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Sunday, 1 November 2020

Discuss about forms of business organisation

we know about forms of the business organization while elaborating business as an economic activity we have seen that forms of business may be discussed on a variety of criteria. For example on the basis of the nature of the activity undertaken a business maybe engaged in industry trade or other services; and on the basis of size and scale of the activity undertaken, a business may be classified as micro small medium and large. Generally, however whenever we refer to forms of business organisation the attention is drawn to the types of private business ownership. Before we take up a brief discussion of the various forms of business ownership it is important to take note of the 

Following points about business ownership:-

1. Business ownership is a bundle of rights:

ownership is a bundle of rights. These rights acquired because a person has invested money in it. First such right is the titular exclusiveness. if you own a book no one else can claim it on a ship others may on their respective copies. You may use it that is derived benefit from. You may also land it or sell it or donate it on your will. Likewise our business ownership or cause by investment of capital. Profits stet belongs to the owners. However, if there are losses these have also to be encoded by the owners. Business owners also have a right to run the business that is manage and operate it on a day-to-day basis.however in certain forms of business ownership can be separated from management. An important right associated with business ownership is the right to dispose of and transfer the ownership of business. It also includes transfer of ownership by succession after the owners death. Such a succession occurs only when the person X prudently and divides the ownership in business among the success by a registered will.

2. Business may be owned singly or jointly: 

A business may be found singly that is as a sole proprietorship concern.Elseit be organised as a partnership or even a larger collective such as a cooperative. When owned singly, if all the prophets belong to the single owner commerce so do the losses. Shared ownership by pulling of capital will facilitate undertaking large projects. However there is a prudential reason for shared on a ship to and that is sharing of risks.

joint family business hai fund a concept equal to Hindu undivided family in india-views business as a family property and vests its ownershipamong the members of the family. Here the sharing of ownership is guided not as much by the possibility of rising large sums of capital or diffusion of business risks as it is guided by the consideration of equitable distribution of ownership rights among the family members.

In fact, business / organisational theory and thinkers keep contemplating on forms of ownership where by the impact of business advertisers on honours-whether single or joint-can be minimised. One such innovation is the idea of limited liability. Scenes business persons on the business-with all its assets and liabilities, all its usufructs weather favourable profits or unfavourable losses acquire to them. And in the event business liabilities are more than business assets their personal wealth would be utilised for making the business liability. There is no distinction between the business person and business. The idea of limited liability caps the liability of the business person just to the extent of their investment in business. This idea was initially implemented in company form of business and letter in partnership firm as well (Limited Liability partnership- LLP).

3.Business may be organised as a proprietary or a corporate concern:

in property consultants, business owners actively participate in the day-to-day working of the enterprises. Known as owner-managers business persons / intrapreneur  are does not passive providers of investment capital alone. Business,thus,automatically becomes subservient to the self-interest of its owners. Obviously was such a situation would be more visible when there are 45 15 core i5 and honours and an nature and the size of the business is such that it can draw on their uh competencies and capabilities. Let us think of business where number of persons holding a share in the capital of enterprise is large in hundreds of thousands and hundreds of thousands who are also geographically dispersed. in such cases a separation of ownership from management would be inevitable. The managers act as the agents of end in the interest of the shares that principles. Further, organisation of business as a cooperate entity endows it with certain other peculiar characteristics to that we will take up as we describe company form of business. We have already seen that such a form is characterized by limited liability of the shareowners.a serious limitation of proprietary business is that the life of the business is entwinedwith the health and life of the owners. Corporate form does away with its limitation as a company exist as a separate person distinct from its owners in the contemporary ation of law. As a separate legal person it can does have a life of its own independent of the lives of its owners.

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