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Assignment No-1: Discuss in Detail About Industrial Ownership

The document discusses different types of industrial ownership - sole proprietorship, partnership, joint stock company, and cooperative organization. Sole proprietorship involves a single individual owning and operating a business. A partnership is formed by an agreement between persons to share profits from a business carried out by one or more partners. A joint stock company involves shareholders joining together to supply capital divided into shares to carry out business. Finally, a cooperative organization is formed by individuals with common economic interests working collectively on the basis of equality and mutual assistance.

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33 views

Assignment No-1: Discuss in Detail About Industrial Ownership

The document discusses different types of industrial ownership - sole proprietorship, partnership, joint stock company, and cooperative organization. Sole proprietorship involves a single individual owning and operating a business. A partnership is formed by an agreement between persons to share profits from a business carried out by one or more partners. A joint stock company involves shareholders joining together to supply capital divided into shares to carry out business. Finally, a cooperative organization is formed by individuals with common economic interests working collectively on the basis of equality and mutual assistance.

Uploaded by

manishanand555
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment No-1

Discuss in detail about Industrial Ownership.


INDUSTRIAL OWNERSHIP

A firm is an ownership organization which combines the factors of production (men ,


material & machines)in a plant for the purpose of producing goods or services & selling them
at profit.The ownership of an industry may be individual or collective.

Types of ownership

The different types of ownership are

1. Sole Proprietorship
2. Patnership
3. Joint Stock Company
4. Co-operative organization

SOLE PROPRIETORSHIP

“It is a form of business organization at the head of which stand an individual who is
responsible ,who directs its operations and who alone runs the risk of failure.

Example : agriculture ,small scale industries , cottage industries , retail trade , handicrafts etc.

Characteristic of Sole Proprietorship

1. For retail traders, service concern and small engineering firms which require
relatively small capital to start with & to turn.
2. For those businesses which don't involve high risks of failure
3. When the business can be take care by one person.

Advantages of Sole Proprietorship

1. Easy to establish as it does not require to complete any legal formality.


2. Owner is free to make all decisions and few government regulations.
3. This type of ownership is simple, easy to operate & extremely flexible.
4. Owner enjoys all the profits.
5. Owner can keep secrecy as regards the raw materials used, method of manufacturing
etc.

Disadvantages of Sole Proprietorship

1. Limited Capital- the capital which a single ownership can raise are limited.
2. Lack of Managerial Skills- All the managerial functions,which are essential for the
successful operation of a business are performed by himself.
3. Uncertain life of business.
PATNERSHIP

“ Partnership is the relation between persons who have agreed to share the profits of a business
carried on by all or any one of them acting for all.”

Rights of Partner

1. He has a right to take part in management of the business.


2. He has a right to inspect the books of account & have a copy of the same.
3. He has a right to share the profit or loss with others in the agreed ratio.
4. In case of an emergency, a partner has the right to act according to his best judgment.
5. A person has the right not to allow the admission of a new partner.

Types of Partner

1. Actual partner
A person who becomes a partner by an agreement and is actively engaged in the conduct
of the business of partnership is known as an actual partner.

2. Sleeping /dominant partner


A sleeping partner is one who does not take an active part in the conduct of the business
of the firm .He, like other partners , invests capital & shares in the profit of the business
He is not liable for any act of the firm done after his retirement .He is, however liable for
the debts of the firm.

3. Nominal partner
A nominal partner is known to the world as a partner in the firm, but he does not share in
the profits of the firm.

4. Partner in profit only


Sometimes partners may agree that a partner shall get a share of the profits only & that he
shall not be liable to contribute towards the losses. Such a partner is known as a partner in
profit only.

5. Partner by estoppels /holding out


Sometimes a person who is not a partner in a firm may, under certain circumstances
,liable for its debts as if he were a partner .such a partner is called a partner is called a
partner by estoppels or holding out.

6. Minor partner
With the consent of all partners for the time being , a minor may be admitted to the
benefits of partnership.
JOINT STOCK COMPANY

A joint stock company is an association of individuals called shareholders , who join together for
profit and agree to supply capital divided into shares that are transferable for carrying on a
specific business. There are two types of joint stock company.

 Private limited company /sector


 Public limited company / sector

Private company Public company

 The minimum number of  The minimum number of


members /persons required to form a members /persons required to form a
private company is 2. public company is 7.
 The maximum number cannot  There is no limit on maximum no of
exceed 50 in a private company. members.
 A private company should be  A public company must have at least
minimum 2 directors 3 directors.
 No need to issue a prospectus in a  Need to issue a prospectus in a
private company. public company.
 There is a restriction of share  Shares are freely transferable in
transferability. public company.
 Minimum paid up capital of 5 lakh  Minimum paid up capital of 1 lakh
rupees. rupees.

CO-OPERATIVE ORGANIZATION

Co-operative is a form of business organization formed by individuals to improve their economic


conditions through collective efforts .such an association is registered under co-operative
societies. These organization has been instituted in various fields such as
production,distribution , banking ,marketing etc.It is a voluntary association of economically
weak persons who work for achievement of their common economic objectives on the basis of
equality & mutual services.

Features of co-operative organization

1. Individual having common interest and willingness to work together to improve their
financial positions from a voluntary association as co-operative.
2. The members can leave the co-operative with due notice. There is no compulsion to
continue

3. All the members of a co-operative society enjoys equal status.

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