A co-operative society can be formed by alteast 10 adult members. The members willing to form a society must have common bond among them. ... The basic idea is that all the persons intending to form a society should have some common objectives to achieve. 

Documents for Registration

1. A certified copy of the Resolution passed at the first meeting of the group with the Province Cooperative Officer (PCO).
2. Feasibility study report on how the Society operates.
3. Four copies of proposed by-laws of the Society.
4. Letter of intent (to join the society) from prospective members.

Such of those persons, who wish to form a Co-operative Society, should send an application to the Assistant Registrar of the area on a prescribed proforma i.e Form I alongwith the proposed byelaws, indicating the type of the society they want to form, number of persons likely to be enrolled as its members, and the name and address of the persons authorized to function as chief promoters and to attend to organisational matters. This application should be signed by bnot less than 10 persons or by such number of persons as per instructions issued by the Registrar, Co-operative Societies from time to time.

Business risk refers to the uncertainties that leads to unprecedented profits or losses.

The causes may be as follows:

• Natural Calamity: Natural calamities like flood, earthquake, famine cannot be controlled. Such calamities result in a great loss of property and resources.
• Economic Causes: These include change in the demand or supply, change in prices, competition, change in technology etc. Rise in lending interest, taxes etc are financial problems which are also considered in these.
• Internal causes: These include dishonesty, negligence and absenteeism of employees, internal conflict, inefficient management, strikes and riots etc. 
• Other causes: These may include fluctuations in exchange rates, political disturbances or any such unforeseen events.

Objectives of Business: The objective of business means the purpose for which a business is established and carried on. Proper selection of objectives is essential for the success of a business.
The businessmen always have multiple objectives. All objective may be classified into two broad categories. These are (1) Economic objectives and (2) Social Objectives

The life insurance provides dual benefits, it provides security to the beneficiary of the insured and also acts as an instrument of long term savings. Such policies are known as money back or endowment policies.

In return of regular payment of premium amount, the insurance company, protects the insured, for a specified period of time. That is, incase of death of insured, the insurance company will pay a lump sum amount (already agreed at the time of contract) to the nominee/ beneficiary of the insured.

Business Entity Concept: The concept of business entity says that a business is a separate entity from its owners. Therefore, for the objective of accounting, the firm and its owners are considered as 2 distinct persons. Hence, when an owner brings in capital into the firm, it is considered as a liability of the business.

Human activities can be classified as Economic and Non-Economic Activities.

• An economic activity involves the production, distribution and consumption of all goods and services.
• A non economic activity in done with no intention of earning a profit or any money.

Mr Sonu sold his washing machine & refrigerator on Quikr as he was shifting base to London. Is this a business activity?

Answer No, It is not considered as business. Business involves dealings in goods or services on a regular basis. One single transaction of sale or purchase, therefore, does not constitute business.

A statutory corporation or a public corporation is a body corporate set up under a special act of the Parliament or of the State Legislature. It is known as a statutory corporation because it is created by a statute. The statute defines its objects, powers and functions. It is an autonomous body fully financed by the government. Some examples of statutory corporation are Air India, Life Insurance Corporation of India, Employees State Insurance Corporation, etc.
The important features of a statutory corporations are as follows:

(i) Financial Autonomy They are financed by borrowings from the government or from public through revenue generated by sale of goods and services.
(ii) Accounting and Audit Control They are free from government accounting and audit control and are also not financed through government treasury.

Characteristics of Business
(i) Economic Activity Business is considered to be an economic activity because it is
undertaken with as aim of earning money or livelihood.
(ii) Production or Procurement of Goods and Services Goods are offered to consumers after they are either produced or procured by business enterprises. Thus, every business enterprise either manufactures the goods it deals in or it acquires them from other producers, to be further sold to consumers or users.
Goods may be consumer goods like television, tea, pen, etc or capital goods like machinery, furniture, etc. Services may include facilities offered to consumers in the form of transportation, banking, electricity, etc.
(iii) Sale or Exchange of Goods and Services Business involves transfer or exchange of goods and services for value addition. If goods are produced for self consumption and not for selling purpose, it cannot be called a business activity. Cooking food at home for the family is not business, but cooking food and selling it to others in a restaurant is business. Thus, one essential characteristic of business is that there should be sale or exchange of goods or services between the seller and the buyer.
(iv) Regular Dealings in Goods and Services Business involves dealings in goods or services on a regular basis. Therefore, one single transaction of sale or purchase does not constitute business.
(v) Profit Earning The primary objective of business is to earn profit. For this businessmen make all possible efforts by increasing the volume of sales or reducing cost. It is an essential factor as growth and expansion would be possible only when a business is making profit.
(vi) Uncertainty of Return Business should not be considered as bed of roses. At every step
problems and obstacles hinder the path of success. One cannot expect the actual returns an investment as there is always a possibility of losses.

