This document discusses different types of business ownership structures including single ownership, partnership, joint stock companies, cooperative organizations, and public and private sectors. It provides details on the key characteristics of each type as well as their advantages and disadvantages. The main types of ownership structures covered are single ownership, general partnership, limited partnership, private limited companies, public limited companies, cooperative organizations, public sector enterprises, and private sector businesses.

1. Prepared by:-
VIVEK KAR
BE/5766/07
PRODUCTION DEPT.

2. INTRODUCTION:-
To start a business enterprise the most important
thing required is the capital.
If the capital is provided by single individual, it is
known as Individual ownership,
If the capital is supplied by two or more persons, it
refers to partnership organization.
If the capital is provided by many persons in the
form of shares to an institute with a legal entity, it is
called a Joint Stock Company.

3. TYPES OF OWNERSHIP:-
The different types of ownership are:-
 Single ownership (Private Undertaking).
 Partnership.
 Joint Stock Companies.
 Cooperative organization.
 State and Central Government owned.

4. SINGLE OWNERSHIP:-
A business owned by one man is called single
ownership. It is called a single ownership when an
individual exercises and enjoys these rights in his
own interest. Single ownership does well for those
enterprises which requires little capital and lend
themselves readily to control themselves readily to
control by one person .

5. ADVANTAGES OF SINGLE OWNERSHIP:-
a) Easy to establish as it does not require to complete
any legal formality.
b) Simplicity of organization.
c) The expenses in starting the business are minimal.
d) Owner is free to make all decisions.
e) This type of ownership is simple, easy to operate
and extremely flexible.
f) The owner enjoys all the profits.
g) Minimum legal restriction are associated with this
form of ownership.

6. DISADVANTAGES OF SINGLE
OWNERSHIP:-
 The owner is liable for all obligations and debts of the
business.
 The business may not be successful if the owner has
limited money, lacks ability and necessary experience to
run the business.
 Because of relatively unstable nature of the business, it is
difficult to raise capital for expanding the business.
 There is limited opportunity for employees as regards
monetary rewards(e.g., profit sharing, bonus, etc) and
promotions.
 If business fails , creditors can take the personal property
as well as the business property of the owner to settle
their claims.

7. PARTNERSHIP:-
A partnership is a type of business entity in which
partners (owners) share with each other the profits
or losses of the business.
Types of partnership:-
 General partnership.
 Limited partnership.

8. GENERAL PARTNERSHIP:-
In a general partnership, each
partner has full agency powers
and may bind the partnership by
ant act, i.e., each partner may act
as though he were an individual
proprietor.

9. ADVANTAGES OF GENERAL
PARTNERSHIP:-
 Large capital is available to the firm.
 The firm possesses much better talents, judgment
and skills.
 Incentive for success is high.
 For all losses, there are more than one person to
share them.
 Partnership associates tax advantages with it.

10. DISADVANTAGES OF GENERAL
PATNERSHIP:-
 Danger of disagreement and distrust among the
partners.
 Authority being divided among the partners.
 Partnership may dissolve if a partner dies.
 All partners suffer due to wrong decision taken by
one partner.

11. LIMITED PARTNERSHIP:-
It is a partnership in which only one
partner is required to be a general partner.
Limited partner have limited liability,
meaning they are only liable on debts
incurred by the firm to the extent of their
registered investment and have no
management authority.

12. ADVANTAGES OF LIMITED
PATNERSHIP:-
 It permits men possessing different kinds of abilities
to unite, thereby increasing efficiency.
 It makes possible the employment of larger capital,
which, as we shall see later, contributes to increased
production.
 Limited partners share the profit but do not
participate or interfere with the control or
management of the firm.

13. DISADVANTAGES OF LIMITED
PARTNERSHIP:-
The limited partner, though he invests
in the business, has no voice in the
management.
The member of a partnership must
share more or less authority with
others.
Profits must be divided among the
partners.

14. JOINT STOCK COMPANY:-
A joint stock company is a type of
business entity involving two or more
legal persons.
In a joint stock company the
shareholders are free to transfer their
ownership interest at any time by
selling their stockholding to others.

15. TYPES OF JOINT STOCK
COMPANIES:-
Private limited companies.
Public limited companies.

16. Private limited companies:-
 The capital collected from private partners. Private
limited companies restrict the right to transfer
shares, avoid public to take up shares or debentures.
The numbers of members is between 2 and 50
excluding the employees and ex-employees
shareholders.
 Actually, a private joint stock companies resembles
much with partnership and has the advantages that
this big capital can be collected that could be done so
in partnership.

17. Public limited companies:-
In public limited company, the capital is collected
from the public by issuing shares having small face
value (Rs 50, 20, 10). The number of shares holders
should not be less than seven, but there is no limit to
their maximum number. A public limited company
has to file with the registrar of joint stock companies,
documents such as consent of the directors, list of
directors, director’s contract, etc.

