Management Micro
Management Micro
Management Micro
of
Engineering Nepti,
Ahmednagar
have successfully completed the Project work entitled “Types of Business Ownerships” under my supervision, in the
partial fulfillment of the requirements for the TY Diploma in subject MGT and the report submitted to PROF.
CHITALE.S for academic year 2023-2024.
Date :
Place: Shri Chhatrappati Shivaji Maharaj College of Engineering Nepti, Ahmednagar
2
ACKNOWLEDGEMENT
It is a matter of great pleasure for me that I have been elected to work on this project
to prove my knowledge and abilities. This project not only enhanced my knowledge
in this field but also increased my general awareness.
The completion of any project is always due to the effort from numerous people, so
no project would be considered complete without words of appreciation for all those
who contributed to the project.
In completing this project, I have been fortunate to have help, support and
encouragement from many people. I would like to acknowledge them for their co-
operation. First, I would like to thank my internal project guide PROF. CHITALE.S
Mam, for her constant motivation and valuable help through the project work and her
instructions has served as the major contributor towards the completion of the
project. I also extend my thanks to other Faculties for their Co-operation during my
Course. I express my deep thanks to PROF.JAGTAP.V.(HOD) for warm hospitality
and affection extended towards me.
Last but not least I would also like to thank my Senior, classmates who help me to
complete this work successfully
3
4
Index
1. Annexure I 8-10
3. Annexure II 11-20
4. Rationale 11
7. Literature Review 11
15. Logbook 27
5
ANNEXURE I
Micro-Project Proposal
6
4.0Action Plan:
7
5.0 Resource Required:
Mr.R.Paygaonkar
8
ANNEXURE - II
1.0Rationale:
An engineer has to work in industry with human capital and machines. Therefore, managerial
skills are essential for enhancing their employability and career growth. This course is
therefore designed to provide the basic concepts in management principles, safety aspects and
Industrial Acts.
9
5.0 Actual Methodology Followed:
1. As per planned, as soon as we got the topic, the respective group members sat together and
discussed regarding the micro project.
2. The selection of topic is relevant which teaches us to learn something new.
3. The work of the project was divided in such a way that each and every member of our group
contributed equally.
4. Collection of the material has been done as per the requirements.
5. Later, soft copy was made and shown to the respected subject teacher.
6. Corrections were accordingly as per the suggestions given to us.
7. The final hard copy was successfully submitted with DVD attached to it.
10
7.0 Outputs of the Micro Project:
Business ownership refers to legal control over a business. It gives the owner the legal right to make
certain business decisions.
Business
Ownerships
1. Sole proprietorship
A sole proprietorship occurs when someone does business activities but doesn’t register as another kind
of business. There is no separate business entity, meaning there is no distinction between the business
owner’s personal and professional assets and liabilities.
Sole proprietorships are simple, easy to start, and one of the most common types of business ownership.
They are a good option for someone starting a low-risk business on a trial basis. Also, no additional
taxation!
However, because there is no formal separation, the business owner will become personally liable for any
obligation the business might have.
• Example: Beauty parlour, barbershop, general store and sweet shop run by a single owner.
11
2. Partnership
Similar to sole proprietorships, a partnership is the simplest type of business ownership when two or more
people are involved. There are two kinds: limited partnerships and limited liability partnerships.
This term liability is being thrown around quite a bit, so let’s define the types of liabilities we will be
looking at when discussing business ownership:
Limited liability: a person’s liability is limited to a fixed sum, which usually reflects their investment in
the business
Unlimited liability: there is no limit to the liability and the owners take full responsibility for the
companies’ debts
A limited partnership has one partner with unlimited liability while everyone else involved has limited
liability. With limited liability, comes limited control. Since being a partner with limited liability is less of
a risk, they get less say in decision-making processes.
A limited liability partnership has only one class of owners, meaning there is no partner with the risk, and
power, of unlimited liability. A limited liability partnership shares the liability among the owners,
protecting them from the mistakes of their partners.
12
3. Limited liability company
Not to be confused with a limited liability partnership, a limited liability company (LLC) separates the
owner’s personal and professional assets. Meaning if your business gets hit with a lawsuit or goes
bankrupt, your house, car, and personal piggy bank are safe.
Similar to sole proprietorships and partnerships, LLCs do not pay additional federal income taxes or those
associated with being a corporation. However, depending on their location, they might be subject to other
state taxes. Also, LLCs fall under the category of self-employment, so those taxes fall on them as well.
An LLC is a good choice for a business owner willing to take a little bit of a bigger risk or one looking to
protect their personal assets.
Examples:
• Amazon
Amazon.com Services LLC, a subsidiary of Amazon.com, was founded in 2002 and is in the
electronics and appliances sector. It brings in nearly $1 billion annually.
• Hertz
Hertz Vehicles LLC is a car rental company and part of the Hertz family of companies.
• Sony
Sony Interactive Entertainment LLC is a subsidiary of Sony, Inc. and is the video game and digital
entertainment arm of the company.
• IBM
IBM Credit LLC is a subsidiary of IBM and finances the purchases of IBM and other products.
• Google
Google LLC is a subsidiary of Alphabet, Inc., and is the global search giant we use every day.
4. Corporations
There are actually a few separate types of corporations, and each one has something that makes it a
little different.
