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| Name | Forms of Business Organization |
| Video Uploader | Video From Eduxir |
| Upload Date | This Video Uploaded At 18-11-2017 08:56:56 |
| Video Discription | For an entrepreneur to start a business what type of business options are available? For an entrepreneur to start a business the following forms of business are available. The following forms are business are available as a choice for a business man to start a new venture.. - Sole proprietorship: This form of business is owned, managed and controlled by a single person, responsible for procuring all the required funds. The business can not be transferred into others’ name. The owner is liable for all the losses and all the profits are enjoyed by the owner only. This kind of business is easier to start and shut down. It has very limited liability. - Partnership: This form of business is owned, managed and controlled by two or more persons. These persons enter a mutual oral or on paper agreement to form the partnership and share the profits and losses together. This form of ownership has unlimited liability. Each partner enjoys implied authority. Each partner is liable for their and others’ actions. Partners can transfer their shares or sell them after getting a consent from other partners. Partners can discontinue the partnership by giving a notice. It continues as long as all the partners are willing to continue. - Joint Hindu Family Business/firm (HUFs): Joint Hindu Family or Hindu Undivided Family Business is prevailing only in India. It is governed by Hindu law. This form of business is owned, managed and controlled by male members of a joint Hindu family. HUFs have been defined under Hindu law as a family comprising male who have a common ancestor, including their wives and unmarried daughters. This form of partnership is formed by the status or operation of Hindu law. Only members born in the family can become partners. Others can also become partners but only if they are adopted by someone in the family. Only the eldest male member has rights to manage or verify the accounts of the business. Liability is defined by the share a partner has in the business. However, the eldest member, also known as Karta, has unlimited liability. Any new born male can become the member. The business can be shut down only if all the members provide their consent. - Cooperative: A cooperative form of business is formed by a society. Its primary object is mutual help. Profit is secondary objective. Members can join or leave at their own will. The members select the management committee which will be responsible for managing the affairs of the business. The capital is procured from the members. Shares can not be transferred. This form of enterprise is limited by the Cooperative societies act and the State cooperative societies act. Profits are limited to 9% of the share. Excessive profits are shared among members depending on their contribution to the society. - Joint Stock Company: For a private company minimum two persons are required and for a public company minimum seven persons are required. In addition to this, the company exists as an individual and has its own personality. Thus the company will have a common seal which is used as a signature of the company. The company neither has any liability nor it can have any shares. The company is managed by the directors. The actions of the company are governed by The Indian Companies Act, Memorandum of Association, Articles of Association. The company can be liquidated through legal proceedings. Additional content on this topic can be found at http://www.eduxir.com/curriculum/cbse/class-xii/entrepreneurship/entrepreneurial-planning/ x8LqdZnOnIU |
| Category | Education |
| Tags | Entrepreneur | Entrepreneurship | Entrepreneurial Planning | CBSE | Class 12 | NCERT | CBSE Class 12 | CBSE Class 12 Entrepreneurship | eduxir | Forms of business | types of business options | sole proprietorship | sole proprietorship form of business | partnership | partnership form of business Joint Hindu Family Business | Hindu Undevided family Business | Forms of firms | Cooperative | cooperative form of business | Joint Stock Company | HUF | HUFs |
