formation of Joint venture

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Joint ventures: Joint ventures may mean many things, depending upon

the context we are using it in. But in a broader sense, a joint venture is the

pooling of resources and expertise by two or more businesses, to achieve a

particular goal. The risks and rewards of the business are also shared. The

reasons behind the joint venture often include business expansion,

development of new products or moving into new markets, particularly in

another country.

Benefits: Business can achieve unexpected gains through joint ventures

with a partner. The major benefits of joint venture are as follows:

(i) Increased resources and capacity (ii) Access to new markets and

distribution networks (iii) Access to technology (iv) Innovation (v) Low cost

of production (vi) Established brand name.

BUSINESS STUDIES UNIT-3 CBSE|PART 5|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

BUSINESS STUDIES UNIT-3 CBSE|PART 5|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

BUSINESS STUDIES UNIT-3 CBSE|PART 5|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

BUSINESS STUDIES UNIT-3 CBSE|PART 2|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

PRIVATE SECTOR AND PUBLIC

SECTOR

There are all kinds of business

organisations — small or large,

industrial or trading, privately owned

or government owned existing in our

country. These organisations affect our

daily economic life and therefore

become part of the Indian economy.

Since the Indian economy consists of

both privately owned and government

owned business enterprises, it is

known as a mixed economy. The

Government of India has opted for a

mixed economy where both private and

government enterprises are allowed to

operate. The economy, therefore, may

be classified into two sectors viz.,

private sector and public sector.

The private sector consists of

business owned by individuals or a

group of individuals, as you have

learnt in the previous chapter. The

various forms of organisation are

sole proprietorship, partnership,

joint Hindu family, cooperative

and company.

The public sector consists of

various organisations owned and

managed by the government. These

organisations may either be partly or

wholly owned by the central or state

government. They may also be a part

of the ministry or come into existence

by a Special Act of the Parliament. The

government, through these enterprises

participates in the economic activities

of the country.

The government in its industrial

policy resolutions, from time-to-time,

defines the area of activities in which

the private sector and public sector are

allowed to operate. In the Industrial

Policy Resolution 1948, the

Government of India had specified the

approach towards development of the

industrial sector. The roles of the

BUSINESS STUDIES UNIT-3 CBSE|PART 2|PRIVATE, PUBLIC AND GLOBAL ENTERPRIS...

PRIVATE SECTOR AND PUBLIC

SECTOR

There are all kinds of business

organisations — small or large,

industrial or trading, privately owned

or government owned existing in our

country. These organisations affect our

daily economic life and therefore

become part of the Indian economy.

Since the Indian economy consists of

both privately owned and government

owned business enterprises, it is

known as a mixed economy. The

Government of India has opted for a

mixed economy where both private and

government enterprises are allowed to

operate. The economy, therefore, may

be classified into two sectors viz.,

private sector and public sector.

The private sector consists of

business owned by individuals or a

group of individuals, as you have

learnt in the previous chapter. The

various forms of organisation are

sole proprietorship, partnership,

joint Hindu family, cooperative

and company.

The public sector consists of

various organisations owned and

managed by the government. These

organisations may either be partly or

wholly owned by the central or state

government. They may also be a part

of the ministry or come into existence

by a Special Act of the Parliament. The

government, through these enterprises

participates in the economic activities

of the country.

The government in its industrial

policy resolutions, from time-to-time,

defines the area of activities in which

the private sector and public sector are

allowed to operate. In the Industrial

Policy Resolution 1948, the

Government of India had specified the

approach towards development of the

industrial sector. The roles of the

BUSINESS STUDIES UNIT-3 CBSE|PART 1|PRIVATE, PUBLIC AND GLOBAL ENTERPRISES

You must have come across all types

of business organisations in your daily

life. In your neighbourhood market,

there are shops owned by sole

proprietors or big retail organisations

run by a company. Then there are

people providing you services like legal

services, medical services, being owned

by more than one person i.e.,

partnership firms. These are all

privately owned organisations.

Similarly, there are other offices or

places of business which may be owned

by the government. For example,

Railways is an organisation wholly

owned and managed by the

government. The post office, in your

locality is owned by the Post and

Telegraph Department, Government of

India, though our dependence on their

postal services, particularly in cities

and towns has been greatly reduced.

