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52 BUSINESS  STUDIES she should consider switching over to contactwiththecustomerisnotrequired, the company form of organisation. the company form of organisation may (vi)  Degree of control: If direct be adopted. Similarly, in cases where services of a professional nature are control over operations and absolute decision making power is required, required, partnership form is much proprietorship may be preferred. But if more suitable. It would not be out of place to the owners do not mind sharing control and decision making, partnership or mention here that the factors stated company form of organisation can be above are inter-related. Factors like adopted. The added advantage in the capital contribution and risk vary with case of company form of organisation the size and nature of business, and is that there is complete separation hence a form of business organisation of ownership and management and it that is suitable from the point of view is professionals who are appointed to of the risks for a given business when independently manage the affairs of run on a small scale might not be a company. appropriate when the same business is (vii) Nature of business: If direct carried on a large scale. It is, therefore, personal contact is needed with the suggested that all the relevant factors must be taken into consideration while customers such as in the case of a grocery store, proprietorship may be making a decision with respect to the more suitable. For large manufacturing form of organisation that should be units, however, when direct personal adopted. Key Terms Sole proprietorship Partnership Joint Hindu Family Mutual agency Cooperative Societies Joint Stock Company Perpetual succession Artificial person Holding company Co-parceners Incorporation of a Company SUMMARY Forms of business organisation refers to the types of organisations which differ in terms of ownership and management. The major forms of organisation include proprietorship, partnership, joint Hindu family business, cooperative society and company. Sole proprietorship refers to a form of organisation where business is owned, managed and controlled by a single individual who bears all the risks and is Reprint 2026-27