Hello, friends, I'm going to
start the subject of business organization and management. This subject is one
of the most important subjects for all the Commerce and Management students. So
in this subject, the first topic we are going to take is forms of business
organization?
1) How has the business developed?
2)What kinds of business are there?
3)How can we handle the business?
4)What is the procedure for
managing the business?
5)What are the advantages
disadvantages?
Like in detail, we are going to
talk about the business. You know that business means it is just for-profit and
to exist company in this world. So some people are doing their activity that we
call it as a business. In business, we have different kinds of business that
we'll see now, so first of all, before going to that, let us see the first
characteristics of forms of business enterprise. What are the features? And
what is the main features of any business are enterprises?
There are only six main features.
In features, you have to remember the first one is an exchange of goods or
services to do any business you need to exchange the goods or services
exchanged. The goods mean I am sending you some goods. In return, I'm expecting
some other goods that we call it as a swap system it was in olden days old NCN
days we used to have this battle system even today is also it exists in some of
the villages, so that is an exchange of goods or services also I am giving some
services to you. In return, I am expecting something. So this is also what we
call a business exchange of goods or exchange of services.
The second one is dealing in
goods and services. Trading in goods as a residue, selling the goods and
services for some money purpose means charging in return some monetary benefits
to deal goods and services. For example, I want to sell vegetables to the
people, which is good selling for business purposes. This process is good
selling. And in services, being a doctor or a lawyer, I'm offering the services
for charging amount. So that also comes under the business only. It is so
selling the goods or selling the services. Offering the goods or services is
also one of the main features of any enterprise, so here you can take it as
consumable goods and producible goods consumable. Goods means which are used
daily wise day-to-day transactions or in everyday use usage of life. When
people want to use what we call a consumable good, you can take fruits,
vegetables, toothpaste, bath soap, oil, cooking items, and all such things are
consumable goods.
The next one is producible
goods. It will be dealing with some
other manufacturers or producers. So basically, they'll be manufacturing
something else with these goods. Say, for example, machine-related tools or computer-related
particles or any raw items to produce the goods. These are other items. These
items will take by the has they'll reproduce they'll make a product ready to
available in the market to buy the consumers then that will be producible goods
so this kind of things we call it as a dealing the goods and services.
The third one is profit motive
any business enterprise remember that their reason is more to their ambition.
The main aim of any business firm is to earn a profit. If no gain, why do
they do the business? That is why always their purpose is profit-oriented. If
any organization is working without the expectation of profit, only service
basis, then that won't be called a business. It doesn't come under the
business, so every organization's motto is to earn a profit. Then only they can
serve, and they can continue the business isn't it?
The fourth one is continuity of
transactions. It has to continue the business transaction has to go on endless
for an extended period when people gather together to do the business that we
call a continuity of services. If any break is there means it's over, so there
should not be any continuous brake services. Suppose if you take companies like
TCS, Procter & Gamble, or Hindustan lever Limited, their services are endless.
They are providing good services. Hence any company's services will always be
continuous. Every enterprise's motto is to work continuously.
Next, risk and uncertainty are
one of the critical character of any organization. Risk, in a sense, sometimes
changes in the supply of goods. In the present scenario, you may be finding
that onions are becoming very costly, and in a particular period, gold
sometimes will become expensive. Raw material also will become expensive
sometimes. It will become cheap, so like changes in the price levels supply of
the goods and taste in the consumer's changes in the present trend or taste of
the consumers, all these things which make uncertainty in the sale. Another
factor is natural calamities like floods or earthquakes. Any other thing that
is also going to make an impact on the business. That is why always you can say
business is risky. You can't know whether you will get profit forever or not.
All these fluctuations will be there. Uncertainties, too, always happens. So
this is one of the essential characters.
And next one is social
responsibility. Every business organization's motto is, of course, to earn a
profit. Apart from making a profit, it is the social responsibility of every
organization to give some services to society. How to provide the services?
Offering the products at cheaper rate quality products, in an economical way,
every ordinary person can purchase it. Every familiar person has that kind of
capacity to buy the products. In that way, they should be approachable to the
normal person and in the form of charity constructing schools temples Church
and hospitals. People can do this kind of service. It is the social
responsibility of every organization. You can take an example of TCS company
and Wipro, and they are also giving some services.
In social responsibility
altogether, we have six characteristics to form any business. The first one is
the exchange of goods or services and dealing in goods and services profit
mainly. Next is continuity of the transaction should be there, and risk and
uncertainty are factors and social responsibility with these other six.
Now, if you see enterprises, how
many types of enterprises are there to discuss in the forms of business
enterprises? There are three forms of business enterprises: a private
enterprise, a public enterprise, and a joint sector. Three kinds of enterprises
we are going to discuss these topics in-depth later.
One is private enterprises.
Private enterprises, the name itself, is saying that it's a private business.
So in private enterprises, you can have a different kinds of private
enterprises. The first one is the sole proprietorship. A sole proprietorship
means one single trader. He will be supplying the capital, and he will be
taking the risk. He will be dealing with the business. He will be the active
partner in everything is by himself only whole. And sole of any the
organization is sole proprietor only he has the right only he has to bear the
risk only has to get the profits only he is going to take the earnings like
we'll discuss this later.
Remember a single trader, we call
him as a sole proprietorship, no more partners. The second one is a
partnership. There are some drawbacks of sole proprietorships. Suppose the sole
trader is not well and financially not sound or not in a position to handle,
then automatically, it will be dissolved. He will become insolvent. To overcome
this, we have a partnership business. In a partnership business, more than two
partners can work if they want to do any company that we call a partnership
business.
In partnership business, there
are some rules and regulations as per the partnership act 1932. They have to
follow some laws and regulations. This topic will also discuss later, so
partnership means to or more than two partners together doing business with a
mutual understanding by accumulating capital and being ready to bear the risk.
All these things together, few partners are starting a business.
Joint-stock family business: So
this business we have only in India, not in another country. Family business,
only in Hindus most of the people they are doing this business and that family
will be involved primarily in this business-like combined families. So they are
doing band business, steel business they are taking or otherwise any MDH masala
best example you can take entire families taking care. Like a joint-stock
family, this is also private, but the whole family is involved in the business.
It's a company with a lot of scope of expanding the business that we call the
joint-stock company. In the joint-stock company, we have two kinds of companies
private company and public company. The private company is purely private.
Public company means somewhat undertaking by the government. In the joint-stock the company, there are some relaxations. There are some advantages like their
liability will be limited to the capital whatever they have distributed. They
have accumulated after that level their liability will be there. There are some
advantages, so that's about the joint-stock company.
The last one is cooperative
societies. Generally, people will be gathering together to do some service. But
profit also they'll be earning, but the main motto will be served, giving the
services. People join at one place and want to start some service centers that
we call cooperative societies. Most cooperative societies are running based on
humanity and based on that truth, and whatever they wanted to give services to
the people based on that, it is running.
Thanks for reading this article.
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