NCERT Textbook - Entrepreneurial Planning | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


 29 
UNIT –2: ENTREPRENEURIAL PLANNING 
 
“Logic will get you from A to B. Imagination will take you everywhere.” 
– Albert Einstein 
Learning Objectives 
The learner would be able to: 
? Enlist the type of economic activities 
? Understand the forms of business organization 
? Understand the meaning of business plan 
? Understand the format of business plan 
? Understand the organizational plan 
? Understand the production plan 
? Understand the human resources plan 
? Understand the operational plan 
? Understand the financial plan 
? Understand the marketing plan 
? Enlist the various formalities required for starting a 
business 
Human life is built around work. Because of being a bundle of recurring needs and wants, every 
person is engaged in some kind of activity with a view to earn his living and satisfy the material 
and social requirements. Activity, a symbol of human life may broadly be categorized into: 
a) Economic Activities: 
 Activities undertaken to earn monetary gains are called economic i.e. activities primarily 
concerned with: 
? Production 
? Distribution and/or 
? Consumption of goods and services. 
b) Non-Economic activities: 
 Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, 
patriotism etc. but not for money, are known as non-economic. 
Types of Economic Activities 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Profession 
2) Employment 
3) Business 
Content 
? Forms of Business Entities  
? Creating the Plan 
? Business Plan 
? Organizational Plan 
? Production Plan 
? Marketing Plan 
? Operational Plan 
? Financial Marketing Plan 
? Human Resource Planning 
? Formalities for starting a 
business 
Page 2


 29 
UNIT –2: ENTREPRENEURIAL PLANNING 
 
“Logic will get you from A to B. Imagination will take you everywhere.” 
– Albert Einstein 
Learning Objectives 
The learner would be able to: 
? Enlist the type of economic activities 
? Understand the forms of business organization 
? Understand the meaning of business plan 
? Understand the format of business plan 
? Understand the organizational plan 
? Understand the production plan 
? Understand the human resources plan 
? Understand the operational plan 
? Understand the financial plan 
? Understand the marketing plan 
? Enlist the various formalities required for starting a 
business 
Human life is built around work. Because of being a bundle of recurring needs and wants, every 
person is engaged in some kind of activity with a view to earn his living and satisfy the material 
and social requirements. Activity, a symbol of human life may broadly be categorized into: 
a) Economic Activities: 
 Activities undertaken to earn monetary gains are called economic i.e. activities primarily 
concerned with: 
? Production 
? Distribution and/or 
? Consumption of goods and services. 
b) Non-Economic activities: 
 Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, 
patriotism etc. but not for money, are known as non-economic. 
Types of Economic Activities 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Profession 
2) Employment 
3) Business 
Content 
? Forms of Business Entities  
? Creating the Plan 
? Business Plan 
? Organizational Plan 
? Production Plan 
? Marketing Plan 
? Operational Plan 
? Financial Marketing Plan 
? Human Resource Planning 
? Formalities for starting a 
business 
 30 
1) Profession 
 "Profession is that occupation in which one professes to have acquired specialized knowledge, 
which is used either in instructing, guiding or advising others," says the Webster's Dictionary. 
 Examples: Lawyers, Doctors, Chartered Accountants, Company Secretaries, etc. Thus, the 
occupation/activity which requires an individual to apply special knowledge and skills is 
said to be a profession. 
2) Employment 
 An activity in which an individual works regularly for others and get remuneration in 
return, undertaking personal services as per the agreement of employment. 
3) Business 
 This is our key area of study. 'A state of being busy or occupied', is what 'Business literally 
means'. In a way all economic activities related to the production and distribution of 
goods and services undertaken for monetary gains, are said to be business. 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Manufacturing 
2) Service 
3) Trading 
1) Manufacturing: 
 Production of merchandise for use or sale using labour and machines, tools, chemical and 
biological processing, or formulation, may also refer to a range of human activity, 
from handicraft to high tech, but is most commonly applied to industrial production, in 
which raw materials are transformed into finished goods on a large scale. Such finished 
goods may be used for manufacturing other, more complex products, such 
as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell 
them to retailers, who then sell them to end users – the "CONSUMERS". 
 Manufacturing takes turns under all types of economic system. In a free market economy, 
manufacturing is usually directed toward the mass production of products for sale to 
consumers at a profit. In a collectivist economy, manufacturing is more frequently 
directed by the state to supply a centrally planned economy. In mixed market economies, 
manufacturing occurs under some degree of government regulation. 
2) Service: 
 An intangible commodity a type of economic activity that is intangible is not stored and 
does not result in ownership. A service is consumed at the point of sale. Services are one 
of the two key components of economics, the other being goods. Examples of services 
include the transfer of goods, such as the postal service–delivering mail, and the use of 
expertise or experience, such as a person visiting a doctor. 
Page 3


