Ownership of business
Today we can see the business of different forms and sizes, and some of us have also done some business. We have seen different forms of business of different sizes from simple tea shops to big companies and from single person conducted small shops to government owned big corporations and large multinational companies run by foreigners. Such development in business did not take place at once. It was gradually developed along with the development of human society and has reached the present stage.
In the beginning, business was started by single persons in personal forms. In fact, this was the second form of ancient family. Then the nature and size of business gradually developed. As a result, it became impossible for a single person to invest required cape it in business and run it by his own management under his own control. So, he began to do business taking help of some other persons. In the course of time, it developed in the form of a partnership organization. Following the industrial revolution when large quantity of goods began to be produced division, of labor and specialization got encouraged. Then there developed Joint Stock Company.
In the beginning, all the businesses were done as private work in private sector. Gradually, public businesses began to be established in different countries under the control and ownership of government. In the course of development of business, teams of like-minded individuals began to establish cooperatives to do business protecting mutual interests and giving emphasis on service to others without centering their minds on reaping benefits.
Later on, businesses began to spread from one country to another. Now, multinational companies are also developing together with the development of relations among the countries and the development of transport and communication.
The main forms of business organizations found till now are as follows:
- Sole Trading Concern
- Partnership Firms
- Joint Stock Companies
- Public Enterprises
- Cooperative Organizations
- Multinational Companies
One business differs from another in terms of ownership, capital, management, control, nature of business, liability, profit, etc. Each business organization has its own advantages and disadvantages. Hence, it is not that one form of business organization is good and all the other forms are bad. Therefore, relatively suitable form of business organization should be selected keeping in view the nature and its expected life, volume of capital, its operating area, existing legal provisions, tax and liability, limit of government control, participation in management and control, possibility of expansion etc.