TOTAL CHILD SCHOOL, PORT HARCOURTWEEK: 1
TOPIC: BUSINESS ORGANISATION
Sub-topic: Firm and Industry
Firm: A firm is a business unit that produces goods or provides services with the aim of earning profit.
Example: Tata Motors, Infosys, a local bakery.
Industry: An industry refers to all firms that produce the same or similar type of goods or services.
Example: Textile industry, IT industry, Automobile industry.
Difference between Firm and Industry
| Basis | Firm | Industry |
|---|---|---|
| Meaning | Single business unit | Group of similar firms |
| Scope | Narrow | Wide |
| Example | Reliance Jio | Telecom industry |
Business Organisation
Definition
A business organisation is an arrangement where people, resources, and activities are systematically coordinated to carry out business activities and achieve objectives like profit and growth.
Types of Business Organisation
1. Private enterprises: Private enterprises are enterprises owned and managed by private individuals. Examples includes
a. Sole Proprietorship
b. Partnership
c. Joint Stock Company
d. Cooperative Society
2. Public Sector Enterprise: This are type of business organization owned, controlled and managed by the government. These organisations are owned by either the local, state or federal government and their major aim is to provide social services to the people
. Basic Features of Business Enterprises
Difference between Private and Public Enterprises
| Basis | Private Enterprise | Public Enterprise |
|---|---|---|
| Ownership | Private individuals | Government |
| Objective | Profit maximisation | Public welfare |
| Management | Managed by owners | Managed by government officials |
| Capital | Provided by owners | Provided by government |
| Accountability | To owners | To public and government |
| Examples | Reliance, Tata | BHEL, Indian Railways |