Bad debts are those items of charge on the profits of the company that indicate the sums of money that could not be recovered from a debtor, during the year. In order to record the number of bad debts correctly, such sum is charged to the profit and loss account and deducted from the value of debtors for that year, so that the amount represents money that is actually expected to accrue from the debtors.

Demerits of Joint Stock Company is as Follows: -

1.       Difficulty in Formation: -The formation of the company is in itself a very difficult and involves too many formalities. Promoters have to prepare and submit various documents to the registrar of companies for approval i.e. Articles of Association, Memorandum of Association etc. the public limited company cannot commence business without obtaining a certificate of commencement of business. Registration of Joint Stock Companies is compulsory as per Indian Companies Act, 1956. Thus the formation is complicated, costly and time consuming.

2.       Delay in Decisions: - In sole trading concern, and partnership firm decisions can be taken quickly. Company business is managed by Board of Directors who are not owners of the company. Therefore, there is no direct motivation for directors to give their best to the company. Moreover, for taking various decisions and getting them approved from share holders, they have to hold board Meeting and share holders meeting, for which a proper procedure has to be followed. That results into delay in decision making, good business opportunities may be lost.

3.       Excessive Government Control: - There is a lot of government interference in the working of the company. Various rules and regulation of the companies Act have to be strictly followed by the company, the non – compliance of any of these provisions results into penalties for the officers involved.

4.       High cost of Management: - The management of joint stock company form of organization is costly. The formation involves availing of the expert services of many professional like underwriters, financial and technical experts, share brokers, solicitors, bankers etc.

5.       Undue Speculation: -since directors are responsible for the management of the company, they sometime use the confidential information for speculation and for personal gains. This results in sudden fluctuations in prices of shares in stock exchange, adversely affecting the public confidence.

6.       No Personal Contact: -Due to very large size of the organization, employees feel that their efforts are not recognized and appreciated, their work related problems are not taken care of. as a result they feel demoralized and their productivity declines.

7.       Lack of Secrecy: -There is no business secrecy involved in the company form of organization since it has to fulfill various statutory requirements.

8.   No Direct Effort Reward Relationship: -Since the ownership and management are separate, there is no direct relationship between the efforts and rewards. This can be de motivating for the owners of the company

Sole Proprietorship in simple words is a one-man business organisation. Furthermore, a sole proprietor is a natural person(not a legal person/entity) who fully owns and manages this type of entity. In fact, the business and the man are the same, it does not have a separate legal entity.

In addition, a sole proprietorship usually does not have to be incorporated or registered. Thus, it is the simplest form of business structure and the ideal choice to run a small business or medium scale business. Let us look at some important features of a proprietorship.

Continuous increase in the profits of any enterprise
is possible only by performing useful services to the society. Infact, objectives are needed in every area that influences the survival and prosperity of busi¬ness. Since a business has to balance a number of needs and goals, it requires multiple objectives.
The five multiple objectives of business are as follows:

1. Market standing : Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at stronger market standing in terms of offering competitive products to its customers and serving them to their satisfaction.
2. Innovation : Innovation is the introduction of new ideas or methods in the way something is done or made. There are two kinds of innovation in every business, i.e.,
   (i) innovation in product or service.
   (ii) innovation in the various skills and activities needed to supply them.
3. Productivity : Productivity is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency.
4. Physical and financial resources : Any business requires physical resources like plants, machines, offices, etc., and financial resources i.e. funds to be able to produce and supply goods and services to its
   customers.
5. Earning profits : One of the main objectives of business is to earn profits on the capital employed.
   Profitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is crucial for its survival and growth

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.

The main differences between a departmental undertaking and a public corporation are: 1. As a departmental undertaking does not have a separate legal entity, it cannot be used. On the other hand, statutory corporation has a separate legal entity, it can be sued.  2. The funds of a departmental undertaking consist of budgetary allocation made by the Government. But the funds of a statutory corporation consist of share capital wholly contributed by the government and funds borrowed by the corporation from the government or from the public.  3. A departmental undertaking is subject to more government control and regulation than a statutory corporation.  4. A departmental undertaking does not enjoy flexibility of operations, whereas a statutory corporation has considerable flexibility of operations.  5. A departmental undertaking cannot borrow funds from the public. But a statutory corporation can borrow funds from the public. 6. A departmental oranisation is an old type of state enterprise, whereas a statutory corporation is a modern type of state enterprise.  7. A departmental organization is not created by any act, whereas a statutory corporation is created by a special act of the parliament.  8. A departmental undertaking is established by a ministry. But a public corporation is established by the parliament or legislature.  9. A departmental undertaking does not have a separate legal entity. On the other hand, a statutory corporation has a separate legal entity.  10. A departmental undertaking is subject to more government control and regulation than statutory corporations.Read more on Sarthaks.com - https://www.sarthaks.com/614851/distinguish-between-departmental-undertakings-and-statutory-corporations

A feature of the construction industry is long-lasting output such as the apartment, building, highways. The peculiar feature of the construction industry that it needs other enterprises to sustain them which can contribute to the gross domestic product of the country.

The chief consumer of the construction industry is the public sectors owned by the government for infrastructure development. Construction industries require various places, diverse resources and inputs, and multiple stages of their methods. However, there is discontinuities and contingencies in-demand model.

The main objectives of management are: Getting Maximum Results with Minimum Efforts - The main objective of management is to secure maximum outputs with minimum efforts & resources.

• Commercial paper is a short-term unsecured money market instruments introduced in India in 1990.
• Also a promissory note which is negotiable and transferable.
• Have a maturity period ranging from a minimum of 15 days to a maximum of one year.
• Primarily used by large and creditworthy companies for bridge financing i.e. used as an alternative to borrowings from bank and capital market.
• The companies pay an interest rate lower than the market rates and are used for purposes such as to meet the floatation cost on long-term borrowings from the capital market.

Advantages

• It is more liquefiable and free to transfer.
• It provided more funds rather than any other source.
• No restrictive condition as it is unsecured money market instrument
• The cost involved in issuing commercial paper for a firm is lower than the cost the commercial bank loans.
• It is a continuous source of funds as their maturity can be adjusted according to the firm the one who issued the commercial paper.

Disadvantages

• The firm one who has good financial background can issue commercial paper as it is based on unsecured money market.
• Only limited fund can be raised through commercial paper.
• Maturity period cannot be extended at times of firm’s financial problem.

Functions of profit:
1.Source of income : It is the most important source of income and provides livelihood for the businessman. Everyone has to satisfy his needs and hence no one is expected to undertake business activities without any earnings for the same.
2. Source of finance : Profit is a source of finance for expansion and diversification of business activities, A part of the profits can be retained for increasing the volume of the business. Retention of profit is always considered the best way for carrying out business activities.
3. Efficient working: Profit is required for efficient and smooth functioning of the business. It is considered as a barometer for judging the performance of the business.
4. Goodwill : Profit helps in building the reputation or goodwill of the business firms. With profit increasing over time, a business enterprise gains reputation. Such goodwill creates market standing which ultimately helps to raise loans and thereby obtain credit more easily.
5. Reward for risk bearing : Risk is always associated with any business. A person who invests money in the business has to bear the risk also. In the eventuality of loss due to any risk, the businessman doesn’t stop the business. It is the profit element that motivates him to carry on with business even in the case of losses.
6. Social responsibility : Higher profits make better remuneration and amenities possible. It increases the standard of living of workers. A firm with a higher profit is in a position to carry out its social responsibility towards various groups.