Page No.

:
Unit 1. finnial lanag munt
owenehip Promietonship. Paxtna ahip,
ointátok.

Fogm o ownathip Proprietosship

Thxee baaic bwines ownshie
bale pmpxietoxship
) Aatneihip.

Lbale Popietuship
A buine Owned and operated by
peion.

Adsutoqt bale Pxoprietorshipt

Easy and. Inexpensie to coeate
)EJexibilits in ach eduing toto meet
3) Qwner Jecees al pnide one wbo shows
Privey Owne the
busine
only
deBailsof the
)deset ideas,tox Ml
deus iong
Ability to at quickly ín making
no othere
cheing
Buines itsel
with
taxe
Payz nome of Ownes
paid than coRporat taxu
) which
Ray emplnyees and oneditor.
 Date:

dale
dale
pnpritorships.
*Qiadantagci o
aleh
iabilityo cldebt
has unimited
OlOune achonsod hu busine
and business debt uwith buune
you connot pay
take
ncome bill Collectozs
asets Chome car
3)nks /Lend es consideasale pnp+itorship ta bt
xisk inyestmet
a high
2) Needa incdudepaying employees puhaun
inventuy & TUNning the businy.
sl
3)óale pxopríctosship iinited by hishe
and abi lihey
)The
dissolve
death
the
of the
bwineM.
ownel
automaticaly
2] Patneahip
A oxm of bwineie Qun hihip inA whih
tuo people shahe the
Uobilitie nd

of
Pastneahip
DFoixly
Fairdy
2) eam
ensy and iDerpengive to stat
withpatnes uith diysaent skill
expaienu sondot& capital
3)&haáng uponaibilities makes buiniH un :moTt
4)
Cormalning uke Amothy
bueineBu .deKeae
 Page No. :

elimin ate competion

or
s When two mor
busine3ses Combine
no
long bing duplicated.
Busine losses v shased by
V
al pato
The padneship does Dot
payncome toz
pmait

eiusdvantagea of Paxtneship.

Unlimited litbilits
qeneral p.aatnehip ha
nimited liahility
3) Each paatnr n lose pcaonal aH to pay buin
dobt
) ioited Capital
5)Sone
dasge
lendes MAy
mau atilL be
amount
eluctant to end

o.ik to ending be devid ed equally

By lauþmii, must.
8
no agaeemut
Btart
Reroainingpastne
paatneuhip it they
nay
havtthe
havt Money t
xtnezahate
buy the tum paxtne
Uncatain ite LTansteability
 Page No.
Date:

Corpoxation/Joind stock.
3 chat ered by a
A bwineg that
dene apuates apast
sBato and degaly
twne
by stockbholdes whoha ve puachasc
Quined by
uniti shase the (ompany

Type of Conpoiong
( Corporation The most. commonifum
of coxpoxation pmtect
4 potet the entreprenea
peionally
hom bng pionay sued or the
action and debt of the cosporotidn
2) Subchapte S Corpoaion : A coxporction that' i
to1ed ike n sole pprietorship
uptietorship. paxtneship
3) Non protit Coxpoxation logal entities that
make than the
mony
proit
othe

4) limited Lability Conpany (LL)

of buineH ouneship thatpoyidesmittd
iability adrantagu
 Dabe Page No.:

Adantaget Corpo ration

Enancial Pows
) Limited Liability
) Unimited Use.
exut inde7initely
Eaiy to ran Quneaship
The buine7 Can hiT expest to pmisnaly
maNge Rach aipet of the bwiin eu.
Can Rut în etiunty Tun oxaanizatim.

isadvatagu o Corparatim
in toming Opeating
to staxt a corpmatim.
) Legal aiaitanca Sneeded
to mox qoveNmtat
3) Corparaton Aubjet sOle
egulation than paatneashipá
orupaitorshipt.
tozation
BpahatimUoneis.
 Date
Page

UNLL |LINANUAL MONDE MEN1

Jhe coopeHgjve dtor wo bu

nefcl
neIs madel thc _pmontized the
membenlpr0nded a cdermo
iih
way o4 dxganizing wTk and
Oatis Bocial ond eLonDmic
odceHel

intquality
Ad vantagee of ca openahive Autor

ELonomiL Emp pultMmernt

(oopenaives pnuicl e apprrhuniiy tox
eeonbmiL pantiipation fEtning.
4an age and tnahling mthtbens
-o buid inanlialtabilty
2> (ommunity Pevelaprnen
They enbutt to locad ereDETmic
cdeuelaprmeh , Strenglbtn (emmuniiea
and eate Autainuble dob apportunihea
3) shoued RiskK_and ReLnand
MembtnA Jhunf theHik Qnd tuan

otlectne AicOunicbilty tor the

(ocpenatives Autess.
 Paqe

atd by (topenative
(hauengc
DEunding (enuhanh
Maket (ornpetihbT
3) Leaderuh1p Taniition.