This is because of plenty of private

courier services firms operating in

bigger towns. Then there are businesses

which operate in more than one country

known as global enterprises. Therefore,

you may have observed that all types

of organisations are doing business in

the country whether they are public,

private or global. In this chapter we

shall be studying how the economy is

divided into two sectors, public and

private, the different types of public

enterprises, their role and that of the

global enterprises.

BUSINESS STUDIES UNIT-2 CBSE|PART 6|FORMS OF BUSINESS ORGANISATION|Joint...

A company is an association of persons

formed for carrying out business

activities and has a legal status

independent of its members. The

company form of organisation is

governed by The Companies Act, 1956.

A company can be described as an

artificial person having a separate legal

entity, perpetual succession and a

common seal.

The shareholders are the owners of

the company while the Board of

Directors is the chief managing body

elected by the shareholders. Usually,

the owners exercise an indirect control

over the business. The capital of the

company is divided into smaller parts

called ‘shares’ which can be transferred

freely from one shareholder to another

person (except in a private company).

Features

The definition of a joint stock company

highlights the following features of a

company.

(i) Artificial person: A company is a

creation of law and exists independent

of its members. Like natural persons,

a company can own property, incur

debts, borrow money, enter into

contracts, sue and be sued but unlike

them it cannot breathe, eat, run, talk

and so on. It is, therefore, called an

artificial person.

(ii) Separate legal entity: From the

day of its incorporation, a company

acquires an identity, distinct from its

members. Its assets and liabilities are

separate from those of its owners. The

law does not recognise the business

and owners to be one and the same.

(iii) Formation: The formation of a

company is a time consuming,

expensive and complicated process. It

BUSINESS STUDIES UNIT-2 CBSE|PART 5|FORMS OF BUSINESS ORGANISATION||COOP...

BUSINESS STUDIES UNIT-2 CBSE|PART 4|FORMS OF BUSINESS ORGANISATION|PARTN...

Partnership is defined as an association of two or more persons who agree

to carry on a business together and share the profits as well as bear risks

collectively. Major advantages of partnership are: ease of formation and

closure, benefits of specialisation, greater funds, and reduction of risk. Major

limitations of partnership are unlimited liability, possibility of conflicts,

lack of continuity and lack of public confidence. As there are different types

of partners such as active, sleeping, secret and nominal partners; so is the

case with types of partnerships which can vary from general partnership,

limited partnership, partnership at will to particular partnership.

BUSINESS STUDIES UNIT-2 CBSE|PART 3|FORMS OF BUSINESS ORGANISATION|JOINT...

JOINT HINDU FAMILY BUSINESS.





JOINT HINDU FAMILY BUSINESS is a

specific form of business organisation

found only in India.



JOINT HINDU FAMILY BUSINESS is

owned and carried on by the members

of the Hindu Undivided Family (HUF).



The

basis of membership in the business is

birth in a particular family and three

successive generations can be members

in the business.



The business is controlled by the

head of the family.



 the

head of the family is the eldest

member.



the eldest

member is called karta.



so, the whole power lies with karta.



All

members have equal ownership right

over the property of an ancestor and

they are known as co-parceners.



the Features ofJOINT HINDU FAMILY BUSINESS.

The following points highlight the

essential characteristics of the joint

Hindu family business.





1.Formation:

to start JOINT HINDU FAMILY BUSINESS, there should be at least two

members in the family.

The

business does not require any

agreement as membership.The membership is made automatically by birth in the family.

It is governed by the Hindu Succession

Act, 1956.



2.Liability:

liability is the state of being legally responsible for something.it may be assets or organization etc.

so in JOINT HINDU FAMILY BUSINESS.

The karta that is head of the family has unlimited liability and resposibility.

all other members of the business that is co-parceners have limited liability and responsibility.



3.Control:The control of the family

business lies with the karta. He takes

all the decisions and is authorised to

manage the business. His decisions are

binding on the other members.



4.Continuity:

The business

continues even after the death of the

karta as the next eldest member takes

up the position of karta, leaving the

business stable. The business can,

however, be terminated with the

mutual consent of the members.

for example.



     Reliance Industries.

