Human Activities Broadly Classified Into

INTRODUCTION
Human Activities broadly classified into:

Human Activities
Economic
Non-Economic
copyright Navin K. Dev, DEI Technical College, Dayalbagh
INTRODUCTION cont.
Economic Activity
Employment
Business
Profession
INTRODUCTION cont.
Non-Economic
Personal / Psychological
Social
Religious
INTRODUCTION cont.
Economic activities include:
- Business, i.e. production, exchange, distribution of products and rendering of services such as supply of electricity, transportation, banking etc. - Profession, a specialized occupation which involves rendering a personal services by the use of professional Knowledge. Professional charges professional fees e.g. a lawyer, an accountant, an engineer etc. - Employment, said to be under employment of an enterprise when one undertakes to render personal services under a contract of employment. In return of his services, the employee gets wage or salary.
INTRODUCTION cont.
Classification of Business activities
Business Activities
Industry
Commerce
Trade
Auxiliary or Aid to Trade

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INTRODUCTION cont.
INDUSTRY
PRIMARY
SECONDARY
TERTIARY OR SERVICE
INTRODUCTION cont.
PRIMARY INDUSTRY, includes activities which are concerned with
the extraction, producing and processing of natural resources
PRIMARY INDUSTRY
EXTRACTIVE INDUSTRY
GENETIC INDUSTRY
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INTRODUCTION cont.
Extractive Industry
- extract out products from natural resources such earth, sea e.g. Mining, fishing etc. as
Genetic Industry
-Genetic means parentage or heredity. Genetic industries are engaged in breeding plants and animals for their further reproduction. e.g. nurseries for breeding of plants, poultry forms are the genetic industries.
INTRODUCTION cont.
SECONDARY INDUSTRY
MANUFACTURING INDUSTRY
CONSTRUCTION INDUSTRY
INTRODUCTION cont.
Manufacturing Industry - used for the conversion or transformation of raw materials into finished goods, e.g. textiles, steel, cement, sugar etc. Construction Industry - concerned with construction of building, bridges, dams, roads, canals etc. Remarkable feature of this industry is that their products are not sold in the sense of being taken to the market. They are constructed and fabricated at the fixed sites.
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INTRODUCTION cont.
TERTIARY OR SERVICE INDUSTRY
- includes those services which facilitates smooth flow of goods and services in the economy - it is a support services to primary and secondary industries and activities relating to trades. - it includes transport, banking, insurance, warehousing, and advertisement Tertiary industry bridges the gap between producer and the consumer.
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INTRODUCTION cont.
COMMERCE
Definition
Commerce deals with the buying and selling of goods, the exchange of commodities and distribution of finished goods.
Objective of commerce is to ensure smooth distribution of goods and services to satisfy the wants of consumer.
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INTRODUCTION cont.
i)
Various functions of Commerce are:

Linking producers and Consumer through traders Traders are the link between producer and consumer e.g. wholesaler, retailer are the traders Removing the hindrance of place
ii)
The barrier of distance between the place of production and the market where the product is to be sold is removed by different means of transportation iii)Removing hindrance of Storage Function of storage is done by warehouse. Warehousing keeps the inventory for meeting demand fluctuations Covering risk in Trade Risk in business is covered with the help of insurance of companies.
iv)
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INTRODUCTION cont.
v) Financing of Economic Activity Both businessman and consumer may face problem of finance. It is solved by banks as loans etc. TYPES OF COMMERCIAL ACTIVITIES
TRADE: It is that branch of commerce which deals with exchange of goods and services in terms of money between different persons known as traders.
- Buying and selling operations are carried on by the traders who remove the hindrance of person in exchange of goods. Trade is a part of commerce, it does not include transport, banking, warehousing and insurance etc.
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INTRODUCTION cont.
TYPE OF TRADES
GEOGRAPHICAL AREA
VOLUME OF TRADE
INTERNAL TRADE
EXTERNAL TRADE
WHOLE SALER
RETAILER
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INTRODUCTION cont.
Internal trade
- purchase and sale of goods within the country and the payment is made in national currency either directly or through the banking system
External or Foreign Trade

