Академический Документы
Профессиональный Документы
Культура Документы
2/ Single ownership; The proprietary concern one men control all thing
4/ Prompt decisions : Sole proprietors his own boss and not consult others in
decision making .
5/ Business secrecy : The sole proprietor can retain vital business secrets .
7/personal touch: the sole proprietor can keep intimate personal contracts with
his customers and employees.
8/Freedom from government control: The property concern is least regulated by
the government concern.
9/ Economy 9: As the sole proprietor himself performs managerial activities,
costs of operation and overhead expenses are minimum .
1/ Limited finances: The capital which a sole proprietor can raise is to his
personal sarongs and borrowing capacity.
2/ Limited managerial skill: the Managerial ability of the proprietor is limited.
3/ Unlimited liability: The sole proprietor has to bear the entire risk of business
himself.
4/ Instability: The sole proprietary concern comes to an end with the death or
physical incapacity of the owner.
5/ Limited scope for growth: Due to the limitations of finance.
1/ Where small amount of capital are required, e.g., sweet shops, bakery,
newsstand, etc.
2/ Where quick decisions are very important, e.g., share brokers, bullion dealers,
etc.
5/ where the demand is local, seasonal or temporary, e.g., retail trade, laundry,
etc.
7/ Where the operation is simple and does not require skilled management.
Partnership Firm
In 1932 partnership Act.” Partnership is the relation between person who have
agreed to share the profit of a businessn carried on by all or any of them acting
for all.”
4/ sharing of profits: The agreement must provide for the sharing of profits and
losses of the partnership businesses
7/ unlimited liability: every partner is liable jointly and severally for all debts and
obligations of the firm
8/ proper size. An ideal partnership should be large enough to have financial and
managerial strength but should not be unwieldy and unmanageable
9/ long duration. Any medium scale business today requires a fairly long time to
be successful an ideal partnership should therefore be set up for reasonably long
period of time
Types of partnership
Kinds of partners
3/ dormant or sleeping partner .such partner does not take active part in the
management off firm .
5/ partner in profits only . A parson who shares the profits of a firm but who is
not liable for the losses is called partner in profits only .
6/ sub partner . when a parson makes an arrangement with a partner share his
profits he is known as sub partner
Formation of partnership
(A) partnership deed usually contains the following points
10/ Amount of withdrawal allowed to each partner and the rate of interest .
Merits of partnership
7/ capacity for survival: The survival capacity of the partnership firm is higher
then that of sole proprietorship .
1/ Unlimited resources: every partner is jointly and severally liable for the entire
debt of the firm .
3/ risk of implied agency . the acts of a partner are binding on the firm as well as
on other partners
6/ non- transferability of interested . no partner can transfer his share in the firm
to an outsider without the unanimous content of all partners
In act of 1984 company means a company formed and registered unsex this or
any existing company .
6/ change of object . the objects and power of a company as laid down in its
memorandum of association can be altered only by fulfilling legal formalities laid
down in the company act 1956.
7/ management . in a partnership all the partners can take active part in the
management of the firm .
2.Name The name must include the The name must include the worlds
worlds “Private Limited” “Limited”
4.Articales of Mast prepares its own articles May adopt table as a given in the
association of association. companies Act.
6.Prospectus Need not issue and file Must issue and file a prospectus or
prospectus a statement in lieu of prospertus.
8.Share Warrants Cannot issue share warrants Can issue share warrants per
bearer.
Merits of Company Organization:
5. Scope for growth and expansion: there is considerable scope for the
expansion of business in a company.
7. Diffused risk: the risk of loss in a company is spread over a large number of
members.
Demerits of a company
4.