Ocm Distingwish Between

XII OCM FAST TRACK NOTES
1. Proprietorship &Joint Hindu Family Firm

Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Membershi
p
3.
Ownership
4.
Liability
5.
Financial
Resources
6.
Stability
7.
Profit& Loss
Proprietorship
Joint Hindu Family Firm
It is a form of commercial
organization which is owned and
managed by a single person.
It is a form of commercial organization.

The ancestral (family) business is
conducted by the family members of
Joint Hindu Family.
There is no maximum limit on
membership.
There cannot be more than one

owner.
The
business
assets
and
properties are owned by the
proprietors.
The liability of sole trader is
unlimited.
The
financial
resources
are
available.
It lacks stability since the
existence of sole trading concern
depends upon the survival of the
sole trader.
All the profit of the concerned
belong to the sole trader and all
losses are to be borne by him.
All the family members are joint owners

of business properties.
Kartas liability is unlimited. Coparceners liability is limited.
The funds are more than that of a
proprietor.
It is comparatively more stable since
after the death of Karta, the next senior
family member takes over Kartas
passion and run the business.
The profit and losses are shared by all
the co-parceners
2. Sole Trading Concern& Partnership firm

Sr.
No
.
1.
Basis of
Difference
Sole Trading Concern
Partnership firm
Meaning
Owned and controlled by only one

person.
2.
Formation
It can be formed at any time when

proprietor decides.
3.
Ownership
Sole trading concern has only one

owner.
4.
Registratio
n
Registration is not necessary.
In this form of business organization two

or more persons come together to
undertake a business activity and share
profits.
It can be formed by an agreement
between two more competent persons.
Minimum number of members is 2 and
maximum 10 in banking and 20 in other
firm.
Registration is not necessary, but it is
useful. (compulsory in Maharashtra)
5.
Secrecy
6.
Managerial
7.
Capital
A sole trading concern ensures

maximum secrecy.
The entire burden of management
lies on owner.
Because of only one owner,
amount of capital is very small.
Secrecy is shared by the partners.

All partners contribute these skills so
there is division of work and expertise.
Contribution of all partners capital
increases.
DARAK COMMERCE CLASSES THE MOST TRUSTED COMMERCE CLASSES SINCE 1977
Page 1

8.
Profit&
Loss
A proprietor is himself receiver of

all the profit and loss.
Profit is shared by partners as per their

agreements.
3. Partnership Firm & Joint Stock Company

Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Membershi
p
3.
Formation
4.
Liability
5.
Act
6.
Registratio
n
Partnership Firm
Joint Stock Company
In
this
form
of
business
organization two or more persons
come together to undertake a
business
activity
and
share
profits.
There can be a minimum of 2
partners and a maximum of 10
partners in banking business and
20 in non-banking business.
It is voluntary association of individuals

for profit having capital divided into
transferable shares, the ownership
which is the condition of membership.
The formation is comparatively

simple and less costly. Only a
partnership deed is required to be
prepared.
The liability of partners is
unlimited. It is joint as well as
several (quit a few).
Partnership is controlled under
Indian Partnership Act, 1932.
Registration of partnership firm is
optional. (except in Maharashtra)
The minimum of number of members

are 2 in private limited company and a
maximum of 50. In a public limited
company,
minimum
number
of
members is 7 and there is no maximum
limit.
The
formation
involves
many
complicated legal formalities. Therefore
it is tedious, costly legal formalities.
Therefore it is a time consuming.
The liability of every shareholder is
limited to the extent of the unpaid
amount on shares held by him.
Joint stock company is controlled under
the Indian companies Act, 1956.
Registration of Joint Stock Company is
Compulsory under India companies Act,
1956.
4. Co-operative Society& Joint Stock Company

Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Formation
3.
Motive
Co-operative Society
A Co-operative society is a
voluntary association of people
who come together on the basis
of unity and equality to protect
and promote their common
economic interest.
Formation
of
co-operative
society
is
comparatively
cheaper.
The main motto of a cooperative is to provide services
Joint Stock Company