 29 
UNIT –2: ENTREPRENEURIAL PLANNING 
 
“Logic will get you from A to B. Imagination will take you everywhere.” 
– Albert Einstein 
Learning Objectives 
The learner would be able to: 
? Enlist the type of economic activities 
? Understand the forms of business organization 
? Understand the meaning of business plan 
? Understand the format of business plan 
? Understand the organizational plan 
? Understand the production plan 
? Understand the human resources plan 
? Understand the operational plan 
? Understand the financial plan 
? Understand the marketing plan 
? Enlist the various formalities required for starting a 
business 
Human life is built around work. Because of being a bundle of recurring needs and wants, every 
person is engaged in some kind of activity with a view to earn his living and satisfy the material 
and social requirements. Activity, a symbol of human life may broadly be categorized into: 
a) Economic Activities: 
 Activities undertaken to earn monetary gains are called economic i.e. activities primarily 
concerned with: 
? Production 
? Distribution and/or 
? Consumption of goods and services. 
b) Non-Economic activities: 
 Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, 
patriotism etc. but not for money, are known as non-economic. 
Types of Economic Activities 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Profession 
2) Employment 
3) Business 
Content 
? Forms of Business Entities  
? Creating the Plan 
? Business Plan 
? Organizational Plan 
? Production Plan 
? Marketing Plan 
? Operational Plan 
? Financial Marketing Plan 
? Human Resource Planning 
? Formalities for starting a 
business 
 30 
1) Profession 
 "Profession is that occupation in which one professes to have acquired specialized knowledge, 
which is used either in instructing, guiding or advising others," says the Webster's Dictionary. 
 Examples: Lawyers, Doctors, Chartered Accountants, Company Secretaries, etc. Thus, the 
occupation/activity which requires an individual to apply special knowledge and skills is 
said to be a profession. 
2) Employment 
 An activity in which an individual works regularly for others and get remuneration in 
return, undertaking personal services as per the agreement of employment. 
3) Business 
 This is our key area of study. 'A state of being busy or occupied', is what 'Business literally 
means'. In a way all economic activities related to the production and distribution of 
goods and services undertaken for monetary gains, are said to be business. 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Manufacturing 
2) Service 
3) Trading 
1) Manufacturing: 
 Production of merchandise for use or sale using labour and machines, tools, chemical and 
biological processing, or formulation, may also refer to a range of human activity, 
from handicraft to high tech, but is most commonly applied to industrial production, in 
which raw materials are transformed into finished goods on a large scale. Such finished 
goods may be used for manufacturing other, more complex products, such 
as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell 
them to retailers, who then sell them to end users – the "CONSUMERS". 
 Manufacturing takes turns under all types of economic system. In a free market economy, 
manufacturing is usually directed toward the mass production of products for sale to 
consumers at a profit. In a collectivist economy, manufacturing is more frequently 
directed by the state to supply a centrally planned economy. In mixed market economies, 
manufacturing occurs under some degree of government regulation. 
2) Service: 
 An intangible commodity a type of economic activity that is intangible is not stored and 
does not result in ownership. A service is consumed at the point of sale. Services are one 
of the two key components of economics, the other being goods. Examples of services 
include the transfer of goods, such as the postal service–delivering mail, and the use of 
expertise or experience, such as a person visiting a doctor. 
 31 
 Service sector includes commercial firms engaged in banking, communication, transport, 
insurance, warehousing etc. This sector constitutes the basic infrastructure which is a must 
for smooth flow of business activities. In the recent past, the role of service sector in the 
Indian economy is growing faster than agriculture and industry.  
3) Trading: 
 Not a new phenomenon we've been doing it for centuries! The trade that occurred among the 
most primitive humans has evolved considerably over time. Trading is; 
? the activity or process of buying, selling, or exchanging goods or services 
? the amount of things or services that are bought and sold : the money made by buying 
and selling things or services 
? the act of exchanging one thing for another 
 Thus, in nutshell, our key area of study is - BUSINESS. 'A state of being busy or occupied', 
is what 'Business literally means'. In a way all economic activities related to the 
production and distribution of goods and services undertaken for monetary gains are said 
to be business.  
Different Authors, Different Opinions 
Business is "whole complex field of commerce and industry, the basic industries, process and 
manufacturing and the network of ancillary services, distribution, banking, insurance, transport 
and so on which serve and interpenetrate the world of business as a whole." — F.C. Hooper 
Business may be defined as "an activity in which different persons exchange something of value 
whether goods and services for mutual gain or profit." — Peterson and Plowman 
"An institution organized and operated to provide goods and services to the society under the 
incentive of private gain", is said to be business. — Wheeler 
 
