Introduction

The human society requires different types of economic activities. Such

economic activities are performed to fulfill the needs and wants of individuals
and families as well as to uplift their living standards. The nature and volume of
the economic activities largely depends on the economic prosperity of the
society. These economic
activities should be performed in an organized way and efficient manner for the
optimum utilization of scarce resources. In order to make optimum utilization of
available resources, an appropriate form of business organization with available
resources should be selected The development of the forms of business
organization is connected with the development of industry and commerce

Meaning and definition

The term business refers to all the economic activities which are carried on by
individuals and organizations for generating income. It is concerned with the
production and distribution of goods and services for caming the profit. It is
centered on the service and satisfaction of the customers by fulfilling their needs
and wants. It Involves risk and uncertainty and committed to fulfilling its
responsibilities, The term organization refers to the act of bringing necessary
resources for the production and distribution of goods and services and utilizing
them in the best possible manner for achieving the definite objectives. The
production and distribution of goods and services require a number of resources
like men materials, money, machine, and management. The organization is a
means for bringing cooperation among these resources for continuous
production and distribution of goods and services for fulfilling needs and wants
of the customers.The 1erm business organizations composed of two terms as
business and organization Hence, the term business organization
refers to the act of bringing resources and uti zinginem in the best possible
manner for the production and distribution of goods and services in order to cam
profit through the service and satisfaction of the customers. It is concerned w.th
the proper management of available resources for achieving the specified
objectives of the business. The resources can be managed either by an
individual or by the government. The following are scme of the main definitions of
business organization:
Sole proprietorship:
A sole proprietorship, also known as the sole trader, individual entrepreneurship
or proprietorship, is a type of enterprise that is owned and run by one person and
in which there is no legal distinction between the owner and the business entity.
A sole trader does not necessarily work 'alone'—it is possible for the sole trader
to employ other people.[1]
The sole trader receives all profits (subject to taxation specific to the business)
and has unlimited responsibility for all losses and debts. Every asset of the
business is owned by the proprietor and all debts of the business are the
proprietor's. It is a "sole" proprietorship in contrast with partnerships (which
have at least two owners).
A sole proprietor may use a trade name or business name other than their or its
legal name. They may have to legally trademark their business name if it differs
from their own legal name, the process varying depending upon country of
residence.[2]

Advantages and disadvantages:

Registration of a business name for a sole proprietor is generally uncomplicated
unless it involves the selection of a name that is fictitious, or “assumed”. The
business owner is required to register with the appropriate local authorities, who
will determine that the name submitted is not duplicated by another business
entity. Furthermore, the business owner must complete a form submitted to the
governing authority to acquire title as a “DBA” or "doing business as”. The
authority in some US states is the Secretary of State.

JOINT HINDU FAMILY BUSINESS:

When a business enterprise is run by the family member and they run the
business as family
business is called Joint Hindu Family Business. It is said that the Joint Hindu
Family firm comes into
existence by the law of inheritance. It is important to note that the Joint Hindu
Family firm with the
Joint ownership of the business is created by the operation of Hindu law and not
by the contract
between the co-parceners
Therefore, the rights and liabilities of coparceners are determined by the
provisions of the Hindu
law. It is governed by the Hindu Succession Act 1956 and the law has extended
the line of coparcenary
interest to the female members born in Joint Hindu Family. In Maharashtra, the
female members of a
Joint Hindu family, enjoy the coparcenary interest since 1994
In Joint Hindu family business, authority of controlling the business lies in the
hands of the
'Karta Or the manager of the family. The other members cannot question the
Judgement in running the business. On the other hand he is liable to make good
to them their shares of all sums which he has
misappropriated or which he has spent for the purposes other than those in
which the joint family is interested

