Business organization is an act of grouping activities into effective cooperation to obtain the objectives of the business. In other words, it is the structural relationship between the persons who deal with the overall organizational management in enterprise for specific purposes.
Forms of business organization
Sole trader ship is the oldest form of business house, which is owned, controlled and managed by an individual. It is also named as sole proprietorship or sole ownership. This type of organization may easily by form and law does not require its registration. One man invests his capital and devotes full time and energy into his business and so he enjoys hundred percent profit of business. On the other side if there is loss, he sustains all the losses of his business.
Co-ownership is the relationship that employs their money in order to own property. In other words, it is the joint ownership of property by two or more persons. This ownership is generally created by the operation of law as well as from status. Agreement is not essential for its formation. The property of the owners is used in business of commercial purpose or it may be rented out.
Partnership is the relationship between two or more persons who agreed to share profit of a business carried on by all or any of them acting for all. The number of partners must not exceed twenty in ordinary business and not more than ten in banking business.
A joint stock company is a voluntary association of different persons created by law as a separate body for specific purposes. It enjoys a common capital contributed by its member, such capital being divided into transferable shares. The liability of each such member is limited to the face value of the shares he holds. It has legal entity apart from its members.
A co-operative undertaking is voluntary association of individual for the common interest of its members. It is formed for conducting some business activities. It is protective device used by the economically weak persons of the society to safeguard their common interest against the exploitation of economically strong group or individual.
When two or more business-undertaking units combine to carry on business together for achieving the economic benefits. Combination takes place. It is also formed for defensive purposes. But it is considered to be unlawful if any of its objects were against public interest.
Forms of business organization
Sole trader ship is the oldest form of business house, which is owned, controlled and managed by an individual. It is also named as sole proprietorship or sole ownership. This type of organization may easily by form and law does not require its registration. One man invests his capital and devotes full time and energy into his business and so he enjoys hundred percent profit of business. On the other side if there is loss, he sustains all the losses of his business.
Co-ownership is the relationship that employs their money in order to own property. In other words, it is the joint ownership of property by two or more persons. This ownership is generally created by the operation of law as well as from status. Agreement is not essential for its formation. The property of the owners is used in business of commercial purpose or it may be rented out.
Partnership is the relationship between two or more persons who agreed to share profit of a business carried on by all or any of them acting for all. The number of partners must not exceed twenty in ordinary business and not more than ten in banking business.
A joint stock company is a voluntary association of different persons created by law as a separate body for specific purposes. It enjoys a common capital contributed by its member, such capital being divided into transferable shares. The liability of each such member is limited to the face value of the shares he holds. It has legal entity apart from its members.
A co-operative undertaking is voluntary association of individual for the common interest of its members. It is formed for conducting some business activities. It is protective device used by the economically weak persons of the society to safeguard their common interest against the exploitation of economically strong group or individual.
When two or more business-undertaking units combine to carry on business together for achieving the economic benefits. Combination takes place. It is also formed for defensive purposes. But it is considered to be unlawful if any of its objects were against public interest.