 Business is a continuous human economic activity with an objective to earn profit by 
producing, buying and selling of goods and services. Irrespective of size, nature, scale or 
ownership, an activity is referred as business if it exhibits the following essential 
characteristics: 
1) Entrepreneur's presence 
 There must be someone/person to take initiative for establishing a business and 
undertake the risk associated with the same. 
2) Economic activity 
 All those activities related to the production and/or distribution of goods and services, 
with economic motive i.e. profit can form part of business. 
3) Production or procurement of goods and services 
 A business which either produces or procures goods and services for offering them to 
consumers, could be: 
Page 4


 29 
UNIT –2: ENTREPRENEURIAL PLANNING 
 
“Logic will get you from A to B. Imagination will take you everywhere.” 
– Albert Einstein 
Learning Objectives 
The learner would be able to: 
? Enlist the type of economic activities 
? Understand the forms of business organization 
? Understand the meaning of business plan 
? Understand the format of business plan 
? Understand the organizational plan 
? Understand the production plan 
? Understand the human resources plan 
? Understand the operational plan 
? Understand the financial plan 
? Understand the marketing plan 
? Enlist the various formalities required for starting a 
business 
Human life is built around work. Because of being a bundle of recurring needs and wants, every 
person is engaged in some kind of activity with a view to earn his living and satisfy the material 
and social requirements. Activity, a symbol of human life may broadly be categorized into: 
a) Economic Activities: 
 Activities undertaken to earn monetary gains are called economic i.e. activities primarily 
concerned with: 
? Production 
? Distribution and/or 
? Consumption of goods and services. 
b) Non-Economic activities: 
 Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, 
patriotism etc. but not for money, are known as non-economic. 
Types of Economic Activities 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Profession 
2) Employment 
3) Business 
Content 
? Forms of Business Entities  
? Creating the Plan 
? Business Plan 
? Organizational Plan 
? Production Plan 
? Marketing Plan 
? Operational Plan 
? Financial Marketing Plan 
? Human Resource Planning 
? Formalities for starting a 
business 
 30 
1) Profession 
 "Profession is that occupation in which one professes to have acquired specialized knowledge, 
which is used either in instructing, guiding or advising others," says the Webster's Dictionary. 
 Examples: Lawyers, Doctors, Chartered Accountants, Company Secretaries, etc. Thus, the 
occupation/activity which requires an individual to apply special knowledge and skills is 
said to be a profession. 
2) Employment 
 An activity in which an individual works regularly for others and get remuneration in 
return, undertaking personal services as per the agreement of employment. 
3) Business 
 This is our key area of study. 'A state of being busy or occupied', is what 'Business literally 
means'. In a way all economic activities related to the production and distribution of 
goods and services undertaken for monetary gains, are said to be business. 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Manufacturing 
2) Service 
3) Trading 
1) Manufacturing: 
 Production of merchandise for use or sale using labour and machines, tools, chemical and 
biological processing, or formulation, may also refer to a range of human activity, 
from handicraft to high tech, but is most commonly applied to industrial production, in 
which raw materials are transformed into finished goods on a large scale. Such finished 
goods may be used for manufacturing other, more complex products, such 
as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell 
them to retailers, who then sell them to end users – the "CONSUMERS". 
 Manufacturing takes turns under all types of economic system. In a free market economy, 
manufacturing is usually directed toward the mass production of products for sale to 
consumers at a profit. In a collectivist economy, manufacturing is more frequently 
directed by the state to supply a centrally planned economy. In mixed market economies, 
manufacturing occurs under some degree of government regulation. 
2) Service: 
 An intangible commodity a type of economic activity that is intangible is not stored and 
does not result in ownership. A service is consumed at the point of sale. Services are one 
of the two key components of economics, the other being goods. Examples of services 
include the transfer of goods, such as the postal service–delivering mail, and the use of 
expertise or experience, such as a person visiting a doctor. 
 31 
 Service sector includes commercial firms engaged in banking, communication, transport, 
insurance, warehousing etc. This sector constitutes the basic infrastructure which is a must 
for smooth flow of business activities. In the recent past, the role of service sector in the 
Indian economy is growing faster than agriculture and industry.  
3) Trading: 
 Not a new phenomenon we've been doing it for centuries! The trade that occurred among the 
most primitive humans has evolved considerably over time. Trading is; 
? the activity or process of buying, selling, or exchanging goods or services 
? the amount of things or services that are bought and sold : the money made by buying 
and selling things or services 
? the act of exchanging one thing for another 
 Thus, in nutshell, our key area of study is - BUSINESS. 'A state of being busy or occupied', 
is what 'Business literally means'. In a way all economic activities related to the 
production and distribution of goods and services undertaken for monetary gains are said 
to be business.  
Different Authors, Different Opinions 
Business is "whole complex field of commerce and industry, the basic industries, process and 
manufacturing and the network of ancillary services, distribution, banking, insurance, transport 
and so on which serve and interpenetrate the world of business as a whole." — F.C. Hooper 
Business may be defined as "an activity in which different persons exchange something of value 
whether goods and services for mutual gain or profit." — Peterson and Plowman 
"An institution organized and operated to provide goods and services to the society under the 
incentive of private gain", is said to be business. — Wheeler 
 
