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Task


             1.  Explain any two types of business.
             2.  What is hybrid business?
             3.  What do you mean by "service" in business?



                 Forms of Business Organisations

        There are majorly four Business Organisations. Let us learn about them.


        Sole Proprietorship

        Sole proprietorship is the simplest form of a business organisation which does not require any legal formalities for
        registration. It is owned by a single person who has day-to-day responsibilities for running the business. Some of
        these are local grocery shop, bakery store, a local clothes store, etc.

        Advantages of Sole Proprietorship
        Some advantages of sole proprietorship are:
           • Single owner controls the business and makes all the decisions.

           • All profits are taken by the owner.
           • Easy to set up with minimum investment.
           • Owner makes his own rules.
           • Flexibility in running the business.


        Disadvantages of Sole Proprietorship
        Some disadvantages of sole proprietorship are:

           • Owner is liable for business debts and failures.
           • Personal assets are at risk.
           • Limited resources and funds to manage a business.

        Partnership
        Business is legally owned and operated by two or more individuals (partners) for the purpose of earning profits.
        The profits are shared amongst the partners as per the legal agreement. A partnership firm in India is governed
        under the Indian Partnership Act, 1932.


        Advantages of Partnership
        Some advantages of partnership are:
           • Can be easily formed and is free from legal restrictions.
           • Profits and liabilities are shared by the partners.
           • Shared resources provide more capital for the business.

           • Has the ability, experience and talents of the partners.
           • Less damages due to shared losses and risks.






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