FORMS OF COMMERCIAL

ORGNISAION
EVOLUTION
HISTORY & DEVELOPMENT
 INTODUCTION

• An organization is a set up or structure which

facilitate smooth conduct of activity
• An commercial organization is an
establishment or structure which facilitate the
smooth conduct of business or commerical
activities
NEED AND IMP OF COMMERCIAL ORGANISATION

• OPTIMUM UTILISATION OF RESOURCES

• FACILITATE CO-ORDINATION
• EFFICTIVE MANAGEMENT
• GROWTH
• MOTIVATE EMPLOYEE
• CLARIFIES RESPONCIBILITY
• PROVIDE EMPLOYMENT
• CUSTOMER SATISFACTION
FEATURE OF AN IDEAL FORM OF BUSINESS ORGANIZATION

• EASY IN FORMATION
• EASY IN RASINGIGNG CAPITAL
• OWNERSHIP MANAGEMENT AND CONTROL
• FLEXIBILITY OF OPERATION
• CONTINUTY AND STABILITY
• BUSINESS SECERECY
• MINIMUM GOVERNMENT REGULATION
• MANAGERIAL SKILL
 COMMERCIAL ORAGANISATION

• PRIVATE

SOLE TRADING CONCERN

PARTNERSHIP
JOINT STOCK COMPANY
 COMMERCIAL ORAGANISATION

• PUBLIC
DEPARTMENTAL UNDERTAKING
PUBLIC CORPORATION
GOVERNMENT COMPANY
 SOLE TRADING CONCERN
• RUN BY A PERSON
• ADV: EASY TO START
• DIS ADV:LIMITATED CAPITAL &UNLIMITAED
LIBALITIES
 PARTERNSHIP FIRM
• RUN BY TWO OR MOREPERSON
• ADV:SPREADER OF RISK & MORE CAPITAL
• DIS ADV: UNLIMITADED LIBALITIES
 JOINT STOCK COMPANY
• PRIVAE LTD C. & PUBLIC LTD C.
• ADV:LARGE CAPITAL
• DIS ADV:GREATER CONTROL OF GOVERNMENT
 PUBLIC
• DEPARTMENTAL UNDERTAKING
OPARATE UNDER THE GUIDENCE & CONTRAL OF
GOVERNMENT
ADV: REVENUE TO GOVERNMENT
DIS ADV: CONSUMER NEGLET
 PUBLIC
• PUBLIC CORPORATION
• UNDER SPECIAL ACT
• EXA IDBI LIC
• ADV: MANAGEMENT AND CONTROL BY
GOVERNMENT
• DIS ADV: POLITICAL INTERFERNC
 PUBLIC

• GOVERNMENT COMPANIES
• MORE THAN 50% SHARE OWN BY
GOVERNMENT
 SOLE TRADING CONCERN
• DEFINATION
– A sole trader is a person who trade his own
account rather than partnership or a member of a
company………………….. Michal Greener
 FEATURES OF SOLE TRADING
• Single ownership of business:
• Unification of ownership & management
• Complete control over business
• Unlimited liability
• Flexibility in operation
• Minimum government regulation
• Business secrecy
• No sharing of profits & lossess
 ……
A sole trading concern is a form of business
organization ; in which an individual invest
only his capital; use his own skill and
intelligence in management of its affairs and is
entitled to earn all the profits as also is solely
responsible for all the risk of
ownership………….. Encyclopedia of business
and commerce
 …..
• A sole trading concern can be define “ as a
business unite in which an individual invest his
\her own capital manage the all risk and enjoy
the profit
 MERIT OF SOLE TRADING COMPANY

