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प्रश्न
Discuss the factors that determine the choice of form of organisation.
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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.
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संबंधित प्रश्न
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Division of work is not required in organising a function.
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Business organization which is controlled by Hindu succession Act is known as ________
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| 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 |
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The type of commercial organization established for providing services to its members.
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Share holders can manage the business.
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Sole Proprietorship is useful for small business.
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Long answer type question.
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