Name: Ravi Sharma

PRN: 19010224130
Division: C
Programme: B.B.A.LL.B. (2019-2024)

Business Model

Introduction
Business is an organization or enterprising entity engaged in commercial, industrial or
professional activities. It is an economic institution engaged in production or distribution
of goods or services in order to earn profits and acquire wealth. There are different
models in which business can be done. These are:
1. Sole Proprietorship
2. Partnership
3. Hindu Undivided Family
4. Trust
5. Cooperative Society
6. Company
1. Sole Proprietorship:
A sole proprietorship is the easiest type of business to establish or take apart, due to a
lack of government regulation. As such, these types of businesses are very popular
among sole owners of businesses, individual self-contractors, and consultants. Many
sole proprietors do business under their own names because creating a separate
business or trade name isn't necessary. The features of sole proprietorship are lack of
legal formalities, unlimited liability, no separate entity etc.

2. Partnership:
Partnership is a relationship between two or more individuals carrying on business
together and sharing the profit earned through that business. Advantages of this are
less formal legal obligations, easy to get started sharing the burden etc.

3. Hindu Undivided Family

It is unique form of business organization only found in India. It is governed by the
Hindu Law which is one of the several religious laws prevalent in India. This
organization consists of the members of the family. All the members of the Hindu Family
are part of this business and has shares in this business since their birth in the family.
The senior most member of the family manages the business and is known as Karta.

4. Trust
A trust is a structure where a trustee carries out the business on behalf of the trust’s
members or beneficiaries. A trust is not a separate legal entity. A trust is set up through
a trust deed. In other words, the trust carry out business on behalf of the beneficiaries of
the trust.

5. Cooperative Society
Cooperative Society is a business model usually constituted for non-profit use. It
consists of different persons as its members who contribute their shares in carrying on
the business so that they all can take advantage for themselves

6. Company
The company form of organisation has been successful in almost all countries of the
world. This form is suitable where large resources are required and the production has
to be carried out on a large scale. The number of joint stock companies has shown a
phenomenal increase in the twentieth century. Advantages of this are limited liability,
efficient management, separate legal entity, transferability of shares etc.