Have you ever thought who brings the required capital, takes the responsibility of arranging other resources,

puts them into action, and coordinates and controls the activities to earn the desired profits? If you look around, you will find that a small grocery shop is owned and run by a single individual who performs all these activities. But, in big businesses, it may not be possible for a single person to perform all these activities. So in such cases two or more persons join hands to finance and manage the business properly and share its profit as per their agreement. Thus, business organisations may be owned and managed by a single individual or group of individuals who may form a partnership firm or a joint stock company. Such arrangement of ownership and management is termed as a form of business organisation.

Forms of business organization in India

Sole Proprietorship Partnership Joint Hindu Family/ Hindu Undivided Family Cooperative Society Joint Stock Company

Single Ownership

No Separate Entity

No Separation of Ownership and Management

One-man Control

Unlimited Liability

Less Legal Formalities

No Sharing of Profit and Loss

Limited Resources

Lack of Continuity

Unlimited Liability

Not Suitable for Large Scale Operation

Limited Manageri al Expertise

Kamal Studio
Established in 1966 under the dynamic leadership of Krishan Kamal, a renowned name in the photography world and he is a qualified MFD from Germany and WICA from Mumbai. It has branches in Ludhiana, Jagraon, Mullapur, raikot and Mumbai.

Arjun flour & Oil industries Arjun flour & Oil industries, leading manufacturer & supplier of Whole Wheat Chakki Atta, Besan, Dalia, Maida, Suji, Bran, Poha. In 1972 a small 2 Chakki plant was set up by Late Sh. Hoshiar Lal in center of Ludhiana city by name of Hoshiar Lal Manjit Singh Flour Mills. With their Blessings now we have set up a 10 Chakki Plant Flour Mill with capacity of more than 50MT per day.

Shiv Stationery Store

Established by Chander Parkash, it is one of the oldest stationery shop in Ludhiana city. It has school and college stationery items, office stationery, Gift Gallery.

Two or More Persons

Contractual Relationship

Sharing profits of business

Existence of Lawful Business

Principal Agent Relationship

Unlimited Liabilities

Voluntary Registration

Easy to Form

Flexibility in Operation

Availability of Larger Resources

Better Decision

Sharing of Risk
Active Participation Benefits of Specialisation Protection of Interest Secrecy

DEMERITS OF PARTNERSHIP FORM OF BUSINESS ORGANISATION

TYPES OF PARTNERS

Kipps Mart
Kipps Mart was established in 1979 at Sarabha Nagar Market, Ludhiana. It was for the first that in North India, a new concept was conceived, by bringing under one roof a Supermarket, a Restaurant, a Fast Food Corner, a Party hall, A Bakery and a Catering Division to serve our valuable clientele. The people behind the kipps mart Mr. Ashok Arora and Mr. H.S Bawa with their knowledge of nearly three decades in the Hospitality industry are the backbone of our enterprise.

A.K. Engineering Company

A.K. Engineering Company was established in the year 1988 in Ludhiana (India). It is an leading Fasteners Exporter of Ludhiana, Punjab, India.Kito is one of the leading brands in the field of Fastners.

S.C. Vasudeva & Co.

S.C. Vasudeva & Co. was set up in the year 1976 by managing partner, Mr. S. C. Vasudeva as a 2 member firm to service clients, primarily in the field of audit and taxation. They are today a 100 member firm , with their primary office at New Delhi and a branch at Ludhiana and our service offerings include Assurance, Risk Advisory, Tax Advisory, Corporate Advisory and Outsourcing. Our clients include listed and non-listed companies and cover a broad spectrum of industries ranging from textiles, construction, power, retail, commodities, healthcare, insurance, hospitality, media and information.

Two or More Persons in the Family Ancestral Property Hindu Succession Act 1956 Coparcenership rights acquired by birth. Equal Share in Profits

Karta manages the Business

Liability of Karta is unlimited

Coparceners liability is limited to the extent of their share in HUF

JHF business can be dissolved either through mutual agreement or by partition suit in the court.

Assured Shares in Profits

Quick Decision
Sharing of Knowledge and Experience Limited Liability of Members

Unlimited Liability of the Karta

Continued Existence

HUF is regarded as an independent assesse for tax purposes.

Limited Resources

Lack of Motivation

Scope for Misuse of Power

Instability

EXAMPLES OF JOINT HINDU FAMILY FORM OF BUSINESS ORGANISATION

Mani Ram Balwant Rai (MRBR) started business in 1948. It was started by Late Sh. Mani Ram Batra by opening a Retail Karyana Store at B-I-1191, Opposite Old Session Courts, civil Lines, Ludhiana, Punjab, India. In 1970, Mr.Balwant Rai son of Mr.Mani Ram Batra joined same business. In 1972, he registered the Firm Mani Ram Balwant Rai in Sales Tax Department. Then, Mr.Prem Batra and Subhash Batra brothers of Balwant Rai joined the family business.

