The various forms of business organizations are established for the purpose of conducting industry and commerce to-day.
Organization of business may take different forms from the stand paint of ownership.
A person who wishes to carry on any business will have to decide whether he would own the business himself or he would run it together with other persons. If he owns and runs the business himself, his business will be known as a sole proprietorship or a sole trading business.
When he works in group with other persons, the form of the business may be called a partnership, a company or a co-operative. Among Hindus, there is a peculiar type of business form known as the Joint Hindu Family business.
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While the sole proprietorship, the partnership and the company may be regarded as ownership forms of business, the business unit may be described also according to whether or not it is private owned or owned by State. A business unit that is owned by a private individual or a group of individuals will be known as a business in the private sector; and a unit that is owned by the Government is a business in the public sector.
The change over from one type of enterprises to another was slow and gradual. Each type of business organisation had its own advantages and drawbacks. It adapted its method of business according to the changing circumstances. All types of business units exist side by side, in order to fulfill the needs of the public in one form or the other. The sole trading and partnership concerns happen to be the oldest types of business units and are simple and very popular.