 Business is a continuous human economic activity with an objective to earn profit by 
producing, buying and selling of goods and services. Irrespective of size, nature, scale or 
ownership, an activity is referred as business if it exhibits the following essential 
characteristics: 
1) Entrepreneur's presence 
 There must be someone/person to take initiative for establishing a business and 
undertake the risk associated with the same. 
2) Economic activity 
 All those activities related to the production and/or distribution of goods and services, 
with economic motive i.e. profit can form part of business. 
3) Production or procurement of goods and services 
 A business which either produces or procures goods and services for offering them to 
consumers, could be: 
 32 
 a) Consumer's goods 
 b) Producer's goods 
 c) Services 
4) Sale or exchange of goods and services 
 A business must involve sale, exchange or transfer of goods and/or services for the 
satisfaction of human needs against a value/price. Goods/services purchased or 
produced for personal/self-consumption, is not a business. 
5) Regularity 
 One time transaction or dealing in goods and services is not business, even if one earns 
profit in return. Business must be done regularly. 
6) Utility creation 
 Business activities result in creation of utilities i.e. 
 a) Form utility – Changing the form of raw material into finished product creates form 
utility. 
 b) Place utility – From the place of production, transporting goods to the place of 
consumption results in place utility. 
 c) Time utility – The process of storing the goods when not required to supplying them 
when required generates time utility. 
7) Profit earning 
 Profit is the reward for undertaking a business activity as no business can survive for long 
without earning profits. 
8) Uncertainty of return 
 Business does not guarantee for the return of either principal amount invested in the 
business or the profit. 
9) Element of risk 
 Business involves risk i.e., uncertainty. 'Higher the risk, higher the profit' goes the old 
proverb. The actual business situation is affected by a variety of uncontrollable external 
factors casting favourable or unfavourable impact on business. Thus, the risk element 
keeps a businessman vigilant and going. 
Forms of business organisation 
Setting-up a business is not an easy task. An enterprise is a separate and distinct unit, 
institutionally arranged to conduct any type of business activity. 
It needs to combine the necessary things such as materials, tools, equipment, working space and 
bring together all of them in a systematic and effective manner to accomplish the entrepreneur's 
desired objective. 
Page 5


