formtofBushfire

Organisation Agrawal
A Business enterprise is an
organisation
which is in some business or
engaged
commercial
activity
Business enterprises be into two
may classified
broad
categories
Private sector Oc m Private
Enterprise byindividuals
Public sector Enterprise
co c m
by Govern ent
Joint Sector Enterprise of m private
by Government
farms
orate Secor Enterprises
Sole Proprietorship
Joint Hindu family Business
 Partnership

Co operative Society

Company

Sole Proprietor
A Business owned controlled a
managed by
Single individual is known as Sole
propri torship
organisation

fares sole proprietorship

y
The Sole proprietorship
Single Ownership
is owned a individual
by single only
All the capital is supplied by the
Single individual from his own
wealth or

from borrowed funds

2 formtion and dosa There is no
legal
formalities required to Start and dose sole
proprietorship firm There is no Separate
law governing the business

3 Unlimited Liability 9h Sole proprietorship

firm the proprietor is personally liable

all the debts the business
for of
The Proprietor have to Sell his personal
may
property

4 Individual Risk Bearing ad Eofit Recipient

In Sole proprietorship firm whose risk is
borne a individual
by single only The Sole
all the rewards is one
beneficiary of
individual
only
5 Oneman control The proprietor is the
Sole owner of the and has
firm full control
 over it ownership and management
The

lies in the hands one person only

of
6 No separate Legatentity Law makes
no between the or
difference owner

the enterprise
7 Smee The Sole proprietorship

operates on a small scale

firm very
O Lackof Business continuity Since business
and owner are one So death insolvency
etc will have direct impact on
incapacity
the business

Merits Advantages

Quick Deion 9h Sole proprietorship

all the decisions are taken the
by
firm
He is not supposed
proprietor himself
to consult and waste time
anyone
The Sole proprietor is not
Confidentiality
expected to Share his Secrets with others

Therefore confidentiality will be maintained

Direct Icentive Sn Sole proprietorship

there is direct relationship between
firm
award which
if
efforts means

proprietor put extra efforts then

profit
increases and proprietor gets extra income

Sense Accamplishment There is

g involved in
personal Satisfaction working
for oneself The Success in business not
contributes to Self but
only Satisfaction
also instills in the individual a sense
accomplishment and confidence
of
 Easy Eformadisolve a sole

proprietorship organisation is easy to form

No legal formalities are involved in Setting
this type
up of organisation

demerits 1 Disadvantages

Limited Races 9h Sole proprietorship

is supplied
firm finance by the proprietor
There is a limit to the credit
himself

raising capacity of
a
single person

Limited
life business The Survival
a
of
and Iole proprietorship
continuity of of
firms depends upon one

the proprietor dies or

person only
insolvent the
G
business come to an end
may
Joint Hindu family Business
Joint Hindu business
refers
family
to a
form of organisation wherein the
business is owned and carried on
by
the members the Hindu undivided
of
family
St is governed the Hindu Law
by
gt is one the oldest business
of form of
in the
organisation country
The basis membership in the business
of
is birth in a
particular
three Successive generations
family and
can be
members in the business
The business is
by the head
controlled

of the family who in the eldest member

 and is called Karta

All members have equal ownership

right over the
property of
an ancestor
and are known as co parceners
they
features

Arfon fora joint hindufamily

busi atleast
there Should ess be two members
in the and ancestral
family property to
be inherited them
by
hi The all the
bility liability of
members except the karta is Limited
to their Share co
of parcenery property
of the business The kurta has unlimited hiab

The control
Control of the family lies
with the Karta He takes all the decision
and is authorised to
manage the business
His decisions are on other memb
binding
ers

The business continues

Conaty
even the death Karta as the next
after of
eldest members takes
up the position of
Karta the business stable
leaving
Minor members The inclusion an
of
individual into the business occurs
due to birth in a Hindu undivided
Hence minors can also be
family
members the business
of
Partnership
The Indian Partnership Act 1932 defines
partnership as the relation between
persons who have agreed to Share the
the business carried on all
profit of by
them all
or
any of acting for
This is to be learnt as it is
definition
inherent
The disadvantage of the
Sole proprietorship in
financing and
expanding business paved
an
managing
the viable
way for partnership as

option
features
Formation It comes into existence

through a legal agreement where in the terms

and conditions the relationship
governing among
the partners
Sharing of profits losses and the
manner
of conducting the business are specified

