BUSINESS ORGANIZATIONS - Management Science II...

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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras MODULE 7 Business Organizations Business can be undertaken in various forms In many instances, ways of doing business are governed by law. In others, they are determined by the preferences of the entrepreneurs involved, such as nature of business, tax and personal considerations. Purpose Of Organizations People need to work together to accomplish goals Goals are too large, too complex, too expensive to be achieved without cooperation By working together, people can produce more & better goods and services
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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras Types Of Organization Retail outlet Manufacturing Service Government NGO Retail Organizations Food world Subhiksha McDonald Lifestyle Manufacturing Organizations Tata Engineering Larsen & Tubro Bajaj Auto
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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras Ashok Leyland Ballarpur Industries Service Organizations Infosys HDFC ICICI Appolo Hospitals Ltd. The Indian Hotels Company Ltd. Government Organizations National Thermal Power Corporation ONGC MTNL Indian Railways Administrative Staff College of India Non-Government Organizations
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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras Indian Wind Turbine Manufacturers Association CRY The Banyan Udavum Karangal Helpage India Factors Considered In Forming A Business Organization Legal restrictions Kind of business operation Need for capital Tax advantages or disadvantages Liabilities assumed Decision-making Intended division of earnings Number of people associated with the venture and their specific roles Perpetuation of the business Factors In The Creation Of A Business Organization Costs associated with starting the form of business organization Possibility of transferring the interest in the business organization Management control Initial capital requirements
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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras Ability of the form of organization to attract additional capital Types – Legal Classification Entrepreneurship / Sole Proprietorship Partnership Co-operatives / Associations Agencies Trust Corporate bodies Sole Proprietorship Business entity owned and operated by one person. This is usually the least costly way of starting a business.
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Management Science II Dr.T.J.Kamalanabhan Indian Institute of Technology Madras Sole Proprietorship Advantages Easiest to get started Greatest freedom of action Maximum authority Income tax advantages in very small firms Problems with isolation Disadvantages Unlimited liability Death or illness endangers business Growth limited to personal energies Personal affairs easily mixed or confused Social security advantage to owner with business
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This note was uploaded on 03/04/2011 for the course HR 303 taught by Professor Sanghamitra during the Fall '05 term at Indian Institute of Technology, Chennai.

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BUSINESS ORGANIZATIONS - Management Science II...

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