Forms of Business Organisation — Flashcards

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A business enterprise is an institutional arrangement for undertaking any business activity. It is a separate and distinct unit with its own ownership, management, control, earnings, and liabilities.

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The legal form of business organisation determines the external existence of the business, and other parties recognise it through this existence. It also affects rights, responsibilities, liability, a…

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A business undertaking has four main characteristics: separate entity, independent unit of ownership, independent unit of management, and independent unit of risk. Each business has its own identity, …

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Private sector enterprises are established, managed, and controlled by private individuals or groups. The capital is provided by the owners, the main objective is profit, and there is no state partici…

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Public sector enterprises are established, managed, and controlled by the government. The capital is contributed by the government, and public welfare is the main objective while profit is secondary.

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Mixed or joint sector enterprises are undertakings where ownership, management, and control are shared jointly by the government, private entrepreneurs, and the public. These enterprises combine servi…

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The capital share pattern is 26% government, 25% private businessmen, and 49% public.

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Non-corporated enterprises include sole trader, joint Hindu family business, and partnership. These are private forms of business that are not corporated.