Liability The Partners a have

of firm
unlimited Personal assets
liability may be
used
for repaying debts in case the business
assets are
insufficient further the partners
are
jointly and individually liable for payment
of debts

Ribcage
involved in
The partner bear
business as
the risks
running
a a team
The reward comes in the form
of profits which
are Shared
by the partners in a agreed
ratio
 Icon mung control The partners
Share amongst themselves the
responsibility
of Decision making and control of day to
day activities

Config Partnership is characterised

by
the lack Business Since the
of continuity of
death retirement or
insolvency insanity of any
partner can
bring
an end to the business

Nembe of members The minimum number

partners needed to Start a partnership
of
is two As
firm per the companies Role
2014 at present the maximum number
of
members can be 50

Mutual Agency Every partner is both

an
agent and a principal He is the
agent of other partners as he represents
them and thereby binds them through his
acts He is a principal as he too can be
bound by the acts other partners
of
Merits

Ease of formation and care A partnership

can be formed
firm easily by putting an
agreement between the prospective partners
into the place where to
by they agree
the business
carry out of
the
firm
and share
risks
Lanced Deion The Partners
can oversee
kg
different functions according
to their areas expertise Because an
of
individual is not forced to handle different
activities this not reduces the burden
only of
work but also leads to errors in
fewer
judgements
 9h partnership capital is
Refunds
contributed the number
by of partners This
makes it possible to raise larger amount of
funds as compared to a Sole proprietor and
undertake additional operations when needed

Sharing of asks The risk involved in

partnership areShared
firm
a
running by
all the partners This reduces the
anxiety
burden and Stress on individual partners

Secrecy partnership firm is not

A

legally required to publish its accounts

and Submit its reports Hence it is able
to maintain confidentiality information
of
to its
relating operations
Dement
Unlimited Partners are liable to
hibility
repay debts even
from their personal
resources in case business assets are not

Sufficient to meet its debts

Limited monies There is a restriction

on number and hence contribution

of partners
in terms
of capital investment is usually
not Sufficient to Support
large Scale
business
operations

Possibility ofconflicts Partnership is run

decision
group of persons where
in
by a

making authority is shared Difference in

opinion on Some issues may lead to disputes
between partners
Lack Partnership comes to
of continuity
an Id withdeth retirement insolvency or
lunacy of any partner It may result in
lack
of continuity

Lady public confidence The Partner

ship firm is not legally required to
publish its financial reports or make
other related information public Therefore
the public
of confidence of the public in
partnership firm is generally low

Yes offersuip
on the basis Duration
of
Partnership I will The Partnership formed

for an
indefinite period is known as partner
ship at will This type
of partnership
exist
at the will of the partners and comes to an
end whenever partner desire so

Fixed period partnership This partnership

formed for a
specific period time
of
is known as fixed period partnership
This type
of partnership gets terminated
terminated on expiry
automatically gets of
that
specified time period
Particular partnership The partnership
which is formed to carry particular
on a

venture known as particular partnership

This partnership comes to an
type of
end on completion that venture
automatically of
Orebasis of Lability themembers
f
General Pup
The partnership in which all the
liability of
members are unlimited is known as general
Partnership
Each partner can
actively participate in the
activities the
of firm
 Limited hibility partnership
The Partnership in which all the
liability of
partners except partner is limited to the
one
extent their share in the partnership
of
firm is known as limited partnership
On India limited partnership is governed
by
the Limited partnership act 2008
Liability
features

The
viability of atleast one partner must
be unlimited

The other partners limited

liability of are

The partners with limited

liability are

called special partners

The special partner is not allowed to
participate in the management of the business
 The special partner has the right to inspect
the accounts

The special partner can withdraw the

partnership whenever he desires so

The death or
insolvencyincapacity of
special partner does not affect the
existence the partnership
of firm
formtion Parsnip firm
of
A partnership firm is formed when two or

more persons enter into an agreement to

form a partnership firm
The can be oral
written or
agreement
It is advisable to have a written
agreement and to get the firm registered
gt is not compulsory to the
get firm
registered
Partnership Deed

The document containing terms conditions

the partnership agreement is known as
of
partnership deed
The common contents partnership deed
of
are

Name the business

of
Nature Location the business
of
Duration
of business
gnvestment made each partner
by
Duties obligations of partners
Salaries withdrawals
of the partners
Interest on capital I snterest on drawings
Registration

