Meaning & Definition In literal sense the word business means, ‘ the state of being busy’...
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Transcript of Meaning & Definition In literal sense the word business means, ‘ the state of being busy’...
Meaning & DefinitionIn 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.”
The stages
Need for Business
• Essential activity for the society
• Brings economic gain to the entrepreneur
• Provides societal requirements
Qualities of a successful Business
Qualities of a successful Businessman
Scope of Business
Various types of industries
Primary Industry
Extractive Industry
Genetic Industry
Scope of Business
Various types of industries Construction Industry
Manufacturing Industry-It is further subdivided into following categories
Analytical
Synthetic
Processing
Assembly line
Sole Proprietorship
Types of Partners
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
Dissolution of PartnershipBy agreementBy noticeCompulsory DissolutionInsolvency of PartnersDissolution by Court1. Insanity of Partner2. Misconduct by a partner3. Incapacity of a partner4. Breach of agreement5. Transfer of shares6. Regular loss7. Dispute among partners8. Illegal business
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
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
Liabilities of Karta• Maintenance of rights of co-parceners• Responsible for marriage of all unmarried
members• He represents the family
Joint Stock CompanyAn 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
Joint Stock Company
• Legal formation• Artificial person• Separate legal entity• Perpetual succession• Limited liability• Democratic management• Transferability of shares
Types of Companies• Private Company• Public Company• Statutory Company• Chartered Company• Registered Company• Indian Company• Foreign Company• Multinational Company• Transnational Company
NGO
• Social Institution• Clubs & Associations• Chamber of Commerce
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
FORMS OF NBO’S
• Trusts• Cooperative societies• Clubs and Associations
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.
Cooperative Societies
• Consumer Cooperative Society• Producer’s Cooperative Society• Cooperative Marketing Society• Cooperative Credit Society• Cooperative Farming Society• Housing Cooperative Society
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
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.