Organization Of Commerce And Management

Front 1

Sole Trading Concern?

Back 1

It is that concern which is owner, manager, controlled and invested by a single person. Hence, it is called sole proprietorship or individual by a single person. Hence, it is also proprietorship or individual proprietorship or single entrepreneur or one-man business. It has been in operation since the birth human cilivilization.

Definition:
Prof.James L.Lundy "the sole proprietorship is an informal type of business owned by one person"
Prof.J.L.Hanson "sometime known as a 'one man business."

Hint 1

Prof.James L.Lundy....
Prof.J.L.Hanson...........

Front 2

Features of Sole Trading Concern?

Back 2

1. Minimum Government Control...
2. Unlimited liability...
3. Freedom in Selection of Business..
4. Business Secrecy...
5. Individual ownership...
6. Direct contacts with consumers and employees...
7. Suitable for some special business...
8. No sharing of profits and risks...

Hint 2

8 Points....
MUFBIDSN

Front 3

Merits of Sole Trading Concern?

Back 3

1. Easy Formation...
2. Benefit of secrecy...
3. Direct motivation...
4. Quick decision...
5. Lower costs...
6. Development...
7. Flexibility in operation....
8. Limited government control...
9. Credit standing...
10. Efficiency...

Hint 3

10 Points...
EBDQLDFLCE

Front 4

Demerits of Sole Trading Concern?

Back 4

1. Limited managerial ability...
2. Limited amount of capital...
3. Unlimited liability...
4. Not suitable for large scale operations...
5. Lack of stability..
6. Absence of specialization...
7. Unprofessional decisions...

Hint 4

7 Points...
LLUNLAU

Front 5

Joint Hindu family business?

Back 5

A business, which is owned by family members who are living jointly, is known as Hindu Joint Family Business. In other words, a business which is continued from one generation to another generation is also called as Hindu Joint Family

Definition:
When a joint Hindu family conducts business inherited by it as per Hindu law, it is joint Hindu family firm. Thus in a joint Hindu family firm, the business is passed on from one generation to another.

Hint 5

Hindu undivided family HUF

Front 6

Features of joint Hindu family business?

Back 6

1. Easy Formation.
2. Karat and co-parceners.
3. Joint ownership.
4. Membership.
5. Management.
6. Profit sharing.
7. Quick decisions.
8. Good relations.

Hint 6

8 Points...
EKJMMPQG

Front 7

Features of joint Hindu family business?

Back 7

1. Easy Formation.
2. Karat and co-parceners.
3. Joint ownership.
4. Membership.
5. Management.
6. Profit sharing.
7. Quick decisions.
8. Good relations.

Hint 7

8 Points...
EKJMMPQG

Front 8

Merits of joint Hindu family business?

Back 8

1. Easy to start.
2. Prompt decision.
3. Good relations with employees.
4. Flexibility.
5. Business Secrecy.
6. Co-parceners liabilities.
7. Good credit standing.
8. Continuity and stability.

Hint 8

8 Points...
EPGFBCGC

Front 9

Demerits of joint Hindu family business?

Back 9

1.Limited resources.
2. Limited managerial ability.
3. Unlimited liability of Karat.
4. Breaking of joint family.
5. Lack of direct effort.
6. Restricted expansion.
7.Unlimited co-parceners.

Hint 9

7 Points...
LLUBLRU

Front 10

Partnership firm?

Back 10

The two great drawbacks of sole proprietorship namely, limited capital and limited managerial skill have been overcome by the formation of a partnership firm.
Partnership is a combination of two or more persons, some having capital, others having skill and experience to conduct any lawful business, forming a business firm and sharing the profits of such a business.

Definition:
Indian partnership act 1932 : "Partnership is the relation between the person who have agreed to share the profits of a business carried on by all or any one of them acting for all."

Hint 10

agreement

Front 11

Features of partnership firm?

Back 11

1. Agreement.
2. Lawful business.
3. Sharing profit and losses.
4. Number of partners.
5. Joint ownership.
6. Unlimited liabilities.
7. Dissolution.
8. Joint management.
9. Principal agent relationship.

Hint 11

9 Points...
ALSNJUDJP

Front 12

Merits of Partnership firm?

Back 12

1. More financial resources.
2. More manpower resources.
3. Easy Formation.
4. Simple Dissolution.
5. Rational decisions.
6. Secrecy.
7. Personal contacts.
8. Division of risk.
9. Flexible organization.

Hint 12

9 Points....
MMESRSPDF

Front 13

Demerits of partnership firm?

Back 13

1. Unlimited liability.
2. Limited resources.
3. Disputes among partners.
4. Risk implied authority.
5. No separate legal status.
6. No succession.

Hint 13

6 Points...
ULDRNN

Front 14

Types of partners?

Back 14

1. Active partner:
Partner who takes an active part in the management of the business is called active partner.
2. Sleeping partner:
A sleeping or dormant partner is one who does not take any active part in the management of the business.
3. Nominal partner:
A partner who simply lends his name to the firm is called nominal partner. He neither contributes any capital nor shares in the profits or take part the management of the business.
4. Minor partner:
Partnership arises from contract and a minor is not competent to enter into contract. Therefore, strictly speaking, a minor cannot be a full-fledged partners.
5. Partners in profits only:
A partner who shares in the profits only without being liable of the losses is known as partner in profits
6. Limited partner:
a person whose liability for the firm is.Limited to the extent of his investment is called limited partner.
7. Partner by holdings only:
When a partner is not a partner but represent to the outside world that he is a partner in a firm, he is stopped or prevented from denying the truth.
8. Secret partner:
When the relation of the partner with the firm is unknown to the general public is known as secret partner.