Registration the partnership firm means

of
the in the
entering of firm's
name

Register the with the

of firms kept
Registrar of the
firms
It is optional to
for
a partnership firm
get registered
The consequences non
of registration
A A partner
of an unregistered firm cannot
file a suit against the
firm
or other

partners
B The cannot
file a Suit against third
firm
party
The cannot a case
C
firm file against
Partners
Procedure for registration
The procedure
for getting a
firm registered
is as follows
Submission application in the prescribed
of
to the gt should
form registrar of firms
contain the
following particulars
Name
Location
Name other places
of
Name their actress
of partners
Deposit with the
of required fees
registrar of the firms
The
registrar after approval will make an

entry in the register of firms and will

Subsequently issue a
certificate of
registration
Types of Partners

Alive per An active partner is one

who contributes capital participates in th

management
of
the
firm sharing in profits
losses and is liable to an unlimited extent

to the creditors the

of firm
Sleeping dormant partner A
sleeping
partner does not take part in day to day
activities the business are called
of
partners
sleep ng
A sleeping partner however
contributes capital to the firm sharing its
profits thosses and has unlimited
liability
Secret partner A Secret partner is the
association with the is
one whose firm
unknown to the general public other than
this distinct feature all other aspects are
Same as active partner
 p

Nominal Partner
Nominal partner is one

who allows the use his her name a

of by
but does not
firm contributes to his capital
He she doesnot take active part in

losses
the
firmmanag ng
does not share profits or
but is liable to the third parties

Party by estoppel A person is considere

d a
partner by estoppel through his
if
or her own initiative conduct or behaviour
he she an impression that he she is a
gives
partner

Panes byhang out A partner by holding

out is a
person who though is not a
part
her
firm but allows himself
in a to be

represented as a partner
minÉ
IY incompetent to enter into
a valid contract he cannot become
partner in any firm
However a minor can be admitted to the
benefits of the partnership firm
Sn Such cases
 his will be limited
liability
he will be entitled to Share profits
but not loss
He will not be
eligible to take an

active in the
part management of the firm
He can inspect the accounts
The Status of a minor changes when he
attains
majority The minor has to
decide whether he would like to become
a
partner in the
firm has to give
He a

public notice of his decision within six

months
of attaining majority
he fails to so he will be treated as
9J
a
fully fledged partner
Eopertive Society
The word co operative means
working
together and with others for a common
purpose
The cooperative Society is a
voluntary
association persons who
of joins together
with the motive
of welfare of the members
are driven the need to protect
They by
their economic interest in the
face of
possible exploitation at the hands
middlemen obsessed with the desire ofto
earn
greater profits
The co operative society is compulsorily
to be
required registered under the
co operative Societies Act 1912
A minimum 10 Persons are required
of
to form a co operative society
features

The registration
gtopf.ve ociety is compulsory As a

Separate legal entity this society can

enter into contract hold in its
property
name Sue and be Sued
by others
Voluntary Mei p The membership

voluntary A
of
a
cooperative is
society
person is to
free join a cooperative
Society and can also leave as
anytime
per his desires

Limited ability the the

viability of
of a mem
operative ers
co
Society is Limited
to the extent the amount contributed
of by
them as capital
 Control Sn cooperative Society the
power to take decisions lies in the hands
an elected committee
of managing

Service motive The cooperative society

through its purpose days emphasis on the
value mutual help
welfare Hence
of
motive Service dominates its working
of
Merits

Equality ting Ight The principle

one man one vote the Coopers

of governs
five society each member is
Therefore
entitled to equal
voting rights
Lid hibility The
liability of members
of
acooperative society limited to the
is
extent
of their capital contribution
 Style existence Death Bankruptcy
or
insanity of the members do not affect
continuity of a cooperative Society

Economy in opens The members

the
generally offer honorary services
to

Society As the focus is on elimination

of middlemen this helps in reducing cost

Support from government the

coope ative
Society exemplifies the idea of
democracy and hence
finds Support from
the low taxes
government in the form of
Subsidies etc

Demerits
Resources
Limited ices of cooperative
Society consits of capital contributions of
the members with limited means
 Gnefficiency In mangement cooperative
Society are unable to attract and
employ
expert managers because
of
their
inability
to
pay them high Salaries

