Types of Business Organisation

Manpower of an enterprise, Is its strength you must deem, Encourage their inner strength, And build a successful team.

UDYAM SHASTRA- Chapter 09,Verse 06

Key Objectives: The students compare the principal characteristics of sole proprietorship, partnership, and Limited Company as they follow the growth of a domestic appliances business from a sole proprietorship to a large company. They also discover the principal strategies businesses use to finance their operations. This module and its associated exercises should enable the students to :

  • List the advantages and disadvantages for sole proprietorship, partnerships, and Limited company.

  • Describe the principal means of financing different forms of business


Enterprise Concepts:

Business.: The buying and selling of goods and services in order to make a profit.

Sole proprietor.: An Individual who owns and operates a Business.

Partnership.: A business owned and operated by two or more people.

Limited company.: Is a business owned by people called shareholders.

Economic institutions.: An institution that supports entrepreneurs.

For e.g. Bank, District Industries center, Chamber of commerce etc.

Share.: Certificate representing part ownership of a limited company.

Share holder.: People who own shares are called shareholders.  

Enterprise Skills:

The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS). The E.SKILLS included in a lesson may not be exhaustive, but are indicative.

E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Following direction.: An entrepreneur must develop the skill to follow instructions, order and suggestions of customers in order to absorb what is conveyed and act on it.

Role playing.: An entrepreneur has to have the skill of playing different roles during the course of the day. Some times he may be acting like a salesman to a client , some times he may be a friend and counselor to a customer seeking information, another time he may be a technical expert for his design team, or even a team leader for the people who are helping him to manufacture products.

For each role the entrepreneur may have to call upon different talents and traits of his in order to achieve the desired influence on the people he is dealing with.

Listening skill.: An entrepreneur has to constantly pay attention to what is being said by people around him e.g. customers, suppliers, visitors etc.He has to maintain a responsive attitude to what he hears in matters that relate to his enterprise. This is referred to as Listening skill.

Activities:

Activity 1 - Become your own master-proprietor.

Activity 2 - Together we can do it-partnership.

Activity 3 - We care, we share-limited company.