Lecture#5

Sole Proprietorship: A sole proprietorship is a business owned and operated by one person. The
owner is personally responsible for all debts and obligations of the business.

Example: A small retail store operated by a single individual.

Characteristics:

1. Legal Status: The business is not a separate legal entity from the owner.
2. Shareholding: There are no shares issued, as the business is solely owned by the proprietor.
3. Owner Liability: The owner is personally liable for all debts and obligations of the business.
4. Reselling shares/ earning Revenues: The business cannot sell shares or raise capital in this manner.
5. Tax regimes: The owner is responsible for reporting and paying taxes on all income earned by the
business.
6. Technological/Technical transfers: The owner has complete control over technological and technical
transfers within the business.

Partnership: A partnership is a business owned and operated by two or more people who share
profits and losses.

Example: A law firm owned by two or more attorneys.

Characteristics:

1. Legal Status: A partnership is not a separate legal entity from the partners.
2. Shareholding: There are no shares issued, as the business is owned by the partners.
3. Owner Liability: Each partner is personally liable for the debts and obligations of the business.
4. Reselling shares/ earning Revenues: Partners can sell their share in the business to other partners,
but not to the public.
5. Tax regimes: The business itself does not pay taxes. Instead, profits and losses are passed through to
the partners, who report them on their personal tax returns.
6. Technological/Technical transfers: Partners have equal control over technological and technical
transfers within the business.

Corporation: A corporation is a separate legal entity owned by shareholders.

Example: Coca-Cola Company.

Characteristics:

1. Legal Status: A corporation is a separate legal entity from its shareholders.

2. Shareholding: Shares of stock are issued to shareholders, who have ownership in the corporation.
3. Owner Liability: Shareholders are not personally liable for the debts and obligations of the
corporation.
4. Reselling shares/ earning Revenues: Shares can be sold to the public, and the corporation can raise
capital by issuing new shares.
5. Tax regimes: The Corporation itself pays taxes on its profits, and shareholders pay taxes on the
dividends they receive.
6. Technological/Technical transfers: Technological and technical transfers are controlled by the board
of directors.

Limited Liability Company (LLC): An LLC is a flexible form of business that combines the liability
protection of a corporation with the tax benefits of a partnership.

Example: An accounting firm owned by several accountants.

Characteristics:

1. Legal Status: An LLC is a separate legal entity from its owners.

2. Shareholding: Members of an LLC own membership interests rather than shares of stock.
3. Owner Liability: Members are not personally liable for the debts and obligations of the LLC.
4. Reselling shares/ earning Revenues: Membership interests can be sold to others, but not to the
public.
5. Tax regimes: The LLC itself does not pay taxes. Instead, profits and losses are passed through to the
members, who report them on their personal tax returns.
6. Technological/Technical transfers: Members have equal control over technological and technical
transfers within the LLC.

Private Limited: A private limited company is a type of company that limits the liability of its owners
and has restrictions on the transfer of shares.

Example: Reliance Industries Limited.

Characteristics:

1. Legal Status: A private limited company is a separate legal entity from its owners.
2. Shareholding: Shares are issued to owners, but their transfer is restricted.
3. Owner Liability: The liability of the owners is limited to

SLIDE 2:
Punjab Board of Investment and Trade (PBIT): PBIT is a government enterprise created
by the Government of Punjab, Pakistan to promote investment and trade in the province
of Punjab.

Type: Government Enterprise

 Characteristics:

1. Legal Status: PBIT is a separate legal entity from the government of Punjab.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares
sold, and all revenues generated are utilized for the betterment of the province of
Punjab.
5. Tax Regimes: As a government enterprise, PBIT is not liable to pay taxes, but it helps
other companies in tax facilitation.
6. Technological/Technical transfers: PBIT is not involved in technological or technical
transfers as it only facilitates investment and trade.

Nishat Group: The Nishat Group is a diversified business conglomerate based in Lahore,
Pakistan, with interests in textiles, cement, banking, and power generation.

Type: Private Limited Company

Characteristics:

1. Legal Status: Nishat Group is a separate legal entity from its owners.
2. Shareholding: Shares are issued to owners, but the transfer of shares is restricted.
3. Owner Liability: The liability of the owners is limited to their investment in the company.
4. Reselling shares/ earning Revenues: Shares can be sold to others, but not to the public.
The company can raise capital by issuing new shares.
5. Tax Regimes: Nishat Group pays taxes on its profits, and shareholders pay taxes on the
dividends they receive.
6. Technological/Technical transfers: Technological and technical transfers are controlled
by the board of directors.

Procter & Gamble (P&G): P&G is a multinational consumer goods company

headquartered in Cincinnati, Ohio, USA, with operations in more than 70 countries
worldwide.

Type: Corporation

Characteristics:

1. Legal Status: P&G is a separate legal entity from its shareholders.

2. Shareholding: Shares of stock are issued to shareholders, who have ownership in the
corporation.
3. Owner Liability: Shareholders are not personally liable for the debts and obligations of
the corporation.
4. Reselling shares/ earning Revenues: Shares can be sold to the public, and the
corporation can raise capital by issuing new shares.
5. Tax Regimes: P&G pays taxes on its profits, and shareholders pay taxes on the dividends
they receive.
6. Technological/Technical transfers: Technological and technical transfers are controlled
by the board of directors.

Suparco: Suparco is a national space agency of Pakistan, responsible for the nation's
public and civil space program.

Type: Government Enterprise

Characteristics:

1. Legal Status: Suparco is a separate legal entity from the government of Pakistan.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares
sold, and all revenues generated are utilized for the betterment of the national space
program.
5. Tax Regimes: As a government enterprise, Suparco is not liable to pay taxes.
6. Technological/Technical transfers: Suparco is involved in technological and technical
transfers as it is responsible for the development of Pakistan's public and civil space
program.