13
C corporation
A C corporation, or just a regular corporation, is its own entity kept separate from its owners. This means
they offer the most protection in terms of personal liability.
Corporations have an advantage when it comes to funding: stock. A stock is a partial share in a company,
so when people buy stock, they are essentially buying ownership and decision-making responsibilities.
However, starting a corporation costs more than any other business structure. Not only are they legally
required to do keep more records and release more reports, but they also pay income tax. In some cases,
there is even double taxation - once on profits, and then again on the dividends distributed to
stockholders.
With so many different stakeholders contributing to the same business, corporations become solid. If
someone leaves, the business remains relatively unaffected.
A corporation is a good structure for a business owner looking for a little more risk, good funding
options, and the prospect of eventually “going public,” which means the company will eventually sell
stock to the public.
S corporation
An S corporation, or S corp, is a type of corporation that is meant to avoid the double taxation that hits
normal C corporations.
To become an S corp and avoid that taxation, you file a special election. Once the business is officially an
S corp, it is no longer taxed on profits. Instead, all profits, and losses, are passed on to the stockholders.
However, this is not possible everywhere. There are certain states that tax above a certain limit and some
just tax them like a C corp.
Becoming an S corp isn’t possible for everyone. If you have more than 100 stakeholders and any
stakeholders that aren’t citizens of the United States, you are out of luck. You can find other S corp
criteria here.
14
B corporation
Benefit corporations, or B corps, have missions similar to non-profit organizations, but they are, in fact, a
for-profit corporation. Their stakeholders have the goal of providing a public benefit, but they also want
to see a profit.
Certain state governments also want to see that public benefit; some require B corps to submit benefit
reports that prove they are contributing to the good of the public.
Even though they might have different purposes, B corps are not taxed differently form C corps.
Close corporation
A close corporation resembles the structure of a B corp. A lot of the rules associated with smaller
companies also apply to close corporations.
With other types of corporations, anyone can own stock. If there is stock available and they have the
money, it’s theirs. This is where close corporations differ: the stocks are owned by people that are closely
related to the business.
Stockholders in close corporations benefit from liability protection while also being free of reporting
requirements and pressure from shareholders that don’t know much about the business.
15
You don’t want to mess with taxes. Make sure you are on the right track with sales tax compliance
software.
Nonprofit Corporation
Nonprofit corporations work in charity, education, religion, literature, or science. Because they exist to
serve the common good, nonprofit corporations do not pay any state or federal taxes on their income.
To obtain this tax-exempt status, nonprofit corporations must register with their state, follow similar rules
to standard C corporations, and all money must go back into the organization. In other words, profits can’t
be distributed to the members of the organization. This does not mean nonprofits do not pay their
employees.
Examples:
16
• Oil and Natural Gas Commission (1959)
5. Cooperative
A cooperative is a private business owned and operated by the same people that use its products and or
services. The purpose of a cooperative is to fulfill the needs of the people running it. The profits are
distributed among the people working within the cooperative, also known as user-owners.
There is typically an elected board that runs the cooperative, and members can buy shares to be apart of
decision-making processes.
Example:
• Amul
• Horticultural Producers’ Cooperative Marketing and Processing Society (HOPCOMS)
• Indian Coffee House
• Indian Farmers Fertilizer Cooperative Limited (IFFCO)
• Kerala Dinesh Beedi workers’ Central Co-op Society
• Karnataka Milk Federation(KMF)
• Kerala Co-operative Milk Marketing Federation (KCMMF)
• Pratibha Mahila Sahakari Bank
• Orissa State Cooperative Milk Producers’ Federation
• Anyonya Co-operative Bank Limited
17
Indian Partnership Act 1932
Most of the businesses in India adopt a partnership business, so to monitor and govern such
partnership The Indian Partnership Act was established on the 1st October 1932. Under this
partnership act, an agreement is made between two or more persons who agrees to operate the business
together and distribute the profits they gain from this business.
Mr.R.Paygavkar
18
Annexure - III
19
limit. and good and good
Appearance/ finish. But no finish/
finish are creativity in appearance.
shabby. design and Creativity in
use of design and
material use of
material.
6. Report Preparation Very short, Nearly Detailed, Very detailed,
poor quality sufficient and correct and correct, clear
sketches, correct details clear description of
Details about about description of methods,
methods, methods, methods, materials,
materials, materials, materials, precautions
Precautions precautions precautions and
and and and conclusion.
Conclusions conclusion. conclusion. Enough
omitted, some But clarity is Sufficient tables, charts
details are not there in graphic and sketches
wrong. presentation. description
But not
enough
graphic
description
20
Annexure IV
Micro Project Evaluation Sheet
Name of Student: Anita Ashok Dinde Enrollment No: 2101410186
Name of Program: TYCO Semester: CO 6I
Course Name: Management Code: 22509
Title of the Micro-project: “Types of Business Ownership”
23
Evaluation Sheet for the Micro Project
Mr.R.Paygaonkar
(Name & Signature of faculty)
24
Log Book of the Student (Weekly Work Report)
Academic Year: 2023-2024
Name of Students: Anita Dinde, Durga Jagtap, Shruti Ingle
Title of the Project: “Types of Business Ownership”
Mr.R.Paygaonkar
(Name & Signature of faculty)
25
26