Techno Institute Of Higher Studies

Session -2024-25 Odd Sem

Presentation on MANAGEMENT OF FORECASTING

SUBMITTED BY -: SUBMITTED TO -:
Shivam
Student ‘s Name -: Singh Faculty Name -:PRACHI
SRIVASTAVA
Roll No. -: 59
Course -: B.Com
Semester -:1st
BUSINESS
ORGANISATION
Presentation by Shivam
Singh
 CONTENT

1 INTRODUCTION

CHARACTERSTICS OF BUSINESS
2
ORGANISATION

3 FORMS OF BUSINESS ORGANISATION

4 CONCLUSION

5 BIBLIOGRAPHY
 INTRODUCTION
▪ A business organisation is an establishment intended to carry commercial business by producing goods or services and
meet the customers’ needs. Most of the organisations have a standard such as social structure, purpose goals, utilisation
of resources, rules and regulations, etc.
▪ The state law regulates the establishment of the business, and IRS law controls the tax incurred for business. So, how
much tax business should pay depends on what form of business one owns.
▪ The resource of the organization needs to be properly combined to conduct the business successfully. This is because the
term Business Organization itself implies all the necessary arrangements required for conducting a business which
includes all those steps that need to be undertaken for establishing a relationship between the four M’s i.e. Men,
Material, Money, and Machinery in order to earn profits through carrying the activities of business efficiently.
▪ business organization, an entity formed for the purpose of carrying on commercial enterprise. Such an organization is
predicated on systems of law governing contact and exchange, property rights, and incorporation.
▪ Business enterprises customarily take one of three forms: individual proprietorships, partnerships, or limited-liability
companies (or corporations). In the first form, a single person holds the entire operation as his personal property, usually
managing it on a day-to-day basis. Most businesses are of this type. The second form, the partnership, may have from 2
to 50 or more members, as in the case of large law and accounting firms, brokerage houses, and advertising agencies.
This form of business is owned by the partners themselves; they may receive varying shares of the profits depending on
their investment or contribution. Whenever a member leaves or a new member is added, the firm must be reconstituted
as a new partnership. The third form, the limited-liability company, or corporation, denotes incorporated groups of
persons—that is, a number of persons considered as a legal entity (or fictive “person”) with property, powers, and
liabilities separate from those of its members. This type of company is also legally separate from the individuals
who work for it, whether they be shareholders or employees or both; it can enter into legal relations with them, make
contracts with them, and sue and be sued by them. Most large industrial and commercial organizations are limited-
liability companies.
 Characteristics of Business Organization
Distinct Ownership
Ownership is the right of an individual or a group to acquire and make the use of legal title of assets or properties for
the purpose of running the business. In order to enjoy the gains or profits from such possessions of title to assets or
properties and its rational or optimum use, a business firm may be owned by one individual or a group of individuals
jointly and control the business

Separate Status and Management

Every business undertaking is considered as having an independent body; has its own assets and liabilities; has its
unique way of functioning and is accountable for its outcomes. The profits earned or losses incurred by one firm
cannot be accounted for by any other firm.

Continuity of Business Operations

Any business unit having just one single operation or transaction is not a business unit. On a continuous basis, all
business enterprises need to engage their resources in specific operations needed for a particular business.

Lawful Business Activities

Every business enterprise must undertake lawful business activities and the business must not involve activities that
are illegal in nature.

BUSINESS ORGANISATION

2024
 ▪ Business Activities Deals with Goods and Services
▪ Every business undertaking is engaged in the production and/or distribution of goods or services
in exchange for money.

▪ Risk Involvement
▪ Risk and uncertainty are attached to business undertakings and are always providing
opportunities as well as threats. Future conditions are related to the environment especially the
external environment which is unpredictable and uncertain and influences business operations.
This makes business decisions risky, thereby increasing the chances of loss arising out of
business.

6 2024
 CENTRE’S CONTROL OVER STATE
LEGISLATION
In addition to Parliament’s authority to legislate
directly on state subjects in exceptional situations,
the Constitution provides mechanism for the Centre
to exert control over State legislative matters
through the following means:

1.The Governor can reserve a bill passed by the state

legislative for the consideration of the President . It’s crucial to the
note that president holds absolute veto power over such a bill.
2.A State bill that imposes restrictions on the freedom of
trade, commerce, and intercourse within or with that state requires
prior sanction from President before being introduced in the state
legislature.
 FORMS OF BUSINESS ORGANISATION

1. Sole proprietorship:
Sole proprietorships account for the great majority of small enterprises. These businesses are frequently run by a single person, who is also the one in
charge of the day-to-day operations. Sole proprietorships own the whole firm, including its assets and income. They also accept full responsibility for
any liabilities or debts they may have. You and the businesses are one and the same in the eyes of the law and the public.
ADVATAGES OF SOLE PROPIETORSHIP
▪ The simplest and most cost-effective way to structure ownership.
▪ Sole owners have entire control over their businesses and are free to make any decisions they choose within the confines of the law.
▪ Profits from the company are credited to the owner’s personal tax return.
▪ If needed, the company may be easily shut down.
DISADVANTAGE OF SOLE PROPIETORSHIP
▪ Sole owners are legally accountable for all obligations owed to the company and have limitless liability. Their personal and professional assets are
in jeopardy.
▪ The owner may have a difficult time acquiring finances and is frequently forced to rely on personal savings or consumer loans.
▪ May have a difficult time attracting high-quality employees or those who are driven by the chance to own a piece of the company.
▪ Some employee perks, such as the owner’s medical insurance costs, aren’t directly tax-deductible
 FORMS OF BUSINESS ORGANISATION