It
is
voluntary
association
of
individuals for profit having capital
divided into transferable shares, the
ownership which is the condition of
membership.
Formation of a joint stock company
involves many legal formalities. It is
lengthy and costly.
The main motto of a joint stock
company is to earn profit. Providing
Page 2
4.
Transferab
ility of
shares
5.
6.
7.
to members. Profit making is its

secondary objective.
Shares are not transferable to
other members though they can
be surrendered to the society.
Number of
members
A minimum 10 members are

required for formation of a cooperative society though there
is no maximum limit.
Voting
Rights
Capital
raising
capacity
The principle of voting is one

member one vote.
It can raise limited capital since
the dividend is fixed and there is
no capital appreciation.
service is the secondary motive.

Shares are freely transferable in a
public limited company. But it is
restricted in private limited company
to a certain extent.
The minimum of number of members
are 2 in private limited company and
a maximum of 50. In a public limited
company, minimum
number of
members is 7 and there is no
maximum limit.
The principle of voting is one share is
one vote.
It can raise large capital since
attractive dividend is paid and there
is capital appreciation.
5. Co-operative Society &Partnership Firm

Sr.
No
.
Basis
of
Differe
nce
1.
Meaning
2.
Motive
3.
Membershi
p
4.
5.
Liability
Transferab
ility of
shares
6.
Act
7.
Legal
Status
Co-operative Society
Partnership Firm
A Co-operative society is a
voluntary association of people
who come together on the basis
of unity and equality to protect
and promote their common
economic interest.
The main motto of a cooperative is to provide services
to members. Profit making is its
secondary objective.
A minimum 10 members are
required for formation of a cooperative society though there
is no maximum limit.
The Liability of every member in
a co-operative society is limited.
Shares can be transferred in
favour of the society at any time
by the members.
Co-operative society is governed
under Co-operative society Act,
1912.
Co-operative society enjoys an
independent
legal
status
different form its members.
In this form of business organization

two or more persons come together
to undertake a business activity and
share profits.
The main motto of a Partnership firm

is to earn profit. Providing service is
the secondary motive.
There can be a minimum of 2
partners and a maximum of 10
partners in banking business and 20
in non-banking business.
The liability of partners is unlimited. It
is joint as well as several (quit a few).
No partner can transfer his share in
favour of others without the consent
of other partners.
Partnership is controlled under Indian
Partnership Act, 1932.
Partnership firm does not enjoy
independent legal status. Legally
there is no difference between
partnership firm & its partners.
Page 3

6. Private Company &Public Company
Sr.
No
.
Basis of
Difference
Private Company
Public Company
A public company means a
company which is not a private
company.
1.
Definition
2.
Number of
Directors
3.
Transfer of
Shares
A private company is a company

which by its articles restricts the
right to transfer its shares, if any,
limits the number of its members to
50.
In a Private limited company a
minimum number of 2 directors is
essential.
Shares in private limited company
are not transferable.
4.
Number of
Members
The minimum numbers of members

are 2 and maximum 50.
Name
It is compulsory to add the word

Private Limited after the name if
the Private Company.
It is not compulsory to issue the
prospectus and statement in lieu of
prospectus.
5.
6.
Issue of
Prospectus
7.
Minimum
Capital
Minimum paid-up capital is one lakh

rupees.
In a Public limited company a

minimum number of 3 directors is
essential.
Public company can invite public
for
issuing
its
shares
and
debentures.
The
minimum
numbers
of
members are 7 and there is no
maximum limit of members.
It is compulsory to add the word
limited after the name of public
company.
It is compulsory to issue of
prospectus and in the absence of
prospectus to sent statement in
lieu to the registrar.
Minimum paid up capital is five
lakh rupees.
7. Life Insurance &Fire Insurance