18. Contd….
A public company has to issue a
prospectus to the public.
 It has to allot shares within 180 days
from the date of prospectus.
 It can only start after receiving the
certificate to commence business.
 There is no restriction on transfer of
shares.

19. ADVANTAGES OF JOINT STOCK COMPANIES:-
A huge sum of money can be raised.
It associates limited liability with it.
Shares are transferable.
Companies life is not affected by the death of
shareholders.
Risk of loss is divided among many shareholders.
The company associates with it stability, efficiency
and flexibility of management.

20. DISADVANTAGES OF JOINT STOCK
COMPANIES:-
People can commit frauds with the
companies.
It is difficult to keep secrecy as in
partnership.
Team sprit with which partnership works
is lacking.
Divided responsibility.

21. COOPERATIVE ORGANISATION:-
It is a form of private ownership which contains
features of large partnership as well as some features
of the corporation. The main aim of the cooperative
is to provide goods and services to the members of
the cooperative at cost. Members pay fees or buy
shares of the cooperative, and profits are periodically
redistributed to them.

22. FORMS OF COOPERATIVE
ENTERPRISES:-
 Consumer cooperatives
 Producer cooperatives.
 Cooperative farming.
 Cooperative housing.
 Cooperative credit society.

23. ADVANTAGES OF COOPERATIVE
ORGANISATIONS:-
 Daily necessities of life can be made available at
lower rates.
 It is democratic form of ownership.
 No person can make huge profits.
 Common man is benefited by cooperatives.
 The chances of large stock holding and black
marketing is eliminated.
 Goods required can be directly purchased from the
manufactures and therefore can be sold at less rates.

24. DISADVANTAGES OF COOPERATIVE
ORGANISATIONS:-
 Conflict may arise among the
members on the issue of sharing
responsibility and enjoying
authorities.
 Members who are in position may try
to take personal advantages.

25. PUBLIC SECTOR:-
The public sector is a part of the state
that deals with the delivery of goods
and services by and for the
government, whether national,
regional or local/municipal.

26. OBJECTIVES OF PUBLIC SECTORS:-
 To provide basic infrastructure facilities for the
growth of economy.
 To promote rapid economic development.
 To avoid concentration of economic power in a few
hands.
 To look after well-being and welfare of public.

27. ADVANTAGES OF PUBLIC SECTORS:-
 Profits earned by public sector may be used for the
general welfare of the community.
 Public enterprise encourages industrial growth of
under-developed regions in the country.
 Capital ,raw material, fuel, power and transport are
easily made available to them.
 Public sector offers equitable opportunities to all.

28. DISADVANTAGES OF PUBLIC
SECTOR:-
 Delay in decisions is a very common phenomena in
public enterprises.
 Incompetent persons may occupy high levels.
 There is too much interference by the Government
and Politicians in the internal affairs.

29. List of Public sector
undertaking:-
 Bharat Electronics Limited (BEL)
 Rail India Technical and Economic Services (RITES)
 Hindustan Aeronautics Limited (HAL)
 Indian Oil Corporation Limited (IOCL)
 Oil and Natural Gas Corporation (ONGC)
 Bharat Heavy Electricals Limited (BHEL)
 National Thermal Power Corporation(NTPC)
 Power Finance Corporation Limited(PFC)
 Airports Authority of India (AAI)
 Steel Authority of India Limited (SAIL)
 Bharat Sanchar Nigam Limited (BSNL)
 Bharat Petroleum Corporation Limited(BPCL)
 Hindustan Petroleum Corporation Limited (HPCL)
 Gas Authority of India Limited (GAIL)
 Mangalore Refineries and Petrochemicals Limited( MRPL )
 State Bank Of India (SBI)

30. PRIVATE SECTOR:-
Private sector serves personal interests and non-
government sector. It constitutes mainly consumer’s
goods industries where profit possibilities are high.
Here profit is the main objective. A private sector
does not undertake risky ventures or those having
low-profit margin. Private enterprises are run by
businessmen; capital is collected from the private
partners.

31. ADVANTAGES OF PRIVATE
SECTOR:-
 The magnitude of profits incurred is high.
 The efficiency of the private enterprise is high.
 Wastage of material and labour is minimum.
 Decision-making is very prompt.
 There is no interference in its internal affairs by
politicians or Government.
 Competent persons occupy high levels.

32. DISADVANTAGES OF
PRIVATE SECTOR:-
 There is exploitation motive, the workers and the
consumers may not receive fair deal.
 There is dearth of capital to expand the business.
 Private enterprise leads to concentration of wealth in
the hands of a few.
 Private enterprises lead to unbalanced growth of
industries.

33. THANK YOU