- refers to trade of goods and services between two or more countries. - it involves use of foreign currency called foreign exchange External trade is again classified as:
EXTERNAL TRADE
IMPORT TRADE
EXPORT TRADE
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INTRODUCTION cont.
Import Trade
- purchase of foreign goods for use in domestic market Export Trade - supply to foreign buyers Entrepot or Re-export Trade - involves importing of foreign goods with a view to re-export them making profit in the process.
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INTRODUCTION cont.
Auxiliary to trade or Aids to Trade
- Auxiliary means the activity that assist business and trade, e.g. the infrastructure like transportation, warehousing, insurance, financing and banking i) Transport and communication
- removes the hindrance of place in the exchange of goods and services and communication helps in linking the buyer and seller for smooth ordering and receiving information quickly thru email, phone etc. ii) Banking - provides payments of goods bought and sold. Facilitate the purchase and sale of goods on credit (discounting of bill)
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INTRODUCTION cont.
iii) Insurance
- provides a cover against loss of goods in the process of transit and storage. - compensate the loss caused by fire, pilferage, theft, flood and hazard of sea transport iv) Warehousing - generally a time lag between production and consumption of goods. - this problem can be solved by storing the goods in warehouse. - warehouse compensate the demand fluctuations
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INTRODUCTION cont.
iii) Advertising
- bridge the gap of information of availability and use of goods between traders and consumers - helps in scattering the goods in the market - customers come to know about new products in the market iv) Packaging - to protect the goods from damaging in transit and to facilitate easy transfer of goods to customers
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FORMS OF ORGANISATIONS
FORMS OF ORGANISATIONS
SOLE PROPRIETORY
JOINT HINDU FAMILY FIRM
PARTNERSHIP FIRM
CO-OPERATIVE ORGANISATION
COMPANY
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FORMS OF ORGANISATIONS cont.

Sole Proprietorship Def.: A sole trader is person who carries on a business exclusively on his own account and at his own risk. - manage the business himself - bears the risk alone
- gets whole of the profit - suitable for small scale business

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SOLE PROPRIETORSHIP cont.

Merits or Advantages of Sole Proprietorship i) Ease of Formation and Dissolution
- can start with a small amount of capital without undergoing much legal formalities - procurement of license is necessary to deal in commodities like drugs, liquor etc. - easy to close down the sole proprietorship business without any permission from any authority
ii) Flexibility
- free to change the nature and scope of his

business whenever the situation demands
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iii) Quick decision making
- has exclusively own control, can quickly take decision and prompt action
iv) Secrecy of Information

- easy to preserve secrecy in business important clues of the business can be kept closely guarded secret by the sole trader
v) Direct incentive
- proprietor takes all the profits and bears all the risks and losses
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vi) Sense of Accomplishment
- offers excellent opportunity for self employment person having professional skill can run independent way of life
vii) Personal Touch

- can maintain personal contact with the customer - close contact enhances the reputation of the firm
viii) Social Importance

- reduces burden of unemployment on the society develops a self confidence, initiative and desire for hard working among the people
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Disadvantages of Sole Proprietorship
i) Limited Capital
- Financial resources are limited - depends upon the personal resources or the capacity of borrowing - limits the expansion of the business
ii) Uncertain Life

- no certainty of continuity of the business - because of his limitation of diversification of the business, compelled to close down - death or insanity of the proprietor leads to closure of the business 26

iii) Unlimited Liability
- Liability of Sole trader is unlimited - Sole proprietor can recover his debts from the personal assets - Sole proprietor can completely be ruined in case of failure of business - this factor put a ceiling on the growth and expansion of sole proprietorship
iv) Limited Managerial Ability

- all the managerial decision are performed by the sole proprietor himself
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- Sole entrepreneur do not enjoy the benefit of specialization - because of limited resources he can not secure the services of experts in various fields of the business
v) Unsound Business decision

- chances of taking wrong decisions are quite high - not assisted by anyone while taking decisions
vi) Non-Availability of Economies of Scale

- Trader d not get benefit of large quantity discounts in purchasing, production or marketing
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JOINT HINDU FAMILY BUSINESS (JHF)
- In which family possesses some inherited property and the Karta, the head of the family, manages its affairs - confined to those persons who constitute the coparcenaries interest - such interest belongs to three successive generations in the male line - According to Hindu succession Act, 1956, a female relative of a deceased male coparcener will have a share in the coparcenaries interest after death - Three generations next to the holder of the property in unbroken line constitute a coparcenaries
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JOINT HINDU FAMILY BUSINESS cont.

