BUSINESS ORGANISATION: TYPES OF BUSINESS ORGANISATIONS; ROLES OF COOPERATIVES, CORPORATE SECTOR AND FAMILY BUSINESS HOUSES; SMALL SCALE AND TINY SECTOR UNITS.

TOPIC:-

PRESENTED BY :-LOKESH JOSHI(39503)ANKUR GIRI(38116)ABHISHEK KUMAR(45560)LEENA KUTAULA(38104)

BUSINESS ORGANISATION ?

A Business organisation refers to any industrial, commercial or service organisation which produces goods and or services for sale.

It is to represent any collection of business resources – factories, warehousing, machinery, material, employee etc., and the planned use of it.

CHARACTERISTICS AND NATURE OF BUSINESS ORGANISATION : An association of persons or

group. Coordination of resources. Customer satisfaction. Customer orientation. Government control and

regulation.

Significance of Business Organisation.

1. Significance to National Economy

2. Significance to Business itself

3. Significance to Community

4. Significance from other point for view

Significance to national economy :

Optimum and profitable use of resources.

Source of national income. Faster economic growth in the

country. Better utilization of human resources. Larger creation of employment. Eradication of poverty.

Significance to Business itself :

Large scale production and efficient distribution.

Creation of healthy competition. Greater utilization of production

capacities. Fulfillment of social responsibility.

Significance to Community :

Uplifts the standard and quality of life.

Human prosperity. Creation of employment.

Significance to other point of view :

Promotion of international trade.

Closer cultural relations between countries.

MAIN TYPES OF BUSINESS ORGANIZATION

Sole proprietorship Partnership Limited Company Co-operatives

1.SOLE PROPRIETORSHIP

A business owned and run by one person. Advantage:- -Easy start-up

-Flexible (can make decisions quickly)

-The profits are yours-You are your own boss-Easy exit

Disadvantage:- - Unlimited liability - limited life

2. PARTNERSHIPS

Business jointly owned by two or more persons.

Advantages :-

- Easy to start

-Easy to manage

-You get your share of the profits

-Can attract financial capital easier than sole proprietorships

-Larger, so some economies of scale present

Disadvantages:-

- Responsible for the acts of all the other partners

- Conflict between partners

3. LIMITED COMPANY

Business owned by shareholders Run by directors (who may also be

shareholders) Liability is limited (important)

TYPES :-

- Private Limited Company (“Ltd”)

- Public Limited Company (“plc”)

4.CO-OPERATIVES

A voluntary association of people formed to carry on some kind of economic activity that will benefit its members.

ROLES OF CO-OPERATIVES

Cooperatives are service-oriented. Cooperatives are community-

oriented. People oriented. Owned managed and patronized

by members. Businesses with social

responsibility.

ROLES OF CORPORATE SECTOR

Sustainable development. Industrial relations. Environmental stewardship. Human rights. Customer satisfaction and adherence to

principles of fair competition. Globalization.

FAMILY BUSINESS HOUSES

Family business is a corporation that is entirely owned and managed by members of a single family.

CHARACTERISTICS OF FAMILY BUSINESS:-

Family business are ideal in nature as they are loyal to the principles of the founder and thus ensure uniformity in their operations.

Succession is one important decision which determines future effectiveness in terms of company operation.

family business comprises of family members in business operations ensuring effective utilization of in house talent in family.

Single minded dedication of family members ensures survival of family business through toughest times.

ROLES OF FAMILY BUSINESS HOUSES Contributing to economic development :

family business play crucial role in economic development of most of the countries. Retail sector, small scale industry, and service sector are owned by family business.

Spirit of entrepreneurship : family business as contributes towards development and has been successful in country like India it paves way to various families to initiate and bring up new ventures in country.

Philanthropy : family business in India along with their development have also concentrated towards welfare of general public by investing on hospitals, educational institutions, construction of roads etc. E.g. reliance.

SMALL SCALE & TINY ENTERPRISE SMALL SCALE- The investment in plant

and machinery, whether held on ownership terms or on lease/hire-purchase basis, does not exceed 10 million (rs. 1 crore) is regarded as a small-scale.

TINY ENTERPRISE- Investment in plant and machinery does not exceed 2.5 million (rs. 25 lakhs) irrespective of the location of the unit. Many shops, schools, parlours, photostat and STD booths in your vicinity are all examples of tiny units.

NATURE AND CHARACTERISTICS

Personal Character Flexibility Labour Intensive Local Area of Operation Short Gestation Period

PROBLEMS

Paucity of Finance Poor availability of power and

other infrastructure. Obsolete Technology Marketing Problems Poor Managerial and

Organizational Skills

ROLE IN NATIONAL ECONOMY

Employment Generation Low Initial Capital Investment Balanced Regional

Development Development of

Entrepreneurship Promotes Inter-Sectoral

Linkages

THANKS