.1 Introduction If one is planning to start a business or is interested in expanding an existing one, an important decision relates to the choice of the form of organisation. The most appropriate form is DETERMINED by weighing the advantages and disadvantages of each type of organisation against one’s own requirements. Various forms of business organisations from which one can choose the right one include: (a) Sole proprietorship, (b) Joint Hindu family business, (c) PARTNERSHIP, (d) Cooperative societies, and (e) Joint stock company. Let us start our discussion with sole proprietorship—the simplest form of business organisation, and then MOVE on to analysing more complex forms of organisations. 2.2 Sole Proprietorship Do you often go in the evenings to buy registers, pens, chart papers, etc., from a small neighbourhood stationery store? Well, in all probability in the COURSE of your transactions, you have interacted with a sole proprietor. Sole proprietorship is a popular form of business organisation and is the most suitable form for small businesses, especially in their initial years of operation. Sole proprietorship refers to a form of business organisation which is OWNED, managed and Chapter 2.indd 27 13-01-2021 09:40:59 2021-22