Sr.
No
.
Life Insurance
Fire Insurance
A contract which insurer promises

to pay compensation to insured if
something happens to the subject
matter due to fire or related
events.
3.
Who takes
it
Subject
matter
A contract whereby the insurance

company undertakes to pay a
certain sum of money either on
death
or maturity (whichever
earlier
for
a
consideration
(premium)
It can be taken by an individual for
his own life or for his family
members.
In life Insurance, the life of the
Insured is a subject matter.
4.
Insurable
interest
It must exist (live) at the time of

contract.
Period
The policy can be issued for any

number of years, even until death
1.
2.
5.
Basis of
Difference
Meaning
It can be taken by exporters,

importers
and
shipping
companies.
In fire Insurance, the goods and
assets or property of the insured is
the subject matter.
It must exist both at the time of
contract and also at the time of
loss.
It is generally for a short period
like one year.
Page 4

of the assured.
6.
7.
8.
9.
compensat
ion
Principle
of
Indemnity
It is paid either on death or

maturity whichever is earlier.
It is not applicable as a human life
cannot be valued in terms of money
for calculating the actual loss.
Number of
policies
Insured can take any number of

policies on the same life.
Surrenderi
ng of
policy
The policy can be surrendered

before the expiry of the term
subject to certain conditions.
It is paid only if there is loss due to

fire during the term policy.
It is applicable as insurance
company compensates for the
financial loss and the insured is
bought back to the same financial
condition that he was before the
event
Generally, only one policy can be
taken. However, double insurance
is possible.
It cannot be surrendered.
8. Life Insurance &Marine Insurance

Sr.
No
.
Basis of
Difference
1.
Meaning
Life Insurance
Marine Insurance
A
contract
whereby
the
insurance company undertakes to
pay compensation to the insured
in case of loss to him due to
danger (perils) of the sea.
Who takes
it
A contract whereby the insurance

company undertakes to pay a
certain sum of money either on
death
or maturity (whichever
earlier
for
a
consideration
(premium)
It can be taken by an individual for
his own life or for his family
members.
3.
Subject
matter
In life Insurance, the life of the

Insured is a subject matter.
4.
Insurable
interest
5.
Period
It must exist (live) at the time

of contract.
The policy can be issued for any
number of years, even until death
of the assured.
6.
Compensat
ion
It is paid either on death

maturity whichever is earlier.
Principle
of
Indemnity
It is not applicable as a human life

cannot be valued in terms of money
for calculating the actual loss.
2.
7.
or
It can be taken by individuals for

their properties or by businessmen
for
their
goods,
properties
business liabilities, etc.
In Marine Insurance, goods in ship
cargo and freight are the subject
matter.
It must exist at the time of loss.
It is generally for a short period
and may range from one month to
a year. Normally, it does not
exceed one year.
It is paid only if there is a loss
causing during the term of the
policy.
It is applicable as insurance
company compensates for the
financial loss and the insured is
bought back to the same financial
condition that he was before the
event
Page 5

8.
9.
Number of
policies
Insured can take any number of

policies on the same life.
Surrenderi
ng of
policy
The policy can be surrendered

before the expiry of the term
subject to certain conditions.
Generally, only one policy can be

taken. However, double insurance
is possible.
It cannot be surrendered.
9. Current Account& Saving Account

Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Withdrawa
ls
3.
Facilities
4.
Who takes
it
Constraint
son
operation
and
withdrawal
s
Rate of
interest
Nature of
Account
Facilities
5.
6.
7.
8.
10.
Sr.
No
.
Current Account
Saving Account
It is that account which is

maintained by businessman and
others
who
have
regular
transaction.
Customers can withdraw money by
cheques.
It is that account which is opened

by individuals in order to save a
part of their income.
The bank gives a passbook, cheque

book, statement of account and
pay-in-slip book to the customers.
It
is
suitable
for
traders,
businessmen, firms or institutions.
There are no restrictions on the
operation of a current account as
long as there is balance in the
account.
Customers can withdraw either by

cheques or by withdrawals slip
along with passbook.
The bank gives a pas book, cheque
book and pay-in-slip book to the
customers.
It is suitable for fixed income
group, wage or salary earners.
The
customers
have
certain
restrictions on withdrawals.
Normally, interest is not given.
Interest rate is low.
It is of continuous nature.
It is of continuous nature.
Temporary
given
overdraft
facility
is
No overdraft facility is given.
Fixed Deposit Account& Recurring Deposit Account

