1. BUSINESS ORGANIZATION PRIVATE SECTOR UNDERTAKINGS PUBLIC SECTOR UNDERTAKINGS JOINT SECTOR UNDERTAKINGS

2. PRIVATE SECTOR UNDERTAKINGS

3.  Owned, Controlled and Financed by private businessmen.  No Government Participation  Main motive is to earn profits.

4. FEATURES

5. 1. OWNERSHIP & CONTROL

6.  Fully owned & controlled by Private Entrepreneurs.  Owned by one individual or by a group of individuals.

7. 2.PROFIT MOTIVE

8. 3. NO STATE PARTICIPATION

9. 4. PRIVATE FINANCE

10.  Capital is arranged by private owners.  Sole trader contributes the capital in Sole Proprietorship.  In Partnership, capital is invested by partners.  A Joint stock Company, raises its capital by the issue of shares & debentures.

11. 5. INDEPENDENT MANAGEMENT

12.  Managed by owners.  In Sole Proprietorship and Partnership, the owners, directly manage the firm.  In Joint stock Company, management lies in the hands of directors, who are the elected representatives of the shareholders.

13. PUBLIC SECTOR UNDERTAKINGS

14. FEATURES

15. 1. STATE OWNERSHIP

16.  Fully owned by the Government or some Public Authority.

17. 2. GOVERNMENT CONTROL

18. 3. SERVICE MOTIVE

19. 4. STATE FINANCING

20.  Capital and Funds through appropriation from Government Budget  Loan Financing.

21. 5. BUREAUCRATIC MANAGEMENT

22.  Managed and Governed within the policy framework and rules framed by the Government.

23. 6. PUBLIC ACCOUNTABILITY

24.  Accountable to public for performance.  Annual Audit of Public Sector Undertakings is conducted by the Comptroller & Auditor General of India.  Annual Reports are subject to discussion in the parliament or State Legislature.

25. JOINT SECTOR UNDERTAKINGS

26. WITHOUT FOREIGN PORTFOLIO :  Ownership, Control & Management is shared jointly by the Government, Private Entrepreneurs and Public at large.  Proportionate Shareholding : Government- 26% Private entrepreneurs- 25% Public- 49%

27. WITH FOREIGN PORTFOLIO : Proportionate Shareholding : Government- 25% Private entrepreneurs- 20% Foreign Investors- 20% Public- 35%

28. FEATURES

29. 1. MIXED OWNERSHIP

30.  Government, Private Entrepreneurs and Public at large.

31. 2. COMBINED MANAGEMENT

32. 3. SHARE CAPITAL

33. PRIVATE SECTOR ORGANIZATION SOLE PROP. JOINT HINDU FAMILY BUSNS PARTNERSHIP JOINT STOCK COMPANY COOP. SOCIETY

34. SOLE PROPRIETORSHIP

35.  One individual provides capital, bears all risks and independently manages the business.

36. JOINT HINDU FAMILY BUSINESS

37.  Owned & Controlled by a Joint Hindu Family, which consists of father, son, grandson and the great grandson.  Head of the family, called Karta, manages the business.  Liability of every member of the family, except Karta, is limited to his share in the family’s assets.

38. PARTNERSHIP

39.  Two or more persons enter into a contract to carry on some lawful business jointly and share profits.  Each partner is jointly and individually liable for the debts of the firm.  Liability of every partner is unlimited.  Controlled and managed by Partners.

40. JOINT STOCK COMPANY

41.  Incorporated association of two or more persons.  Distinct legal entity.  Continuity is independent of the lives of its members.  Management & Control lies in the hands of Board of Directors.

42. COOPERATIVE SOCIETY

43.  Organized on the principle of Mutual- Self- help.  Incorporated association, with distinct identity.  Limited liability of its members.  Managed & Controlled by Board of Directors.