Lakoysecrey As a result of open

discussions in the meetings
of members as
well as disclosure
obligations as per the
Societies Act it is
difficult to maintain
Secrecy about the operations a
of
cooperative society
Government control gnoseturn the
of
privileges offered by the government
cooperative Societies have to comply with
Several rules regulations related to
auditing of accounts Submission of accounts
etc
 Differences of opinion gnternal
quarrels arising as a result
of contrary
viewpoints may lead to difficulties in
decision making

Types
4 Lopertive Erganisation
Consumer's cooperative Societies
Producer's cooperative Societies

Marketing cooperative Societies

Farmer's cooperative Societies
credit cooperative Societies
Cooperative housing societies

Consumer's Loopertive Skies

The consumer cooperative Societies
are
formed to protect the interests of
consumers
 The members comprise consumers
desirous
of
of obtaining good quality products
at reasonable prices
The
Society aims at eliminating middle m
en to achieve
economy in operations
St purchases
goods in bulk directly
from the wholesalers and sells goods to
the members
thereby eliminating the
middlemen

Profits
if any are distributed on the
basis either their capital
contributi
of
the Society
to ns
purchases or

made individual members

by

Pacer's cooperative skies

The Societies setup to protect the
are

interest
of the Small producers
The members comprise of producers
 desirous
of procuring inputs for
production goods to meet the
of
demand consumers
of
The Societies aim to the
fight big
capitalist and enhance the
bargaining
Small producers
power of the
Gt Supplies raw materials equipments and
other inputs to the members and also buys
their output
for Sale
Profit among the members are
generally
distributed on the basis the contributions
of
to the total pool goods produced
of

Mating toopertive Etiest

Such Societies are established to help
Small producers in Selling their products
The member consists who wish
of producers
to obtain reasonable prices for their output
 The Society aims to eliminate middlemen
and
improve competitive position
of its members by
Securing a
favourable market for the

products
St fools the output
for individual members
and market
performs functions like
transportation warehousing packaging etc
to sell the output at the best possible
price
Profits are distributed according to each
members contribution to the pool
of output

Larmer's foopeatiresoities
These Societies are established to protect
the interests
of farmers by providing
better inputs at a reasonable cost

The members comprise who wish to

jointly take up farming activities

The aim is to the benefits

gain of large
Scale and increase the
farming productivity
Such Societies provide better
quality Leeds
and other modern
fertilisers machinery
techniques for use in the cultivation
of
crops
This helps not only in improving the yield
and returns to the farmers but also
Solves the problems associated with the

farming on
fragmented land holdings

Cat leave lories

Credit cooperative Societies are established
credit on reasonable
for providing easy
terms to the members
The members comprise of persons who Seek
financial help in the forms of loans
The aim
of Such societies is to protect
the members the exploitation of lenders
from
who charge interest loans
high rate
on
of
Such Societies provide loans to members
out the amounts collected as
of capital
and deposits from the members and

charge low rates interest

of
is coopetive
housing skies
cooperative housing Societies are establish
ed to
help people with limited income
to construct houses at reasonable costs
The members these societies consists
of
who are desirous
of people of procuring
residential accommodation at lower costs
The aim is to Solve the
housing problems
ofthe members by constructing houses
 g
and
giving
the options
of paying in
instalments
The Societies constructs flats or provide
plots to members on which the members
themselves can construct the houses as

per their choice

Join stock company

A an association
company is of persons
formed for carrying out business activities
and has
legal status independent of its
members

A can be described as an
company artificial
person a separate
having legal entity
perpetual succession and a common seat
Cenis definition is to be learnt as it is
 It is governed by The companies Act 2013
The Shareholders are the owner the company
of
while the Board Directors is the
of chief
managing body elected by the shareholders
Usually the owners exercise an indirect
control over the business

The capital the is divided into

of company
Smaller parts called shares

features

Artifact person A company is an

artific
al person because it is created law
by
and
of its
exists independent members

from the
Separtelegatentity day of its
incorporation a an
company acquires
identity different from its members The
law does not recognise the business and
owners to be the one and the Lame

Formtion Incorporation of companies is

compulsory under the companies Act 2013
The formation companies is a time
of
consuming expensive and complicated
process St involves the preparation
of
Several documents and compliance with
several legal requirements

Perpetua Icon A
company being
created law can be brought to an end
by
only by law It will exist
only cease to
when a specific procedure for its closure
called winding up is completed

Control The
management and control of
the affairs the company is undertaken
of
which appoints
by the board
of directors
the top management officials for running the
business
 the members
Ibility The
viability of
is limited to the extent the capital
of
contributed by them in a company

