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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