Business Organisation Notes for B.Com 1st Year

Introduction:
Business organization is an essential part of commerce and management studies. It refers to the structure and framework of a company or enterprise, which is necessary for its smooth functioning. The following are some of the key points that students should keep in mind while studying business organization.

Types of Business Organizations:
There are various types of business organizations, which can be categorized as follows:

1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership (LLP)
4. Company

Features of Business Organizations:
The following are some of the essential characteristics of Business Organizations:

1. Legal Entity
2. Separate Legal Status
3. Limited Liability
4. Perpetual Succession
5. Transferable Ownership
6. Common Pool of Capital

Functions of Business Organizations:
The functions of business organizations can be broadly classified into two categories:

1. Primary Functions
- Production
- Marketing
- Finance

2. Secondary Functions:
- Personnel Management
- Research and Development
- Accounting and Record Keeping

Advantages and Disadvantages of Business Organizations:
There are several advantages and disadvantages of business organizations, which are discussed below:

Advantages:
- Limited Liability
- Perpetual Succession
- Large Scale Operations
- Professional Management
- Transferable Ownership
- Common Pool of Capital

Disadvantages:
- High Formation Cost
- Lack of Secrecy
- Slow Decision Making
- Legal Formalities and Regulations
- Possibility of Conflicts

Conclusion:
Business organizations are essential for the growth and development of the economy. Students pursuing B.Com should have a thorough understanding of the types, features, functions, advantages, and disadvantages of business organizations to excel in their field.