Inter-I Year-Commerce-Forms of Business Organization - Sole Proprietorship-Features-Merits and Limitations

1. UNIT -3
FORMS OF BUSINESS ORGANISATION
Dr. K. THULASI KRISHNA, Ph.D.
AP MODEL SCHOOL & JUNIOR COLLEGE,
KANEKAL
ANANTHAPUR – Dist., A.P., INDIA
• tkk2007@gmail.com

2. Meaning of Business Organisation
• It is an organised entity having
group of people working together to
achieve a common goal.
• Any business must bring together all
the resources and put them into
action in a systematic way,
coordinate and control the activities
properly to earn profits.
• This arrangement is known as
business Organisation.

3. Forms of Business Organisation
Forms of Business Organisations
Private Undertakings Public Undertakings Joint Sector Undertakings
• Sole Proprietorship
• Joint Hindu Family
• Partnership
• Cooperative Societies
• Joint Stock Company
• Departmental Organisation
• Public Corporations
• Government Companies

4. Sole Proprietorship
• An individual introduces his own
capital, skill, and intelligence in the
management of its affairs.
• He is solely responsible for the
results of its operations.
• The individual may run the business
on his own or may obtain the
assistance of employees.
• It is the oldest form of business.

5. Features of
Sole Proprietorship
i. Single ownership
ii. No separation of ownership and
management
iii. Less legal formalities
iv. No sharing of profits and losses
v. Unlimited liability
vi. One-man control

6. Merits of Sole Proprietorship
a. Easy to form and windup
b. Quick decision and prompt action
c. Direct motivation
d. Flexibility in operations
e. Maintenance of business secrets
f. Personal contact

7. Limitations of Sole Proprietorship
i. Limited resources
ii. Lack of continuity
iii. Not suitable for large scale operations
iv. Limited managerial expertise

8. Thank you for your attention