Forms Of Business Ownership

Meaning of Business Ownership:The business organization, created for the purpose of carrying on the business is given a legal from the point of view of ownership. This legal from of business organization is called form of business ownership.

Different Forms of business Organization:

1.Sole proprietorship was the earliest form of business organization.

2.There are emerged a form of business organization called joint Hindu family firm.

3.The creation of joint stock company form of organization.

4.Government to set up state or public enterprises.

Business organization in private sector:

1.Sole proprietorships.

2.Partnership Firms.

3.Joint Hindu Family in India.

4.Joint stock company.

5.Co-operation Society.

6.Multinational co-operation.

Business organization in public sector:

1.Department Undertakings.

2.Public Corporations.

3.Government Companies.

Characters Of Business Organization:

1.Ease of formation.

2.Ease of raising capital.

3.Extent of liability.

4.Degree of direct relationship between ownership and control desired.

5.Flexibility of operation.

6.Continuity of existence.

7.Type of business.

8.Impact of tax liability.

9.Transferability of interest.

10.Maintenance of secrecy.

Different Forms Of Business Organizations:

1.Sole Trading Concerns.

2.Partnership Firms.

3.Hindu Undivided Families.

4.Joint Stock Companies.

5.Co-operative Societies.

6.Multinational Co operations.

7.Government Undertaking.

8.Joint Sector Undertaking.

Meaning of Sole trading concern:

            In the words of L.H.Haney the industrial entrepreneurship is the form of business organization on the head of which stands an individual as the one who is responsible who directs its operation who alone runs the risk of failure.

Features of Sole Trading Concern:

1.The sole trading concern is the oldest and the simplest form of business organization.

2.No legal formation are required for the formation and the closing of a sole trading concern.

3.It is owned and managed by a single person.

4.It is owned by a single owner.

5.The sole trader puts his own labor in conducting his business.

6.The sole trader assumes all the risks involved in the business.

7.A sole trading concern has no separate legal existence from that of its owner.

8.The liability of the sole trader is unlimited.