Business Organization Forms and Advantages

The video tutorial discusses various forms of business organizations, including sole proprietorships, partnerships, companies, and cooperative societies. It covers key factors such as capital requirements, cost of formation, ease of formation, ownership transfer, management skills, regulations, flexibility, continuity, and liability. The tutorial aims to help viewers decide the most suitable business form based on these factors. The video concludes with a preview of the next topic on business organization selection.

What are the main factors to consider when choosing a form of business organization?

• Competitor strategies

• Employee preferences

• Capital availability, cost of formation, and ease of formation

• Location and weather

Which business form is most suitable if you have limited capital?

• Partnership

• Public company

• Cooperative society

• Sole proprietorship

What is a significant advantage of a company in terms of capital?

• No need for capital

• Easy to accumulate large amounts of capital

• Capital is not required

• Capital is provided by the government

Which business form has the lowest cost of formation?

• Sole proprietorship

• Cooperative society

• Partnership

• Company

What is a major disadvantage of forming a company?

• No legal recognition

• Easy to form

• Limited liability

• High formation cost and complex procedures

Which business form allows easy transfer of ownership?

• Sole proprietorship

• Partnership

• Public company

• Cooperative society

What is a key advantage of a sole proprietorship in terms of management?

• Requires a board of directors

• Owner can manage with basic skills

• No need for management skills

• Requires high-level management skills

Which business form has the highest flexibility in operations?

• Cooperative society

• Sole proprietorship

• Partnership

• Company

What happens to a sole proprietorship if the owner dies?

• It is transferred to the government

• It becomes a public company

• It continues to operate

• It ceases to exist

Which business form typically has limited liability?

• Cooperative society

• Company

• Partnership

• Sole proprietorship