co-operative society or organization is one which
has been voluntarily formed by some persons for
the promotion of their common economic interest.
• According to the Indian Co-operative Societies Act,
1912, A Co-operative society is “a society which
has its object as the promotion of economic
interests of its members in accordance with co-
operative principles.”
48. CHARACTERISTICS OF A CO-OPERATIVE
ORGANIZATION
• Voluntary organization
• Must be registered
• Separate legal entity and artificial person
• Liability is limited
• Perpetual existence
• Every member has to buy at least one share
• Non-transferable shares
49. CHARACTERISTICS OF A CO-OPERATIVE
ORGANIZATION
• Each member of a co-operative society has a
right to one vote
• Managed on Democrative principles
• Certain proportion of profit is of co-operative
society is distributed among its member
• Works for promotion of economic interest of
its member
• Primary object is to serve its members
• Based on principles equality, justice and
mutual benefit
50. CO-OPERATIVE PRINCIPLES
• Principle of voluntary and open membership
• Principle of democratic member control
• Principle of member’s economic participation
• Principle of autonomy and independence
• Principle of education, training and
information
• Principle of co-operation among co-operatives
• Principle of concern for community
51. ADVANTAGES OF A CO-OPERATIVE ORGANISATION
• Organisational Advantages
• Easy formation
• Small amount of investment
• Equal voting rights
• Democratic management
• Stability
• Easy to wind up
52. ADVANTAGES OF A CO-OPERATIVE ORGANISATION
• Economic Advantages
• Economic management
• Tax advantages
• Ploughing back the profits
• Government aid
• Equitable distribution of profits
• Limited liability
53. ADVANTAGES OF A CO-OPERATIVE ORGANISATION
• Social Advantages
• Spirit of mutual help and brotherhood
• Uplift standard of living of weaker sections of
society
• Promotes equal distribution of income and wealth
in the society
• Relief from exploitation
• decentralisation of economic power
• Changes in society by peaceful means
• Promotes maximum social welfare
54. Public Enterprises
• Public enterprises (PE) refers to an enterprise
which is owned and controlled by the
Government or public authority.
• A public enterprise refers to an industrial,
commercial or service enterprise which is
owned and controlled by the Government or
by public authority/ Government
organisation for providing goods and services
to the public.
55. CHARECTERISTICS OF PUBLIC ENTERPRISES
• Owned by the government or any public
organisation
• Managed, controlled and operated by the
Government
• Carry on activities of production of goods or
services
• Run in different form of organisation
(departmental organisation, public
corporation, Government Company, Boards,
Trusts etc.)
56. CHARECTERISTICS OF PUBLIC ENTERPRISES
• Established with some special objectives
(economic objectives, social objectives, political
objectives etc.)
• Service motive is prime motive
• PE accountable to the public
• Subject to audit rules of the Government
• Required to prepare annual return of working &
place the same before the Lok Sabha.
• Monopoly position in certain economic activities
such as railways, mining, petro-products etc
57. ROLE & IMPORTANCE OF PUBLIC
ENTERPRISES
• Infrastructure Development
• Strong Industrial Base
• Planned Development
• Balanced regional development
• Employment
• Promotes capital formation or investment
• Export promotion
58. ROLE & IMPORTANCE OF PUBLIC
ENTERPRISES
• Import Substitution
• Contribution to the GDP
• Contribution to Exchequer
• Research and Development
• Help reduce disparities of income and wealth/
concentration of economic power
• Protection of consumer interests
60. Departmental Organisation
• Departmental form of organisation is the oldest
form of organising public enterprises.
• Under this form of organisation, an enterprise is
put under the control of a department.
• Such department is headed by the concerned
minister.
• For example- Railway is a public enterprises
which is under the control of Railway department
and is headed by Railway Minister.
61. Public/ Statutory Organisation
• A public or statutory corporation is a body
corporate incorporated under a special Act or
State Legislature.
• According to Morrison, “In public corporation,
we are seeking a combination of public
ownership, public accountability and business
management for public ends.”