(oppenative toY
Pis ad vantages of

DLegal lemplexiky
Managing egal tqurtn
and ttgulatay txpeutse
enh lanbf lemplex, 1tquinhg
too naugk the Itgal frcamennk ehkechvay
|> Resaunte Management
EpethiceHeLOuLe allocationinudhng
human ahdnuhdalHesounLeA POSeL
OChattnge for the Aultainahle qrauth
ospenahve
Applitakiom1 of copexati stcoy
| ) Explp YOti n cOF
o£ cdiVee buline mdela
2)> Tongetd eomomit develnprment
3) (olla bD YatHit cleision - making proLeised
|4 (emmuhity -dmver iniHakives
 2) Pubu Secto
lhe pubu L

nteupnsclownto. and munagcd bs the

'uthe
thecCrtTalbepay whetly Cened by
an tquty stake of a Ieaat
ui th the goverm tnt ).

publil Acto Unduiakngs

hsf >Maximnizing the Mate at Econamit graith
qyauth.
>Pevelnpment Capntal nteni ve seLkax
3) Prvelnpmen) agultne
4)
4 Ratanted eqionai levelapmeh
> Ihunea sihg emplbymen Apprruniht.
6> Pzeventing pnak monaaly
|S Expat promntibn k Impnt
Bubstitution

|lo> Establishment of dncialist patte1n.

Balunled q7041h
2)
Long peiod planning
 Date
Page

S> aultiu 0Y CanoMuc developrmtrs

Egual cutnhution o4 wealth

1 Beten HelahHbn with°laboñt toe

9) Uilizatibn b lotdL0HLe.

Limitahsni of psL
> uck ok initiation and
Aelection af
tfiiny
gonl
3) Potitical intenferent
4) Slaus qrowth
5 DPopy nanagement

Applicatien1
1 lo cneatt ah indutnal bae in the

cunty
|2> To qenerah
genexak a beteg qualiy q employ mtt
3) To dexelop bauic injgaltzutuie in tht
ountg
4) lo pranide eousley to the gaveTtnt
Promote Cxporh gnd He duee imp0t
 Date
Page

3
4ovemtnt ndextaking.
oyement undeTtaking me an
industal undentaking lailed cn by q
cepautnent of govennert or by q Lozpo-)
Haticn estabhed by g (enha) pztuin
(ontrolled by the GaeAmtnt by
CiaNt Cermp ahy a cdeined in StLhon
Secn
6L7 the (empany AH 1956
Advantugi o4 novement Undexkaking

D(mplehe gouezment (ontz)

lyoyeHnent hau lemplete (antza) QveY
depantmcha) uhdentakingsait ui
Bmpletely ouned managed c1nd (enho
Iled hy a gouetment minutyEfeLhve
CGntrol uexec isec OVDH thÇ opeHations
by Patliament
2) Fai Prattice
Thee enJune a high deqzte a tanlpait
herause depatnental entpiled
(ontzolled) by pctliament
ye dizeH) possibillhiu for
Qhd thete anç
an lers
Unfan
nfan QLionl.
Qu
frauduleht and
ulert and
 Date
Page

uniening oj businS _becuut depauntme

talmuhagement suje from cpnu
tional igiclity JA betomes dittiut to
bringabout undumenhal thanged.
HOTOation andinnDygtinn thata
Mequixtd from time to time
in Aetisian making
tmployrea o0 heacu ot depantnenth in
duch (ompancA ane no petm1ted to
incdepencdent deision withat the
mke
pnmission o the Helt vaht ministy. Thi
cdelcy situtpn whene prompt
inn SituoHbn
ecisioni a1e nfcPHany
3) Bune uOi
Approach uhable to take
lhese entenpsey cHe
appoxtunitiu
beheitt ok bwinty ky
cuHe.not allowtd o take
they.. bwteaLL L1Q
Ventute beccLLJe tnseHVahiv dpproalk
(CuHens dnc
4) Rec Tapism undertakug
depattnental
Cenbrali2otion ih makingAcisioni
deusion
delaysi n
cdelcyed
CpeHaionl
deyto dey
tegulatieni. In
 Date
Page