• EASY FORMATION
• COMPLECT CONTROL
• CLOSE CONTACT WITH COUSTEMERS
• PERSONAL RELATION WITH EMPLOYEES
• QUICK DECISION
• COMPLECT BUSINESS SECRECY
• CREADIT STANDING
• CONVENIENCE TO CUSTOMERS
 …..
• FLEXIBILITY IN OPERATION
• INEXPENSIVE MANAGEMENT
• MINIMUM GOVERNMENT REGULATIONS
• SELF EMPLOYMENT
• INDEPENDENT WAY OF LIFE
• BENEFIT TO REMORTE AREAS
• PERSONALITY DEVEPLOPMENT
• PROPER UTILISATION OF RESOURCES
LIMITATION OF SOLE TRADING CONCERNS

• LIMITAED AMOUNT OF CAPITAL

• LIMITED MANAGERIAL SKILL
• LACK OF CONTINUITY
• LACK OF SPECIALISATION
• LIMITED EXPANSION
• UNLIMITED LIABILITY
• RISK OF POOR DECISION
• LACK OF ECONOMIES SCALE
 PARTNERSHIP
• PARTENRSHIP FIRM IS THE RELATION EXSTING
BETWEEN PERSON COMPETENENT TO MAKE
CONTRACTS, WHO AGREE TO CARRY ON A
LAWFUL BUSINESS IN COMMON ,WITH A
VIEW TO PRIVATE GAIN…… Prof. Haney
• PARTNERSHIP IS THE RELATION WHICH
SUBSISTS BETWEEEN PERSONS WHO HAVE
AGREED TO COMBINE THEIR PROPERTY,
LABOUR OR SKILL…..
IN SAME BUSINESS AND
SHARE THE PROFITS THERE OF BETWEEN
THEM………….Indian Contract Act.1872
 ……..
• PARTNERSHIP IS THE RELATION ETWEEN
PERSON WHO HAVE AGREED TO SHARE THE
PROFITS OF ACARRIED IN BY ALL OR ANY OF
THEM ACTING FOR ALL……….
….. Section 4 Indian partnership Act 1932
 NEED FOR PARTNERSHIP
• LARGE CAPITAL
• SPECIALISED MANAGERIAL SKILL
• SPEREING OF RISK
• NEED FOR EXPANSION
• QUALITY OF DECISION
• NEED FORR CONTINUITY AND STABILITY OF
BUSINESS
• NEED FOR ECONOMIES SCALE
 FEATURES OF PARTNERSHIP FIRM
• AGREEMENT
• LAWFULBUSINESS
• OBJECTIVE OF BUSINESS
• SHARING OF PROFIT AND LOSS
• NUMBERS OF PARTERNS
• JOINT OWNERSHIP
• JOINT MANAGEMENT
• MUTUAL TRUST AND CONFIDENCE
 ….
• UNLIMITED LIABILITY
• TERMINATION OF MEMBER
• DISSOLUTION
• REGISTRATRION
• LACKS BUSINESS SECRECY
 FORMATION OF PART
• COMEING TOGETHER OF PARTNERS
• PARTNERSHIP DEED
• REGISTRATION OF PARTNERSHIP
• EASY TO FORMATION
• LARGE CAPITAL
• SPECIALISATION
• SPREADING OF RIS
• QUICK AND BALANCED DECISION
 MERITS OF PARTENRSHIP
• EASY FORMATION
• LARGE CAPITAL
• SPECILATION
• SPREADING RISK
• QICKAND BALANCE DECISION
• BUSINESSS SECRECY
• PERSONAL CONTACT
• ECONOMIES OF SCALES
 …
• MINIMUM GOVERNMENT REGULATION
• EASY DISSSOULATION
• PERSOLALISED SUPERVISION
 DEMERITS OF PARTENSHIP

• DISPUTE
• UNLIMITED LIABALITES
• LIMITED CAPITAL
• LIMITED MEMBERSHIP
• DIFFICULTING IN ADMITING NEW PARTNERS
• DIFFICULTY TO TRANSFER SHARE
• PROBLEM TO CONTUNED EXISTENCE
 …..
• IRRESPONCIBLE OF SOME PARTNERS
• LIMITED BUSINESS OPERATION
• LACK OF COMPLECT BUSINESS SECRECY
• LIMITED EXPANSION