Mainly this Channel for Engineering Students, such as Btech/BE, Diploma Engineering (Polytechnic), ITI students. This Video Tutorial will be very helpful to our final year Engineering Students (BTech and Diploma Students).
In this tutorial students can learn " BUSINESS - Types of Businesses - Forms of Business Organisation ".
Defination of Business
• Business is an occupation or trade and the purchase & sale of products or services to make a profit.
• The activities which have the capacity of earning is called business.
• Business means all those activities which are engaged in production and distribution as well as exchange of goods for earning of profit.
Purpose of Business
The primary purpose of a business is maximize profits for its owners.
Types of business
1) Service Business:- A service type of business provides products with no physical form. Service type forms offer professional skills, expertise, advice and other similar products.
Examples of services business are:- salons, repair shops, schools, banks, accounting firms and law firms.
2) Trading Business:- This type of business buys products at wholesale price and sells the same at retail price. They are known as ‘buy and sell’ business. They make profit by selling the products at prices higher than their purchase costs.
A trading business sells a product without changing its form. Examples are:- grocery stores, convenience stores, distributors and other resellers.
3) Manufacturing business:- A manufacturing business buys products with the intention of using them as a materials in making a new product. Thus, there is a transformation of the products purchased.
A manufacturing business combines raw materials, labor and factory overhead in its production process. The manufactured goods will then be sold to customers.
4) Hybrid Business:- Hybrid business are companies that may be classified in more than one type of business. A restaurant, for example combines ingredients in making a fine meal (Manufacturing), sells a cold bottle of wine(Trading) and fills customer orders (service).
Forms of Business Organization
1. Sole Proprietorship
2. Partnership
3. Corporation
4. Cooperative
Sole Proprietorship
The sole proprietorship is a business owned by only one person. It is easy to set-up and is least costly among all forms of ownership.
Features:-
1. Individual ownership
2. Unlimited liability
3. Undivided risk.
4. Freedom in selection of business
The sole proprietorship form is usually adopted by small business entities.
Partnership
A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divided the profits of the business among themselves.
Corporation
A corporation is a business organization that represented by shares of stock. The owners(Stockholders) enjoy limited liability but have limited involvement in the company’s operations. The board of directors, an elected group from the stockholders controls the activities of the corporation.
Cooperative
A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members.
Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking and housing cooperatives.
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This Tutorial Video developed by Mr Soumen Chakrabarti, Faculty of Mechanical Engineering at Govt. Polytechnic, W.B., more than 27 years experience in teaching and CAD field. for any query, M- 9903023741
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