Aarthi Ppt

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DEFINITION

Ownership is the state of exclusive rights

and control over property which may be an

object , land , real estate , or intellectualproperty.

NEED FOR AN

OWNERSHIP

As and when an Entrepreneur wishes to raise a

loan , a banker, a financial institution and even a

private money lender like to know the ownership

form of enterprise .

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TYPES OF OWNERSHIP

Proprietorship

Partnership

Company

Co-operative

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PROPRIETORSHIPIn proprietorship the enterprise is

owned and controlled by one person . It isalso called as sole trade organization .MAIN FEATURES

  One man ownership

  No separation between ownership

management  Unlimited Liability

  All profits and losses to the proprietor 

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  ADVANDAGES

  Simple form of organization

  Owner’s freedom to take decisions

High secrecy Tax Advantage

DISADVANTAGES

Limited Resources

Limited Ability Unlimited liability

Limited life of Enterprise form

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PARTNERSHIP

In Partnership more persons come

together and starts business .

MAIN FEATURES   More persons

Profit and loss sharing

  Contractual Relationship   Unlimited liability 

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ADVANTAGES

Easy formation

More capital available Diffusion of Risk

DISADVANTAGES

Unlimited liability 

Divided authority 

Lack of continuity 

Risk of implied Authority 

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COMPANYAn association of many persons who

contribute money or money’s worth to acommon stock and employ it in some trade orbusiness and also share the profit as case maybe , arising therefrom.

MAIN FEATURES

Perpetual Existence Limited Liability

Number of members

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  PRIVATE COMPANY

A private company has been defined as acompany which by its Articles of Association

a)  Restricts rights to transfer sharesb)   Limits of number of its members to fifty

c)   Prohibits any invitation to the public to subscribe for theshares

PUBLIC COMPANY

A Public company is one which place norestrictions by its Articles of Association on transfer of shares . Minimum number of person is seven and there isno limit to maximum number of share holder

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  ADVANTAGE

Perpetual Existence

Professional management Diffusion of risk 

Expansion Potential

DISADVANTAGES

  Lack of secrecy

  Legal restrictions

Management Mischiefs

  Lack of personal interest 

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CO-OPERATIVE

MAIN FEATURES

o  Voluntary association

o   Service motive

o   Government control 

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  ADVANTAGES

oEasy formation

o  Limited liability

o  Social services

DISADVANTAGES

o   Lack of secrecy

o Corruption

o   Lack of mutual interest 

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1. Nature of business

2. Area of operations3. Degree of control

4. Capital requirements

5. Extend of risk and Liability 

6. Duration of Business

7. Government Regulations

FACTORS INFLUENCING

CHOICE OF OWNERSHIP

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OWNERSHIP PATTERN IN SMALL

SCALE INDUSTRIES IN INDIA

Proprietorship is the most

popular form of ownership structure in small

scale industries is indicated by its 87% sharesin all Enterprises . Partnership is second largest

form of ownership and establishment of 

company form involves complex procedures as

compared to Proprietorship and Partnership.

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THANK YOU