Skip to main content

Proprietary Firms

By

Types of Firms

1-    Proprietary Firms

2-    Partnerships Firms

3-    Joint Stock Companies

Proprietary Firms

There is only one owner of the company called as "Proprietor". All the profits/loses were owned by the proprietor.

  • These types of firms do not have a legal status and exists because the proprietor exists and will cease to exist once the proprietor cease to exists
  • Since there is only one owner of the company therefore the capacity to raise funds and take complex decisions becomes limited.
  • If there were loses then to meet those loses, a owner has to sell off his personal properties, since it's a unlimited liability firm.
  • The income is always clubbed with the income of individuals and hence proprietor has to pay more taxes.

Comments

Post a Comment

Popular posts from this blog

Biotech Regulatory Authority bill a huge Step for Future Market Development: Environment Minister

By
Biotech Regulatory Authority bill a huge Step for Future Market Development: Environment Minister Description  :  Industry Date  :  Aug-19-2010 The Biotechnology Regulatory Authority bill, scheduled to be introduced in Parliament imminently, will not open the floodgates to genetically modified (GM) food. Environment Minister Jairam Ramesh said, "I believe that when the Bill will be introduced, it will address the concerns that have been expressed by the civil society groups that it will open floodgates for all GM foods. Nothing like it". He further added, "It's just exaggerated notion of non-reading of the Bill. Once it is presented in Parliament, we all will see that the integrity of environmental assessment process has been maintained" The Bill seeks to create a new body to regulate research, manufacture, import and use of products of modern biotechnology. The need for a biotech regulator was highlighted during the recent controversy over introduction ...
Post a Comment
Read more

RBI gives Infrastructure Finance Company status to PTC India Financial Services Limited (PFS) a subs

By
RBI gives Infrastructure Finance Company status to PTC India Financial Services Limited (PFS) a subs Category  :  Corporate News Date  :  Aug-24-2010 09:52 PTC India Ltd has informed regarding a Press Release titled RBI gives Infrastructure Finance Company status to PTC India Financial Services Limited (PFS) a subsidiary of PTC
Post a Comment
Read more

Fixed Assets Management

By
Fixed Assets Management - Capital Budgeting Decisions Fixed assets are like the properties, infrastructure facilities that are required by the business operations to complete successfully. A finance executive has to evaluate and decide on which fixed assets the company should invest so that company can perform all its current and proposed future functions. There are various techniques that are available and that can be used by the finance department to evaluate various proposals for the investments like - pay back period, Net Present Value, internal rate of interest, profitability index. Once the economic value of those fixed assets gets over than a proper depreciation policy should also be formulated.      
Post a Comment
Read more