Meaning & DefinitionIn literal sense the word business means, ‘ the state of being busy’

“Business is an activity which involves exchange of goods or service with the assistance of various activities like banking, transport, insurance, operation of middlemen, for a consideration, with the object of

making profit.”

The stages

Need for Business

• Essential activity for the society

• Brings economic gain to the entrepreneur

• Provides societal requirements

Qualities of a successful Business

Qualities of a successful Businessman

Scope of Business

Various types of industries

Primary Industry

Extractive Industry

Genetic Industry

Scope of Business

Various types of industries Construction Industry

Manufacturing Industry-It is further subdivided into following categories

Analytical

Synthetic

Processing

Assembly line

Sole Proprietorship

Types of Partners

Partnership Deed

• Amount of Capital invested• Profit or loss sharing ratio• Salary or Commission payable• Duration of Business• Name & Address of Partners• Duties & powers of each partner• Nature & place of business• Terms to run the business

Dissolution of PartnershipBy agreementBy noticeCompulsory DissolutionInsolvency of PartnersDissolution by Court1. Insanity of Partner2. Misconduct by a partner3. Incapacity of a partner4. Breach of agreement5. Transfer of shares6. Regular loss7. Dispute among partners8. Illegal business

Joint Hindu family

• Governed by Hindu Law• Membership by birth• Management by Karta• Limited liability of others• Continuity• Minor as a member• Accounts maintained by Karta• Implied authority of Karta

Rights of Karta

• Rights to manage & control the business• Right to enter into contracts, draw & accept

bill• Right to maintain books of accounts• Right to delegate work to the co-parceners

Liabilities of Karta• Maintenance of rights of co-parceners• Responsible for marriage of all unmarried

members• He represents the family

Joint Stock CompanyAn association of many persons who contribute money or money’s worth to a common stock and employ it in some trade or business, who share the profit and loss arising there from. - James Stephenson

Joint Stock Company

• Legal formation• Artificial person• Separate legal entity• Perpetual succession• Limited liability• Democratic management• Transferability of shares

Types of Companies• Private Company• Public Company• Statutory Company• Chartered Company• Registered Company• Indian Company• Foreign Company• Multinational Company• Transnational Company

NGO

• Social Institution• Clubs & Associations• Chamber of Commerce

Characteristics• Non business organization• Non profit voluntary group• No involvement in Govt. structure• Registered under Societies registration Act,

Cooperative societies Act, Public trust Act and Companies act

• Can have full-time or part-time employees• Funds raised from public through donations

FORMS OF NBO’S

• Trusts• Cooperative societies• Clubs and Associations

Trusts Legal form of organizing a social institution which is a non

profit organization As per the trust act Formed for rendering social services like healthcare,

education, maintenance and infrastructural facilities etc,, The trust act lays down the structure and procedure to run

such institutions. The head of the trust is the “Managing Trustee” and

members of the governing body are the “Trustees” There is no annual election and if need be the existing

trustees give consent for a new trustee to be appointed.

Cooperative Societies

• Consumer Cooperative Society• Producer’s Cooperative Society• Cooperative Marketing Society• Cooperative Credit Society• Cooperative Farming Society• Housing Cooperative Society

Characteristics of Co-operative Society

• Open membership• Voluntary association• State control• Sources of finances• Democratic management• Service motive• Separate Legal Entity• Distribution of surplus• Self help through mutual cooperation

Clubs and Associations Established for the purpose of discharging certain social

functions Mainly formed to provide the members facilities like sports,

recreation and cultural associations like dance, drama, music They are run to promote the above activities for the younger

generation Funds are raised through membership fees, donations, govt.

grants etc, Registered under “The Societies Act” Certain organizations are formed to develop infrastructural

facilities in their localities.