FORMS OF BUSINESS

OWNERSHIP
PRESENTED BY
Hemend Chandran
There are two types of forms of business
ownership:-
Private

a) Sole proprietory
b) Partnership firm
c) Co-operative society
d) Company ( pvt ltd)

Public
a) Ministry
b) Departmental
undertakings
c) Statutory corporation
d) Central board
e) Company (ltd)
WHAT IS IT?
SOLE PROPRIETORSHIP
INTRODUCTION
The sole proprietorship is the most prominent of
the four forms of private ownership.
A business organization is an establishment
formed to carry on commercial enterprise. Sole
proprietorships are the most common form of
business organization.
Most sole proprietorships are small.
Out of the four forms of ownership, the sole
proprietorship is by far the easiest to form.
Start-up can be immediate and simple.

DEFINITION
A Sole Proprietorship is defined as the
ownership of a business owned by one
person, who receives all of the profit, but is
responsible for all debts and obligations as
well.
ADVANTAGES
Sole proprietorships are simple to start. No
formal action is required.

Secrecy is maintained in sole proprietorship

The owner has total control of all aspects of the
business.

The owner receives all the profits.
The business itself pays no income tax; the
owner pays income tax as an individual.
DISADVANTAGES
The owner has unlimited responsibility for
losses, debts, and other liabilities the
business might develop.
The owner must make all the decisions.
The owner is the only person who can
arrange financing or capitalization.
The existence of the business ends upon the
owners death.