FORMS OF BUSINESS 

ORGANISATION

There are three main forms of business organisation;

(a)     single or sole proprietorship:

                                             The simplest form of business organisation  ''to organise and operate''  is a single or sole proprietorship. This is the most common form of ownership and is found in business such as small retail shops, service stations etc.The owner is the only one in control and makes all management decisions.

(b)    partnership:

                       In a partnership , ownership is divided between two or more persons who agree to share their property and skills to start and operate a business. Like the single proprietorship,a partnership business is simple to organise.

(c)    joint stock company:  

                               A joint stock company is formed under the companies ordinance,1984 and  has the legal right to act as a person. It may be owned by many people.A company has its own mane, in which it can buy , own, and sell property; make contracts; borrow money; and take court action. The persons who have made investment in the company are known as shareholder.

2.       GOODS OR  MARCHANDISE

                      In accounting the word ''Goods'' has a special meaning.It refers to something which has been purchased by a trader for resale purposes or anything which has been manufactured  for selling purposes.

For example,if  trader purchases furniture for use in the  business , it will not be regarded as ''goods'' , but if it is purchased for resale, it will vi regarded as ''good'',The same article may be ''goods'' for one trader but may not be so to another trader.For example, furniture  is not ''goods'' for a book seller; but it will beregarded as ''goods'' to a furniture-dealer.

         Thus,    cloth will be ''goods'' to a cloth       dealer

                    Watches will be ''goods'' to a watch dealer 

                    Books will be ''goods'' to a book- seller

                   Stationery will be ''goods'' to a stationery dealer.

                  But watches, books or stationery will be considered as ''goods'' to a cloth dealer.