 Synthetic industry : In this industry, two or more materials are mixed together to create a new product. For example, producing soap, biscuits, etc.
 Assembling industry : In this industry, the finished product is produced by assembling the various parts or components. For example, radio, car, T. V., etc.

Demerits of partnership firm

a. No Business secrets: The partner can keep the secrets to himself but these secrets can be known to competitors or others when there is conflict among the partners

b. Uncertain existence: Death of any partner can sometime cause death of entire firm. Dishonesty, conflict and lack of resource also can collapse the firm

c. No Personal contact: A partner can’t be in a position to maintain intimate contacts with his customers and employees. He cannot be able enter to the requirements of each and every customer. Then there is no close personal touch which decreases the competitive strength of the business.

e. Unlimited liability: Proprietor is liable for all the debts of the business. In case the assets are insufficient to meet the debts, the personal property of the proprietor can be attached.

1. Sources of Income

Investors invest their money in the business with the sole purpose of earning profit, since profit is a source of income, it is therefore provides the owners of business the mean with which they and their family members can live a comfortable life.

2. Continuity of Business

The incentive of earning profit keeps the man engaged in business activities. A business can only grow and gain strength if it earns profit. So earning of profit is necessary for the continuity of business.

3. Expansion of Business

One of the roles of profit in business is that businessman retains and reinvests a part of its profits in business undertaking stands on sound footing. It can expand and diversify business not only from reinvestment of funds but also getting loans from external sources for business.

4. Reward of Risk Bearing

Profit is the reward for bringing new products or processes to the market. It is a reward for a risk successfully undertaken. Profit, therefore, is a reward for the future which is uncertain.

5. Profit and Economic Development

Another role of profit in business is economic development. Profit and economic development are closely related with each other. If the firms are not earning profit then there is no economic progress in the country. If there is no economic development there is no profit to the business.

6. Profit Acts as Measure of Efficiency

Profit acts as an index of performance for business, if the business firms are earning profits. It shows that the country is progressing satisfactorily

Registration of a partnership firm is not compulsory under law. The Partnership Act, 1932 provides hat if the partners so desire they may register the firm with the Registrar of Firms of the state in which the main office of the firm is situated.
Read more on Sarthaks.com - https://www.sarthaks.com/99451/is-registration-partnership-firm-compulsory-what-are-the-consequences-non-registration

Definition of Sole Proprietorship:

• It is that type of business organization which is owned, managed and controlled by a single owner.
• The word “sole” means “only” and “proprietor” notes to “owner”.
• A sole proprietor is the beneficiary of all profits.
• All risks are to be borne by the sole proprietor.
• The sole proprietor has unconditional and full control over its business.
• Example: Beauty parlour, barbershop, general store and sweet shop run by a single owner.

Public sector:

1.It is controlled and managed by the government.
2.The main aim of the sector is public welfare.
3.The sector provides basic facilities like education, health, food and security to the people. For Example: Railways, Post office, BSNL.

Private sector:

1.It is controlled and managed by an individual or a group.
2.The main aim of the sector is to earn profits.
3.Private sector does not provide any service at a reasonable rate. For example: Tatas, Birlas, Reliance.

• One of the biggest limitations of a sole proprietorship is the unlimited personal liability of the owner. If the business fails it can wipe out the personal wealth of the owner as well as affect his future business prospects too
• Another problem is that a sole proprietor has access to limited capital. The money he can borrow from his own personal savings may not be enough to expand the business. Moreover, banks and financial institutions are also wary of lending to proprietorships.
• The life cycle of a sole proprietorship is undecided and attached to its owner. An incapacitated owner may have a negative effect on the business, and it may even lead to the closure of the business. A sole proprietorship cannot carry on without its proprietor.
• A sole proprietor also has limited managerial ability. He cannot be an expert in all the fields of the business. Furthermore, limited resources may mean that he cannot hire competent people to help him out. As a result, the business may suffer from mismanagement and poor decisions.