I Papér DSC 102! BUSINESS ORGANISATION AND MANAGEMENT Objective: To acquaint the students with the basics of Commerce and Business concepts andfunctions forms of Business Organization and functions of Management, 7 UNIT-I: INTRODUCTION AND FORMS OF BUSINESS ORGANISATIONS: Concepts of Business, Trade, Industry and Commerce - Objectives and functions of Busine SocialResponsibility of a business - Forms of Business Organization ~ Meaning, Charncterisi ‘Advantages and Disadvantages of Sole Proprietorship Meaning, Characteristics, Advanta, a A Disadvantages of Partnership -Kinds of Partners - Partnership Deed -Concept of Limited liabilne partnership — Meaning, Characteristics, Advantages and Disadvantages of Hindu Undivided Family ° Meaning, Advantages and Disadvantages of Co-Operative Organization, = UNIT-Il: JOINT STOCK COMPANY: Joint Stock Company + Meaning - Definition - Characteristics - Advantages and Disadvantages - Kinds of Companies Promotion - Stages of Promotion - Promoter - Characteristics - Kinds - Preparation of Important Documents - Memorandum of Association - Clauses - Articles of Association - Contents - | Prospectus - Contents ~ Red herring Prospectus- Statement in lieu of Prospectus (As per Companies Act 2013). UNIT-ILLINTRODUCTION TO FUNCTIONS OF MANAGEMENT: Management - Meaning - Characteristics « Management- Scientific Management - Meaning - Definition - Objectives - Criticism - Fayol's 14 Principles of Management . UNIT-IV:PLANNING AND ORGANISING: Meaning - Definition - Characteristics - Types of Plans Advantages and Disadvantages - Approaches to Planning - Management by Objectives (MBO) - Steps in MBO - Benefits —Weaknesses—Definition of Organizing-Organization-Process of Organizing - Principles of Organization - Formal and Informal Organizations ~ Line, Staff Organizations - Line and) Staff Conflicts - Functional Organization - Span of Management - Meaning - Determining Span - Factors influencing the Span of Supervision. UNIT-V: AUTHORITY, COORDINATION AND CONTROL: Meaning of Authority, Power, responsibility and accountability - Delegation of Authority - Decentralization of Authority - Definition, importance, process. and principles of Coordination- techniques of Effective Coordination - Control - Meaning - Definition ~ Relationship between planning and control-Steps in Control ~ Types (post, current and pre-control) - Requirements for effective control, SUGGESTED READINGS: 1. Business Organization & Management: Sharma Shashi K. Gupta, Kalyani Publishers 2. Business Organisation& Management: Patrick Anthony, Himalaya Publishing House 3. Business Organization & Management: Dr. Manish Gupta, PBP. 4 Organization & Management: R. D. Agarwal, McGraw Hill. 5. Modern Business Organizatiot A, Sherlekar, V.S. Sherlekar, Himalaya Publishing House 6. Business Organization & Management: C.R. Basu, Tata McGraw ill 7, Business Organization & Management: M.C. Shukla S. Chand, 4. Business Organisation and Management: D.S, Vittal, S. Chand 3. Organizational Behaviour Text & Cases: V.S.P. Rao, Himalaya Publishing House 10. Business Organization & Management: Uma Shekaram, ‘Tata McGraw Hill ae 11. Business Organization & Management: Niranjan Reddy & Surya Prakash, Vaagdevi publishers 12, Business Orgaziisation and Munayement, Dr.NeeruVasihth, Tax Mana Publications.ONIT- 1 -LNTRODUCTION AND FORMS OF BUSINESS ORGANISATK An dmstitucle orqantacd and eperoted to Prt Pi eae SOUS et ce cL ander ation yw Busnes ! prcowricls 9 dhe amaenkive of pov goin (the dupim qe by wheeler) ay [notwore of Busine: | charadereastia of Busnes) b Sconv me ACkIVLY 4. Production IProcmuement oF goods amd servis Ae Unita ty of UL 6+ Salt oft of qpeds 5. fument ef srk amd uourics por tae sectiafectio 3 peyet Earning Objectivas 6 Businuss: ae Opn EW yHon. of USGL » u eck [troduction jor quotty cols Yronomie Bbyrctivt* § por Zeit” 14 SupeAV youth 2+ Sodol ebjers w* o supply of & cy Goods and SUwits eSouiod Seri ct + Avoiding evvironmuntot Pott on + Production OF Joods 3. Human objectives Weare Of enrplorees + Sokupoction of customou + Calis partion of show hrotders © Podput to govt . the activi tes wrth ch ote Commer: pejrrs Ae ott necesorry to ‘puny qeods amt avuric, ypuom the of thet covuumption . pla of Grigin Ao tht place iy ; ‘gallCommer incrdts two typ Of activi rcs Ve Trade: Buying ama ating of qotcls amd BOUL Ga called Trade Trade helps im transfering qpods em Meduss to Coraums, 2. Aids Lo Trade: Activities wthidh Saqurrid Lo J y tyode . foxsditod, the Ltyode ca collud ade to +x" Er Trouportarien , worhsuat , UN&UOMeL 5 bomeung . Choractetatic, Of Trade * I teenemic otk ty” fs | 2 Suchomge of goods amd AOUMCLA 3. Prope motive (0 8 d Guakon of Utilities: &. Conti nuarty am trorbackions Funcievr 64 Commerce: % Rumen the) hindrance ok PEELE, PLO , enthanage, dime , sk . It fi 220 Clagaipication of Commerce: I) Trade Aids to trade ‘meanal —- erteanal 1 wet ott cant Wholesale Retail Forms of Organisation nL Business | ee I . 7 Sole Propri ekorship , Pooknuu hip “oiaky Hina to- opowsive 1 But _ Soceky Lenited Mobility postrwuthip (ep) 3 Sole pnepricroruip i The tadividuol wire has day. ko - sagonsbility for summing the busines «Tey wT ad oastts of tre business amd prof Qemeroted byPoouerwahip! Two OX More people shorn eunDUbip of. a singe busines The pastrurs bhewld hawt & Legal aoyarmunt that stu fort) how deciwrs will be qnodt, profits will be shod , Lispules wit be gusold, Whew purrute poorrnvy wilh be admitted 40 the Poreneshs @ mite AiobiLity Fantnvuhip ) Fevmung a bumitect poueretthip Ja ment Compleit amd? format than thot ok & ururol porrtnenship “This Frum of eunuushi p vis nt ottem used, for operating puta © serwice businesses « Toont tnd. Foumnity Business’! Je as a her of) businas exgoemuation whim the membeu of o family Cov emby Ow and momrage tha business de) dh omrermedt by tuna Low » Farha pg ithe, jeimt Mmdu family buai om behay ob tH Tout Hindu jomnidy. The business does net Sequin omy aapuamerc 0 mumboership is by bitth b-operative Society; A volume howimg common neds who jem hols for the. ochiewenunt of common ecenemic iakerwat «Its air AY GB kowe dk, Interdat of, the porwr ection of secithy tough the principle of AUk “MAP met cunts mete { chanctetis Sole Proprictorahie | Vr One man ownership and comtrot i A sole Arading concesn Ja owned by an Individual known proprieter. He aasetiotion oh indiviManages amd contre the business without any * tnkenpenemce from othe 1D Undimitedt Mobility; The Pprsprletet Js sispenaibts for all thr esses atiaung pem the business - The Hobitiky “2 "et Aenited ee dim. Gh business but he private prepaty ws aly Liable for | business obligations 3. Seowcy! The pispuieter Roops a the business Asowls enty to himetk - Business Stl au wou sumperckamt fer Srna business By sukaining businny Bevictas he avoids Competitors entoing the wore business § A Orne omd business; exist together: In sole trade businas’ thet Js WO seperate existance ef business with the own. The business amd dhe Gwnen exist 5. Motivation Sole prspieker takes ot Sta oma. “bean Aeris Lf ory. 6 timited oro of