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Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

CBSE Class 11 Commerce Business Studies Forms of Business Organisations : CBSE is an eminent educational board and since its inception, it provides quality education to all students across India. It is a self-financing body and maintains its praise worthy educational standards without taking any grant-in-aid from Government. Several public and private schools are affiliated to this board and its well-structured syllabus and examination pattern are equally implemented in these schools. Keeping in mind the students’ basic requirements in terms of knowledge and mental development, the syllabus of each class is structured in a comprehensive manner. All essential topics are incorporated in the syllabus to make students up-to-date in all respects. Several subject experts are associated with this board and they are involved in preparing syllabus from class I to 12. Hence, students get clear ideas on different topics and it inspires them to a great extent. Two important exams including AISSCE for class 10 and 12 are conducted by this board.

 CBSE provides standard education to all and also promotes a state-of-the art environment that makes students vivacious and competent in all aspects. CBSE Syllabus is well-structured as several proficient subject experts are associated with this board. The syllabi of CBSE Maths, CBSE Science along with other syllabi are amended from time to time to make students up-to-date with current information so that they can meet all educational demands confidently.

Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

CBSE Class 11 Commerce Business Studies Forms of Business Organisations : CBSE Class 11 Commerce Business studies serve several functions. First of all, they allow the broad study of business to be broken down into more comprehensive subject areas that are easier to absorb and study. This categorization of studies allows for specialization as well. Rather than requiring each student to be proficient in the general category of business, business studies allow students to concentrate on one area and specialize in it to achieve expertise. Business studies more efficiently prepare students for business careers than a broad study of business would.

CBSE Class 11 Commerce Business studies offer several benefits, both to individuals and the business marketplace as a whole. These studies allow students to receive a higher quality of education in their chosen profession that will better prepare them for their careers. This, consequently, affects the business world positively. When these students obtain their degrees in their specialized areas of concentration, they will bring a higher quality of knowledge to the business world that will reflect in their contributions to their places of employment, thereby raising business standards.

Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

CBSE Class 11 Commerce Business Studies Forms of Business Organisations :  Download CBSE Class 11 Commerce Business Studies Forms of Business Organisations study material in PDF format. We provides solved papers, board question papers, revision notes and NCERT solutions for CBSE Class 11 Commerce Business Studies Forms of Business Organisations. The CBSE Class 11 Commerce Business Studies Forms of Business Organisations topics  are :

Concept includes meaning and features

Unit 2: Forms of Business organizations

Sole Proprietorship-Concept, merits and limitations.

Partnership-Concept, types, merits and limitation of partnership, registration of a partnership firm, partnership deed. Types of partners

Hindu Undivided Family Business: Concept

Cooperative Societies-Concept, types, merits, and limitations.

Company-Concept, merits and limitations; Types: Private and Public-Concept

Formation of company-stages, important document (Memorandum of Association, Articles of Association, Certificate of incorporation and Certificate of commencement)

Choice of Form of Business Organisation

Download here CBSE Class 11 Commerce Business Studies  Forms of Business Organisation

Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

CBSE Class 11 Commerce Business Studies Forms of Business Organisations : A cooperative society or Business Organisations is voluntary association of persons who join together, with the motive of welfare of its members. Features of cooperative society are voluntary membership, legal status, limited liability, control and service motive. The merits of cooperative society are equality in voting status, limited liability, stable existence, economy in operations, support from government and ease of formation. Some of the limitations of a cooperative society are limited resources, inefficiency in management, lack of secrecy, government control and differences of opinion.

 Types of cooperative society are Consumer’s Cooperative Societies, Producer’ ’s Cooperative Societies, Credit Cooperative Societies, Marketing Cooperative Societies, Housing Cooperatives and Farmers’ Cooperative Societies. Consumer’s Cooperative Societies reestablished for protecting the interest of consumers. Producer’s Cooperative Societies are formed to protect the interest of small producers. Marketing Cooperative Societies reformed to help small producers in selling their products. Farmer’s Cooperative Societies are formed to protect the interest of farmers by improving their yield and returns. Credit Cooperative Societies are formed to provide easy credit on reasonable terms to the members. Cooperative Housing Societies are formed to help people with limited income to construct houses at reasonable costs.

MEANING :

A business enterprise is an institutional arrangement to perform any business activity.

CLASSIFICATION :

On the basis of ownership business enterprises can broadly be classified into the following categories.

Private Enterprises :

Owned, managed and controlled by private persons Public Enterprises.

Non Corporate Form :  

  Sole proprietorship       Partnership      Joint Hindu family Business

Corporate Form :  

Co-operative society        Joint Stock company

Public Enterprises : Owned, managed and controlled by govt.

