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Introduction:

 The term “Business Organisation” represents a


business firm.The term “Organisation” refers
to the collection of different constitutes of a
business in order to establish a harmonious
relationship and flexibility in their function.
 It also indicates the structural relationship
between factors of production.
Characteristics of
Business
Organisation
Flexibility of Ease in Business Ownership Tax
Adequacy of Limit of Continuity
Operations Formation Secrecy Management consideration
Capital Liability and Stability
and control
Importance of Business Organisation:
1.Finance Management
2.Minimum Wastage
3.Product Growth
4.Reduces the Cost
5.Transportation
6.Distribution
7.Feedback
Forms of Business Organisation:

Forms of
Business
Organisations
Partnership Joint Hindu Join Stock Cooperative
Sole Traders
Firms Family Firm Companies Organisation
Sole Traders/Proprietorship:
A sole proprietorship, also known as the sole trader or
simply a proprietorship, is a type of business entity that is
owned and run by one natural person and in which there is
no legal distinction between the owner and the business.

United Kingdom:
In Britain, anyone who begins work for themselves is
considered by the Government to be a self-employed sole
trader, regardless of whether or not they have advised HM
Revenue and Customs.
A sole trader can employ staff, but is personally responsible
for any losses the business makes.
United States:
A permitted exception to the sole proprietor (single owner)
stipulation is made by the Internal Revenue Service (IRS)
permitting the spouse of a sole proprietor to work for the
business. They are not classified as partners in the
enterprise, or an independent contractor, enabling the
business to retain its sole proprietorship status and not be
required to submit a partnership income tax return.
Partnership Firms:
Partnership is the relation between
persons who have agreed to share the
profits of a business carried on by all or
any of them acting for all.

The Indian Partnership Act, 1932 is


an act enacted by the Parliament of India to
regulate partnership firms in India. It received
the assent of the Governor-General on 8 April
1932 and came into force on 1 October 1932.
Joint Hindu Family Firms:
In Hindu religion, Joint family business, a
particular form of business organization found
only in India which is considered as one of the
oldestformofbusiness organization in the
country. It refers to the kind of organization in
which the business is owned and run by the
members of Hindu UndividedFamily (HUF).

A member in Joint Hindu Family is known as


co-parcener. A business enterprise is run by
the familymember and they run
the business as family business is
called Joint Hindu Family business.
Thefirm comes into existence by the law of
inheritance. It is governed by
the Hindu Succession Act, 1956.
Joint Stock Companies:
A joint-stock company is a business entity where
different stocks can be bought and owned
by shareholders. Each shareholder owns company stock
in proportion, evidenced by his or
her shares(certificates of ownership). This allows for
the unequal ownership of a business with some
shareholders owning a bigger proportion of a company
than others do. Shareholders are able to transfer their
shares to others without any effects to the continued
existence of the company.

Hence, members are also called shareholders.


The companies in India are governed by the
Indian Companies Act, 1956. The Act defines
a company as an artificial person created by law,
having a separate legal entity, with per- petual
succession and a common seal Characteristics of Joint
Stock Company.
Cooperative Organisations:
A cooperative (also known as co-operative, co-op
or coop) is an autonomous association of people
united voluntarily to meet their common
economic, social and cultural needs and aspirations
through a jointly owned and democratically
controlled business.

Since 2002 cooperatives and credit unions could


be distinguished on the Internet by use of a coop
domain. Since 2014, following International
Cooperative Alliance's introduction of the
Cooperative Marque, ICA cooperatives
and WOCCU credit unions can also be identified
by a coop ethical consumerism label.

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