u Med tapism cnd ho atHon lan be

theue s
taken unhl it pase throuqh the ( y
chann el) oLuthpmhy
5) Unclut troveHment ntn}enenie
Thene a lot ot qovenmen inenteene
They had to take approval at eveyshp
heie is aus po lititoy intnktnernle thnug
the minuty
Applicahon! at (n0veHmeht
Indtakig
 Date
Page

(ampa0s) Pn beueen (oapetatie Sectox,

pubic Selto and ípuf Und entaking
2 Public StLtY
DAnation r PublC Secny erganizahiors
ait ouncdLad2blled and managtd
by the gorement t4 othen S}ate Hun
hodies
ii) ownenShip i hf Qwneship o7 the publs
SeDr unitt an _be by certal
l"3

Need o inante and isnce af fingnte

Asuxey ot fingnce
Sn QUk pueient clay econamy finanle
definecl au he proii on ot money at the fime
when it i Aeguirec EveyenBeaprite,
Whethes big, medum dh dmal needy fingie
to caxuy on ih opekotiona and to echiexe
it taget an fact {inane.i tooindupeniabe
oday that tu ighky aid Jhadit itte
Iie blood o an entekpite
why do eneed finente 2
t setting-p a hiurines
Needto finante sh day- to-dayactivitie
3) Expantion.
4) Reuekch into ne) produut
s) special iuation Juch ewa fau in sala

The vaxis JouL o finane oyailable to buinelz

mey be claitied a
A) ExtenaldHLeL
B) ntena uNe)

Extexnalloecer aye sutti de

the fum
fixmhy Thuy cue uued extenyixely for calecting
initial capiBal. The impetant extesnal juncer

LHle othase
) LHle dehentuue
3) publicdepuih
4)Joan rom tntikti on
s) Bank sedit

Tn tenal souuce ale avcilable oithin

 |Page No.
Date

the fm hey develop afte few yeas f

Ratitable working f he fixm She inpsua
intexnad Jsuke finance Metaine
pxofit" îtt uaho catled a ploughing
back af aofit Hone the undihiute!
profit the fim ç Mein vested in. the
bujine
the exteknal 1sMe and intexnal 1AUMCe
May be fumthek claitied as
a ong teum Asuie
b) dhat texm 3UNce

A buines firm ueguireL Jong teum

inanie tok MActing fixcd apital ne~d
Thee fund aue Yegired genekally fos
Jon, duIation The main teuMLer of dong
Joim inante may Iie divided into
) Qoned ccpital
a) Debt capiBal.

b) dhet teum JuHes

The thet Jexm und aue eguiued js
coorking copital uegiremint
Theie una1 axe uegirecd foo shsut pexiDd
 Daa:

The shet teum fundu can be autanged rorn

taking thgt texm doany, accepting depik,
etc
 t 3

Ahanel, debentuxe,dyg ot shaue, cind

Compakuan betseen haues and debenture.
Bueak even onalyit

SThe capita ofa campany divicdeo iato thaue.

kach thawen e fakma nit f ouoneihip af a
Company and i otzxecl to sale10 to kaie
capita Jotuhe campany.
Desipliun thauer (an be broclly d1ided int.

Equiky thauer i
thauel aue alo knoon a 'audinay
Ahauey' Faklegd Meaon,a company can nànt
ealnt sithaut iguihy shat
The ahove definition Meveal the ton imp&utant

The equiky thakes do not enjsy pxeuence in

geling diuideod
poyment
) The aquiky thakel da nat have pxieuiky fok
4capital at the time ot 10inding up he
Lmpany
 Page i
Date

2 Ruefeuente shaseu'
Ae the name indicadeL, thee thaueL have
ceatain puivilegel and pxefeuential aight
dulindh _hamhae ataching th eguit thaxeL
She thaxe chich cauk follacoing
Axefekenlia sighht axe tamed a pxateuenue
Ahaxer

A Apxefauential xight au th he pymentf

dividend duing the life time af the company
B) Apuetekential tight au to the uetun ot
CapiBal in the event of oíndiny up st he

