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Kultur Dokumente
MANAGEMENT
4150502
TOPICS COVERED
• CHARACTERISTICS OF BUSINESS
of goods.
FORMATION OF
BUSINESS
ENTERPRISE
WHAT IS BUSINESS
ORGANIZATION ?
•Sole Proprietorship
•Partnership
•Co-operative society
•Private Company
•Public Enterprise
•Non-profit organization
•Hindu undivided family (HUF)
CHOOSING A FORM OF
BUSINESS ORGANISATION
•Nature of business
•Scale of operations
•Size of the market area
•Degree of control by the owner
•Amount of capital required
•Risks and liabilities involved
•Tax liability
SOLE PROPRIETORSHIP
•Easy formation
•Better control
•Subject to fewer regulations
•Not subject to corporate income
tax
•Ownership of all profits
DISADVANTAGES OF SOLE
PROPRIETORSHIP
• Easy formation
• Larger resources
• Sharing of risk
• Better management & flexibility of Operation
• No corporate income tax
• Subject to fewer regulations as compared to
companies
DISADVANTAGES OF PARTNERSHIP
•Unlimited liability
•Limited life
•Difficult to raise capital
•Chances of dispute
JOINT STOCK COMPANY
JOINT STOCK COMPANY
capital required, and accepting a fair share of the risk and the benefits
of the undertaking.”
CHARACTERISTICS OF CO-
OPERATIVES
•Voluntary association
•Equal voting rights
•Democratic Management
•Service motive
•Distribution of profits or surpluses
•Cash trading
•Trade control
CHARACTERISTICS OF CO-
OPERATIVES
• Market price without discriminating
• Political and religious neutrality
• Honest trading
• Principle of trading
ADVANTAGES OF CO-OPERATIVE
•Easy formation
•Limited liability
•Stability
•Democratic management
•State assistance
DISADVANTAGES OF CO-OPERATIVES
•Possibility of conflicts
•Long decision making process
•Not enough capital
PRIVATE COMPANY
•Lack of funds
•Lack of dedicated leadership
•Inadequate trained personnel
•Misuse of funds
•Monopolization of leadership
•Lack of public participation