The forms of business organisations tell us about the various structures of businesses and these structures of every organisation are having their separate identities and unique functions. All business entities are adopting some rules and regulations to run different operations/activities for fulfilling the desired goals.
Before knowing the forms of business we have to know about the meaning of business organisation which is explained as follows:
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What are the business organisations:
It means to all enterprises which are connected in commercial activities. These business entities are doing their operations differently from each other according to the nature of business. The main function of the businesses is producing goods and services. After reading the meaning of the business can be divided into the various forms of business which are as follows:
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Forms of business organisations:
Forms of business describe the different structures of Business enterprises which are classified into three major categories:
1)Private Sector Enterprises:
The business organisations which are fully controlled by private individuals are known as private enterprises. The main motive of these businesses is to earn a profit.
For example Tata company, Samsung, Honda etc.
There are five important types of private sector enterprises which are as follows:
- Sole proprietorship
- Joint Hindu Family business
- co-operative Society
2)Public Sector Enterprises:
These enterprises owned, controlled and managed by state and central government. Public sector enterprises doing their work with the aim to provide service.
For example LIC, HPCL etc.
3)Joint Sector Enterprises:
The business organisations which are jointly owned and controlled by private individuals and government is called joint sector organizations. In this type of enterprises, day to day operations are managed by private owners, on the other hand, the supervision and overall control of these activities are in the hands of the government.
For example Maruti Udyog.
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