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FORMS OF BUSINESSORGANIZATION

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INTRODUCTION

Business is an economic activity the organization which is engaged in performing activities we can say it is a business organization.

Business or commercial organization can be defined as The frame work orstructure of efficiently conducting business activities to earn profit through

production & supply of goods & services

Forms of business organization or types of business organization

Private Sector Public Sector

a)Sole trading concern a)Departmental undertakings b)Joint Hindu family business b)Statutory companiesc)Partnership firm c)Telecommunicationd)Joint stock company companiese)Co-operative society

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Definition of private sector organizationThe organization which are owned, controlled & managed by an individual

person or a group of persons is called as private sector organization .ex:- sole trade, joint stock company, joint Hindu family business, etc .

Definition of public sector organizationThe organization which are owned controlled & managed by an state or central

government is called as public sector organization .ex:-departmental undertakings, statutory companies, telecommunication company,

etc.

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Following are the types of private sector organizations

1. Sole trading concern:-

It is also known as proprietary concern it is an oldest and simplest form of business organization in private sector.

This type of business organization is a one man show because he alonecontributes capital to the business, managed and control the business hence it movesaround a signal person.

Sole trading concern is a form of business organization which operates in localmarket because of small scale of business operation. He provides required capital to the

business therefore he alone responsible for his business result. If profit earned in business so he lonely enjoy the total amount of profit. Similarly if loss accurse from the business he should bears the amount of loss in short there is no sharing in profits &

losses of the business.

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Definitions of sole trading concerns

1. According to the prof. JAMES LUNDY the sole proprietorship is an informal

type of business which is owned by only one single person.

2. According to the J.L. HANSON sometimes known as a one man business, it is atype of business unit where one person is solely responsible for providing thecapital, wearing the risk of the enterprise and management of the business.

Features of sole trading concern

1. Minimum government regulation :-In this type of business organization no need to complete more legal

formalities for the formation, conduct of business as well as close down the business no

special act is applicable to sole trading concern therefore it is easy to establish ascompare to other business organization.

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2.Unlimited liabilities :-In this type of business the liability of sole trader is

unlimited liability. Unlimited liability means no distinction between personal property & business property. The personal property of sole trader may be used for pay of business liability if business assets or insufficient for payment of liabilities.

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3.Business Secrecy:-Sole proprietorship is a singleownership business being a single owner all

decision $ business matters can be kept secret itcan not be disclosed to others. Secrecy plays animportant role to serve a competition a complete

secrecy can be maintained in this type of businessorganization.

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4.Direct contacts withcustomers & employees:-

Sole trading concern is alocal business therefore directcontacts with customers as wellas employees is become possiblebecause of small size of business&no gap between thebusinessman & customers.

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5.Freedom in selection ofbusiness:-

In this type of business organization asole trader can select any business as perhis wish or desire there are no restrictionregarding selection of business.

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6.Individual ownership:-

In this organization a sole traderis only a owner of business. Beingan individual owner he posses

business properties & resources.Profits are not shared in this

business organization.

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7.No sharing of profit &losses:-

In sole trading concern capitalis provided by a sole trader alone.

All decision in business are taken by the sole trader only therefore healone is responsible for his businessresults.

If profit earn by the businesshe alone enjoy the total amount of

profit, similarly if loss occurs fromthe business he should bear theamount of loss in short there is nosharing in profits &losses of

business.

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8. Suitable for small business:-

A proprietaryconcern is suitable for

small business activitieswhich requires personalattention & service in bigorganization personalattention & big service is

not possible therefore thisform is suitable for small business which operates inlocal market.

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9.One man show:-Sole trading concern is the oneman show because the owner of

this business is only one & healone handle the business

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THE MERITS OF SOLETRADING CONCERN

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4 Q i k d i i ki

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Social networkingsites, over the past

few years, have

increased inpopularity so muchthat many are

wondering why???

4.Quick decision making:-

In this business the sole trader is alonemakes all business decisions withoutdiscussing others hence it is possible

to take quick decisions & itsimplementation immediately. due toquick decision he can take the

benefit of market opportunities thisform of business.

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5.Lower cost:-A sole

trader perform all

business activitiesalone, hence he tryto avoid wastage &controls over theexpenses therefore

business runningcost of sole trader iscomparatively lowerthan other types of

businessorganization, hence

it is considered asan advantage of thisform.

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7.Flexibility in operation:-In this business organization only one

person takes a business decisions.Being a single decision maker of

business he can change his businessdecision as per the changing market

situation.

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8.Minimum government

control:-In case of sole trading concern no separate actis applicable & the business is not require toget registered & lo laws are applicable for

operation, functioning & dissolution of soletrading concern. It should follow the tax rules& labor laws otherwise the government has

minimum interference in the business.

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THE SOCIAL NETWORKING SITES

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DA

NGE

RS

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CYBER STALKING

Cyber stalking is literally harassing and following another person online. Social networking sites open up many doors for

cyber stalking