62. Government Company
• According to the Companies Act 1956, a
Government company means any company in
which not less than fifty-one per cent of the
paid-up share capital is held by the following-
a) By the central Government
b) By any State Government or Governments
c) Partly by the Central Government and Partly by
one or more State Governments
• A Government company is one in which not less
than 51% of the paid-up capital is held by the
Central or/ and State government.
63. Joint Sector
• A Joint Sector Enterprise is one which is
established in the partnership of the public
sector and the private sector.
• It is refers to a form partnership between the
Government and private sector.
• According to M. Adhikari, “Joint sector is a form
of partnership between the public sector and
the private sector or between the government
and business.”
64. Characteristics of a Joint sector
Enterprise
• Public & Private sector partnership
• Both entrepreneur contribute to the capital
• Managed & controlled by a Board of Directors
• Day to day operations of the enterprise are
conducted by the managing director
• Not accountable to the public
65. Characteristics of a Joint sector
Enterprise
• Organised in company form of organisation
• Both public enterprises and private enterprises
may be converted into joint sector enterprises
• Whenever a big business house or a foreign
enterpreneur wants to participate in a joint
sector enterprise, prior permission of the central
government is essential
• Effective voice in the management and
operations
66. AMUL
• Amul is an Indian dairy cooperative, based at Anand in the state
of Gujarat, India.[2] The word amul (अमूल) is derived from
theSanskrit word Anand Milk Utpadan Limited , meaning rare,
valuable .[3] The co-operative was initially referred to as Anand Milk
Federation Union Limited hence the name AMUL.
• Formed in 1946, it is a brand managed by a cooperative body, the
Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF),
which today is jointly owned by 3.6 million milk producers in
Gujarat.[4]
• Amul spurred India's White Revolution, which made the country the
world's largest producer of milk and milk products.[5] In the process
Amul became the largest food brand in India and has ventured into
markets overseas.
• Dr. Verghese Kurien, founder-chairman of the GCMMF for more
than 30 years (1973–2006), is credited with the success of Amul.
67. Role & Importance of Joint sector
enterprises
• Integration of public and private sector
• Board-based entrepreneurship
• Social control over industry
• Promotion of socio-economic objectives
• Acceleration of industrial growth
• Curbing concentration of economic power
• Helps develop entrepreneurship
• Promotion of mixed economy
68. Problems/ Demerits of Joint sector
enterprises
• Problem due to capital contribution ratio
• Problem of management and operation
• Many formalities
• Difference of opinion among the directors
• Selection of project
69. Problems/ Demerits of Joint sector
Enterprises
• Difficulty in choosing private entrepreneur
• Change in the board
• Conflict on objectives
• Delay in completion of the project
• Under utilisation of capacity
70. 2. PUBLIC COMPANY
• Stocks are held by a large
number of people
• Minimum 7 shareholders
and no limit for maximum
• Can be listed on stock
exchange and can go
public
• Have to follow many laws
with regards to the board
composition and AGM.
71. TWO TYPES OF CORPORATIONS
1. PRIVATE COMPANY
• Closely held by a few people
• Minimum 2 and maximum 50
shareholders
• Stocks cannot be traded on exchanges
and private equity cannot be raised
• Less regulations as compared to
Public Companies
72. CHARECTERISTICS OF CO-OPERATIVE
• Voluntary association
• Minimum membership requirement is 10
and there is no maximum limit
• Registration of Co-operative is must
under the “Co-operative Societies Act” is
a must. After the registration it enjoys
certain privileges of a Joint Stock
Company
73. ADVANTAGES OF CO-OPERATIVE
• Easy Formation
• Limited Liability
• Stability
• Democratic
Management
• State Assistance
74. DISADVANTAGES OF A CO-OPERATIVE
• Possibility of
conflict
• Long decision
making process
• Not enough capital
75. JOINT STOCK COMPANY
A joint stock company is a voluntary
association of people who contribute
money to carry on business