Forms of Commercial Organization

DIFFERENT FORMS OF ORGANISATION

SOLE TRADING CONCERN ▪ Meaning ▪ Features ▪ Advantages ▪ Disadvantages ▪ Suitability

PARTNERSHIP FIRM

▪ Meaning ▪ Features ▪ Merits ▪ Demerits ▪ Kind of partnership firm ▪ Types of partners ▪ Partnership Deed

JOINT HINDU FAMILY BUSINESS ▪ Meaning ▪ Features ▪ Advantages ▪ Disadvantages

JOINT STOCK COMPANY ▪ Meaning ▪ Features ▪ Advantages ▪ Disadvantages ▪ Management ▪ Forms of companies ▪ Features, Merits and Demerits of types of companies ▪ Kinds of companies

CO-OPERATIVE SOCIETY ▪ Meaning ▪ Features ▪ Merits ▪ Demerits ▪ Rights ▪ Duties ▪ Powers & functions ▪ Suitability

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FORMS OF COMMERCIAL ORGANISATION

SOLE TRADING CONCERN

I.Meaning A Business Organization which is owned and managed by a single person with or without the help of family members is called as sole trader or sole proprietor.
The sole trading concern is run on the principle “All is he and he is all in all”.

1.1 Features

1. One-man Ownership and Control
A sole trading concern is owned by an individual. The proprietor is the sole owner and master of the business. He independently manages and controls the business without the interference of any other person. 2. Capital Contribution
In sole tradership, the capital is employed by the owner himself from his personal resources. He may also borrow capital from his friends, relatives and financial institutions.
3. Unlimited Liability
The liability of the proprietor for the debts of the business is unlimited. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.
4. Enjoyment of Entire Profit
The sole trader is entitled to enjoy all profits of the business. Since he is the only person who invested money, he need not share