Digital lesson on BUSINESS STUDIES - Chapter 1 CBSE class XI

AN ANDROID APP TO ENABLE E-LEARNING OF COMMERCE

CLICK  THE BELOW LINK TO DOWN LOAD
http://app.appsgeyser.com/COMMERCE%20PETALS

AN APP TO LEARN ABOUT DIFFERENT ASPECTS OF BUSINESS STUDIES

 CLICK THE LINK TO DOWNLOAD APP
http://app.appsgeyser.com/E%20COMMERCE%20GURU

2 FORMS OF BUSINESS ORGANISATIONS

PPT ON FORMS OF BUSINESS ORGANISATION

PPT ON FORMS OF BUSINESS ORGANISATION

PPT on Modes of Transport

PPT on Modes of Transport

FORMS OF BUSINESS ORGANISATIONS

FORMS OF BUSINESS ORGANISATIONS

A business enterprises is an organisation which undertakes business activities. Here we are going to collect awareness about different type of business organisation in private sector and public sector. They are

{  Sole proprietorship

{  Joint Hindu family business

{  Partnership

{  Co-operative society

{  Joint stock company

SOLE PROPRIETORSHIP

A business organisation owned by a single person is called sole proprietorship. It is also known as one man business. Sole trader is the owner of sole proprietorship business. He brings capital for the business.  He uses his own skill and manages the business. Also he get all the profit and suffers all the losses.

Characteristics of Sole proprietorship

          Any individual with good financial and managerial advantage can start this type of business

Ø  Individual ownership

Ø  Personal control

Ø  Individual risk

Ø  Unlimited liability

Ø  No legal restrictions

Advantages of sole proprietorship

ü  Easy formation : no legal formalities for starting this business, any one can start those who have fund and managerial stability.

ü  Quick decision : sole trader is the supreme authority so no necessary to ask any others for taking decisions.

ü  Efficient management : attention control by the owner reduces risk and wastes.

ü  Business secrecy : a sole trader can easily keep all his informations related to business safely.

ü  Better personal contacts : it is through the personal and smooth and cordial relationship with customers.

ü  Flexibility : the sole trader has no necessary to ask about the changes in the running of business.

ü  Less expensive management  : high salary paid managers are not necessary for managing Sole proprietorship.

ü  Loan Facilities : due to unlimited liability he will get loans easily.

ü  Continuity : the business is continuing nature like from the father to the son.

ü  Prevention of concentration of wealth : it motivates all people to do the business and helps to reduce the concentration of wealth in few business peoples / firms.

Disadvantages of sole proprietorship

v  Shortage of capital : the fund required for running the business is brought from his own hand. Banks gives loans on the basis  the financial stability of the owner.so shortage of capital is the problem.

v  Risk and unlimited liability : the entire risk and losses of the business are to be borne by the sole trader.

v  Lack of management ability : the business runs on the managerial talents of a single person.

v  Weak bargaining powers : sole trader cannot make a control in the market in front of large scale business firms.

v  Absence of large scale buying and selling : he operates on a small scale basis so he cannot conduct large scale buying and selling.