Basis of
Difference
1.
Meaning
2.
Withdrawals
Fixed Deposit Account
Recurring Deposit Account
It is that account where a fixed

sum of money is deposited for a
fixed period.
Customers cannot with draw
during
the
fixed
period.
If
withdrawn earlier, rate of interest
will be less than applicable.
It is that account where depositors

can regularly save fixed amount for a
specific period.
Customers cannot withdraw during
the fixed period. If withdrawn earlier,
rate of interest will be less than
applicable.
Page 6

3.
Facilities
4.
Who takes it
Constraintson
operation and
withdrawals
5.
of
6.
Rate
interest
Nature
Account
of
7.
8.
Facilities
11.
Sr.
No
.
Speed
carrying
capacity
Cost of
construction
and maintce`
2.
3.
4.
Distance
Transport
charges
5.
7.
Door to door
service
Means of
transport
8.
Ownership
9.
Safety
6.
12.
Sr.
No
.
The bank gives a pass book and pay

in slip.
It is suitable for fixed income group.
Payment is received after the expiry
of the fixed period.
The rate of interest is higher than

saving account but less than fixed
deposit account
90% of the amount in the account
can be given as loan
It is for a fixed period of time.
Road Transport V/s Rail Transport

Basis of
Difference
1.
The bank gives a fixed deposit

receipt to the customers
It is suitable for any person with
temporary idle cash.
Payment is received only on expiry
of the fixed period. If withdrawn
earlier, rate of interest will be less
than applicable
Interest rate is higher. Longer the
period, higher will be the rate of
interest.
90% of the amount of fixed
deposit can be given as loan.
It is for fixed period of time except
when the fixed deposits receipt
renewed.
Road Transport
Rail Transport
Road transport has limited speed

due to bad road conditions,
accidents, etc.
It
has
limited
carrying
capacity.
It
requires
limited
capital
investment
in
terms
of
construction of road, vehicles and
their maintenance.
Recommended for short distance.
It has considerable speed since it

runs on tracks which rarely get
disturbed.
It has huge carrying capacity.
Transport charges are not fixed but

are high due to increased fuel
prices.
It provides door to door service.
It uses animals carts, motorcycles three and four wheelers.
Ownership is in the hands of
private parties.
It provides limited safety to goods
from sun, rain, wind, etc.
The cost of construction of trains,

railway tracks is high. Also the
maintenance of trains, tracks and
stations is high.
Recommended for both short and
long distance.
Transport charges are relatively low
and are fixed according to the
distance.
It does not provide door to door
service.
It uses passenger and goods train.
Ownership is in the hands of the
government.
Goods are kept in locked wagons
which provides protection against
sun, wind, rain etc.
Water Transport &Air Transport

Basis of
Difference
Water Transport
Air Transport
Page 7

1.
Speed
carrying
capacity
Cost of
construction &
maintenance.
2.
3.
4.
Distance
5.
Transport
charges
6.
Suitability
7.
8.
Means
transport
Ownership
9.
Safety
13.
of
It is slowest mode of transport.
It is the fastest mode of transport.
It has a very huge carrying

capacity.
It uses waterways which are
natural high-ways and hence there
is no cost involved. However,
there is high cost involved for
construction of ships and ports.
Suitable
for
long
distances
especially across countries and
continents.
Transport charges are lowest.
It has limited carrying capacity.
It is suitable for transporting very

heavy goods, machineries in large
quantities to any part of the world.
It uses boats, big ships, liners,
tankers. Etc.
It is owned by both private sector
as well as public sector.
Goods are safe as they are
specially packed.
It is suitable for transporting light

weight perishable and valuable goods
to any part of the world.
It uses aircrafts, helicopters, jets, etc.
It uses airways which are natural and

hence there is no cost involved.
However, there is high cost involved
for construction of aircrafts and
airports.
Suitable for long distances.
Transport charges are the very high.
It is owned by both private sector as

well as public sector.
Goods are safe as they are more
specially packed.
Cheque &Bank Draft
Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Aim
3.
Drawer
4.
Dishonor
5.
Bank charges
6.
Payments
7.
Facility
extended to
8.
Reliable
Cheque
Bank Draft
According to the Indian Negotiable