Departmental undertaking       Statutory corporation         Govt. Company

In case of CORPORATE FORM of private enterprises the identity of the enterprise is separate from that of the owner and in case of NON CORPORATE FORM, the identity of the enterprise is not different from that of its owners.

SOLE PROPRIETORSHIP :

Sole proprietorship means a business owned, financed and controlled by a single person who is recipient of all profits and bearer of all risks. It is suitable in areas of personalized services like beauty parlour, hair cutting saloons and small scale activities like retail shops.

FEATURES :

    1. Single ownership :- It is wholly owned by one individual.
    2. Control :- Sole proprietor has full power of decision making.
    3. No Separate Legal Entity :- Legally there is no difference but business and businessman.
    4. Unlimited Liability :- The liability of owner is unlimited. In case the assets of business are not sufficient to meet its debts, the personal property of owner can be used for paying debts.
    5. No legal formalities :- are required to start, manage and dissolve such business organization.
    6. Sole risk bearer and profit recipient :- He bears the complete risk and there is nobody to share profit / loss with him.

MERITS :

    1. Easy to start and close:  It can be easily started and closed without any legal formalities.
    2. Quick decision making: as sole trader is not required to consult or inform anybody about his decisions.
    3. Secrecy :- He is not expected to share his business decisions and secrets with anybody.
    4. Direct incentive :- Direct relationship between efforts & reward provide incentive to the sole trader to work hard.
    5. Personal touch :- The sole trader can maintain personal contacts with his customers and employees.
    6. Social Utility :- It provides employment to persons with limited money who are not interested to work under others. It prevents concentration of wealth in few hands.

LIMITATIONS:

    1. Limited financial resources :- funds are limited to the owner’s personal savings and his borrowing capacity.
    2. Limited Managerial ability :- Sole trader can’t be good in all aspects of business and he can’t afford to employ experts also.
    3. Unlimited liability :- of sole trader compels him to avoid risky and bold business decisions.
    4. Uncertain life :- Death, insolvency, lunacy or illness of a proprietor affects the business and can lead to its closure.
    5. Limited scope for expansion :- Due to limited capital and managerial skills, it cannot expand to a large scale.

SUITABILITY : Sole propietorship is suitable.

    1. Where the personal attention to customer is required as in tailoring, tailoring beauty parlour.
    2. Where goods are un-standardized like artistic jewellery.
    3. Where modest capital & limited managerial skills are required as in case of retail store.

JOINT HINDU FAMILY BUSINESS :

It is owned by the members of undivided joint Hindu family and managed by the eldest member of the family known as KARTA. It is governed by the provisions of Hindu law. The basis of membership is birth in a particular family. There are two systems of JHF Business–

DAYABHAGA SYSTEM :

Is prevailing in West Bengal – Both male and female members can become co parceners

MITASKSHARA SYSTEM :

It prevailing all over India, except West Bengal. It allows only male members to become co parceners

FEATURES :

  1. Formation – for a joint hindu family business there should be atleast two members in the family and some ancestral property to the inherited by them.
  2. Membership – is by virtue of birth in the family.
  3. Control – In it, control lies with eldest member of family known as “Karta”. All other members can give only advice.
  4. Liability – of Karta is unlimited but of all other members is limited to the extent of their share in property.
  5. Continuity – The business is not affected by death or incapacity of Karta as in such cases the next senior male member becomes the Karta.
  6. Minor members – A minor can also become full fledged member of Family business.

MERITS :

  1. Effective control – The Karta can promptly take decisions as he has the absolute decision making power.
  2. Continued business existence – The death, Lunacy of Karta will not affect the business as next eldest member will then take up the position.
  3. Limited liability – The liability of all members except Karta is limited. It gives them a relief.
  4. Secrecy – Complete secrecy regarding business decisions can be maintained by Karta.
  5. Loyalty and co operation – It helps in securing better co operation and greater loyality from all the members who run the business.

LIMITATIONS :

  1. Limited capital – There is shortage of capital as it is limited to the ancestral property.
  2. Unlimited liability of Karta – It make him less enterprising.
  3. Dominance of Karta – Karta manages the business and sometimes he ignores the valuable advice of other members. This may cause conflict among members and may even lead to break down of the family unit.
  4. Hasty decisions – As Karta is overburdened with work. So sometimes he takes hasty and unbalanced decisions.
  5. Limited managerial skills – Limited managerial skills of Karta also poses a serious problem.

The joint Hindu family business is on declive because of the diminishing no. of Joint Hindu families in the country.

Details About CBSE Class 11 Commerce Business Studies Forms of Business Organisations

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