chapter 2 Flashcards
business enterprise
an organisation which is engaged in some business or commercial activities
private sector enterprise
business enterprises which are owned, controlled and managed by private individuals
public sector enterprise
business enterprises which are owned, controlled and managed by the state and central government
joint sector enterprises
business enterprises which are owned, controlled and managed jointly by private entrepreneurs and government.
forms of private sector enterprise
sole proprietorship
joint hindu family business
partnership
co-operative society
company
sole propertier
business enterprises which are owned, controlled and managed by a single person
features of sole properties
1, liabilities
2. control
3. no separate legal entity
4. single ownership
5. formation and closer
merits of sole proprietorship
- quick decision
- confidentially
- direct incentive
- sense of accomplishment
- easy to form and dissolve
demerits of sole proprietorship
- limited recourses
- limited life of a business
- unlimited liability
- limited managerial skills
partnership
an association of two or more persons who agree to jointly pursue a business activity
features of partnership
- formation according to Indian partnership act 1932
- unlimited liability
- risk baring
- decision making
- number of partners
- continuity
7 mutual agency relationship
merits of partnership
- easy to form
- balanced decision making
- larger financial recourses
- risk sharing
- secrecy
demerits of partnership
- unlimited liability
- limited recourses
- conflicts
- lack of continuity
- risk of mutual agency
partnership at will
partnership formed for a indefinite period
types of partnership firms
partnership at will
fixed period partnership
particular partnership
fixed period partnership
partnership which is formed for a specific period of time
particular partnership
the partnership which is formed to carry on a particular venture
nominal partnership by estoppal
person who accepts that he is a partner inn the partnership by his own words or conduct.
types of partners
active
sleeping or dormant
nominal
nominal byestoppal
partnership deed
document containing the terms an conditions of the partnership
hindu undivided family
the business carried out by the members of a hindu undivided family
features of HUF
- formation
2.liability - control
- minor members
- continuity