Instrument Act, a cheque is an
unconditional order directing the
banker to pay a certain sum of
money only to the order of certain
person.
It aims at facilitating businessman
for effecting local payments.
The drawer is the account holder
of the bank.
The cheque may or may not be
dishonored.
The bank may not charge for
issuing cheque book.
Payment of crossed cheques
cannot be obtained immediately.
Cheque facility is extended to
account holders of the bank only.
A draft is an order to pay money

drawn by one office of a bank upon
another office of the same bank for a
sum of money payable to order on
demand
Cheque issued by an individual

may not be cleared due to many
It aims at facilitating
outstation payments.
A draft is the bank itself.
immediate
A draft can never be dishonored as it

is already paid for.
The bank charges a nominal amount
to issue a draft.
Payment of bank draft can be
obtained immediately.
A draft facility is extended to both
account holders of the bank as well
as outsiders.
A bank draft is more reliable as it is
issued by the bank only after receipt
Page 8

reasons
such
as
sign
not
matching, postdated, less balance,
etc.
14.
Loans &Overdraft
Sr.
No
.
1.
Meaning
2.
Eligibility
3.
Rate
Interest
Duration
4.
Basis of
Difference
5.
Interest
charged
6.
Amount
7.
8.
Separate
account
Purpose
9.
Repayment
10
.
Security
15.
Sr.
No
.
1.
2.
of
Loans
Overdraft
It is an arrangement under which a

certain amount is advanced for a
certain fixed period.
Any account holder i.e. current,
saving, fixed deposit can get a
loan.
It is lower than that of overdraft.
It is an arrangement under which the

current account holder is allowed to
overdraw from the account.
Only current account holders can
get overdraft facility.
It is for a long period.
It is for a short period.
Interest is charged on the amount

of
loan
sanctioned,
whether
withdrawn or not.
Amount of loan is larger.
Interest is charged on the amount

actually withdrawn.
Separate
account
is
to
be
maintained.
The purpose is to meet long term
requirements.
Amount of loan is to be repaid in
installments or in lump sum on the
due date.
Some valuable assets are to be
given as security.
No separate account is required.
It is higher than that of loans.
Amount of overdraft is smaller.
The purpose is to meet short term

working capital requirements.
Amount of overdraft is adjusted
against the deposits in the current
account.
Overdraft is sanctioned against
hypothecation of stock.
Commercial &Bank Central Bank

Basis of
Difference
Function
4.
Printing
of
currency
Acceptance of
deposits
Loans
5.
Ownership
6.
Number
3.
of payment.
Commercial Bank
Central Bank
The main function is to accept

deposits from public for lending to
industry and others.
The commercial bank cannot print
currency notes.
The commercial bank accepts
deposits from the public.
The commercial banks provides
loan to industry and commerce.
It can be owned by private and/or
by government agencies.
There are many commercial bank
in India.
The main function of the central bank

(RBI) is to regulate money supply in
the country.
The central bank can print currency
notes.
The central bank does not accept
deposits from public.
The Central bank provides loan to
banks and financial institutions.
It is owned and controlled by the
government if India.
There is only one Central bank (RBI)
in India.
Page 9

