0Business organisations refer to the different types of business structures established to carry out commercial activities. The main forms include:
Forms of Business Organisations
1. Sole Proprietorship
• Meaning: A business owned and managed by a single individual.
• Features: Easy to start, full control, unlimited liability.
• Examples: Small shops, local businesses.
2. Partnership
• Meaning: A business owned by two or more persons who agree to share profits and losses.
• Governed by: Indian Partnership Act, 1932.
• Features: Shared capital, joint decisions, unlimited liability.
• Types: General Partnership, Limited Partnership.
3. Hindu Undivided Family (HUF)
• Meaning: A business carried out by the members of a Hindu Undivided Family.
• Head: Managed by the Karta (senior-most male member).
• Features: Membership by birth, limited liability for members except the Karta.
4. Co-operative Society
• Meaning: A voluntary association of individuals for mutual benefit.
• Motto: “One man, one vote”.
• Features: Democratic control, service motive, limited liability.
• Examples: Co-operative banks, housing societies.
5. Joint Stock Company
• Meaning: An artificial person created by law, with perpetual succession and limited liability.
• Types: Private Company, Public Company.
• Features: Separate legal entity, easy transfer of shares, regulated under Companies Act, 2013.
6. Public Sector Enterprises
• Meaning: Business organisations owned and managed by the government.
• Types:
• Departmental Undertakings
• Statutory Corporations
• Government Companies
• Features: Government control, public welfare objective.