MERITS OF JOINT HINDU FAMILY FIRM

1. Easy to start: Joint Hindu family business is very easy to form. It comes into
existence as per
Hindu law. Family members become co-perches in the firm by virtue of their birth
in the family
Moreover no registration is required for Joint Hindu family firm in respect of
minimum or
maximum members
2. Prompt Decision : The Karta has complete control over his business. He takes
all the business
decisions. Therefore, Karta takes the right decisions at the right time
3. Good Relations with Employees : Joint Hindu family has few employees with
whom good
and personal relations are maintained as in case of a sole trading concern. These
motivated employees
extend their complete support for conducting business successfully
4. Flexibility: Due to quick decisions, Karta can bring about the required changes
in business
viz, expansion of the business activities or diversification of business as per the
changing business trends quickly

PARTNERSHIP FIRM
Introduction :
Because of lack of capital and limited managerial skills, sole proprietorship may
not reach to a great height. The sole trader establishes his trade in the beginning
as a single individual. When his business establishes, he appoints another
person in order to increase the managerial capability. However. when sole
proprietorship expands beyond limits at that time sole trader admits some
outsider as a partnership firm. partner, that time sole proprietorship comes to an
end and new organization emerges is called as In short the limitations of the sole
proprietorship concern and to bring in more capital as well as managerial ability,
two or more persons come together and contribute their resources as well as
share in the profits. This creates an organization with more than one owner. This
form of organization is called a partnership firm.

MERITS:
1. Easy formulation : There is no need to fulfill many legal formalities for the
establishment of
partnership. Only written agreement is necessary to start any lawful business on
partnership basis.
Registration of partnership firm is compulsory in Maharashtra from April 1985.
2. Simple Dissolution: The procedure involved in dissolution of partnership firm
is also simple.
Partnership at will gets dissolved when a partner serves a 14 days notice to other
partners. A particular partnership gets dissolved on completion of the specified
venture or period for which it was formed.
3. Rational Decisions : Since every partner bears unlimited liability and is at risk
for losses, the
partners are very cautious and careful. Each one contributes to his fullest and
keeps a check on the
other partners to try to minimize the wastage. The decisions taken are based in
the consultations
among all the partners.

Co-operative society:
Single ownership firms, partnership firms and the joint stock companies are
described as capitalistic form of business organisation. All these forms of
business organisation are operated with a view to making profits. The society, as
a whole, loses in many ways because of the profit motive. Large sums are spent
for advertisement, propaganda, etc., the workers are exploited, the consumers
are forced to pay high prices, the production of luxuries is encouraged and that
of necessaries neglected. In the opinion of many writers, production may be
carried on without these evils through a form of business organisations which is
called cooperation. A business organisation modelled on the principle of
cooperation is called a cooperative society.A cooperative society has been
defined in various ways. One such definition is as follows- When some people
voluntarily combine together for achieving an economic objective on the basis of
equality, they form a cooperative society. Another definition states that through a
cooperative society weak and unorganised poor people can enjoy some of the
economic advantages of rich people. As a result of this, poor people can develop
their faculties properly.
In analysing the above two definitions, we discover some principles or
characteristics of cooperation. Prima facie, the fundamental cause of the birth of
the cooperative movement is the oppression of the poor by the rich. The
economically handicapped poor people can combine in a cooperative society for
improving their financial position. Poor people do not possess much capital, nor
can capital be a prime factor of production in a cooperative society. The members
of a cooperative society join hands, not as owners of capital but as ordinary
people.

Joint-stock company
A joint-stock company is a business entity in which shares of the company's
stock can be bought and sold by shareholders. Each shareholder owns company
stock in proportion, evidenced by their shares (certificates of ownership).[1]
Shareholders are able to transfer their shares to others without any effects to the
continued existence of the company.[2]
In modern-day corporate law, the existence of a joint-stock company is often
synonymous with incorporation (possession of legal personality separate from
shareholders) and limited liability (shareholders are liable for the company's
debts only to the value of the money they have invested in the company).
Therefore, joint-stock companies are commonly known as corporations or limited
companies.
Some jurisdictions still provide the possibility of registering joint-stock
companies without limited liability. In the United Kingdom and in other countries
that have adopted its model of company law, they are known as unlimited
companies. In the United States, they are known simply as joint-stock companies.