2.Partnership: Two or more persons own a single firm in a partnership. The law does not differentiate between the business and its owners, just as it
does with proprietorships. The Partners should have a written agreement stating how decisions will be taken, earnings will be distributed, conflicts will
be resolved, new partners will be accepted, partners can be bought out, and the partnership will be dissolved if required. t’s difficult to consider a
“break-up” when the company is just getting started, but many partnerships break apart in times of crisis, and unless a set procedure is in place, there
will be much more issues. They must also decide how much time and money they will devote to each other ahead of time.
ADVANTAGE OF PARTNERSHIP
▪ Partnerships are very simple to form, although time should be spent preparing the partnership agreement.
▪ The potential to generate cash is boosted if there are several owners.
▪ Profits from the firm flow straight into the personal tax returns of the partners.
▪ If prospective workers are offered the opportunity to become partners, they may be more interested in the company.
▪ Partners with complementary abilities are typically beneficial to the firm.
DISADVANTAGE OF PARTNERSHIP
▪ Partners are jointly and individually accountable for the acts of their fellow partners.
▪ Profits must be distributed to everybody.
▪ Because choices are made jointly, conflicts may arise.
▪ On tax returns, some employee benefits are not deductible from corporate revenue.
 FORMS OF BUSINESS ORGANISATION

3.Limited Liability Company (LLC): Limited liability corporations (LLCs) are business structures that combine the characteristics of a
corporation with those of a partnership. An LLC is not considered a corporation because it is not incorporated. Nonetheless, just like with a business,
the owners have a limited amount of responsibility. A limited liability company (LLC) can be taxed as a single proprietorship, partnership, or
corporation, depending on its structure.
The Memorandum of Association explains why a company was formed. Investors with limited liability can only lose the money they have invested.
Encourages individuals to invest in a business. Limited liability implies they can only recoup money from the company’s current assets. They can’t go
after shareholders’ personal assets to recoup money owing to the corporation.
4.Cooperative: A cooperative society has its aims for the development of the economic interests of its members in line with cooperative principles,
according to the definition. A cooperative is a for-profit enterprise owned by a group of people and run for their mutual benefit. Members are the people
that make up the group. Cooperatives can be for-profit or non-profit. Water and electricity (utility) cooperatives, cooperative banking, credit unions,
and housing cooperatives are all examples of cooperatives.
Merits of cooperative society
▪ a. Simple to form, with limited responsibility
▪ b. Membership is open to everyone.
▪ c. Assistance from the government
▪ d. Tax breaks for a long life
▪ e. Limitations of Democratic Management
 FORMS OF BUSINESS ORGANISATION

LIMITATION OF COOPERATIVE SOCIETY

▪ Limited Capital Management Skill Deficit
▪ Motivation is low.
▪ A lack of enthusiasm
▪ Dependence on the government.
5. Series LLC: Series LLCs are a growing type of corporate ownership structure that are currently recognized in 18 states. They essentially allow for
the subsidiary establishment of several internal LLCs from a single parent LLC. These stacked LLCs can be used to divide the obligations of various
corporate entities. Even though individual series LLCs are complicated, they are worth exploring with your legal advisor if your company has unique
components that could benefit from them.

ADVANATAGE OF SERIES LLC

▪ Series LLCs provide a number of benefits, such as:
▪ a. Really limited liability: Each LLC in a series has a different set of members, assets, and liabilities.
▪ b. Owner involvement: Series LLCs allow owners to actively participate in the management of each of their unique LLC
 FORMS OF BUSINESS ORGANISATION

LIMITATION OF SERIES LLC

▪ Complexity: Maintaining numerous LLCs with different assets and owners is much more challenging than managing a single entity, despite the
unified filing format. Taxes present unique challenges for the series structure.
▪ Costs related to administration Additional costs and help from knowledgeable experts are required due to the increased administrative complexity.
Costs associated with creating a series LLC could also go up .
Despite having multiple LLCs, a series LLC only needs to register and submit taxes once through the parent LLC. The registrations and returns are still
more challenging than for a single LLC, though, because all LLCs must be included.
Aseries LLC’s negative aspects
•After considering a number of variables, an effective organizational structure may be chosen.
Initial costs, liability, continuity, capital concerns, management competence, degree of control,
and the nature of the firm are all important aspects to consider while deciding on the best
organizational structure for one’s company.
Conclusion for business organization might include:
• The company's mission statement
•The company's history and its products or services
•Data showing how the business has grown
•A financial summary
•The company's goals

CONCLUSION
 BIBLIOGRAPHY

▪ Business organization | Definition, Types, History, Roles and Responsibilities, & Facts | Britannica Money
▪ What is a Business Organization? Characteristics, Types, Factors (getuplearn.com)
▪ https://businessstudiesnotes.com/what-is-business-organization-importance-scope-of-business-organization/
▪ Forms of Business Organisations: Sole Proprietorships, Partnerships, Corporations, LLC (byjus.com)

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THANK YOU