Meaning of Business Organisation Form

A form of business organization is related to ownership. Ownership is a legal concept which determines authority and responsibility. Form of business organizations is those legal forms in which a business runs an organization. And this form determines its external existence and other parties are recognized through this existence. There is a big question, why did the birth form of a business organization? If we talk about the earlier time business was conducted on a small scale. The sole trader business is managed by a single owner(sole trader). The sole trader wants to do a large scale of his business. At that time, needs increased for the business such as capital, managerial, responsibility, etc. These are the main problems in the way of making a large-scale business. That's why the birth of various forms of business organization. Which gave a solution to all these problems.

Here, Explaining all forms of business organization in short description.

• Sole Proprietorship: sole trade is that form of business organization which is established by a single person. This person invests the necessary capital, managed by himself. All profit and loss are responsible for himself.

• Partnership: Partnership means an organization in which two or more than a person willingly join hands. So that they can run some lawful business. On the basis of this agreement, they agree to share all capital, liability, profit, loss, etc together.

• Joint Hindu Family Business: This form of organization is business conduct on the ancestor property by the same family members, Known as a family business. It is called the joint Hindu family business. This business is under control and managed by the eldest member of the family. Known as Mukhaya or Karta.

• Cooperative organization: Cooperative organization is a form of business that is voluntary. This organization was established by a group of the person on the same level for the purpose of promoting their common economic interest. This form functions under the Cooperative Societies Act, of 1912.

• Company organization: A company is a form of business organization that is willingly established by some person to earn profit. This form functions under the Company Act.