Edumarz

State the various types of organisations in the private sector.

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By Harshvardhan, the Subject Matter Expert at Edumarz

Solution: The private sector consists of businesses owned by individuals or a group of individuals.

The various forms of business organisation in the private sector are:-

  1. sole proprietorship
  2. partnership
  3. joint Hindu family
  4. cooperative society
  5. Joint Stock Company
  6. Multinational Organisations

There are all kinds of business organisation-small or large, industrial or trading, privately owned or government owned existing in our country. These organisations affect our daily economic life and therefore become part of the Indian economy. Since the Indian economy consists of both privately owned and government-owned business enterprises, it is known as a mixed economy. The Government of India has opted for a mixed economy where both private and government enterprises are allowed to operate. The economy, therefore, may be classified into two sectors, viz., private sector and public sector. Then there are businesses that operate in more than one country known as global enterprises. Therefore, you may have observed that all types of organisations are doing business in the country whether they are public, private or global.

there are shops owned by sole proprietors or big retail organisations run by a company. Then there are people providing you services like legal services, medical services, being owned by more than one person i.e., partnership firms. These are all privately-owned organisations. Then there are businesses that operate in more than one country known as global enterprises. Therefore, you may have observed that all types of organisations are doing business in the country whether they are public, private or global.

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