Merits

Limited The Shareholders are

hibility
liable extent of the amount unpaid
to the

on the shares held them

by
transfer est The ease
of transfer
of ownership adds to the advantage
of investing
in a
company as the share of public limited
company can be Sold in the market and as
Such be into cash in
easily converted
can case

the need arises

iii Perpetual Existence Existence
of a company
is not affected retirement
by death resign
ation insolvency or its members
insanity of
as it has a separate entity from its members
iv scope
for expansion As compared to the
Sole proprietorship and partnership form

of organisation a company has large

financial resources

Professional management A company can

afford to pay higher Salaries to specialists

and It can
professionals therefore employee
people who are experts in their area
of
specialisations

Demerits

Cemplexity Information the a

formation of
time
company requires greater effort and
extensive knowledge
of legal requirements
and the procedures involved

Lack
each
offrey
public
The companies act requires
company to provide time to time
 a lot information to the office of the
of
Such information is
registrar of companies
available to the general public also

Impersonal work environment The large

Size of company further makes it difficult
a

for the owners and top management to

maintain personal contact with the employees
customers creditors

Liv Naus regultions A company is

burdened

with numerous restrictions in respect of aspects

including auditing voting filing of reports and

preparation document
of
Delayin decimang companies are

democratically managed through the board

directors which is followed
of
by the top
management middle management and lower
level management
6 There be
Coffees may conflict
interests various stakeholders
of amongst
a
of company

Typesofcompanies
The can be into following
company classified
categories
Private Limited Company
Public Limited company

one Person
company

Private cited Impany

Private
company means company which
a

its articles
by
Restricts the to its shares
1 right transfer
2 Has minimum 2 and maximum 200

excluding the present and past employ

3 Prohibits invitation to the public to
any
Subscribe Semities the company
for any of
Public Limited company
A Public is which is not a
company company
private company As per the companies Act

a public company is the one

1 Has minimum 7 members and maximum

no Limit

2 Has no restriction on
transfer of Seurities
3 Not prohibited to invite general public to
Subscribe its securities

However private company which is the

a

public is also
Subsidiary of company
treated as a public
company
 one Peson company
An OPC means a
company
with
only
one

person as its member

It is provided that only a natural person

who is an indian citizen and a resident
in India shall be eligible to incorporate
Opc
No person Shall be eligible to incorporate
more than dope

At Company Limited by guarantee means the

company having the liabilities of its members
limited memorandum to such amount as the
by
members undertake to
may respectively
contribute the assets the company in the
its
of
event of up
winding
A limited shares means a
company by
the liabilities its
company having of
members limited memorandum to the
by
amount on the shares
if any unpaid
held them
respectively by
fanion gaitecompany
formation a involves the follow
of company
ing stages
d Promotion
2
Incorporation
3 Capital Subscription Stage

9 Commencement Business
of
a Promotion
Promotion Stage includes all the steps
idea to the
right from conception
of starting
 till it is formed
company

Steps in the promotion stage are

d
Entifiction of Business opportunity

gdentification of Business opportunity begins

with the discovery an idea to
of setup a
new business or an idea to
expand the
existing business
2 feasibility des After analysing all

the concepts related to the ideas discovered

investor Starts detailed investigation
doing
to to the idea
give practical shape
9 Technicalfeasibility
b financial feasibility
Economic feasibility
c

3 Name Appeal gt is necessary

for
every company to get its name approved
 from the
registrar
so that it does not
match with other company's Name
any
4 fixing
paigntonememorandomy
Eton promoters have to decide
about the people who will be
Signing
the memorandum

5 Appoinmet of professions the

promoters appoints the brokers and

underwriters

6 Preparation documents
of any
steps are taken the promoters to
by
prepare legal documents to be submitted

to the at the time incorporation

registrar of
9Icorporation stage
The main steps under the incorporation

Stage
1 documents the
Filing
y necessary
following
documents have to be Submitted

with
registrar
a MOA
b AOA
c statement Authorised capital
of
d A list of directors
consent all the
e The written of
directors to act as directors

2
faymet offees Along with filing of
the above documents the prescribed
fees
also have to be deposited
of registration
of the registrar
3 Registration is satisfied
with the and
authenticity of the
validity
documents submitted then the registrar
enters the name the in his
of company
register
4
Etificteocorportion After
company in
the the name
entering of
the the issues a
register registrar
certificate of incorporation

