Co-operation · Class 11 Commerce
Ch 2Comparative Study of Various Forms of Business Organisations — Class 11 Co-operation, concept-first.
Every business must be organised in some legal shape before it can start trading. A form of business organisation is the legal structure a business chooses for owning, financing, managing and sharing the profit (and the risk) of the enterprise.
Key concepts
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Forms of Business Organisation
A form of business organisation is the legal structure that decides ownership, capital, management, sharing of profit and the liability of owners.
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Introduction to Forms of Business Organisation
Every business must be organised in some legal shape before it can start trading. A form of business organisation is the legal structure a business chooses for owning, financing, managing and sharing…
Sole Proprietorship
A sole proprietorship (also called sole trading concern) is a business owned, financed, managed and controlled by a single individual who alone enjoys all the profits and bears all the losses.
Partnership Firm
When a single person's capital and skill fall short, two or more persons may join to carry on a business together.
Joint Stock Company
As business grows to a very large scale, it needs huge amounts of capital and a form that protects investors from unlimited risk. The Joint Stock Company meets this need.
Co-operative Society
A co-operative society is a voluntary association of persons who join together on the basis of equality to promote their common economic and social interests through mutual help and self-help, rather…
Comparative Study — How the Forms Differ
Having studied each form, we can now compare them side by side. The table below sets out the main points of difference across all four forms.
Exercises
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- Q1State any four factors that should be considered while choosing a suitable form of business organisation.Free
- Q2Define sole proprietorship and state any four of its features.Free
- Q3Explain any four merits of a partnership firm.Free
- Q4State any four limitations of a joint stock company.Preview
- Q5What is a co-operative society? State any four of its features.Preview
- Q6Distinguish between sole proprietorship and partnership firm.Preview
- Q7Distinguish between partnership firm and joint stock company.Preview
- Q8Distinguish between joint stock company and co-operative society.Preview
- Q9How does a co-operative society differ from the other forms of business organisation? Explain.Preview