- A son, grandson, and great grand son become joint owners of the family property - The liability of the Karta is unlimited, whereas the liability of all other members of JHF business limits to their share in the business
Advantages of Joint Hindu Family Business i) Economic Security and Status to Members
- provides a sense of security and belonging because of financial stake they possess in the business
ii) Limited Liability

- Except Karta in JHF business, all members have limited liability up to their share
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- In case of loss, no one can claim over their personal property
iv) Continuity
- Does not get affected by the death or in capacity of any member or Karta - comes to an end only if all the members decide to terminate it
v) Secrecy
- decisions are taken by the Karta and he only knows the business secrets - leakage of secrets are very mere
vi) Protection of Minors

- Minors have all the rights of being coparcener and are protected by Karta
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Disadvantages of JHF
i) Limited Capital
- Biggest disadvantage is that a new member does not join with any additional capital - as membership is given by birth, the family property gets divided with birth of every male member - Karta has limited scope for raising funds. As a result there is shortage of funds
ii) Limited Managerial Ability

- Karta has limited ability to manage - Lack of specialization of different areas of the business
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iii) Unlimited Liability
- Liability of Karta is unlimited which means, in case of loss, the Karta will not only lose the business property, but also have to sell his personal property to pay back the debts of the business
iv) No match in Work and Reward

- work is carried by Karta. He only manages the business - For managing, he is not given any extra share in profit of the business. Profit is equally divided among the male members
v) Karta too Powerful

- Karta has complete control over family business - may misuse his authority for personal gain incompetent Karta can ruin the business
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Partnership
Definition: Association of two or more persons who agree
to jointly pursue the business activity. They pool their managerial and financial resources
Main Features of Partnership i) Membership

- minimum two members to form partnership firm maximum there can be twenty members in general business - in case of banking business maximum limit is ten
ii) Agreement
- there is agreement between the partners to form partnership firm
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PARTNERSHIP cont.
- agreement can be oral or written - document containing the agreement of partners is known as Partnership Deed
iii) Business
- any lawful business activity carrying out jointly - joint robbery or smuggling carried by two or more cannot be considered as partnership
iv) Profit Sharing - share the profit of the firm in the ratio specified in the agreement - if no ratio is specified, the profit is divided equally among all the members
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PARTNERSHIP cont.
v) Liability
- liability of all members is unlimited - partners are liable to pay back the debts of the firm individually and collectively - at the time of loss, if the firms assets are not sufficient to pay back the debts then the creditors can have claim over the personal property of the partners
vi) Mutual agency relationship

- act of one partner are binding on other partners - each partner is entitled to take part in management and enter into contract with outsiders - contract signed by any one partner is binding on other partner - business can be carried on by all the partners or by any one of them acting on behalf of the others
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PARTNERSHIP cont.
vii) Non-transferable share
- No partner can transfer his/her share in the partnership to any other person, but can do with the consent of other partners - if want to leave the firm, he can do so by giving a notice of retirement
viii) Registration
- According to partnership Act 1932, it is not compulsory for the partnership firm to get itself registered - it is always preferred to get the firm registered because no suite can be filed against the other firm without registering of firm
ix) Management
- All partners are allowed to manage the firm
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PARTNERSHIP cont.
- specific work area may be assigned to each partner according to their professional skills. This assigned work can be mentioned in the Deed. - generally day-to-day management is carried on by one or two partners whereas for the crucial decisions, all the partners are consulted
x) Time period
- partnership continues till partners desire to continue it - legally it comes to an end at the retirement or death of any one partner - it can be continued if remaining partners agree - the claims of outgoing partner must be settled before continuing the business
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PARTNERSHIP cont.
Advantages of Partnership i) Easy to form
- no legal formalities are required - even registration of partnership firm is not compulsory according to partnership act. But if want to register, procedure is simple
ii) Larger Financial Resources

- all partners contribute some amount of capital, financial resources of partnership firm are comparatively larger than the sole proprietorship or JHF firm
iii) Risk Sharing