Hint 14

8 Points...
ASNMPLPS

Front 15

Registration of partnership Firm?

Back 15

Procedure of Registration:
Entrepreneurs desirous of setting a partnership firm may apply in the prescribed form to be submitted to the Registrar of Firms of the State in which the business of the firm is situated or proposed to be situated. The prescribed registration fee also need to be deposited Along with the application. The application must be signed by all the partners or their authorise agents.
The application or the statement must contain the following particulars:
1.The name of the firm. 2.The place or principal, place of business of the firm.
3.The names of other places where the firm carries on business.
4.The different dates on which partners joined the firm.
5.The full names and permanent addresses of the partners.
6.The duration of the firm. When the Registrar is satisfied that the above provisions have been duly complied with, he shall record an entry of the statement in the register of firms and file the statement. The Registrar shall then issue a certificate of registration.

Hint 15

naaaoo

Front 16

Effects for non registration?

Back 16

An unregistered firm and its partners suffer from the following disabilities:
i. An unregistered firm cannot file a suit against a third party to enforce a right arising from a contract. (For example, for the recovery of the price of goods supplied)
ii. A partner cannot file a suit against the firm or co-partners to enforce his rights under the Partnership Deed.
iii. An unregistered firm cannot claim a set-off against a third party to enforce right arising from a contract exceeding Rs.100 in value.

Front 17

Advantages of Registration?

Back 17

i. The firm can sue third parties to enforce its claim.
ii. A partner can enforce his claim against third parties or against his co-partner.
iii. The interest of third parties is safeguarded against fraud of partners because statement submitted to the Registrar is a conclusive proof of the existence partnership and the composition of partners.
iv. An incoming partner is empowered to enforce his dues against the other co-partners otherwise he would have to rely on their honesty.

Front 18

Co-operative society?

Back 18

A co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Definition:
1. Calvert:
"Co-operation is a form of organisation wherein the persons voluntarily associate together as human being on a basis of equality for the promotion of economic interests of themselves".
2. International Labour Officer:
"An association of persons, usually of limited means, who have voluntarily joined together, to achieve a common economic end, through the formation of a democratically controlled business organisation, making equitable contributions to the capital required and accepting a fair share of risks and benefits of the undertaking."

Front 19

Types of co-operative society?

Back 19

1. Consumers cooperative:
Consumers' cooperatives are formed by the consum­ers to obtain their daily requirements at reasonable prices.
2. Producers cooperatives:
Producers or industrial cooperatives are voluntary associations of small producers and artisans who join hands to face competition and increase production.
3. Marketing Cooperatives:
These are voluntary associations of independent producers who want to sell their output at remunerative prices.
4. Cooperative Farming Societies:
These are voluntary associations of small farmers who join together to obtain the economies of large scale farming.
5. Housing Cooperatives:
These societies are formed by low and middle income group people in urban areas to have a house of their own.
6. Credit Cooperatives:
These societies are formed by poor people to provide financial help and to develop the habit of savings among members.

Hint 19

1. 2. 3. 4. 5. 6
consumer credit producer marketing farming housing

Front 20

Features of co-operative society?

Back 20

1. Voluntary association and open membership.
2. Equal voting rights.
3. Service motive.
4. Limited liability.
5. Democratic management.
6. Independent existence.
7. Registration.
8. Surplus profit.
9. State control.

Hint 20

9 Points....
VESLDLRSS

Front 21

Merits of co-operative society?

Back 21

1. Easy Formation.
2. Democratic management.
3. Limited liability.
4. Stability.
5. Open membership.
6. Tax concession.
7. Less operating expenses.
8. Supply of goods at cheaper rate.
9. Self financing and charity.

Hint 21

9 Points....
ESLSOTLSS

Front 22

Demerits of co-operative society?

Back 22

1. Lack of capital.
2. Rigid government rulers and regulations.
3. Incompetent management.
4. Lack of public confidence.
5. Lack of motivation.
6. Mutual dispute.
7. Limited scope for expansion.

Hint 22

7 Points...
LRILLML

Front 23

Joint stock company?

Back 23

MEANING:
A joint-stock company (JSC) is a form of company or joint venture involving two or more individuals that own shares of stock in the business. Certificates of ownership ("shares") are issued by the corporation in return for each financial contribution, and the shareholders are free to relocate their ownership interest at any time by selling their shares to others.
DEAFINATION:
"An organization that falls between the definitions of a partnership and corporation. This type of company issues stock and allows for secondary market trading; however, stockholders are liable for company debts."

Hint 23

nooo

Front 24

Features of joint stock company?

Back 24

1. Artificial legal person.
2. Separate legal entity.
3. Limited liabilities.
4. Common seal.
5. Registration.
6. Transferability of shares.
7. Separation of ownership and.management.
8. Membership.
9. Registered office.
10. Voluntary association.
11. Perpetual succession.

Hint 24

11 Points....
ASLCRTSMRVP

Front 25

Merits of Joint stock company?

Back 25

1. Large capital.
2. Democratic management.
3. Transferability of shares.
4. Limited liability.
5. Expert services.
6. Relief in taxation.
7. Public confidence.
8. Scope for growth and expansion.

Hint 25

8 Points....
LDTLERPS

Front 26

Demerits of joint stock company?

Back 26

1. Difficulty in formation.
2. Delay in decisions.
3. Excessive government control.
4. High cost of management.
5. Undue shares speculation.
6. No personal contact.
7. Lack of secrecy.
8. No direct efforts reward relationship.

Hint 26

8 Points....
DDEHUNLN