     Founded by Dhirubhai Ambani in 1966 as Reliance Commercial Corporation, Reliance industries is the largest private sector conglomerate company in India. The company was divided between the founder's two sons, Mukesh Ambani and Anil Ambani in 2006.



5.Minor Members:

The inclusion of

an individual into the business occurs

due to birth in a Hindu Undivided

Family. Hence, minors can also be

members of the business.

BUSINESS STUDIES UNIT-2 CBSE|PART 3|FORMS OF BUSINESS ORGANISATION|JOINT...

JOINT HINDU FAMILY BUSINESS.





JOINT HINDU FAMILY BUSINESS is a

specific form of business organisation

found only in India.



JOINT HINDU FAMILY BUSINESS is

owned and carried on by the members

of the Hindu Undivided Family (HUF).



The

basis of membership in the business is

birth in a particular family and three

successive generations can be members

in the business.



The business is controlled by the

head of the family.



 the

head of the family is the eldest

member.



the eldest

member is called karta.



so, the whole power lies with karta.



All

members have equal ownership right

over the property of an ancestor and

they are known as co-parceners.



the Features ofJOINT HINDU FAMILY BUSINESS.

The following points highlight the

essential characteristics of the joint

Hindu family business.





1.Formation:

to start JOINT HINDU FAMILY BUSINESS, there should be at least two

members in the family.

The

business does not require any

agreement as membership.The membership is made automatically by birth in the family.

It is governed by the Hindu Succession

Act, 1956.



2.Liability:

liability is the state of being legally responsible for something.it may be assets or organization etc.

so in JOINT HINDU FAMILY BUSINESS.

The karta that is head of the family has unlimited liability and resposibility.

all other members of the business that is co-parceners have limited liability and responsibility.



3.Control:The control of the family

business lies with the karta. He takes

all the decisions and is authorised to

manage the business. His decisions are

binding on the other members.



4.Continuity:

The business

continues even after the death of the

karta as the next eldest member takes

up the position of karta, leaving the

business stable. The business can,

however, be terminated with the

mutual consent of the members.

for example.



     Reliance Industries.

     Founded by Dhirubhai Ambani in 1966 as Reliance Commercial Corporation, Reliance industries is the largest private sector conglomerate company in India. The company was divided between the founder's two sons, Mukesh Ambani and Anil Ambani in 2006.



5.Minor Members:

The inclusion of

an individual into the business occurs

due to birth in a Hindu Undivided

Family. Hence, minors can also be

members of the business.

BUSINESS STUDIES UNIT-2 CBSE|PART 2|FORMS OF BUSINESS ORGANISATION|Sole ...

Forms of organisation. what is forms of organisation?.....

it is the structure of the organisation. it tells about the ownership of the organisation.

the first and simple form of organization is Sole proprietorship....

It is a type of enterprise that is owned and run by one natural person .

Example:

           stationary shop,

           tuition centre,

           computer services,

           xerox shop.

           mechanic shop









The word “sole” implies “only”.

and “proprietor” refers to “owner”.

This form of business is particularly

common in areas of personalised

services such as beauty parlours, hair

saloons and small scale activities like

running a retail shop in a locality.

1)Formation and closure: 

For starting the business.Hardly any legal formalities are required to

start a sole proprietary business, though in some cases one may require

a license. There is no separate law that governs sole proprietorship. 

for closing the business.Closure of

the business can also be done easily.

Thus, there is ease in formation as well

as the closure of the business.

2)Liability: Sole proprietors have

unlimited liability. This implies that the

owner is personally responsible for payment of debts in case the assets of

the business are not sufficient to meet

all the debts. As such the owner’s

personal possessions such as his/her

personal car and other assets could be

sold for repaying the debt. Suppose the

total outside liabilities of XYZ dry

cleaner, a sole proprietorship firm, are

Rupees 80,000 at the time of dissolution, but

its assets are Rupees. 60,000 only. In such a

situation the proprietor will have to bring

in Rs. 20,000 from her personal sources

even if she has to sell her personal

property to repay the firm’s debts.

3)Sole risk bearer and profit

recipient: The risk of failure of

business is borne all alone by the sole

proprietor. However, if the business is

successful, the proprietor enjoys all the

benefits. He receives all the business

profits which become a direct reward

for his risk bearing.

4)Control: The right to run the

business and make all decisions lies

absolutely with the sole proprietor. He

can carry out his plans without any

interference from others.