- The risk is shared among the partners, so motivated to undertake riskier projects to earn more profit
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PARTNERSHIP cont.
iv) Division of work
- work is divided according to individuals skill and knowledge - division of work leads to specialization and efficiency in management of other activities of firm
v) Motivation
- all the partners get share in the profit, so all are motivated to work more to increase profit so that they can increase their earnings - direct relationship between effort and reward
vi) Secrecy
- firm is not required to publish its accounts, therefore all the affairs remains secret - since the decisions are made by the partners, no leakage of trade secrets
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PARTNERSHIP cont.
vii) Flexibility
- without taking permission from the Govt., firm can make changes in their size, capital etc.
viii) More scope of expansion

- compared to sole proprietorship or JHF firm, more scope of expansion and growth of the firm - managerial skill of more persons helps in expansion and efficiency
Disadvantages of Partnership i) Unlimited Liability
- liability of all the partners is unlimited - in case of losses the partners not only lose their business property but creditors can claim their personal property also to get their accounts settled
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PARTNERSHIP cont.
ii) Non-transferability of share
- partners are not permitted to transfer their share to any other person without consent of all the partners
iii) Conflicts
- there may be difference in opinion - with rigid attitude, it may lead to conflict among the partners
iv) Uncertainty
- existence of partnership firm gets affected by the death, insolvency or incapacity of any one partner - a partner can demand dissolution of the firm any time he desires so
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PARTNERSHIP cont.
v) Risk of mutual agency
- contract signed by one partner is binding on other partner due to principle of mutual agency - a dishonest partner may enter into contract for personal benefit, in that case al the other will have to suffer the loss
vi) Lack of public confidence

- public has less trust and faith in partnership firm, because the accounts and annual reports of partnership firm are not published
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PARTNERSHIP cont.
Type of Partnership Firms i) Partnership at will
- formed for an indefinite period - comes to an end whenever partners desire so - any one partner can give notice of dissolution and the partnership will come to an end
ii) Fixed period partnership

- partnership is formed for a fixed period of time, say 3 or 5 years etc. - gets terminated on the expiry of stipulated period - renewed for further period
iii) Particular partnership

- partnership established for a particular project or venture completion, comes to an end on completion
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PARTNERSHIP cont.
Partnership based upon liability of members i) General Partnership
- in which liability of all the members is unlimited is known as general partnership - if the assets of the firm are not enough then creditors can settle their accounts by having claim over the personal property of the partners
ii) Limited Partnership

- liability of at least one partner is unlimited whereas all other partners has limited liability to the extent of their contribution in partnership firm - limited liability partners are called special partners or limited partners - special partners are not allowed to participate in management
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PARTNERSHIP cont.
- special partners have the right to inspect the accounts - special partner can withdraw his partnership, whenever desired - the death, insolvency or incapacity of special partner does not affect the existence of partnership firm
Type of Partners i) Active Partner

- participate in the management of the firm - liability is unlimited and he contribute capital in the firm - gets share in the profit or loss of the company
ii) Sleeping or Dormant Partner

- person who merely put in his capital and do not take active part in partnership business
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PARTNERSHIP cont.
- they do share profit or loss and have a voice in decision making - their relationship with the firm is not disclosed to general public - they are liable to third party for all debts of the firm
iii) Silent Partner

- have no voice in the management decisions - share profit or loss - liable to third party for debts of the firm
iv) Secret Partner

- association of such partner with the firm is not known to general public - has unlimited liability like other partners
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PARTNERSHIP cont.
v) Nominal Partner
- neither contribute capital nor take part in the management decisions - lend his name to the partnership firm for the benefit of the firm - he may not share the profit or losses of the firm
vi) Partner by Holding out or Estoppels

- a person who represent as a partner by lending his name as a partner - would be liable as a partner for the firm on the faith of such representation granted credit to the firm
e.g. A & B are fast friends. A is a partner of Apple Traders. On As request, B accompanies A to a business meeting with J of Jain Finance Co. During the negotiation, B is introduced as As partner and B also participate in negotiation. If loan is granted to Apple, B would also be held liable for repayment of such loan. B would be called a partner by Estoppels
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PARTNERSHIP cont.
vii) Partner in Profit only
- a partner who has an agreement with other partners that he will be entitled to a certain share of profit without being liable for the losses is known as partner in profit only - such partner has no voice in business liable to third party for the debts of the firm
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COOPERATIVE SOCIETY
- In early nineteenth century, it was felt that economic conditions of weaker sections of people can improve by cooperation not by competition - people living in same locality have common needs associate together for the promotion of a economic interest to themselves - it is a self help through mutual help - philosophy behind is all for each and each for all
Definition
It is a joint enterprise of those who are not financially strong and cannot stand on their own and therefore come together not with a view to get profits but overcome disability arising out of the want of adequate financial resources
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COOPERATIVE SOCIETY cont.