EXAMPLES OF JOINT HINDU FAMILY FORM OF BUSINESS ORGANISATION

Haldirams was started by Shri Shivkisan Agrawal in 1937 as a Sweets and Namkeens shop Bikaner, Rajasthan. The small but significant town nestled in Thar Desert in the North- West Rajasthan. Shri Shivkisan Agrawal, founder of Haldirams always cherished the dream of building an Empire which catered to the common man. This dream was realized in the embodiment of Haldirams Nagpur

CO-OPERATIVE SOCIETY

Voluntary Association Open Membership A minimum of 10 members required; in case of multistate co-operative societies minimum of 50 members are required from each state

In India, co-operative societies are registered under the Co-operative Societies Act 1912 or under the State Cooperative Societies Act
State Control

Capital of the Co-operative Society is contributed by its Members

Democratic Set Up

Service Motive

Return on Capital Investment

DEMERITS OF CO-OPERATIVE SOCIETY

Limited Capital

Lack of Managerial Expertise

Less Motivation

Lack of Interest

Dependence on Govt.

TYPES OF CO-OPERATIVE SOCIETIES

Consumers Co-operative Societies
These societies are formed to protect the interest of consumers by making available consumer goods of high quality at reasonable price.

Producers Co-operative Societies

These societies are formed to protect the interest of small producers and artisans by making available items of their need for production, like raw materials, tools and equipment's etc.

TYPES OF CO-OPERATIVE SOCIETIES

Marketing Co-operative Societies

To solve the problem of marketing the products, small producers join hand to form marketing cooperative societies

Housing Co-operative Societies

To provide residential houses to the members, housing cooperative societies are formed generally in urban areas.

TYPES OF CO-OPERATIVE SOCIETIES

Farming Co-operative Societies

To solve the problem of marketing the products, small producers join hand to form marketing cooperative societies

Credit Co-operative Societies

These societies are started by persons who are in need of credit. They accept deposits from the members and grant them loans at reasonable rate of interest.

Examples Of Co-operative Societies

Consumers Co-operative Societies:Kendriya Bhandar, Apana Bazar and Super Bazar are examples of consumers co-operative societies

Producers Co-operative Societies: Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of producers co-operative societies.

Marketing Co-operative Societies: Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society.

Examples Of Co-operative Societies

Credit Co-operative Societies: Village Service Co-operative Society and Urban Cooperative Banks are examples of cooperative credit society.

Housing Co-operative Societies: The biggest housing co-operative in India is Vidarbha Premier Co-operative Housing Society located in Gandhi Sagar, Nagpur, in the State of Maharashtra

Farming Co-operative Societies: Indian Farmers Fertiliser Cooperative Limited, also known as IFFCO is the world's largest fertiliser cooperative federation based in India.

Artificial legal Person Separate Legal Entity

Perpetual Succession
Limited Liability Common Seal Transferability of Shares Separation of Ownership and Management

Private Company

Public Company

GOVERNMEN T COMPANY

MULTINATION AL COMPANIES

Private Company According to Indian Companies Act 1956, Private Company means a company which has a minimum paid-up capital of one lakh rupees or such higher paid up capital, as may be prescribed, and by its articles.

FEATURES OF PRIVATE COMPANY

EXAMPLES OF PRIVATE COMPANIES

Natures Essence Pvt. Ltd., New Delhi: Natures Essence Pvt. Ltd was established in the year 1998. They are exporter & manufacturer of premium quality makeup and skincare product.

FEATURES OF PUBLIC COMPANY

EXAMPLES OF PUBLIC LIMITED COMPANY

GOVERNMENT COMPANY
A Government Company has been defined by the Indian Companies Act 1956 as one of which not less than 51 per cent of the paid-up share capital is held by he Government (Union or State) and includes subsidiaries of such companies. The audit of Government companies is done at the instance of the Comptroller and Auditor General of India (CAGI) and the reports presented before the Parliament.

It has a separate legal existence. Either the whole or at least 51 per cent of the total paid up share capital is held by the Government.

All the Directors or a majority of them are appointed by the company.

Its employees are not civil servants.

EXAMPLES OF GOVERNMENT COMPANY

Indian Oil was founded in the year 1964, having its headquarters New Delhi, India. It is an state-owned oil and gas corporation. The company is the worlds 83rd largest public corporation, according to Fortune Global 500 list, and the largest public corporation in India when ranked by revenue.

MULTINATIONAL COMPANIES
It is a company which carries on business not only in the country of its incorporation but also in one or more other countries. Such a company may produce goods or arrange services in one or more countries and sell these in the same or other countries.

FEATURES OF MNC

EXAMPLE OF MNC
Coca Cola Pepsi

Nestle
General Motors Cadbury