5)No separate entity: In the eyes of

the law, no distinction is made between

the sole trader and his business, as

business does not have an identity

separate from the owner. The owner is,

therefore, held responsible for all the

activities of the business.

6)Lack of business continuity:

Since the owner and business are one

and the same entity,the business will be stoped in caseof , death, insanity,

imprisonment, physical ailment or

bankruptcy of the sole proprietor will

have a direct and detrimental effect on

the business and may even cause

BUSINESS STUDIES UNIT-2 CBSE|PART 1|FORMS OF BUSINESS ORGANISATION|INTRO...

If one is planning to start a business or is interested in expanding an existing one, an important decision relates to the choice of the form of organisation.





to start a factory, plans must be made and implemented

about such problems as the location of the business, the possible number of customers, the kind and amount of equipment, the shop layout, purchasing and financing needs, and hiring of

workers. These problems become more complex in a big business. However, some of the basic factors, which must be considered by anybody who is to start the business are as follows:



(1) Selection of line of business

(2) Size of the firm

(3) Choice of form of ownership

(4) Location of business enterprise

(5) Financing the proposition

(6) Physical facilities

(7) Plant layout

(8) Competent and committed worked force

(9) Tax planning

(10) Launching the enterprise



this unit provides the detailed explanation on the choice of the form of ownership.



There are five forms of business organisations from which one can

choose the right one included.



they are



(1) Sole proprietorship,

It is a type of enterprise that is owned and run by one natural person.

Example:

           stationary shop,

           tuition centre,

           computer services,

           xerox shop.

           mechanic shop





(2) Joint Hindu family business,

Joint Hindu Family Business is a different type of organization, which is found only in India.

 As the name suggests, it is the type of organization in which all the members of Hindu Undivided  Family manage and control the business with the direction of the head of the family.

Example:

     Reliance Industries.

     Founded by Dhirubhai Ambani in 1966 as Reliance Commercial Corporation, Reliance Industries is the largest private sector conglomerate company in India. The company was divided between the founder's two sons, Mukesh Ambani and Anil Ambani in 2006.





(3) Partnership,

 A type of business organization in which two or more individuals invest money, skills, and other resources, and share the profit and loss.

Hero Honda is the example of partnership but now The two partners in Hero Honda Ltd have finally decided to ride off on their own in different directions.





(4) Cooperative societies.

the organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.

Example:

    Amul is a trademark of Gujarat co-operatives of milk product and considered as the biggest co-operative of India today.





(5) Joint stock company.

A joint-stock company is a business entity in which different amount of shares of the company stock can be bought and owned by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares.

Example:

  The State Bank of India is the country's largest commercial bank and boasts more than 130 branches in at least 32 nations across the globe. The company is widely known for its diverse offering of financial services and traces its roots to the early 19th century.

There are 7,887,573,568 share holders for State bank of India.



In the next video let us look the sole proprietorship ownership in detail.

HOW TO HANDLE WITH COMPLAINTS|LIFE HACKS

How to handle complaints in business or in personal?

As per psychology of human, complaints are formed, because of dissatisfaction.
Most of the time complaints lead to arguments.
what to do, when someone keeps on complaining about his problem.
the psychological solution for handling complaints, is to make the person talk more and get more yes from him.
Let the other person talk more, lets learn this technique by a story.

STORY

Chief Engineer of MAX company was buying motors with Allison motors.
One day Chief Engineer of MAX company made a phone call to the marketing manager of Alison motors and told that he is going to stop buying remainder motors from Alison company.
lets see how marketing manager handled this complaint and convinced chief engineer.

