Business organization

khushal By khushal, 19th Oct 2014 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

It has been discussed in the previous chapter that business provides an important source of earning the person who establishes business is know as businessman. Businessman introduces capital in business and earns profit by business activities. Therefore business may be classified in different forms, which is selected by the businessman. The businessman can select business according to his capital investment.

Business organization and Sole proprietorship

It has been discussed in the previous chapter that business provides an important source of earning the person who establishes business is know as businessman. Businessman introduces capital in business and earns profit by business activities. Therefore business may be classified in different forms, which is selected by the businessman. The businessman can select business according to his capital investment. Thus business can be classified in several forms which are as follows:

Sole proprietorship
Sole proprietorship is a very old form of business organization. It can be started by anyone having small amount of capital a sole proprietor invests capital, bears the whole risk of his business and takes all the profits. And now Characteristics
1 sole proprietorship is owned by an individual.
2 the capital in the sole proprietorship is introduced by owner himself.
3 the liability of bad debts of business is unlimited in sole proprietorship.
4 Sole proprietorship can be started with small capital
5 All profits or losses are born by the sole proprietor only.

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author avatar khushal
i am working of business department and i am perfect in business

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author avatar tafmona
20th Oct 2014 (#)

thanks for this unique message

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author avatar khushal
20th Oct 2014 (#)

thanks to read my post

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