CHAPTER 2- FORMS OF BUSINESS ORGANISATION

APRIL 29, 2020
DAY 2

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GOOD MORNING BOYS!
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TODAY, WE ARE STARTING NEW CHAPTER, CHAPTER-2 (FORMS OF BUSINESS ORGANISATION).

LEARNING OUTCOMES- At the end of the topic, students will be able to:
1) List the forms of private sector enterprises.
2) Explain the meaning and features of sole proprietorship.

OUR FIRST FORM WHICH WE WILL STUDY TODAY IS SOLE PROPRIETORSHIP. PLEASE WATCH A SHORT VIDEO FIRST BEFORE WE START THIS TOPIC. 


NOW TAKE DOWN THE NOTES:


Q.1 What are the forms of private sector enterprises? (1)
Ans- a) Sole Proprietorship
         b) Joint Hindu Family Business.
         c) Partnership.
         d) Cooperative Society
         e) Joint Stock Company
Q.2 What is meant by Sole Proprietorship? (3)
Ans- It is the oldest ,simplest and most popular form of business organisation. It refers to a form of business organisation which is owned ,managed and controlled by an individual who is the recipient of all the profits and bearer of all the risks. He is the only owner of business. For example-  Retail shops, beauty parlours ,hair saloons, small restaurant,etc.

Q.3 Explain the features or characteristics of sole properietorship. (6)
Ans- 1.Formation and Closure of Business-
a) There is no seperate law that governs sole proprietorship. No legal formalities to start a business except in some cases a license may be required for sale of specific products.
b) Same way, closure of business is also very easy without any legal formalities.
2. Liability- 
a) The owner has inlimited liability. The owner is personally responsible for payment of business liabilities from personal sources if business funds are not sufficient to meet all the liabilities.
b) Aman has to pay off his loan of Rs 1,00, 000 but if his business assets are insufficient to pay off the loan, he has to arrange from his personal resources and pay the entire loan.
3) Sole Risk Bearer and Profit Recipient-
a)The owner has the social responsibility for all business affairs i.e it has to bear all the business risks alone.
b)The proprietor solely enjoys all the successes of business that is he receives all the business profits as a direct reward for is risk bearing.
4) Control-
a) The owner takes all the decisions related to running of the business, he can appoint professionals to help in operations but the management lies in his hands.
b) He can carry out all his  plans without any interference from others.
5) No seperate entity-
a) Owner and business do not have any separate identity i.e  they are considered as one in the eyes of the law.
b) This makes owner completely responsible for all the business activities.
6) Continuity-
a) Continuity of business depends on the owner as he is the only owner of business  
b)Insolvency, Insanity, Death, etc of the owner may even lead to closure of the business and directly affects the continuity of the business.


    GOD BLESS YOU ALL!

Comments

  1. Good Morning Ma'am
    Abel Jacob Tharyan
    11-B
    Roll No - 40

    ReplyDelete
  2. Gatij Shrivastava
    Class: 11 B
    Roll no : 32

    ReplyDelete
  3. Good Morning Ma'am
    Harsh Mehta
    11-B
    Roll No. 22

    ReplyDelete
  4. Manshay Bhandari
    Class- 11-B
    Roll No- 7
    Present

    ReplyDelete
  5. Saransh Katyal
    Roll no.16
    Class 11 B

    ReplyDelete
  6. Simon Kujur
    Class 11-B
    Roll no. 17

    ReplyDelete
  7. Ronit jacob toppo
    Roll no:40
    Class-11B

    ReplyDelete
  8. Albert kalampadan linson 11 B roll no 20

    ReplyDelete
  9. Good Morning
    Pratham Jain
    11B
    Roll no.14

    ReplyDelete
  10. This comment has been removed by the author.

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  11. This comment has been removed by the author.

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  12. Greetings ma'am
    Devyaan Arora
    11-A
    Roll no.3

    ReplyDelete
  13. GOOD MORNING MA'AM.
    SURYANSH GOVIND.
    11-A
    ROLL NO 14

    ReplyDelete
  14. Ma'am if a sole proprietor gives the ownership of the business to his son [ due to some reason ] , will it be called as continuity of sole proprietorship business ?

    ReplyDelete
    Replies
    1. YES IT WILL BE CALLED AS CONTINUITY OF BUSINESS, BUT IT IS NOT IN EVERY CASE

      Delete

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