CHAPTER IV

ANURAG SINGH-15

-by C.B.GOING

ANUJ GURDASANI -14

ANUBHAV SHARMA 13 APURVA SRIVASTAVA -16.

To

understand the science, principles and institutions by which manufacturing operations are carried out.
Different

forms of Industrial Ownership. Individual Proprietorship Partnership/Firm Corporation.

Simplest and the most familiar form. The owner may hire assistance. Delegate his responsibilities. Carries business as he/she sees fit subject to legal laws. Solely responsible for the loss and profit of business.

Needs to register with a government office in case running business under any other name but his own.

A Partnership is

a group of individuals who have joined their properties, services and credits for the purpose of conducting business for their joint benefits.
This This Each If

kind of business is governed by local rules and statutes. form of ownership gave rise to partnership law.

partner is liable for contract obligations and wrongful act, incurred by self or by any other partner. during the performance of a contract, damages are incurred by others, then even the personal properties of each of the members may be arrested to compensate the damage.

Corporation Corporation

is wholly artificial person.

exists by provision of law and its rights, powers and privileges as explicitly conferred by the law.
Terms

involving corporation start-up

Owners has to file an article of incorporation with secretary of state defining the

kind of business and capital. A charter will be issued to them to carry on business. Corporations are not permitted to do business out of charter provision. Corporations must declare their capital which they devote to the purpose of their business.

Firm
Ownership share among members fixed by an agreement No new member can be added without the consent of all members of the firm Each member is liable to the extent of his entire possessions for the liabilities of the firm Owners are management Firm may end by the death of owners, partners or conflicts etc.

Corporation
Total capital is divided into shares and these shares are transferable without restriction Membership is constantly shifting both as to persons and proportions held by each. A stock holder is not liable, beyond the amount of his stock, for its debts and its wrongful acts Management is vested in a board of directors elected annually by the stock holders Corporation never dies.

Capital Stock-The money paid in by the stock holders when the company is first organised.eg- Buildings, machinery etc.
Working Capital-Part of corporation which remains in liquid form.eg- shares, bonds etc. Surplus-Difference between the total value of all assets of company at a particular time and its original capital. Dividends-A portion of the accumulated earnings distributed among the stock holders as profits. Quick Assets-A portion of the property of a corporation which can readily be converted into money.eg-Bills receivable, marketable securities etc. Fixed Assets-A portion of the property of a corporation which cannot be readily converted into money.eg-machinery, building etc

What-A subsidiary company, or sister company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock.
Why-A large corporation will often organize a subsidiary corporation to carry on different activities or to avoid overstepping its charter.