Beyond Academy

CHAPTER 2 FORMS OF BUSINESS ORGANISATION Various forms of business organisations are:  (a) Sole proprietorship,  (b) Joint Hindu family business,  (c) Partnership,  (d) Cooperative societies, and  (e) Joint stock company.   SOLE PROPRIETORSHIP  The word “sole” implies “only”, and “proprietor” refers to “owner”. Hence, a sole proprietor is the one who is the only owner of a business.  Features: (i) Formation and closure:  Hardly any legal formalities are required to start or close the business. (ii) Liability:  Sole proprietors have unlimited liability. This implies that the owner is personally responsible for payment of debts in case the assets of the business are not sufficient to meet all the debts, then owner’s personal property will be sold for repaying the debt. (iii) Sole risk bearer and profit recipient:  The risk of failure of business is borne all alone by the sole proprietor. Also the proprietor en...

Chapter 1.  Nature and Purpose of Business In every society people undertake various activities to satisfy their needs. Activities: I ) Economic          II ) Non-Economic Q. What is economic activities? Ans. Economic activities are those activity by which we can earn our livelihood. Ex:- Teacher teaching in school. Q. What are non-economic activity? Ans. Those activities which are performed out of love, sympathy, sentiments, patriotism,etc. Ex:- Teacher teaching his kid,         Charity to poor people. Q. What are the characteristic of Business? Ans.1) An economic activity: Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood.        2) Production or procurement of goods and services:  This goods must be either produced or procured by business enterprises.         3) Sale or exchange of g...