7.
Monetary
Policy
Monitoring
8.
16.
The commercial banks do not

frame any monetary policy.
The commercial bank does not
keep check on the Central bank.
The
Central
bank
frames
the
monetary policy and credit policy.
The Central bank keeps a check on
the working of the commercial
banks`.
Bonded warehouse &Duty paid Warehouse
Sr.
No
.
1.
Basis of
Difference
Meaning
2.
Location
3.
Markets
4.
Supervision
5.
Delivery
6.
Purpose
7.
Ownership
17.
Bonded warehouse
Duty paid Warehouse
Bonded
warehouse
is
the
warehouse where imported goods
on which duty is not paid are
stored.
They are located within the dock
area.
The imported goods stored here
are mostly re-exported.
The customs authority closely
supervises the working of these
warehouses.
Delivery of goods is done after
payment of import duty. In case of
re-export, the import duty need
not be paid, only rent and service
charges need to be paid.
Main purpose would be either the
importer needs to re-export the
goods or the importer may not be
in a position to pay import duty.
Such warehouses may be owned
by private or dock authorities.
Duty
paid
warehouse
is
the
warehouse where imported goods on
which duty is already paid are stored.
They are located in a port-town
outside the dock area.
The imported goods stored here are
mostly for the domestic markets.
These warehouses are not supervised
by the customs authority. They are
supervised by port authority.
Delivery of goods can be obtained
after payment of the rent charges of
the warehouse.
Main purpose would be that the

importer does not have suitable
warehousing facility. Also, he may not
require immediate delivery of goods.
Such warehouses are owned by public
authorities.
Traditional social Responsibility &Corporate social Responsibility
Sr.
No
.
1.
Basis of
Difference
Traditional social
Responsibility
Corporate social Responsibility
Meaning
It refers to commitment business to

contribute economic development.
It is evolved after World War II.
Concept
It refers to help poor people

through profit made by business.
It is evolved in ancient India and
Pre-Christian Era.
It has Philanthropic concept.
2.
Evolution
3.
4.
scope
It is restricted at individual level.
It refers to ethical, legal and

economic concept also.
It considers economy as a whole.
5.
type
It is primitive a narrow approach. It

has not considered intangible
goals.
It is global and wider approach. It has

considered tangible as well as
intangible goals.
18.
Entrepreneur &Manager
Page 10

Sr.
No
.
1.
Basis of
Difference
Motive
2.
Status
3.
Risk-bearing
4.
Qualification
5.
Innovation
6.
Benefits
7.
Decision
making
8.
Specializatio
n
19.
Sr.
No
.
1.
Entrepreneur
Manager
The
main
motive
of
an
entrepreneur is to start a
venture by setting a enterprise
to achieve his ideas.
An entrepreneur is the owner of
the enterprise
Being
the
owner,
the
entrepreneur undertakes all the
risk and uncertainties of the
enterprise.
an
entrepreneur
requires
qualities and qualifications like
hard
working
,
patience,
foresight,
high
thinking,
independence, etc.
Entrepreneurs
are
born
innovators. They set their own
goals and work for it.
The main motive of a manager is

to give his services to an
enterprise owned by someone
else.
A manager is a servant or paid
employee of an enterprise.
A manager being an employee
does not undertake any risk
involved in the enterprise.
An entrepreneur gets profits as

the benefits of the enterprise
which is uncertain.
An entrepreneur takes decisions
on his own as the enterprise has
to develop as per his ideas.
An entrepreneur may not be a

specialized in his trade but may
have sufficient knowledge.
A manager needs to possess

educational and technical skills.
Special management knowledge
and qualification is an additional
benefit
Managers only execute the plans
prepared by the entrepreneurs.
They only do the practical part of
the plan.
A manager usually gets fixed
salary for the services rendered by
him. It is fixed.
A manger does not have authority
to take decision on behalf of the
enterprise, but he may take
decision related to the plan which
he is executing.
A manager is trained professional,
hence is specialized in his field.
District Forum &State Commission

Basis of
Difference
Meaning
2.
Monetary
Jurisdiction
3.
Duration
District Forum
State Commission
A Consumer disputes redressal

forum working at district level
It can entertain the cases where
the value of goods and services
and the compensation claimed
is less than rupees twenty lakhs.
A consumer disputes redressal

forum working at state level.
and the compensation claimed is
more than rupees twenty lakhs and
less than 1 crore.
Every member should hold office
for a term of five years or up to the
age of sixty
seven
years,
whichever is earlier.
Every member should hold

office for a term of five years or
up to the age of sixty five
years, whichever is earlier.
Page 11