Punjab Information Technology Board (PITB): PITB is a government organization

responsible for the implementation of IT solutions in the province of Punjab, Pakistan.

Type: Government Enterprise

Characteristics:

1. Legal Status: PITB is a separate legal entity from the government of Punjab.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares
sold, and all revenues generated are utilized for the betterment of the IT industry in
Punjab.
5. Tax Regimes: As a government enterprise, PITB is not liable to pay taxes.
6. Technological/Technical transfers: PITB is involved in technological and technical
transfers as it implements IT solutions and provides support to various government
departments and private organizations.

Small and Medium Enterprises Development Authority (SMEDA): SMEDA is a

government organization responsible for the development and promotion of small and
medium enterprises in Pakistan.

Type: Government Enterprise

Characteristics:

1. Legal Status: SMEDA is a separate legal entity from the government of Pakistan.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares
sold, and all revenues generated are utilized for the development and promotion of
small and medium enterprises in Pakistan.
5. Tax Regimes: As a government enterprise, SMEDA is not liable to pay taxes.
6. Technological/Technical transfers: SMEDA provides support and guidance to small and
medium enterprises in various sectors, including technological and technical transfers.

Stylo Shoes: Stylo Shoes is a private retail company based in Lahore, Pakistan,
specializing in footwear for women and children.

Type: Private Limited Company

Characteristics:

1. Legal Status: Stylo Shoes is a separate legal entity from its owners.
2. Shareholding: Shares are issued to owners, but the transfer of shares is restricted.
3. Owner Liability: The liability of the owners is limited to their investment in the company.
4. Reselling shares/ earning Revenues: Shares can be sold to others, but not to the public.
The company can raise capital by issuing new shares.
5. Tax Regimes: Stylo Shoes pays taxes on its profits, and shareholders pay taxes on the
dividends they receive.
6. Technological/Technical transfers: Technological and technical transfers are controlled
by the board of directors.

National Engineering Services Pakistan (NESPAK): NESPAK is a government-owned

engineering consulting company based in Lahore, Pakistan, providing engineering and
architectural services in various sectors.

Type: Government Enterprise

Characteristics:

1. Legal Status: NESPAK is a separate legal entity from the government of Pakistan.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares
sold, and all revenues generated are utilized for the development of engineering and
architectural services in Pakistan.
5. Tax Regimes: As a government enterprise, NESPAK is not liable to pay taxes.
6. Technological/Technical transfers: NESPAK is involved in technological and technical
transfers as it provides engineering and architectural services to various sectors.

Pakistan Railways: Pakistan Railways is a state-owned enterprise responsible for providing rail
transport in Pakistan.

Type: Government Enterprise

Characteristics:

1. Legal Status: Pakistan Railways is a separate legal entity from the government of Pakistan.
2. Shareholding: As a government enterprise, there are no shares issued.
3. Owner Liability: As a government enterprise, there is no personal liability of the owners.
4. Reselling shares/ earning Revenues: As a government enterprise, there are no shares sold, and all
revenues generated are utilized for the development and maintenance of rail transport in Pakistan.
5. Tax Regimes: As a government enterprise, Pakistan Railways is not liable to pay taxes.
6. Technological/Technical transfers: Pakistan Railways is involved in technological and technical
transfers as it utilizes technology for better operations and provides training to its employees.

Descon Engineering: Descon Engineering is a private engineering company based in Lahore,

Pakistan, providing engineering and construction services in various sectors.

Type: Private Limited Company

 Characteristics:

1. Legal Status: Descon Engineering is a separate legal entity from its owners.
2. Shareholding: Shares are issued to owners, but the transfer of shares is restricted.
3. Owner Liability: The liability of the owners is limited to their investment in the company.
4. Reselling shares/ earning Revenues: Shares can be sold to others, but not to the public. The company
can raise capital by issuing new shares.
5. Tax Regimes: Descon Engineering pays taxes on its profits, and shareholders pay taxes on the
dividends they receive.
6. Technological/Technical transfers: Technological and technical transfers are controlled by the board
of directors, and Descon Engineering is involved in providing engineering services in various sectors.

SLIDE #3
Classical Organizational Structure: The classical organizational structure is a traditional
type of organizational structure that is characterized by clear lines of authority, a
hierarchical structure, and a clear division of labor. The classical organizational structure
can be further divided into three types: line, line and staff, and departmental.

1. Line Organizational Structure: In a line organizational structure, there is a direct flow of

authority from the top-level management to the bottom-level employees. This structure
is most commonly seen in small businesses and startups.
2. Line and Staff Organizational Structure: In a line and staff organizational structure, the
line managers are supported by staff managers who provide specialized knowledge and
expertise. This structure is most commonly seen in medium-sized organizations.
3. Departmental Organizational Structure: In a departmental organizational structure, the
organization is divided into departments based on function, geography, or product.
Each department is responsible for a specific task or function.

Project-Based Organizational Structure: A project-based organizational structure is

designed to facilitate the completion of specific projects. In this structure, the project
manager has the authority to make decisions and allocate resources to complete the
project successfully.

Characteristics:

1. Authority with PM: In a project-based organizational structure, the project manager has
the authority to make decisions and allocate resources to complete the project
successfully.

Matrix Organizational Structure: The matrix organizational structure is a hybrid of the

classical and project-based structures, designed to balance the benefits of both.
 Characteristics:

1. Balance between two Extremes of Authorities: In a matrix organizational structure, there

are two lines of authority: functional and project. The functional manager provides
expertise in a specific area, while the project manager oversees the project's completion.

Slide#4