Solution:

What is Industrial ownership?

The terms industrial ownership, business organization, forms of ownership of industry, types of business enterprise, types of ownership etc convey the same meaning.

Little capital is provided by single individual it is known as individual ownership, individual entrepreneur organization, single ownership, individual proprietorship etc.

To start a business enterprise the most important thing required is capital.

• If the capital is provided by many persons in the form of shares to an institute with a legal entity it is called a joint stock company.

• If the capital is provided by two or more persons, it refers to partnership organization.

There are different types of ownerships:

• Single ownership (Individual or Sole proprietorship).

• Partnership.

• Joint stock companies.

• Corporations.

• Cooperatives.

• State or central government owned enterprises.

Single ownership (Individual or Sole proprietorship):

• One man owns this type of business. The business man invests capital, employs labour and machines.

• The single owner invests, maintains and controls the entire business. Hence all gains or loss from business goes to him.

• It should be noted that he is fully liable for all the debts associated with the business.

• This type of ownership is easy to establish and simple to run with a minimum of legal restrictions.

Advantages:

• Easy to dissolve, The business can be dissolved at any time.

• Operational flexibility, The organization is easy to operate and it is extremely flexible.

• Coordination of effort and reward, efforts and rewards are directly related in this type of ownership.

• Prompt decision making, Owner is prompt in decision making since there is to be consulted.

• No coordination. There is no problem of coordination in the organization.

Disadvantages:

• Owner is not a Master of All, The owner of the business cannot be a master of all techniques, like management, sales and engineering etc.

• Limited opportunities for employees, There will be limited opportunities for employees to get profit sharing, bonus etc.

• Unlimited Liability, When the business fails, the creditors take away the personal property as well as business property to settle their claims.

• Sole Responsibility, The owner is liable fore all obligations and debts of the business.