Important features of Cooperative society i) Registered
- must be registered with registrar of cooperative society of their state - without registering, no legal existence - death, insolvency and incapacity of any member does not affect existence of cooperative society
ii) Membership
- every one who has attained the age of 18 years, can enter or leave the cooperative society - minimum 10 members are required, there is no maximum limit
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iii) Capital or Surplus Distribution
- the profit of cooperative society is not distributed in the ratio of capital distributed by each member, but it is distributed according to dealing of members with the society - a member with less capital can get more share in profit by having more transactions or dealings with the cooperative organization
e.g. in a consumer cooperative, the consumer who made more purchases gets maximum benefit
- a fixed rate of dividend is given on the capital and remaining surplus is distributed in form of bonus, according to dealings of members with cooperative society - 1/4th of surplus is kept as reserves in the society
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Advantages of Cooperative organization i) Easy to form
- only ten adult members having common interest are required to form it - not very complicated legal formalities
ii) Limited liability

- Liability of members of cooperative organization is limited to their contribution in the cooperative organization - at the time of losses, the creditors cannot have claim over the personal property of members
iii) Continuity
- has a separate legal existence - death, insolvency of any member do not affect the existence of society
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- has a stable and continuous life for a long period of time
iv) Democratic setup

- all the members have equal rights irrespective of their capital contribution - based on the principle of one man one vote
v) Open Membership
- any person having common interest can become the member of the cooperative organization - can leave whenever they desire
vi) Economical Functioning

- no middle man is used while purchasing goods or raw material. It is done by members themselves - do not maintain large stocks - the trading is done on cash basis, so there is no bad debts
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- saving in advertising and selling expenses
vii) State Patronage

- get various benefits from the govt. - govt. provide various concessions and rebate in taxes - gets raw material etc. at subsidized rates - provides loans at lower rates of interest
viii) Social Utility

- Cooperative organization promote social justice and mutual cooperation - promote self help, moral values among the members
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Disadvantages of Cooperative Organization i) Limited Capital
- formed by people who have limited resources and there is no compulsion to contribute some minimum amount of capital to become a member
ii) Inefficient management

- members are usually not professional experts, so the management consist of inexperienced persons - Coop. society cannot afford to pay high salary to professional and qualified people
iii) No motivation
- no direct link between effort and reward members are not inclined to put their best efforts
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iv) Conflict among the members
- members are from different section of society, have different opinions, leads to conflict - generally the selfish motive of the members starts dominating and they forget the service motive
v) Excessive Govt. control

- as co-op. society gets various concessions and benefits from the govt., in return there is excessive govt. regulations and control - accounts are audited by the auditors of co-op. organization and to submit with registrar - these regulations restrict the flexibility and efficiency of co-op. organization
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Type of Co-op. Org.
Consumer Co-op. Society
Producer Co-op. Society
Co-op. Marketing Society
Co-op. Credit Society
Co-op. Farming Society
Co-op. Housing Society
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i) Consumer Co-op. Society
- first co-op society was estd. In Germany by 28 weavers with the capital of 28 pounds - an organization of consumers to protect their own interest - aim is to eliminate intermediaries like whole sellers and retailers from the distribution channel - non-members can also purchase goods from them - in case of short supply of particular commodity, members get on priority - sometimes special discount is allowed to the members consumer co-op. soc. deals in commodities of daily use. Super bazaar and its branches in Delhi are the example of consumer co-op. society
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ii) Producers Co-op. Society
- consist of small producers who individually find it difficult to procure the inputs and get the machinery of latest tech. Two type of Producers Co-op. Society: a) one which provide raw material, inputs, machinery etc. so that producer can concentrate on production b) one which sells the goods produced by these producers - the production is undertaken by the skilled members of a particular product for which they get the wages from the society as well as they get share in the profit
iii) Marketing Co-op. Society

