ECONOMICS

PART 1
Business an organization or economic system where goods and services are exchange for one
another or for money.
Business organization - A social unit of people that is structured and managed to meet a need or
to pursue collective goals. All organizations have a management structure that determines
relationships between the different activities and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different tasks. Organizations are open systems--they
affect and are affected by their environment.
TYPES OF BUSINESS ORGANIZATION
1. Sole Proprietorship - is a form of business organisation, wherein a single person owns,
manages and controls, all the business activities and the individual who operates the
business is called as a sole proprietor or, a sole trader.
2. Partnership - A type of business organization in which two or more individuals pool
money, skills, and other resources, and share profit and loss in accordance with terms of
the partnership agreement.
3. Corporation - Firm that meets certain legal requirements to be recognized as having a
legal existence, as an entity separate and distinct from its owners. Corporations are
owned by their stockholders (shareholders) who share in profits and losses generated
through the firm's operations
4. Cooperatives - Firm owned, controlled, and operated by a group of users for their own
benefit. Each member contributes equity capital, and shares in the control of the firm on
the basis of one-member, one-vote principle (and not in proportion to his or her equity
contribution).