forms of business organisation

FORMS OF BUSINESS ORGANISATION : FORMS OF BUSINESS ORGANISATION 1.Private enterprises 2.Public enterprises 3.Joint sector enterprises

Forms of private sector enterprises : Forms of private sector enterprises 1.Sole Proprietorship 2.Joint Hindu Family Business 3.Partnership 4.Co-operative Society 5.Company

SOLE PROPRIETORSHIP : SOLE PROPRIETORSHIP A business owned, managed and controlled by a single individual. FEATURES Single ownership Individual risk bearing No separate legal entity Freedom of operation Unlimited liability One-man control Small size

MERITS AND DEMERITS OF SOLE PROPRIETORSHIP : MERITS AND DEMERITS OF SOLE PROPRIETORSHIP MERITS Easy to form and dissolve Motivation Flexibility Sole beneficiary of profits Personal touch Secrecy Independent control Suitable for small scale operations DEMERITS Limited finance Unlimited liability Limited managerial skill Limited scope for expansion Lack of continuity