 29 
UNIT –2: ENTREPRENEURIAL PLANNING 
 
“Logic will get you from A to B. Imagination will take you everywhere.” 
– Albert Einstein 
Learning Objectives 
The learner would be able to: 
? Enlist the type of economic activities 
? Understand the forms of business organization 
? Understand the meaning of business plan 
? Understand the format of business plan 
? Understand the organizational plan 
? Understand the production plan 
? Understand the human resources plan 
? Understand the operational plan 
? Understand the financial plan 
? Understand the marketing plan 
? Enlist the various formalities required for starting a 
business 
Human life is built around work. Because of being a bundle of recurring needs and wants, every 
person is engaged in some kind of activity with a view to earn his living and satisfy the material 
and social requirements. Activity, a symbol of human life may broadly be categorized into: 
a) Economic Activities: 
 Activities undertaken to earn monetary gains are called economic i.e. activities primarily 
concerned with: 
? Production 
? Distribution and/or 
? Consumption of goods and services. 
b) Non-Economic activities: 
 Activities done out of love, care, affection, self-satisfaction, emotions, sympathy, 
patriotism etc. but not for money, are known as non-economic. 
Types of Economic Activities 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Profession 
2) Employment 
3) Business 
Content 
? Forms of Business Entities  
? Creating the Plan 
? Business Plan 
? Organizational Plan 
? Production Plan 
? Marketing Plan 
? Operational Plan 
? Financial Marketing Plan 
? Human Resource Planning 
? Formalities for starting a 
business 
 30 
1) Profession 
 "Profession is that occupation in which one professes to have acquired specialized knowledge, 
which is used either in instructing, guiding or advising others," says the Webster's Dictionary. 
 Examples: Lawyers, Doctors, Chartered Accountants, Company Secretaries, etc. Thus, the 
occupation/activity which requires an individual to apply special knowledge and skills is 
said to be a profession. 
2) Employment 
 An activity in which an individual works regularly for others and get remuneration in 
return, undertaking personal services as per the agreement of employment. 
3) Business 
 This is our key area of study. 'A state of being busy or occupied', is what 'Business literally 
means'. In a way all economic activities related to the production and distribution of 
goods and services undertaken for monetary gains, are said to be business. 
Activities which are inspired mainly by economic consideration can be classified in three broad 
categories: 
1) Manufacturing 
2) Service 
3) Trading 
1) Manufacturing: 
 Production of merchandise for use or sale using labour and machines, tools, chemical and 
biological processing, or formulation, may also refer to a range of human activity, 
from handicraft to high tech, but is most commonly applied to industrial production, in 
which raw materials are transformed into finished goods on a large scale. Such finished 
goods may be used for manufacturing other, more complex products, such 
as aircrafts, house hold appliances or automobiles, or sold to wholesalers, who in turn sell 
them to retailers, who then sell them to end users – the "CONSUMERS". 
 Manufacturing takes turns under all types of economic system. In a free market economy, 
manufacturing is usually directed toward the mass production of products for sale to 
consumers at a profit. In a collectivist economy, manufacturing is more frequently 
directed by the state to supply a centrally planned economy. In mixed market economies, 
manufacturing occurs under some degree of government regulation. 
2) Service: 
 An intangible commodity a type of economic activity that is intangible is not stored and 
does not result in ownership. A service is consumed at the point of sale. Services are one 
of the two key components of economics, the other being goods. Examples of services 
include the transfer of goods, such as the postal service–delivering mail, and the use of 
expertise or experience, such as a person visiting a doctor. 
 31 
 Service sector includes commercial firms engaged in banking, communication, transport, 
insurance, warehousing etc. This sector constitutes the basic infrastructure which is a must 
for smooth flow of business activities. In the recent past, the role of service sector in the 
Indian economy is growing faster than agriculture and industry.  
3) Trading: 
 Not a new phenomenon we've been doing it for centuries! The trade that occurred among the 
most primitive humans has evolved considerably over time. Trading is; 
? the activity or process of buying, selling, or exchanging goods or services 
? the amount of things or services that are bought and sold : the money made by buying 
and selling things or services 
? the act of exchanging one thing for another 
 Thus, in nutshell, our key area of study is - BUSINESS. 'A state of being busy or occupied', 
is what 'Business literally means'. In a way all economic activities related to the 
production and distribution of goods and services undertaken for monetary gains are said 
to be business.  
Different Authors, Different Opinions 
Business is "whole complex field of commerce and industry, the basic industries, process and 
manufacturing and the network of ancillary services, distribution, banking, insurance, transport 
and so on which serve and interpenetrate the world of business as a whole." — F.C. Hooper 
Business may be defined as "an activity in which different persons exchange something of value 
whether goods and services for mutual gain or profit." — Peterson and Plowman 
"An institution organized and operated to provide goods and services to the society under the 
incentive of private gain", is said to be business. — Wheeler 
 
