Forms of Business Organisation, They are the Private Enterprises, Public Enterprises and Joint sector Enterprises. Defination, Characteristics of forms of enterprises, and types of enterprises. Business Undertakings of Meaning and Characteristics.
Meaning:
A business undertakings is an institutional arrangement to conduct any type of business activity. The undertaking may be run by one person or association of persons. It may be based on formal or informal agreement among persons who undertake to run the concern.
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| Forms of Business Enterprises |
FORMS OF BUSINESS ENTERPRISES
A number of forms of organization live to suit conditions or different business undertakings. There are three types of business undertakings.
1. Private Enterprises
2. Public Enterprises
3. Joint Sector Enterprises
Private Enterprises:-
These enterprises have the following types of organization
i) Sole Proprietorship
ii) Partnership
iii) Joint Hindu Family Firm
iv) Joint Stock Company
v) Co-operative Societies.
I) Sole Proprietorship:
The organisation is as old as civilisation. In this form organisation a single existent promotes and controls the business undertakings and bears the whole threat himself. He supplies the entire capital for starting and running the business. He takes all the gains and bears all pitfalls alone. This is the simple form of organisation taking no formalities to set it up.
II) Partnership:-
A Partnership is an association of two or further persons to carry on, as co-owners, a business and to
partake in its gains and losses. The cooperation may come into actuality either as a result of the expansion of the trading concern or by means of an agreement between two or further persons desirous of forming cooperation. This form of organisation grew basically out of the failures and limitations of sole procurement. This represents the alternate stage in the elaboration of the form of business organisation.
II) Joint Hindu Family Firm:-
This form of business organisation is current only in India and that too among Hindus as the name is reflective. The business of joint Hindu Family is controlled under the Hindu Law rather of Partnership Act. The class in this form can be acquired only be birth or by marriage to mainly persons who's formerly a member of Joint Hindu Family. All the services of the undertaking are controlled by a person known as Karta or Director.
III) Joint Stock Company:-
This form of organisation was first started in Italy in the thirteenth century. A company is an association of numerous persons who contribute plutocrat or plutocrat's worth to a common stock and employ it in some trade or business, and who partake the profit and loss arising therefrom. A company is an artificial person created by law with commercial personality, limited liability, perpetual race and transmittable shares. These undertakings are managed by tagged representatives of shareholders. Companies may be public or private and registered by share or by guarantee.
IV) Co-operative Societies:-
United Societies are voluntary associations started with the end of service to members. The end of societies isn't to increase gains as in other undertakings service to members is their important thing. It's a common enterprise of those who aren't financially strong and can not stand on their legs and, thus come together not with a view to get gains but to overcome disability. Arising out of the want of acceptable fiscal coffers. Like common stock societies also enjoy the benefits of commercial personality. limited liability and perpet race. The societies are registered under the united Societies Act, 19 and have further other organisations in private sector.
Public Enterprises:-
Business enterprises possessed or operated by public authorities are known as public state undertakings. In these undertakings, either whole or utmost of the investment is done the government. The end of these undertakings is to give goods and services to the cantina at a reasonable rate though profit earning isn't entirely barred. These undertakings have
The following forms of organisation
i)) Departmental Organisation
ii) Public Corporations
iii) Government Companies.
I) Departmental Organisation:-
Departmental form of organisation for managing state enterprises is the oldest form of organisation. In this form, the enterprise works as a part of the government and the operation is in the hands of civil retainers. The Secretary of the Department acts as Chief Executive under the control and direction of the Minister. The Minister is responsible to Parliament for the working of the department Departmental form of organisation is suitable for public mileage services and strategic diligence. In India, railroads, post and telegraph, and TV are working as government departments.
II) Public Corporations:-
Public Corporations are created by special enactment of a state or central Government. A legislative act is passed by defining the sphere of work and mode of operation or the undertakings. It's a separate legal reality created for a specific purpose. In India, the Reserve Bank of India, Bank of India, Industrial Finance Corporation are some of the Corporations created by special act of congress.
III) Government Companies:-
The company possessed by the Central and / or State Government is called a Government Company. Either total of the capital or maturity of the shares are possessed by the government. Government companies are registered both as public limited and private limited companies but the operation remains with the government in both the cases. Government companies enjoy some boons which aren't available to non-government companies. No special enactment is needed to form government companies.
Joint Sector Enterprises:-
Joint sector enterprises is a form of cooperation between the private sector and the Government where operation will generally be in the hands of private sector and overall supervision will lie with the Board of Directors giving acceptable representation to Government representatives. According to the guidelines of the central government, the capital is to be participated as to state government 26%, Private Enterprise 25% and investing Public 49%. No single-private party shall be allowed to hold further than 25% of the paid up capital without the authorization of the Central Government. Joint Sector Undertakings insure the use of development technology and coffers of government and private sector.