Eapitasubsciption stage
SEBI is a
SEBI Arora regulatory
body which capital market of sndia
controls

to protect the interest of investors The public

limited co must Submit all the relevant
with the SEBI before its
information issuing
securities in the capital market
Prospectus men.in prospectus
vg
or
St is a cicular or invitation used to invite
the general public
for Subscribing to the Shares
the company
of
Appointment
of Brokers Bankers Indrani
Iters To receive and deposit the applicate

money bankers
on are
appointed To Sell
all the Shares brokers are
appointed 9g
the not Sure
company is of selling
the
whole lot shares it underwriter
of may appoint
Appliction Estok exange A
company
must
get itself listed in stockexchange
before selling its Securities to the general
public The company may apply in any of the
recognised stock exchanges to get the

permission
Minimum asuiption minimum Subscription
the minimum shares that
refers to number a
of
out
needs to
get the entire issue
company of
currently every company is required to raise
got of the issue amount
 of
Allotment of Shary At last the shares are

alloted to the public

commencement
of Business
After Subscribing the Securities and receiving
the minimum Lubscription the companies
applies to the the to issue
registrar
certifi ate
of commencement of Business
A declaration that shares payable in cash
has been Subscribed and minimum
have been
for
Subscr ption
revived
A declaration that
every director has paid
in cash the
application and allotment money
on his shares
A declaration that no is
money pending
to back to applicants
pay
A declaration that other documents have
been compiled with This declaration can
be the director's or the company
signed by
fecretary
The will
verify all the documents
registrar
he is satisfied he will issue a
certificat
9g
e Business
of

Important Documents used inte

Tomtom of Campany

Memorandum Association
of
The memorandum association is a
of principal
document the
of company
gt is considered as charter the
of
company
St contains the powers and objectives
the company
of
 It of memorandum ofAssociation
Named ause This clause contains
full name

of
the company

Domicledause This clause indicates the

jurisdiction of corporate regulator under

which the
company's registered office falls

abjecthouse This clause indicates the objects

which the
for company
is incorporated

cause This clause

Laity
the members
defines
the company
the
liability
of of
Capital clause This clause denotes the maximum

capital which company can raise at

given point
of time
Subscription Cf this clause is in the
nature
of declaration and undertaking given
 all the Subscribers to memorandum
by of
association to the effect they have agreed
to form a company

Acides of Asano Articles

of
Association contains rules regulations
the the
regarding management of company's
internal affairs It defines the powers
duties rights
of manager officers and
the board directors
of
contents Association
1 The amount
of Aeg
share
of capital different
classes
of shares
2 Rights
of
each
type of shareholders
Procedure allotment
for making of shares
3

4 Procedure share certificates

for issuing
5 Procedure for transfer of Shares
6 Procedure for forfeiture of Shares
 g

3 Prospectus

Prospectus includes document which

any
invites general public to invest their
money
in the Securities a
of company
The essential elements a prospectus are
of
as
follows
I There must be an invitation to the public
at large
2 The invitation must be made or on
by
the company
behalf of
3 The invitation must be to purchase
its Shares or debentures

Choice Offorms of Business

Organisations
 Ease informtion An
organisation
which involves the least expenses in formation
and minimum legal formalities is the best
from this point view Sole proprietor
of
Ship partnership is preferable

The
Lidility company form of organisation
restricts the an entrepreneur
liability of
to the minimum Sn Sole proprieto
case
of
and partnership is unlimited
snip
3
Nate g Bushiness Business activity
betrading or
may manufacturing rendering
Services Trading and services business generally
managed
by Iole proprietorship organisation
for a
manufacturing business partnership
or

joint stock company better choice

may be
a
4 Ease grassing finance when a
large
amount
of capital is needed company may
be the right form of organisation

5 Control an wants to have

gy entrepreneur
a direct control over his business the
preferable form should be sole proprietors
hip gj partnership is created the Sole
proprietor has to Share control with other
partners In a private the
company
promoters be able to retain effective
may
control over the business
of company but
in
of public company
case
the owners
will have indirect control over the man

agement of the company

Stability er continuity from the point

of view of Stability company is a ideal

form of organisation because it remains
unaffected by the continuance or discontinua
nee the members whereas Iole prop
of
prietorshipand partnership get affected
the partner or the sole
immediately if
proprietor ceases to exist