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Sole proprietorship

Sole proprietorship . It refers to a form of organization where business is owned , managed and controlled by a single individual who bears all the risks and is the only recipient of all the profits. Sole proprietorship . FEATURES: (a)Formation and closure: (b)Liability

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Sole proprietorship

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  1. Sole proprietorship It refers to a form of organization where business is owned , managed and controlled by a single individual who bears all the risks and is the only recipient of all the profits.

  2. Sole proprietorship • FEATURES: • (a)Formation and closure: • (b)Liability • (c)Sole risk bearer and profits recipient

  3. JOINT HINDU FAMILY BUSINESS It is a business owned and carried on by the members of a Hindu undivided family, which is governed by the Hindu law. • FEATURES: • (a)Formation • (b)Liability • (c)Control • (d)Continuity • (e)Minor Members

  4. PARTNERSHIP: • The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.” • FEATURES: • (a)formation • (b)Liability • (c)Risk bearing • (d)Decision making and control • (e)Continuity

  5. TYPES OF PARTNERS • (a)Active partner • (b)sleeping or dominant partner • (c)Secret partner • (d)Nominal partner • (e)partner by estoppels • (f)Partner by holding out

  6. Kinds of partnershiip • Classification on the basis of liability: • (1)General Partnership. • (2)Limited Partnership. • Classification on the basis of duration: • (1)Partnership at will. • (2)Particular partnership.

  7. COOPERATIVE SOCIETY • It is a voluntary association of persons who get together to protect their economic interests. • FEATURES • (a)Voluntary membership • (b)Legal status • (c)Limited liability • (d)Control • (e)Service motive

  8. TYPES OF COOPERATIVE SOCIETIES • (1)Consumers cooperative societies • (2)Producers cooperative societies • (3)Marketing cooperative societies • (4)Farmers cooperative societies • (5)Credit cooperative societies • (6)Cooperative housing societies

  9. The major advantages of a cooperative society • equality in voting • members limited liability • stable existence • economy in operations • support from government • ease of formation.

  10. JOINT STOCK COMPANY • The company form of organization is governed by The Companies Act , 1956. A Company can be described as an artificial person having a separate legal entity, perpetual succession and a common seal.

  11. JOINT STOCK COMPANY • FEATURES • (1)Artificial person • (2)Separate legal entity • (3)Formation • (4)Perpetual succession • (5)Control • (6)Liability • (7)Common seal • 8) Risk bearing

  12. TYPES OF COMPANIES • Private company: A Private company means a company which: • (1)restricts the right of members to transfer its shares • (2)has a minimum of 2 and a maximum of 50 members, excluding the present and past employees; • (3)does not invite public to subscribe to its share capital; • (4)must have a minimum paid up capital of Rs.1 lack or such higher amount which may be prescribed from time-to-time.

  13. Types of companies • Public company: A Public company means a company which is not a private company. As per the Indian companies Act, a public company is one which: • (1)has a minimum paid up capital of Rs. 5 lack or a higher amount which may be prescribed from time-to-time; • (2)has a minimum of 7 members and no limit on maximum on transfer of shares ; and • (3)has no restriction on transfer of shares :and • (4)is not prohibited from inviting the public to subscribe to its share capital or public deposits.

  14. CHOICE OF FORM OF BUSINESS ORGANISATION • Selection of an appropriate form of organization cab be made after tacking various factors into consideration. • The important factors of the choice of organization as follows; • (1)Cost and ease in setting up the organization; • (2)Liability • (3)Continuity • (4)Management ability • (5)Capital consideration • (6)Degree of control • (7)Nature of business

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