(i) Limited resources: The joint Hindu family business faces the problem of limited capital as it depends mainly on ancestral property. The knowledge that one is responsible for the success of the business not only contributes to self-satisfaction but also instils in the individual a sense of accomplishment and confidence in one’s abilities. (v) Minor Members: The inclusion of an individual into the business occurs due to birth in a Hindu Undivided Family. The term business is derived from the word ‘busy’. (ii) Genetic industries: These industries remain engaged in breeding plants and animals for their use in further reproduction. Gender Equality in the Joint Hindu Family a Reality. These days goods are produced on a large scale and it is difficult for producers to themselves reach individual buyers for sale of their products. (ii) Unlimited liability of karta: The karta is burdened not only with the responsibility of decision making and management of business, but also suffers from the disadvantage of having unlimited liability. These values continue to direct the Group’s growth and businesses. Economic activities are those by which we can earn our livelihood whereas non-economic activities are those performed out of love, sympathy, sentiments, patriotism, etc. (iii) Sole risk bearer and profit recipient: The risk of failure of business is borne all alone by the sole proprietor. Objectives have to be specific in every area and sphere of business. A sleeping partner, however, contributes capital to the firm, shares its profits and losses, and has unlimited liability. An understanding of these types is important for a clear understanding of their rights and responsibilities. It can be liquidated only as per the provisions of the Companies Act. He is a principal as he too can be bound by the acts of other partners. Explain. 1. The inherent disadvantage of the sole proprietorship in financing and managing an expanding business paved the way for partnership as a viable option. 2. (v) Differences of opinion: Internal quarrels arising as a result of contrary viewpoints may lead to difficulties in decision making. It is practically impossible for producers and traders to contact each and every customer. Business includes a wide variety of functions performed by many different kinds of organisations called business enterprises or firms. Some of these areas are: market standing, innovation, productivity, physical and financial resources, earning profits manager performance and development, worker performance and attitude, and social responsibility. The procedure for getting a firm registered is as follows: 1. The public sector companies in India were incor… Skill development is one investment of your brand as well as quality assurance. Business risks arise due to a variety of causes, which are classified as follows: (i) Natural causes: Human beings have little control over natural calamities like flood, earthquake, lightning, heavy rains, famine, etc. How would you classify business activities? Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. (a) Explain two benefits of remaining a sole proprietor Each form has its own merits and demerits. Death, insolvency or illness of a proprietor affects the business and can lead to its closure. Protection against these risks is provided by insurance of goods. The term is derived from the Latin word (“com”meaning “with” or “together”; “panis”that is “bread”) Section 2(20) of Companies Act, 2013states that a company means any association of person registered under the present or the previous companies act. (c) Legal consultancy The capital of the company is divided into smaller parts called ‘shares’ which can be transferred freely from one shareholder to another person (except in a private company). Some of the following aspects can be assigned to the students for undertaking above mentioned studies. A partnership firm of business organisation suffers from the following limitations: (a) One share one vote Calvert Cooperative organisation is “a society which has its objectives for the promotion of economic interests of its members in accordance with cooperative principles. It, therefore, becomes important that we understand the concept, nature and purpose of business. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian economy, viz., power generation and transmission, transportation, telecommunication, renewable energy, etc. But if the owners do not mind sharing control and decision making, partnership or company form of organisation can be adopted. identify different forms of business organisation; explain features, merits and limitations of select forms of business organisation; distinguish between various forms of organisation; and. (e) Joint stock company. 2. The industries which provide support services to other industries are known as A private company can be formed by only two members whereas seven people are needed to form a public company. (d) Credit cooperative, 10. Included in this category are transport, banking, insurance, warehousing, communication, packaging and advertising. (e) Internet café Price Waterhouse Coopers, one of the world’s top accountancy firms has been created in 1998 by the merger of two companies, Price Waterhouse and Coopers and Lybrand — each with historical roots going back some 150 years to the 19th century Great Britain. Submission of application in the prescribed form to the Registrar of firms. Availability of raw materials and labour; power supply and services like banking, transportation, communication, warehousing, etc., are important factors while making a choice of location. As per the Indian Companies Act, a public company is one which: Division of work among the members in such organisations allows the managers to specialise in specific areas, leading to better decision making. (i) Quick decision making: A sole proprietor enjoys considerable degree of freedom in making business decisions. Subject: Business Studies (c) Employee dishonesty The society acquires a distinct legal identity after its registration. Activities which are meant for assisting trade are known as auxiliaries to trade. Finally, a classy person cares for you when you hurt. Explain the advantages of multinational company. Continuous training and retraining, career planning, a positive work culture and participative style of management — all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness. The business enterprise must aim at acquiring these resources according to their requirements and use them efficiently. Assembling industry which assembles different component parts to make a new product, as in the case of television, car, computer, etc. 7 per share. Thus, banking helps business activities to overcome the problem of finance. (vii) Nature of business: If direct personal contact is needed with the customers such as in the case of a grocery store, proprietorship may be more suitable. Various forms of business organisations from which one can choose the right one include: (a) Sole proprietorship, A partnership is a voluntary association of people who come together for achieving common objectives. These activities may be broadly classified into two groups— economic and non-economic. Dayabhaga system prevails in West Bengal and allows both the male and female members of the family to be co-parceners. Every employee is given an equal opportunity to develop himself and grow in his career. Greater the risk involved in a business, higher is the chance of profit. 769, 296 million) in the year 2004-05, the equivalent of about 2.9 per cent of the country’s GDP. payment of debts in case the assets of the business are not sufficient to meet all the debts. Lack of resources is one of the major reasons why the size of the business rarely grows much and generally remains small.