unit-3-forms-of-business-organization-ii

Unit-3 Forms Of Business Organization II

In this unit you will learn about the requisites of a good form of organisation, compare the four forms of organisations.

Company form of organisation is the most ideal form for all types of businesses. Discuss.




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Written on Apr 15, 2019 6:15:00 PM

  • In those enterprises where the risk involved is quite significant and scale of operation is medium, the choice will be the private company.
  • Transport undertakings, hire purchase units, finance and leasing companies etc. are generally organised as private limited companies.
  • For large scale business operations, the most suitable form of business organisation is the public limited company.
  • The large scale manufacturing plants, large transport undertakings, engineering and electronic companies, departmental stores, multiple shops are usually organised on the basis of public limited company.
  • The principal reasons are the necessity of larger capital and the large amount of risk involved.