Commercial Organizations Private Sector Public Sector Sole Trading

Commercial Organizations Private Sector Public Sector • Sole Trading Concern. • Joint Hindu Family business. • Partnership Firm. • Co-operative Societies • Department undertakings • Statutory Corporations. • Government Companies.

Sole Trading Concern Feature 1. 2. 3. 4. 5. 6. Minimum Government Regulations. Ultimate Liability. Freedom in selection of Business. Secrecy. Individual Ownership Direct contacts with customers and employees. 7. Suitable for some special bunnies'. 8. No sharing of profit and risk De-Merits 1. Easy formation. 2. Benefit of Secrecy. 3. Direct Motivation 4. Quick Decision. 5. Lower Costs. 6. Development. 7. Flexibility in operation. 8. Limited Government Control. 9. Credit Standing. 10. Efficiency 1. 2. 3. 4. Limited Managerial ability, Limited amount of capital. Unlimited liability. Not suitable for large scale operations. 5. Lack of stability. 6. Absence of specialization. 7. Unprofessional Decisions

Joint Hindu Families Business Features Formation Karta & Co-Parceners Joint Ownership Membership Management Profit Sharing Quick Decision Good Relations Merits Easy to Start Prompt Decisions Good Relation with employees Flexibility Secrecy Co-Parcener’s Liability Good Credit Standing Continuity and Stability De. Merits Limited Resources Limited Managerial Skills Unlimited Liability of Karta Breaking of Joint family Lack of Direct Efforts Restricted Expansion Unlimited Co-parceners

Types and Features of Partnership Features Registration • • • • Agreement. Lawful business. Sharing Profit & Losses. Number of Partners. Joint Ownership. Unlimited Liabilities. Dissolution. Joint Management. Principal – Agent Relationship Registration of Partnership. Procedure of Registration. Effects of Non Registration. Benefited of Registration.

Types and Features of Partnership Merits De-Merits • • • • More Financial Resources. More Manpower Resources. Easy formation. Simple Dissolutions. Rational Decisions. Secrecy. Personal Contacts. Division of Risk. Flexible Organization. Unlimited Liability. Limited Resources. Disputes Among Partners. Risk of Implied Authority. No Separate Legal Status. No Succession.

Types and Features of Partnership Types of Partnership • • Active / Actual Partners. Sleeping or Dormant Partners. Nominal Partners. Minor Partners in Profits only. Limited Partners. Partner by holding our. Secret Partner. • Partnership at will & Particular Partnership. • General & Limited Partnership. • Registered & Unregistered Partnership.

Types and Features of Co-Operative Society Features Merits • • • • • Voluntary Association. Equal Voting Rights. Service Motive. Limited Liability. Democratic Management. Independent Existence. Registration. Surplus Profit. State Control. Easy Formation. Democratic Management. Limited liability. Stability. Open Membership. Tax concession. Less Operating Expenses. Supply of Goods at cheaper rate. Self financing and charity.

Types and Features of Co-Operative Society De-Merits Types • • • • Lack of Capital Rigid Government Rules. Lack of Public Confidence. Lack of Motivation. Mutual Disputes Stability Limited Scope of Expansion. Consumer’s Co-operative Credit Co-operative. Producer’s Co-operative. Marketing Co-operative. Farming Co-operative. Housing Co-operative.

Types of Companies Chartered Company limited by Guarantee Statutory Company Registered Company Unlimited Company Limited Company limited by Guarantee & Shares Company limited by Shares Public Ltd. Company Private Ltd. Company

Joint Stock of Companies Features 1. Artificial legal Person. 2. Separate legal Entity. 3. Limited Liabilities. 4. Common Seal. 5. Registration. 6. Transferability of Shares. 7. Separation of ownership and Management. 8. Membership. 9. Registered office. 10. Voluntary Association. 11. Perpetual Succession.

Joint Stock of Companies Merits 1. 2. 3. 4. 5. 6. 7. 8. Large Capital. Democratic Management. Transferability of Shares. Limited liability. Expert Services. Relief in taxation. Public Confidence Scope for growth and expansion.

Joint Stock of Companies De. Merits 1. 2. 3. 4. 5. 6. 7. 8. Difficulty in formation. Delay in decisions. Excessive government control. High cost of Management. Undue speculation. No personal contact. Lack of Secrecy. No Direct Effort reward relationship.