Technology has a variety of meanings, but as applied to the environment of business, it generally includes all the ways by which firms create value for their constituents.
f. Product and Service Technologies—the technologies employed for creating products (both physical goods and services) for customers. Although many people associate technology with manufacturing, it is also a significant force in the service sector.
g. Business Process Technologies—are used not so much to create products as to improve a firm’s performance of internal operations (such as accounting, managing information flows, creating activity reports, and so forth). They also help create better relationships with external constituents, such as suppliers and customers.
i. Enterprise Resource Planning—Large‐scale information system for organizing and managing a firm’s processes across product lines, departments, and geographic locations.
BUSINESS ORGANIZATION & SOLE PROPRIETORSHIP
In the words of L. H. Haney
“It is more or less independent complex of land, labour and capital, organized and directed for productive purposes but entrepreneurial ability.”
1. SOLE PROPRIETORSHIP
According to D.W.T. Stafford
“It is the simplest form of business organization, which is owned and controlled by one man”
Sole proprietorship is the oldest form of business organization which is owned and controlled by one person. In this business, one man invests his capital himself. He is all in all in doing his business. He enjoys the whole of the profit. The features of sole proprietorship are:
- ƒ Easy Formation
- ƒ Unlimited Liability
- ƒ Ownership
- ƒ Profit
- ƒ Management
- ƒ Easy Dissolution
2. PARTNERSHIP
According to Partnership Act, 1932
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.”
Partnership means a lawful business owned by two or more persons. The profit of the business shared by the partners in agreed ratio. The liability of each partner is unlimited. Small and medium size business activities are performed under this organization. It has the following features:
- ƒ Legal Entity
- ƒ Profit and Loss Distribution
- ƒ Unlimited Liability
- ƒ Transfer of Rights
- ƒ Management
- ƒ Number of Partners
3. JOINT STOCK COMPANY
According to S. E. Thomas
“A company is an incorporated association of persons formed usually for the pursuit of some commercial purposes”
A joint stock company is a voluntary association of persons created by law. It has a separate legal entity apart from its members. It can sue and be sued in its name. In the joint stock company, the work of organization begins before its incorporation by promoters and it continues after incorporation. The joint stock company has the following feature:
- ƒ Creation of Law
- ƒ Separate Legal Entity
- ƒ Limited Liability
- ƒ Transferability of shares
- ƒ Number of Members
- ƒ Common Seal
4. COOPERATIVE SOCIETIES
According to Herrik
“Cooperation is an action of persons voluntarily united for utilizing reciprocally their own forces, resources or both under mutual management for their common profit or loss.”
Cooperative Societies are formed for the help of poor people. It is formed by economically weak persons of the society. In this form of organization, all members enjoy equal rights of ownership. The features of cooperative society are as under:‐
- ƒ Easy Formation
- ƒ Protection of Mutual Interest
- ƒ Limited Liability
- ƒ Equal Distribution of Wealth
- ƒ Equal Rights
5. COMBINATION
According to J. L. Hanson
“Combination is the association, temporary or permanent, of two or more firms.”
Business combinations are formed when several business concern undertaking units are combined to carry on business together for achieving the economic benefits. The combination among the firms may be temporary or permanent. The salient features of business combination are:
- ƒ Economy in Production
- ƒ Effective Management
- ƒ Division of Labour
- ƒ Destructive Competition
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