Advertisements
Advertisements
प्रश्न
Discuss the factors that determine the choice of form of organisation.
Advertisements
उत्तर
Factors determining Choice of a Business Form
The following are the factors that determine the choice of a business organisation.
(a) Nature of business activity: Any individual first needs to decide upon the nature or kind of business activity that he or she desires to undertake. In case the business type requires direct personal contact with customers, then the sole proprietorship form of business proves beneficial. On the other hand, if direct personal contact is not required, then a partnership or a company form of business is more suitable.
(b) Degree of control: The choice of a business form also depends on the degree of control that a businessperson wants to exercise over its management. If a businessperson aims to have direct control over all the business operations, then sole proprietorship may be considered appropriate. However, if he or she does not mind sharing the decision-making powers with others, then a partnership or company form of business would be more suitable.
(c) Degree and specialisation of managerial abilities: If the business operations are large and require specialised and skilled professionals for managing them, then a company form of business may be selected. However, if the business operations are not very complex and the scale of operations is also not very large, then sole proprietorship proves to be a better alternative.
APPEARS IN
संबंधित प्रश्न
The maximum number of partners for a firm carrying on banking business is .............. .
Select the proper option from the options given below and rewrite the completed sentence.
Business organization which is controlled by Hindu succession Act is known as ________
Select the proper option from the options given below and rewrite the completed sentence.
From the point of continuity ________ business organizations is the most suitable.
Match the correct pairs.
| Group “A” | Group “B” | ||
| a) | Private company | 1) | Compulsory |
| b) | Public company | 2) | Minimum 7 members |
| c) | Common Seal | 3) | Maximum 50 members |
| d) | Registration of a company | 4) | 61% share capital |
| e) | Government company | 5) | 51% share capital |
| 6) | Symbol of a company | ||
| 7) | Optional | ||
| 8) | Simple formation | ||
| 9) | Easy dissolution | ||
| 10) | Hindu succession Act 1956 |
Write a word or a phrase or a term which can substitute the following.
The rules and regulations laid down by the managing committee of a co-operative organization.
Write a word or a phrase or a term which can substitute the following.
'One man show' type of business organization.
Write short note on the following.
Merits of Joint stock company.
Write short note on the following.
Demerits of Co-operative society
State with reasons whether the following statement true or false.
Company form of organization has developed before industrial revolution.
State with reasons whether the following statement true or false.
Share holders can manage the business.
State with reasons whether the following statement true or false.
The main purpose of a co-operative organization is to earn profit.
State with reasons whether the following statement true or false.
In partnership agreement may be oral or written.
State the features of proprietorship.
Write short answer of the following.
State the types of partnership firm.
Write short answer of the following.
State the point of choice of forms of business organization.
Explain the merits of the Joint Hindu family business.
Distinguish between: Partnership Firm and Joint-stock Company
How many members are required to form a Public Company?
What is the main difference in share transfer between a private and a public company?