4.
Nature
of
Complaints
Only original cases can be

entertained which are within the
local limits of a district.
5.
Members
6.
Area Covered
Other than president it has

minimum two members.
It covers a particular district.
It can entertain original cases and

also appeals against the order of
District
Forum
within
the
geographical limits of the state.
It covers a particular state.
7.
President
District judge or equivalent.
High court Judge or equivalent.
20.
Sr.
No
.
1.
State Commission &National Commission

Basis of
Difference
Meaning
State Commission
National Commission
A consumer disputes redressal forum

working at national level.
It can entertain the cases where the
value of goods and services and the
compensation claimed is more than
rupees 1 crore.
Supreme court Judge or equivalent.
2.
Monetary
Jurisdiction
3.
Duration
4.
Nature
of
Complaints
5.
Members
6.
Area Covered
A consumer disputes redressal

forum working at state level.
more than rupees twenty lakhs
and less than rupees 1 crore.
for a term of five years or up to
the age of sixty seven years,
District
Forum
within
the
geographical limits of the state.
It covers a particular state.
7.
President
High court Judge or equivalent.
21.
Sr.
No
.
1.
Every member should hold office for a

term of five years or up to the age of
seventy years, whichever is earlier.
state commission.
Other than president it has minimum
four members.
It covers the entire country.
District Forum &National Commission

Basis of
Difference
Meaning
2.
Monetary
Jurisdiction
3.
Duration
District Forum
National Commission
A Consumer disputes redressal

forum working at district level
less than rupees twenty lakhs.
for a term of five years or up to
the age of sixty five years,
A consumer disputes redressal forum

working at national level.
It can entertain the cases where the
value of goods and services and the
compensation claimed is more than
rupees 1 crore.
Every member should hold office for a
term of five years or up to the age of
seventy years, whichever is earlier.
Page 12

4.
Nature of
Complaints
Area Covered
Only original cases can be

entertained which are within the
local limits of a district.
It covers a particular district.

state commission.
Other than president it has minimum
four members.
It covers the entire country.
5.
Members
6.
7.
President
District judge or equivalent.
Supreme court Judge or equivalent.
Page 13

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XII OCM FAST TRACK NOTES

1. Proprietorship &Joint Hindu Family Firm

Joint Hindu Family Firm

It is a form of commercial organization.

There cannot be more than one

All the family members are joint owners

2. Sole Trading Concern& Partnership firm

Sole Trading Concern

Owned and controlled by only one

It can be formed at any time when

Sole trading concern has only one

Registration is not necessary.

In this form of business organization two

A sole trading concern ensures

Secrecy is shared by the partners.

XII OCM FAST TRACK NOTES

A proprietor is himself receiver of

Profit is shared by partners as per their

3. Partnership Firm & Joint Stock Company

Joint Stock Company

It is voluntary association of individuals

The formation is comparatively

The minimum of number of members

4. Co-operative Society& Joint Stock Company

Joint Stock Company

XII OCM FAST TRACK NOTES

to members. Profit making is its

A minimum 10 members are

The principle of voting is one

service is the secondary motive.

5. Co-operative Society &Partnership Firm

In this form of business organization

The main motto of a Partnership firm

XII OCM FAST TRACK NOTES

A private company is a company

The minimum numbers of members

It is compulsory to add the word

Minimum paid-up capital is one lakh

In a Public limited company a

7. Life Insurance &Fire Insurance

A contract which insurer promises

A contract whereby the insurance

It must exist (live) at the time of

The policy can be issued for any

It can be taken by exporters,

XII OCM FAST TRACK NOTES

It is paid either on death or

Insured can take any number of

The policy can be surrendered

It is paid only if there is loss due to

8. Life Insurance &Marine Insurance

A contract whereby the insurance

In life Insurance, the life of the

It must exist (live) at the time

It is paid either on death

It is not applicable as a human life

It can be taken by individuals for

XII OCM FAST TRACK NOTES

Insured can take any number of

The policy can be surrendered

Generally, only one policy can be

9. Current Account& Saving Account

It is that account which is