operations: A\ @ trade business has gpmarally Limited oxen of opootions He com amd will be oble to ad funda onrty osvromge darrate Aupowut oa smo budumess Advamkogen’ Otow_forvmolion $f da erenemirol amd eony to stout ele Wong Yuaineas 9b doenet Heotye omy a ol ony ot saqutrokien « ® Busines 2COWrY! Being, sole Sunn, the actetvoden “4 not expected’ to whouw Ky trade Atouts) with Anybody ee: Thus, ju Compebiteru cannot get inermation about dhe sele Hades activitier, @fsemibibitys A sete racer com earily . eapamd hu pusiness opermtions 61 Can ruttvick, them, Tt u eoay +o iavrporate chamgts im tha Ockiviltes Of the Centum, without much difiuuty amd adclitionas cake @oquick_decision: As the 40le tyode, the sumer can dake- quite usin amd promt action in “all! lotrsiness motto Uke pricing, distibution, advecicing, den OBetwr combrel; The sole tvosler control alt fumctions °6, dhs business we himaelh take decictory of oppro priate time: The busines Us in eo) offertive we O Headey. yelations wy A 4ote trader ib la a pesitidn Mointain dixect’ relations with hia employees This enabler the employees anol employers yo wndwu tand and appreciate the eee of eath other: Buodvantog O birniteavexo wrens : Th so 1 We tries to raiie finances Rew’ investmends employees mit to Which & single Pewen can invest: finanual nth Ubi py alo, He make jem hu pomily BOWLS “only . ® ontimited Liobibity: The Liakiity ef a sole propricken Js urbimiteol. is | Her private propentis can aloo be used for marking busines ‘Least ond dbtig ation vmulimited Liability otro seateichs hiker working ama gris to be cautions in taking stiseKimittl Mamageriol ability: A sole pro ptiete {eum of business ergamisation obwoys tuyeou Horm 6 dock of Momagenial enpertrae A wing pouon mA be am expert Jimi atl fields ke purtchoa! AUlbing 5) financing , ‘eke. % @ tock of Continuity: The sole trade busines Lontinusy ( as dong as sole porepeieren Lives: The continuity Phe business va, dred with the Ade of prreprictny dumess , death or maglenery of the propsietet Com aad sto Chesunt, of Ene business . ® Not) suitable for Lore scole operation ; As the fingmdod PUBELUWILL amd the momnagarios abilities “of qe wale pacpricret Ott Ainmited » His Rima 04 busine | orqomiaation Js net suitable por loge scale bustialy| © wrong dusions: wv sole propiictey has do take 4 ai the dw OW ey inelh | hued, 4 Commet Comaudt empercts to have prtepet gyrlidges about | Voou ews aspects ek Ha busines: A taking wreng ducisions whi Pthuu ds a pesibiliy may Lead te toe. On osractenistin [Features Portheuhip dium : © Foumationy The partnership Feu of business ergomivasion ve qevountd by the provisions of the Sndiom POEhUUbip Ack, 1432. 3b Comes into eristome | Khrough & Jegal agreement tohUu in Ere tun and conditiom govevwing the relotiowihip amend the pauenvu, shoring 4 protits amd Losses awd the monnet 6} conducting the business ar oeeilied crust be lawful and Aum with pupil“Ovemest_qood_ faith: Tre main basis of He partrwuhip, business J good jo ty amd mutual tyut = tach paunnt AhewAdA ort horwstly and Give proper accoyls “%o Othen’ pooinurs @ United Liability: The parunvu of & fovm howe umbimnited Liability. POuenal ass mad be wed [07 seporyiny AWTS Tm Cost the lousiiness oases art insupidient © Futur, the pascnuy CH jointly and in dividuodty Solble or porymabts of debts ' Sndiividuadly teo, each porrtner cam be hud ougporuible for the JUROYy MENT e{ the debt. of the purine + © Restriction om _tyowujen of “Ahaytes | No porenen com Aew er bromper halhor show 40 othe without the Ce ot least +00 perens, Motimetm number ehomembeu to Case of boring business fs to, awd fA othur busintss 0 pet mete thom’ 20 © Implied _awthoritys Thre a am implied arcthert ty Yok ony Portrnr COvr ack On berolh of the fim: The busines wit be bound bY the ack of partnow ® Common Movnagernerct . Eavry ‘parciner hos a night ¥o loki port in te sunning of Hu busints: de ds mot mamdotory yor al te pects to Advamtones Of Portnuhip bouno ; Okoay ko pewn +A Partnership com be formet eoily without Many egal folmatitier. Since yr not Compulsory to get tht foum Stqitoud, @ impleeinvuyy oad nars! wg TEI St Aujhidint Lo wowoke a podmouhi P youn B hanghesegpalfease’ comet don 4 moh UAE Hoty hoods ate tant parenueshif eum > Ht a ica areal 4 7 doo pool meu suseurs O04 tomy Propriety, Aig form of business BAgonvia.aki on - } © Better decvionss dm parmvrship fom each pareney, haa a Aight Jeo Fake poor Un) tht MamMaqerremnd, oy busindas + UL Mo] O41 decavent cow take in Conduit with Hw Cement of all por. @kum Intoust 2 Sine portnvu Bho the pLOKt ang. bean Yur Loses, the take) kum intowst fa tye A coh the busin. Porro, hawt direct access to the empleyers cd Can emrenrage thom {Or met werk + te © Corrie omd Sound Approach, This “Ty they werk collectively! amd okt jaitiakiog, tum the pro of the foun will inount: Fath pouurnnr gels o $01 abort dw the prefota of the Jou » gyrercts amd rewords cou farly balamced Rirodvombages oo Portruthip 5 O Himived Finameial Ruowurs Bur '9 staburory ini bo” Ae motimum ruvrmrber of poruruw in a firm, its Copority tp voile finan Js Limitedt: Partrurship cannel Fw indo buaintss whith aiguire a huge copitat Juweakimurt «@ voiirated ability: Creditors can Make portnun pay a H thew quer ewer [OM thtin poronal PACPALY, Ay the arscts of ake um ot MOL wufaent — to repay A Liabild hay @ neo independemt Legal status A partneship doe nol enjoy stpowLL Legal Atatur, o corporole Lope ay am the Cove firm comes into of & joint Stock company - Portrunship being OM & Centyark anol not fom fhe Atakur @ Powibility of Compicta oma cLisputer® A dahonest ot incyrerent poner becomes man aol protium bor these whe art yout and committed: gmoot mutual Conpiich may uoke prow In dhe smooth fumetioning of busintes rwhich mou enem Use im clon of athe fun + Comflics rive bcm portru dur tv combtict of inteuut and aiourstCiews of partnon . © Risk Gl imped athowity: Bhhoner » thor porers amd Kamin of hu foolahnem The act of in Hae ircomp OE OA Fraineoe POLERUI MAY lard 0 Hooneiol difficult pecarre one porter wil bind al vemaining porthou Coruye of urine © Sratebility of Parknensivip fv: Combination of partntuli Ga wrurtoun ar death, inselscmey Jirwomity Ackivemumnt of & port MAY enc fo dusolution of & fom, + fastnership cannet plan ws operations for & rey Leng period of time os it eum enter vb always under thud - Kinds ot _Pantrens Porknerns are clowifitel according to the conti bution to ae busines - @ Ackiue Cov) wetking poounen: The partren who taku an OCH Inkor@at um the doy 0 - day monogemunt of business He has veitt un momagement of finn,Ieee ouk work on beholt of non- wertkung pono . — | | | He grt additional salories yor the momagerial Wer . He cenbibutys Choos capieot » probits , Lasers omel hos ow unlimited LobiliFy © dowmnant lor) Shaping partner: The ene whe cers mat dake” ant OH eee PQ am, dax- to- day busuren andl momogumart + wWerking poset Coyyits on tht burinay ot o posetntship Jfovm, on behol ef deunant partner, He coveibukes Capital, Shows the profits amd (orsed. Hy we fully warbler For, the debts, of. the Comrpomy © Seok Pastry A set paudnet iA eve whe dou ena. worse 40. be RNLOUITL AB ae» parE! to outsider, although da seolity he wa a porenut Me Covdributu ital, choses psropit amd Least and Shorts COP hos am unlimited Liability. © Nominal Pasknens Me p amd Udit to we Him: Capital, dow nor dokr am ackive Pay debe (beast Vaweag bust he, 34, oepp6muible Yor “alt Hae debts, As Liability os unlimited ; 6 Mino Parknen ' A wing net competent to enter Inte pen ck Maver cornet heeeme & partner but with odmitted to bemabils ob vuen] err who dels his nome | | He doesnet contvibule omy Tu business, dow, ony Cobian cormunt of edd posdtrgu , he tam be porkrurthip fim. He haa right fo inspect on books of accounts @ rosarran by aboppels HE Gs net a partner of Hove as per the aqrevrenct at dom» He behaves or poritively onp Wink od o& Parmror- He does not contribute capital +o firm j does not participate daw The mamagement 6f eum «Typidaes tao ANPRy pate: ong dees pet ates et Ea deblr of the fom: @ Posen" in prof oily A powen Can become a partner of She fou with fre wmdvutamding that he will ony ghar prepea of the gpoum , but sill net shore my loner Such part contributes a loge amount of capital o4 ye amount of capital of pooh p - @ Sue - Posen + The onset OF a sROE of A posutner's wart dm the jou a Aub - partnen tov) Af a porine bord Os a port of the Aho of ha profit Gm ov foun to te erssider « Rights omd iobilities ve Umited Posratship Deed An aryuimnunt ot a contour bekwin tre powers, who ot willing 0 covvn en a business jointly to shove the profits of birinur » Pecdnership o alwars a nuulk gf a written ct bebo the parknou - Agrenrnt geno wxtuudts mutual Aight » duties , powers, obliged} and provision regarding, paofit Bhosting » “Payment ok commission, salou , eke, Atcoxcling to Indian Stamp Ack , % wiitken egreemunt hat to be supported by a nuctascrct{ akomp duby otheruie Lf Si, tnvidoud, dit hvokids a ‘pov aioe bortnnalip oA partrurship deed cannot be signed) by mere than 10 peusns in cout Of bomnking business amd 20 peuow in core of Hading busin + Ths deed most be pro ! propealy aiqnsd, ond dated by poaknes of Ht bin Ceromen Prewsiory ob Poskneubip deed i 1. Nome of He pou » is tecation and nature of business: Nome of Postnuubip fou | its adduss awk typu ok pusinws cukivitied to be wnduted to be ceoly indialedPe. =“— , © rious q eperation of bua: 4 Me Parinrahie foo! ds opurating ts Ga nose fem sent then ene Location , adder of att Auch Locations Shey | thm detailed be indicotest in the reat anptememe + Ono, abions ; addyese anol other detail of posknets, | A pascknestship deed 4 qr complite detoils of alt pounds tke names , spcetpakion » addrem ete - uted by each partner : wolf cotiont Misha on, @ Amount ok Capital condyi let gk ahould be | clearly munkiontd dm the ogpeinnunt. Copitor coneyibution U taken on bows ef petit Shostung « © Inkoust on capital ‘hu capited conbibvtect by pantry | brented OS investment * Rew enik, is breated through inwatmunt «Rote vf inkovst to be paid on Coup) bal @ antvust_om loam, other thom Capitals An Perinat Coneibvir additional Financ ow Oy Plogwe Win Carpi tal towkibution i we tvedted obo A partrwulap dood Khodd mention vol ©) (ntouenk ® Porkrwr's courting 28 1 qd interest thereon 5 The TRA empowers tht ports >to with dvaw a part of them Capitol Known os” “arousing @® show sks ow okies thin auth Ratt asad Th WE SA ROK Went ona Mreams Het short is given @ Tyre pastnsu © Barony or commisacen @ Redivemevd ond admumien ef parton. Vay pater shoe unequal os MULE be Apecified-in the equ