Unit 2: Forms of Business organizations

Business activities cannot be performed in isolation. They have to organized in an appropriate form. ‘Forms of Business Organization’ are essentially the forms of ownership of business. Ownership involves capital investment, management and sharing of profit

VARIOUS FORM OF BUSINESS ORGANISTIONS FORMS

1. Sole proprietorship
2. Joint Hindu Family business
3. Partnership
4. Cooperative societies
5. Joint Stock Company

SOLE PROPRIETORSHIP

Sole proprietorship is a popular form of business organization and is the most suitable form for small businesses, especially in their initial years of operation. Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all risks. This is evident from the term itself. 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.