Std 11,Commerce,Organization of Commerce,Ch 3,Private,Public and Global,Module 01

Hi, kids, we are going to start with the third chapter of OCM, Private sector, Public sector and Global enterprises. So, let’s enjoy this chapter no. 3. Let’s check up the first module.
And the first question, how are business sectors classified? Now, business organisation is set up which undertakes business activities by producing or distributing goods and services. You can see, production going on in all these clips alongside, manufacturing of planes and plane parts, automobiles, soft drinks and some of the products being shown. So, business is not only producing but also distribution. So, once goods are produced they need to be distributed through transport services and different, different middlemen. You can see, loading and unloading taking place and truck is in motion, right. So, transportation and distribution is compulsory.
The main objective of business is to earn profit money. Nowadays, profit is not only the aim of business organisation but they have to fulfil, they have to do something for society, we call it as social responsibilities. You are correct, we call it as social responsibilities. Now, Indian economy has got mixed economy which is divided or includes private sector and public sector organisations. So, the private sector organisation mostly focuses on profit, profit and profit motive, that’s goal or aim. Whereas, public sector focuses on service motive. So, you can see in the picture shown private sector, speaks only and talks only of profit, public service, right. Do remember, in India now these business sectors are classified as, as we saw just now a private sector and a public sector. Now, let’s understand this a little bit in more details. It is run by private individuals or maybe group of individuals, right. It is controlled by them and not by state government or central government, do remember that. Whereas on the other hand public sector undertaking owned, managed and controlled by Sarkar or the government, do remember, right.
Further down we have different types under private sector.
So, let’s check one by one sole trading is first, it is owned, managed and controlled by single individual. So, that’s the picture of sole trader, right. Sometimes we even call him as one man show because he does everything for his business, do remember. Joint Hindu Family Business, you can see all family members living together, right, so all of them when they enter into business together we call it as Joint Hindu Family business. Do remember, when all family members come together and start business, it is called as (JHFB) Joint Hindu Family Business.
Third we see, Partnership Firm. Now to overcome the demerits of some sole trading we have partnership firm coming up, wherein two or more than two people they come together and have sharing in profit as per profit sharing ratio.
Next, we see Joint Stock Company, herein large number of people they invest their money, correct, and what they get, they get in return shares. And what the money collected in hand of company becomes share capital. So, they share ownership of the company. Each and every individual becomes the owner of the company.
Next we see is, co-operative association of persons coming voluntarily by their own willingness together with a service motto or motive to serve the society. So, these all makes your private sector.
Now, let us understand Public Sector. The very first we see, Departmental Undertaking, you can see chook chook gadi here, that’s the railways. Now, these enterprises are fully owned and controlled and managed by government and their management is with ministry sitting at the centre, that in New Delhi. So this is departmental undertaking, ministers are incharge of those departments.
Next, we see Statutory Co-operations, now these types are autonomous corporate body set up under special Act of Parliament or maybe of Legislature, right, examples are Reserve Bank of India, LIC, what are all these, statutory co-operatives, right. They are formed and take birth just by passing an Act, in parliament or state legislature.
Now, third type Government Companies that is a company where minimum 51% of equity are owned by government of India, do remember that. Example Indian Oil Corporation, right, kids, 51% with government means government companies, do remember, right. So this was the third and last type under Public Sector.
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Std 11, Commerce, Secretarial Practice, Ch 3, Joint Stock Company, Module 02

Kids, we will move to the next module. Discuss the concept of Partnership Firm and state its features. Means we will see about partnership, more than two people. Right, coming together to do business, you can see in the following picture.
Now, partnership is started by an agreement between persons. Now, two or more persons come together and have sharing in profit, as per the profit sharing ratio. Right, they sign in an agreement, where terms and conditions are mentioned. This agreement maybe oral or maybe a written one. And kids, always written agreement is better, right, it acts like an evidence, yes. Minimum two persons are required to start this partnership firm and the maximum number is 20, in case of general business and in case of banking there are only 10. Do remember, right, minimum number of people 2, maximum banking is 10 and non-banking is 20. Now, let’s see third feature, partnership firm is started to carry on a business activity. Let’s check an example alongside, raw material is collected then some processing done, right, cutting, shaping, polishing and what do we get, finished goods, wooden table and chairs and many more articles. So, partnership business is carried out for all these business activities. Now, the ownership of partnership firm is joint, remember that 2 or more than 2 people that is partners are joint owner of assets and liabilities of business, right. All this property belongs to all the partners in the firm. All the debt also belongs to all the partners in the firm. The partners manage business jointly, everything will be done together, it means all the decisions are taken by mutual consultation means after taking permission or consulting each other. Right, you can see there, they are consulting each other, we are going to start something new, we are going to start something different. The profit and loss are shared in the decided proportion or as per the agreement, agreement or deed you can call it as, any legal instrument in writing that is signed or attested by all the partners. The liability of the partners is unlimited, joint and several. Very, very important kids, do remember and understand very well. Now let’s take an example four partners in a firm, right. We name it as A, B, C, D and what is outstanding? Rs. 1 lakh. Now, jointly what you can see here. Jointly, individually they are responsible to pay 25,000 each, correct kids. So, this is joint, do remember that. Now, let’s check severally, now what happens here, there are four partners. Now, one of them dead but still the outstanding amount is rupees one lakh. So, you can see the remaining three solvent partners sharing that one lakh into three equal parts. So, that is you can see there, three equal parts, right, kids.
Another, what happens now, second condition, again for severally, one was dead, second partner is insolvent now. So, two remaining solvent partners will share one lakh into two equal parts, right. And finally again, if even the third partner becomes insane means mad, unsound mind, then the last partner, which is solvent will share or take the burden of every penny which is remaining outstanding, you can see one lakh outstanding entirely has been taken care or paid off by the solvent partner. So, kids, do remember, unlimited, joint and several, right, liability unlimited, I hope you remember that. No difference between personal assets and business assets and joint and severally we did just now. The share in partnership cannot be transferable to any other person without the consent of other partners. It means interest of partnership is non-transferable. As you can see here, these are the partners of Bajate Raho Firm. Now, Mr. Y wants his son to join the business. He needs to consult everyone and if everyone approves, he can bring in his son, right. So, Mr. R becomes the new partner in the business.

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