25. Explain the nature of business risks. 26. Explain briefly four features of partnership firm. 27. Explain briefly two types of co-operative societies. 28. Briefly explain any four benefits of Joint ventures. 29. Briefly explain the different types of Banks. 30. Explain any four benefits of e-Business. 31. Explain briefly the ways of payment in Online Transactions,
Answers
Explanation:
If one is planning to start a business or
is interested in expanding an existing
one, an important decision relates to
the choice of the form of organisation.
The most appropriate form is
determined by weighing the
advantages and disadvantages of each
type of organisation against one’s own
requirements.
Various forms of business
organisations from which one can
choose the right one include:
(a) Sole proprietorship,
(b) Joint Hindu family business,
(c) Partnership,
(d) Cooperative societies, and
(e) Joint stock company.
Let us start our discussion with
sole proprietorship — the simplest form
of business organisation, and then
move on to analysing more complex
forms of organisations.
2.2 SOLE PROPRIETORSHIP
Do you often go in the evenings to buy
registers, pens, chart papers, etc., from
a small neighbourhood stationery
store? Well, in all probability in the
course of your transactions, you have
interacted with a sole proprietor.
Sole proprietorship is a popular
form of business organisation and is
Neha, a bright final year student was waiting for her results to be declared.
While at home she decided to put her free time to use. Having an aptitude for
painting, she tried her hand at decorating clay pots and bowls with designs.
She was excited at the praise showered on her by her friends and
acquaintances on her work. She even managed to sell a few pieces of unique
hand pottery from her home to people living in and around her colony.
Operating from home, she was able to save on rental payments. She gained a
lot of popularity by word of mouth publicity as a sole proprietor. She further
perfected her skills of painting pottery and created new motifs and designs.
All this generated great interest among her customers and provided a boost
to the demand for her products. By the end of summer, she found that she
had been able to make a profit of Rs. 2500 from her paltry investment in
colours, pottery and drawing sheets. She felt motivated to take up this work
as a career. She has, therefore, decided to set up her own artwork business.
She can continue running the business on her own as a sole proprietor, but
she needs more money for doing business on a larger scale. Her father has
suggested that she should form a partnership with her cousin to meet the
need for additional funds and for sharing the responsibilities and risks. Side
by side, he is of the opinion that it is possible that the business might grow
further and may require the formation of a company. She is in a fix as to what
form of business organisation she should go in for?
2020-21