 Business is a continuous human economic activity with an objective to earn profit by 
producing, buying and selling of goods and services. Irrespective of size, nature, scale or 
ownership, an activity is referred as business if it exhibits the following essential 
characteristics: 
1) Entrepreneur's presence 
 There must be someone/person to take initiative for establishing a business and 
undertake the risk associated with the same. 
2) Economic activity 
 All those activities related to the production and/or distribution of goods and services, 
with economic motive i.e. profit can form part of business. 
3) Production or procurement of goods and services 
 A business which either produces or procures goods and services for offering them to 
consumers, could be: 
 32 
 a) Consumer's goods 
 b) Producer's goods 
 c) Services 
4) Sale or exchange of goods and services 
 A business must involve sale, exchange or transfer of goods and/or services for the 
satisfaction of human needs against a value/price. Goods/services purchased or 
produced for personal/self-consumption, is not a business. 
5) Regularity 
 One time transaction or dealing in goods and services is not business, even if one earns 
profit in return. Business must be done regularly. 
6) Utility creation 
 Business activities result in creation of utilities i.e. 
 a) Form utility – Changing the form of raw material into finished product creates form 
utility. 
 b) Place utility – From the place of production, transporting goods to the place of 
consumption results in place utility. 
 c) Time utility – The process of storing the goods when not required to supplying them 
when required generates time utility. 
7) Profit earning 
 Profit is the reward for undertaking a business activity as no business can survive for long 
without earning profits. 
8) Uncertainty of return 
 Business does not guarantee for the return of either principal amount invested in the 
business or the profit. 
9) Element of risk 
 Business involves risk i.e., uncertainty. 'Higher the risk, higher the profit' goes the old 
proverb. The actual business situation is affected by a variety of uncontrollable external 
factors casting favourable or unfavourable impact on business. Thus, the risk element 
keeps a businessman vigilant and going. 
Forms of business organisation 
Setting-up a business is not an easy task. An enterprise is a separate and distinct unit, 
institutionally arranged to conduct any type of business activity. 
It needs to combine the necessary things such as materials, tools, equipment, working space and 
bring together all of them in a systematic and effective manner to accomplish the entrepreneur's 
desired objective. 
 33 
Thus, every business entity needs to select an appropriate legal structure or framework to work 
in. This legal structure determines the extent of ownership and responsibility of proprietor(s). 
Appropriate form of organisation strongly influences the enterprise's success and future 
prospects. 
Once selected, changing the 'form' is quite a complex, time consuming and costly affair. 
Forms of enterprises 
From the point of view of ownership and management, business enterprises may be broadly 
classified under three categories. 
1) Private sector enterprises 
2) Public sector enterprises 
3) Joint sector 
1) Private sector enterprises 
 
 The enterprises which are owned, controlled, and managed by private individuals, with 
the main objective of earning profit comes under this category. 
 Private individuals thus could start a venture as: 
 a) Sole-proprietorship 
 b) Partnership 
 c) Joint Hindu family business 
Forms of 
Business 
Enterprise
Private Sector
Sole 
Proprietorship
Partnership
Joint Stock 
Company
Hindu 
Undivided 
Family
Co-operative 
Society
Public Sector
Departmental 
Undertaking
Public 
Corporations
Statutory 
Corporation
Joint Sector