Explain various forms of business organization. and discuss the factor in detail.
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Dear student,
There are 4 types of forms of business namely:
1. Sole proprietorship: It is a form of business in which all assets are owned by one person and all liabilities are borne by single individual only. In eyes of law the sole proprietorship and owner are same. It is easy to set up and dissolve sole proprietorship. A sole proprietor has unlimited liability.
2. Partnership: In this form of business two or more persons share ownership. It is governed by partnership act. The profits and losses of business are shared among partners in the ratio as mentioned in deed. The assets are contributed by all the partners and liablility is shared among them.
3. Company- A company is a artificial person, it has separate legal entity. A company can enter into contract on its own name, it can sue and can be sued. It has a perpetual succession.
4. Cooperative society- It is a voluntary association of persons formed by 10 or more individuals by pooling their resources. The funds of society is utilised for the purpose of betterment of society.
Regards
There are 4 types of forms of business namely:
1. Sole proprietorship: It is a form of business in which all assets are owned by one person and all liabilities are borne by single individual only. In eyes of law the sole proprietorship and owner are same. It is easy to set up and dissolve sole proprietorship. A sole proprietor has unlimited liability.
2. Partnership: In this form of business two or more persons share ownership. It is governed by partnership act. The profits and losses of business are shared among partners in the ratio as mentioned in deed. The assets are contributed by all the partners and liablility is shared among them.
3. Company- A company is a artificial person, it has separate legal entity. A company can enter into contract on its own name, it can sue and can be sued. It has a perpetual succession.
4. Cooperative society- It is a voluntary association of persons formed by 10 or more individuals by pooling their resources. The funds of society is utilised for the purpose of betterment of society.
Regards
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5.Joint Hindu Family Business:
It is commonly known as family business led by "karta" the eldest person of the family the other family members are co-parceners
It is commonly known as family business led by "karta" the eldest person of the family the other family members are co-parceners
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