Forms of Business Organisations

Legal aspects of business


There are several forms of business organizations which include the sole proprietorship, the partnership; joint stock companies the cooperatives and the joint ventures.


Sole Proprietorship


This is the simplest form of business organization. A sole trader or a sole proprietor owns the business alone. He pools and organizes the resources in a systematic way and controls the activities with the sole objective of earning profit. He provides all the necessary capital and other resources alone. continue reading

Partnerships

A partnership is a relationship that exists between two or more persons jointly carrying out a business with the objective of making a profit. Each of the persons is called a partner and the business is referred to as a firm.
A number of people work together and there is no separate identity of the partnership from individual partners...continue reading

Companies

A joint stock company refers to a corporate association of a number of people for some common object or objects. The members of a joint stock company contribute capital to form a common stock to carry on a business usually for profit.
A joint stock company is a corporate body i. e. it is created under the law and has an entity of its own quite separate form members who own it. Continue reading


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