2. Meaning & Definition In literal sense the word business means, ‘ the state of being busy’ “Business is an activity which involves exchange of goods or service with the assistance of various activities like banking, transport, insurance, operation of middlemen, for a consideration, with the object of making profit.”

3. The stages

4. Need for Business Essential activity for the society Brings economic gain to the entrepreneur Provides societal requirements

7. Qualities of a successful Business

8. Qualities of a successful Businessman

10. Scope of Business Various types of industries Primary Industry Extractive Industry Genetic Industry

11. Scope of Business Various types of industries Construction Industry Manufacturing Industry-It is further subdivided into following categories Analytical Synthetic Processing Assembly line

13. Sole Proprietorship

16. Types of Partners Active Partner Sleeping Partner Nominal Partner Partner in Profit Partner by Estoppel Secret Partner Sub- Partner Minor Partner

17. Partnership Deed Amount of Capital invested Profit or loss sharing ratio Salary or Commission payable Duration of Business Name & Address of Partners Duties & powers of each partner Nature & place of business Terms to run the business

18. Dissolution of Partnership By agreement By notice Compulsory Dissolution Insolvency of Partners Dissolution by Court 1.Insanity of Partner 2.Misconduct by a partner 3.Incapacity of a partner 4.Breach of agreement 5.Transfer of shares 6.Regular loss 7.Dispute among partners 8.Illegal business

19. Joint Hindu family Governed by Hindu Law Membership by birth Management by Karta Limited liability of others Continuity Minor as a member Accounts maintained by Karta Implied authority of Karta

20. Rights of Karta Rights to manage & control the business Right to enter into contracts, draw & accept bill Right to maintain books of accounts Right to delegate work to the co-parceners

21. Liabilities of Karta Maintenance of rights of co-parceners Responsible for marriage of all unmarried members He represents the family

22. Joint Stock Company An association of many persons who contribute money or money’s worth to a common stock and employ it in some trade or business, who share the profit and loss arising there from. - James Stephenson

23. Joint Stock Company Legal formation Artificial person Separate legal entity Perpetual succession Limited liability Democratic management Transferability of shares

24. Types of Companies Private Company Public Company Statutory Company Chartered Company Registered Company Indian Company Foreign Company Multinational Company Transnational Company

25. NGO Social Institution Clubs & Associations Chamber of Commerce

26. Characteristics Non business organization Non profit voluntary group No involvement in Govt. structure Registered under Societies registration Act, Cooperative societies Act, Public trust Act and Companies act Can have full-time or part-time employees Funds raised from public through donations

27. FORMS OF NBO’S Trusts Cooperative societies Clubs and Associations

28. Trusts  Legal form of organizing a social institution which is a non profit organization  As per the trust act  Formed for rendering social services like healthcare, education, maintenance and infrastructural facilities etc,,  The trust act lays down the structure and procedure to run such institutions.  The head of the trust is the “Managing Trustee” and members of the governing body are the “Trustees”  There is no annual election and if need be the existing trustees give consent for a new trustee to be appointed.

29. Cooperative Societies Consumer Cooperative Society Producer’s Cooperative Society Cooperative Marketing Society Cooperative Credit Society Cooperative Farming Society Housing Cooperative Society

30. Characteristics of Co-operative Society Open membership Voluntary association State control Sources of finances Democratic management Service motive Separate Legal Entity Distribution of surplus Self help through mutual cooperation

31. Clubs and Associations  Established for the purpose of discharging certain social functions  Mainly formed to provide the members facilities like sports, recreation and cultural associations like dance, drama, music  They are run to promote the above activities for the younger generation  Funds are raised through membership fees, donations, govt. grants etc,  Registered under “The Societies Act”  Certain organizations are formed to develop infrastructural facilities in their localities.