FORMS OF BUSINESS ORGANISATION

Sole proprietorship refers to a form of business

organisation which is owned, managed and controlled by

an individual who is recipient of all profits and bearer of all

risk .

Formation and closure LiabilitySole Risk Bearer And Profit Recipient Control No Separate Legal Entity Lack of Business ContinuitySmall Size

Ease in formation and closureSense of accomplishmentDirect incentiveFlexibilitySecrecySole beneficiary of ProfitsQuick Decision Making

MeritsMerits

Limited ResourcesLimited Life of BusinessUnlimited LiabilityLimited Managerial SkillLimited Scope for Expansion

EXAMLESCATERING COMPANYLAND SCAPERFREELANCEWRITERHOME HEALTH CAREVIRTUAL ASSISTANT

Defination of Hindu Undivided Defination of Hindu Undivided FamilyFamily

The business carried out The business carried out by the male members of by the male members of a Hindu undivided family a Hindu undivided family is known as Joint Hindu is known as Joint Hindu Family Business.Family Business.

Conditions of Joint Conditions of Joint Hindu FamilyHindu Family

There are two conditions for existence There are two conditions for existence of joint Hindu family business. These are:of joint Hindu family business. These are:

1.1. Minimum two male members must be Minimum two male members must be there in the family.there in the family.

2.2. Existence of some ancestral property.Existence of some ancestral property. The business is controlled by the head The business is controlled by the head

of the family who is the eldest member of the family who is the eldest member and is called and is called KartaKarta.. All members have All members have equal ownership right over the property of equal ownership right over the property of an ancestor and they are known as an ancestor and they are known as Co-Co-parceners.parceners.

Systems of Hindu Systems of Hindu Undivided FamilyUndivided Family

Under Hindu law there are two systems of Under Hindu law there are two systems of inheritance. These are:inheritance. These are:

1.1. Dayabhaga :Dayabhaga : This system prevails only in This system prevails only in West Bengal. Under this system the male as West Bengal. Under this system the male as well as female members of Joint Hindu well as female members of Joint Hindu Family can become copartners as well as co- Family can become copartners as well as co- parceners.parceners.

2.2. Mitakashara :Mitakashara : This system prevails all This system prevails all over India except West Bengal. Under this over India except West Bengal. Under this system only male members can become system only male members can become coparceners in the Joint Hindu Family coparceners in the Joint Hindu Family business.business.

FeaturesFeatures FormationFormation LiabilityLiability ControlControl ContinuityContinuity ManagementManagement Minor MembersMinor Members Membership By BirthMembership By Birth RegistrationRegistration RightsRights

MeriMeritsts Ease in Form and DissolveEase in Form and Dissolve

SecrecySecrecy Limited Liability of MembersLimited Liability of Members Protection of MinorsProtection of Minors ContinuityContinuity Economic Security and Status to Economic Security and Status to

MembersMembers Family PrideFamily Pride Effective ControlEffective Control

DemeriDemeritsts Limited CapitalLimited Capital

Unlimited Liability of KartaUnlimited Liability of Karta Limited Managerial SkillLimited Managerial Skill Karta Too PowerfulKarta Too Powerful Dominance of KartaDominance of Karta No Match in Work and No Match in Work and RewardReward

CASE STUDY ON CASE STUDY ON ADITYA ADITYA BIRLA GROUPBIRLA GROUP

ABOUT BIRLASABOUT BIRLAS ADITYA BIRLA GROUP STARTED AT 1857.ADITYA BIRLA GROUP STARTED AT 1857. SHIV NARAYAN BIRLA STARTED COTTON SHIV NARAYAN BIRLA STARTED COTTON TRADING OPERATION IN THE SMALL TRADING OPERATION IN THE SMALL

OF PILANI IN RAJASTHAN.OF PILANI IN RAJASTHAN. GHYANSHYAMDAS BIRLA (GD BIRLA)-1919-GHYANSHYAMDAS BIRLA (GD BIRLA)-1919-he set the manufacturing company.he set the manufacturing company.

GRANDSON OF GD BIRLA IS ADITYA GRANDSON OF GD BIRLA IS ADITYA VIKRAM(AV BIRLA)-1964-VIKRAM(AV BIRLA)-1964-

SON OF AV BIRLA IS KUMAR MANGALAM(KM SON OF AV BIRLA IS KUMAR MANGALAM(KM BIRLA)-1995.BIRLA)-1995.

BIRLABIRLA COMPANIES COMPANIES

Partnership is an Partnership is an association of two or association of two or

more persons who agree more persons who agree to jointly pursue a to jointly pursue a

business activity. They business activity. They pool their managerial pool their managerial

and financial resources and financial resources for the purpose.for the purpose.

1.Formation2.Liability3.Risk Bearing4.Decision Making and Control

5.Continuity6.Membership7.Mutual Agency

Features of Partnership

1.1.Ease of formation and Ease of formation and closureclosure

2.2.Balanced decision Balanced decision makingmaking

3.3.More fundsMore funds4.4.Sharing of risksSharing of risks5.5.SecrecySecrecy6.6.Division of workDivision of work7.7.FlexibilityFlexibility

1.Unlimited Liability1.Unlimited Liability2.Non-Transferability of 2.Non-Transferability of ShareShare3.Conflicts3.Conflicts4.Uncertainity4.Uncertainity5.Risk of Mutual Agency5.Risk of Mutual Agency6.Lack of Public Confidence 6.Lack of Public Confidence

Partnership Companies in India

1.TATA Motors Ltd., Jamshedpur2.Reserve Bank of India, Kolkata3.Indian Oil Corporation Ltd., Patna

Case Study of TATA Motors

The Tata Motors group is based in India. The motor group was established in 1945 as part of the larger Tata Group. They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both product lines of the Tata Motors group have seen success, but much of this has been built up on the more deeply established commercial vehicle product line.

A company is an A company is an association of association of

persons formed persons formed for carrying out for carrying out

business business activities and has activities and has

a legal status a legal status independent of independent of

its members. The its members. The company form of company form of organisation is organisation is governed by governed by

THE COMPANIES THE COMPANIES ACT 1956 ACT 1956

Artificial person Artificial person Separate legal Separate legal

entityentity Formation Formation RegistrationRegistration Common SealCommon Seal Perpetual Perpetual

SuccessionSuccession Risk BearingRisk Bearing

Artificial person Artificial person Separate legal Separate legal

entityentity Formation Formation RegistrationRegistration Common SealCommon Seal Perpetual Perpetual

SuccessionSuccession Risk BearingRisk Bearing

Limited LiabilityLimited Liability InterestInterest ExistenceExistence ManagementManagement ExpansionExpansion Social ResponsibilitiesSocial Responsibilities Public ConfidencePublic Confidence

Limited LiabilityLimited Liability InterestInterest ExistenceExistence ManagementManagement ExpansionExpansion Social ResponsibilitiesSocial Responsibilities Public ConfidencePublic Confidence

FormationFormation SecrecySecrecy EnvironmentEnvironment RegulationsRegulations Decision makingDecision making ManagementManagement InterestInterest

FormationFormation SecrecySecrecy EnvironmentEnvironment RegulationsRegulations Decision makingDecision making ManagementManagement InterestInterest

CASE STUDY OF COCA CASE STUDY OF COCA COLACOLA

Thank YouEfforts By :

Ankita Lohia

Simran Duseja

Taniya Mahajan

Twinkle Sharma