SUBMITTED TO, MISS.SAIRA SUBMITTED BY, ANJU NAIR ROLL NO:4

 A business can de owned and organised in several forms  Determines power, control, risk, responsibility  Division of profits and losses  Long term consideration- made after considerable thought and deliberation

 Nature of business  Scale of operations  Degree of control desired by the owner  Amount of capital  Volume of risk and liabilities  Tax liabilities

 Nature of business: $ Business providing direct services & professional services - proprietary concerns $ Accounting firms - pooling of skills and funds - partnership firms $Manufacturing organisations - large size- pvt & public companies

 Scale of operations: Key factors in scale of operations are: Volume of business( large, medium,small ) Market area( local, national, international) $Large scale organisations – catering to national & international markets – organised successfully as pvt or public firms $ Small & medium scale firms – generally set up as partnership or proprietorship

$ When area of operations is wide spread (national/ international) company ownership is appropriate $ When area confined to a particular locality partnership or proprietorship will be the suitable choice

 Degree of control desired by ownwer: A person who desires direct control of business prefers proprietorship because a company involves separation of ownership & mgt  Amount of capital: A partnership company when it grows beyond the capacity of a few persons

 Volume of risk & liabilities  Comparitive tax liabilities

 Sole proprietorship  Private ltd company  Public ltd company  Partnership firms  Joint Hindu Family Business  Co-operatives  Limited liability partnership

A business can be owned and operated in several forms.Each form of business has it’s own merits and demerits. The ultimate choice of the form of business depends upon the balancing of the merits and demerits of the various forms of business.