Chief Engineer: I am going to cancel the motor contract.
Manager:Why Mr.chief?
Chief Engineer: Because your motors are too hot. I can't put my hands on them.
Now the manager realised the problem which lead to complaints and decided not to argue with chief.
Manager:well look, Mr.chief. I agree with you a hundred percent. if those motors are running too hot, you ought not buy any more of them.
 then the manager asked
Manager: You must have motors that won't run any hotter than standard set by the National Electrical Manufacturer Association. Is it that so?
the chief answered
Chief Engineer: yes, off course.
manager cleverly made chief to explain about those standards.
Manager: Chief could you tell me what those standards are.
Chief Engineer: The Electrical Manufacturer Association regulations say that a properly designed motor may have a temperature of  72 degrees Fahrenheit above room temperature. Is that correct Mr.manager.
Manager: absolutely correct Mr. chief. well if the mill room temperature is 75 degrees and you add 72 to that, that makes a total of 147 degrees.wouldn't you scald your hand if you held it under a spigot of hot water at 147 degrees Fahrenheit. Is it right?
Chief engineer: Yes.that's right.
then the conversation ended.
After a few days again the chief engineer made a phone call not to cancel the motors but to order more motors.
This the technique to handle complaints,
1. Make the other talk more
2. Don't argue on complaints.
3. make the other person say more yes to your question.
           

GST in a positive way|pros and cons

Process Planning Procedure

Goodleadermind

HOW TO BECOME A LEADER?|10 ELEMENTS OF A LEADER

Chennai minds

Hello friends, managers and leaders of today and tomorrow  world....today we are going to discuss about the elements required to be a best leader.
The military, followers, resources, advisers, friends and fortresses :
who owns these six is a lion amongst the leaders.

Fearlessness, generosity, wisdom and vitality:
these four are persistent characteristics expected of a leader.

(A)The leader expected to own:

1.The first military: A military, generally consist armed forces. There job is to keep the leader safe and protected, wherever he goes.
And they also have the responsibility of protecting followers and well wishers of leader.

2.The next a leader should have followers. A leader without followers is not a true leader.
a follower is a person  person who supports and admires a particular person and his ideas.
 For example:
Barack Obama had millions of followers to win election, Narendra Modi had million of followers to win election.

3.The next thing he has to own  is resources. Resource is supply of money, materials, staff, and other assets that can be drawn on by a person or organisation in order to function effectively.
resource helps leader to develop his knowledge,wisdom,generosity and to expand his volume,help people, develop his space,advancement in military,etc.
For example time is a resource which provides space to think, prepare, deliver your ideas and development.
computer is a resource which helps to record information, convey information, etc


4.The next thing he has to own  is adviser. A adviser is a person who gives advice in a particular field.
a leader should have adviser in all his fields of action.
the next thing he has to own is friends a friend is a person with whom one has a bond of mutual affection, typically one exclusive of sexual or family relations.
a friend may help in need, he may be a  adviser, he controls and changes your thoughts and action when you go wrong.
For example two leaders mahatma Gandhi ji and Jawaharlal Nehru are friends who fought for independence of India.

5.The next thing he has to own is fortresses it is a person or thing not susceptible to outside influence or disturbance.
generally a leader requires space or office to build ideas, to store data, for meetings, for staffs.
the fortress should be strong and secured to defend during storm, war,and to be safe from enemies.

(B)The characteristics expected of a leader:

1.Fearlessness means without fear; bold or brave; intrepid.
leader should never dread to ask question, and he should be brave to investigate, decision making, punishing the guilty person.

2.The next characteristic expected  is generosity. It is the quality of being kind and generous.
the leader should be ready to help. It is sometimes used in the meaning of charity, (the virtue of giving without expecting anything in return. It can involve offering time, assets or talents to aid someone in need).
Often it means to provide help to others by giving them an (usually precious) item without thinking twice.

3.The next characteristic expected  is wisdom. Wisdom or sapience is the ability to think and act using knowledge, experience, understanding, common sense, and insight.Wisdom has been regarded as one of four cardinal virtues; and as a virtue, it is a habit or disposition to perform the action with the highest degree of adequacy under any given circumstance with the limitation of error in any given action. This implies a possession of knowledge, or the seeking of knowledge to apply to the given circumstance. This involves an understanding of people, objects, events, situations, and the willingness as well as the ability to apply perception, judgement, and action in keeping with the understanding of what is the optimal course of action. It often requires control of ones emotional reactions (the "passions") so that the universal principle of reason prevails to determine ones action. In short, wisdom is a disposition to find the truth coupled with an optimum judgement as to what actions should be taken.

4.The next characteristic expected  is vitality. Vitality is life, life force, health, youth,the state of being strong and active, energetic.
the leader should be strong both mentally and physically. The leader should be always active about his surroundings to avoid mistakes and progressive,He should be planned before an activity.