- consist of small producers who find it difficult to sell their product in market at profit - output of all small producer is brought together and sold at the best price
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- such society helps in bargaining power and competitive position of its member - performs various marketing functions such as transportation, warehousing, packaging etc. - profits are shared according to their respective shares in common sales pool main objectives are: - ensures steady and favorable market for the o/p of products of its members - ensure best price for o/p - provide facilities like transportation, warehousing, packaging etc. - eliminate middleman and have direct contact with customer - collects marketing information and supply it to the producer for benefit
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iv) Housing co-op. society
- low and middle income group people not able to construct their own houses - co-op. society help people to own their house Different housing societies are: a) construct houses and give them on small rent to their members - members do not become owner of the house and the rent is nominal b) acquire the land and give the plots to the members for constructing their house themselves - society also arrange loans for their members
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c) acquire land and construct houses. The constructed houses are handed over to members - members pay the price in easy installments - society get the benefit of purchasing the construction material in bulk
v) Credit co-op society

- formed to improve the economic conditions of its members - objective is to save the poor people from the clutches of seths, sahukars, and mahajans - credit co-op. society provide short term loan to its members at cheaper rate of interest - society issues shares to its members - govt. also grants loan to these societies at low rate of interest
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- liability of members is limited only to the extent of shares held by them
vi) Co-op. Farming Society

- association of poor farmers to get benefit of economies of scale Farming co-op. may be of following type: a) Co-op. better farming society - societies are formed to improve methods of farming and to arrange facilities connected with the use of machinery, harvesting of crop and marketing of product - members cultivate their land independently - society provide only services - members pay charges for the services provided by the society
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b) Joint farming society - land of members is pooled - ownership rights of the land are retained with individual members - members are paid wages for their work on the land produce is sold by the society and profit is divided according to the wages earned by the members - some interest is also paid to the members on the basis of their land value - members have the right to withdraw their land from the society c) Tenant Farming Society society acquire land on lease - land is distributed to the members for independent cultivation
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- society also arrange various inputs like seeds, fertilizers etc. - financial help too is arranged for the members - members pay rent for the use of land - produce belong to the tenants and not to the society d) Collective Farming Society - land is owned by the society and members work collectively on land - no member has ownership right on land - members are paid daily wages - profits are distributed among the members in proportion to their wages
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INTRODUCTION

Human Activities broadly classified into:

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

Auxiliary or Aid to Trade

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

Various functions of Commerce are:

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

External or Foreign Trade

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

copyright Navin K. Dev, DEI Technical College, Dayalbagh

JOINT HINDU FAMILY FIRM

copyright Navin K. Dev, DEI Technical College, Dayalbagh

FORMS OF ORGANISATIONS cont.

- gets whole of the profit - suitable for small scale business

SOLE PROPRIETORSHIP cont.

- free to change the nature and scope of his

SOLE PROPRIETORSHIP cont.

iv) Secrecy of Information

SOLE PROPRIETORSHIP cont.

vii) Personal Touch

viii) Social Importance

SOLE PROPRIETORSHIP cont.

ii) Uncertain Life

SOLE PROPRIETORSHIP cont.

iv) Limited Managerial Ability

SOLE PROPRIETORSHIP cont.

v) Unsound Business decision

vi) Non-Availability of Economies of Scale

copyright Navin K. Dev, DEI Technical College, Dayalbagh

FORMS OF ORGANISATIONS cont.

JOINT HINDU FAMILY BUSINESS cont.

ii) Limited Liability

JOINT HINDU FAMILY BUSINESS cont.

vi) Protection of Minors

JOINT HINDU FAMILY BUSINESS cont.

ii) Limited Managerial Ability

copyright Navin K. Dev, DEI Technical College, Dayalbagh

JOINT HINDU FAMILY BUSINESS cont.

iv) No match in Work and Reward

v) Karta too Powerful

FORMS OF ORGANISATIONS cont.

Main Features of Partnership i) Membership

vi) Mutual agency relationship

copyright Navin K. Dev, DEI Technical College, Dayalbagh

ii) Larger Financial Resources

iii) Risk Sharing

viii) More scope of expansion

Disadvantages of Partnership i) Unlimited Liability

copyright Navin K. Dev, DEI Technical College, Dayalbagh

vi) Lack of public confidence

copyright Navin K. Dev, DEI Technical College, Dayalbagh

ii) Fixed period partnership

iii) Particular partnership