Business Entities and Partnerships: Features and Types

 
 
 
Chapter  2
 
 
 Sole Proprietorship
 Hindu Undivided Family(HUF)
 Partnership
 Co-operative society
 Joint Stock Company
 
Sole Proprietorship
 
   It refers to a form of business which is owned,
managed and controlled by an individual who is the
recipient of all profits and bearer of all risk.
 
Features
 
 1. Individual ownership
2. Easy formation  and closure
3. Unlimited liability
4. Sole risk bearer and profit recipient
5. Control
6. No separate entity
7. Lack of Business Continuity
 
Merits
 
1.
Quick Decision making
2.
Confidentiality of information
3.
Ease of  formation and closure
4.
Direct Incentive
5.
Sense of accomplishment
6.
Flexibility of operation
 
 
Criteria
 
1.
Capital Contribution
2.
Participation in management
3.
Share in profit and loss
4.
Liability
 
Types
 
1.
Active Partner
2.
Sleeping Partner
3.
Secret Partner
4.
Nominal Partner
5.
Partner by Estoppel
 
Types of Partnership
 
  
a) On the basis of Duration -:
1.
Partnership at will
2.
Particular Partnership
 
 b) 
On the basis of Liability-:
1.
General Partnership
2.
Limited Partnership
 
   c) Limited Liability Partnership (LLP)
 
Partnership Deed
 
Name and address of Firm
Name and address of Partners
Capital Contribution
Profit sharing Ratio
Rules to be followed in case of admission, retirement
and death of a partner etc.
 
 
Features
Features
 
1.
Voluntary Membership
2.
Legal Status
3.
Limited liability
4.
Democratic Control
5.
Secularism
6.
Service Motive
7.
Finance
 
Advantages
Advantages
 
1.
Ease of Formation
2.
Democratic Management
3.
Limited Liability
4.
Stable Existence
5.
Economy in Operations
6.
Support from Government
 
Limitations
Limitations
 
 
1.
Limited Resources/shortage of Funds
2.
Inefficiency in Management
3.
Lack of Secrecy
4.
Government Control
5.
Differences of Opinion
 
Types of Co-operative Societies
Types of Co-operative Societies
 
1.
Consumers Co-operative Societies
2.
Producers Co-operative Societies
3.
Marketing Co-operative Societies
4.
Farmers Co-operative Societies
5.
Credit Co-operative Societies
6.
Co-operative Housing Societies
Slide Note
Embed
Share

This content delves into various business entities like sole proprietorship, partnership, co-operative society, and joint stock company. It explains the features, merits, and criteria of a sole proprietorship, as well as the types of partners in a partnership. Additionally, it covers the types of partnerships based on duration and liability, along with the essential components of a partnership deed. The discussion also touches upon the features of a co-operative society, highlighting aspects like voluntary membership, legal status, and limited liability.

  • Business entities
  • Partnerships
  • Sole proprietorship
  • Criteria
  • Types of partnership

Uploaded on Aug 14, 2024 | 1 Views


Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript


  1. Chapter 2

  2. Sole Proprietorship Hindu Undivided Family(HUF) Partnership Co-operative society Joint Stock Company

  3. Sole Proprietorship It refers to a form of business which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risk.

  4. Features 1. Individual ownership 2. Easy formation and closure 3. Unlimited liability 4. Sole risk bearer and profit recipient 5. Control 6. No separate entity 7. Lack of Business Continuity

  5. Merits Quick Decision making 1. 2. Confidentiality of information 3. Ease of formation and closure 4. Direct Incentive 5. Sense of accomplishment 6. Flexibility of operation

  6. Criteria Capital Contribution 1. 2. Participation in management 3. Share in profit and loss 4. Liability

  7. Types Active Partner 1. 2. Sleeping Partner 3. Secret Partner 4. Nominal Partner 5. Partner by Estoppel

  8. Types of Partnership a) On the basis of Duration -: Partnership at will 2. Particular Partnership 1. b) On the basis of Liability-: General Partnership 2. Limited Partnership 1. c) Limited Liability Partnership (LLP)

  9. Partnership Deed Name and address of Firm Name and address of Partners Capital Contribution Profit sharing Ratio Rules to be followed in case of admission, retirement and death of a partner etc.

  10. Features Voluntary Membership 1. 2. Legal Status 3. Limited liability 4. Democratic Control 5. Secularism 6. Service Motive 7. Finance

  11. Advantages Ease of Formation 1. 2. Democratic Management 3. Limited Liability 4. Stable Existence 5. Economy in Operations 6. Support from Government

  12. Limitations Limited Resources/shortage of Funds 1. 2. Inefficiency in Management 3. Lack of Secrecy 4. Government Control 5. Differences of Opinion

  13. Types of Co-operative Societies Consumers Co-operative Societies 1. 2. Producers Co-operative Societies 3. Marketing Co-operative Societies 4. Farmers Co-operative Societies 5. Credit Co-operative Societies 6. Co-operative Housing Societies

More Related Content

giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#giItT1WQy@!-/#