Holdex othee ghaerhave a pris tigtht

th tereive the fixed uate f dividend befeke
cny dividend u paid to squiky thaxes The
Mate o dividend _RHesaribed in the itsue
Debentu

Debentuuu MepHeLent beoMed capk

Ccpital he debentwHe holdes aHe hedites
he company The debentuue holdes gel
aixed ate o intexett ay notuun on hu
 ata
2l02|24

invethnt Boasd of düneto hau the pewe to

iMue alehenkuxey

Compauiian beluween fhanel ond debentau

Shaues Debentuxel

he haku afa company he dehentuu holde

pavide suoneuhig ta povide Jaan, thw. dehenke
the shaseholdew haldekt cHe (recttowta
Lampany
She chaue haldek qet1 he The debentuse holdew
uelun in form o get the uetiun in torm
Ldividend

p on halding shasel pexion holding cdsbentue

knouan aLthaxeholcle ü knoon au debentuwe
haldek

4) No (etainky o uetun The uate 4intexesti

xed andlitobe patd

Repynent if he company Repayment duxing ik

iguidatu ond tund aue itefime o atthe
dvailable fpecified pexiad
 Page

4)shake Can't be pebentuseS Can be

(onvened ino deben-Convetecd ino
thaey
)hawe holdew hoMe the Debenuue holdew danot
Light hpautiipake pouseli any voting uighi
and vate in ompany' and can' pautiipate
Imeting in meing
3) The shaue haldeki get The debent uue
he payment aftck haldeu qet the 4int
he dehentuke piaiky sn pyment
haldest get.
9) Tha dividernd i not The inteuut údeduted
delttet dedueted from toxable inome.
LAromtoxable inLome
* Bueak even omalyit
Ahreak exen cnalyi üwecd to delexmine
how måch saly yolume yauk butines
needy to ttaut making a prafit
he brcakeven cnalyiz iu eipecially wue
nchen yau'e developinga puiing ttkateygt
eithe, upaut ef a maketing plan
 1Paue Nt.
Daa alo2 la

busines plan.

n economiu and hwines, speially cot auounting

the baeck-even point LBER)u th point at
Lohich cyt ot eapensel and wAeVenue aue egual
these u no net Je4 0t gain and one ha
bxokan even

Lotad Hevenue = BEP.

Bxe ak Even Point

Th Grdek ta caulae houw pkozitable a puodt

2will be ,we mutfity dook at the caut puice ind
Revenue inyolved

Thekeae two buic type cautaLampong inu

Fixed cG4t.
 Page No
Date

yaxiohle cot
Lt ghat change uit
CLMe

Rkeduction Jevels ae salu. changeu in

ot matexid ued inthe Exampet indude :uk
prodution af the

Juemain kghly the tame uggawlen of

Saules suput leveli Example inude &Rent
Tnakançe and wages
Unit peite
The cmeunt mamey chauged he.
wtomex each unit c produut teMuiLe
TotaJ t:
The sum o the fixed csst and totd vaxiahle
(ot f any given level of pracducton
Cixed cat
o + Totcd yckiahle cat]
TotaJ Revenue g
She prodl od cxpected unit sales and
init prie
(Expected Untt sole) x unit prie)
PHotit lo
 Mevenue after subtracting ul cusociated toh.
Totcd Revenue - Tofa cot)

Exqmple
) Fot eXample, it coh RJsoto pzoduce a
pen,and theue aYe fiñed ctt of R1, 000, he
break- even paint tot ielling the idgel wad
be?

widget
Ccalutated au 1o0a/(1 00-a0) 20)

1lling ioniio
Ccalulated au lo00/200-so)=6 )

From thiç e con make sut that he (ompny

hauld 4el produt at highes prie to keuch
fatex
BEP

2fak cxample, dsppote Jhatysuu fixedcooCk foz

R!.e yeau
prodLcing 00, 000_pzodut weke s,matesick
Vatiable cyh aue 220 R
Aoo RA leboy ond o80 R.t. Ovexhead, fo

a telling price f L200 Rtfor

4yau chose
euch produt hen
 Page Nr
Date

BEp :

30, 000CTEC) divided by L200lP)- 00[v)

egucli &oos unik

30, 000
02.007:00

Thuu the numbe ot pracuut hathave to be

yeux buines ill ttaxt to make a profit