The legal structure of the operation of the firm differ from country to country. But there are some such characteristics which apply to all the economies. Here attention has been focused on such characteristics.
The legal form of a business organisation is basically of three types-sole or single proprietorship, partnership and corporation. The choice of the from of organisation for a business depends on both the financial and non-financial factors. The main non-financial factors are the capacity of the management to run the organisation efficiently and the relation of the organisation with the various agencies of the government. The main factors determining the form of an organisation are the financial factors. The form of organisation is selected taking these factors into account.
The legal form of a business organisation is basically of three types-sole or single proprietorship, partnership and corporation. The choice of the from of organisation for a business depends on both the financial and non-financial factors. The main non-financial factors are the capacity of the management to run the organisation efficiently and the relation of the organisation with the various agencies of the government. The main factors determining the form of an organisation are the financial factors. The form of organisation is selected taking these factors into account.
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