Public-Private Partnership (PPP, P3 or P³) is a legally binding contract between the government and private business firms for the provision of public assets and/or public services for the benefit of the public.

ADR: American Depository Receipt : ADR is a negotiable instrument issued by a US bank, representing non-US company stock, trading in the US stock exchange.
GDR: Global Depository Receipt : GDR is a negotiable instrument issued by the international depository bank, representing foreign company's stock trading globally.

• They are a separate legal entity from their Members.
• They have the benefit of limited liability for their Members.
• They are taxed as a partnership.
• They have the organisational flexibility of a partnership.
• Any agreement (“LLP agreement”) between the Members governing the operation of the LLP is a private document which is confidential to the Members.
• They must have at least two “designated” Members.
• Their “trading disclosure” requirements are similar to those of a company.
• They must be registered at Companies House.
• Their accounting and filing requirements are similar to those of a company.
• They have the ability to create floating charges. 

Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government. These are many government companies, few of them are, Steel Authority of India Limited, Bharat Heavy Electricals Limited, Coal India Limited, State Trading Corporation of India, etc.

Characteristics are the features which are necessary to classify the business.  Therefore let’s have a look at them.

Economic Activity

Business necessarily has to be an economic activity. But what exactly is an economic activity? Any activity that gives a monetary return is an economic activity. For example, if your friend’s father picks you up and drops you at college every day, he is doing this act out of kindness. But if he starts a transportation service of picking up and dropping by charging money then it’s an economic activity.

Production or Trading of Good or Services for Sale

If a business plans on selling a product, it has to either manufacture that product or purchase it and add a profit margin to it and sell it further. Business is interested in every activity that is concerned with the production or purchase of goods for selling, this makes it one of the most important characteristics of a business. Services for sale include transportation, housekeeping, and security. Whereas, goods are mostly consumable items.

Sale or Exchange of Goods and Services

The third and crucial one of the characteristics of business after production or procurement is to sell that product for the money. The way to sell a product or service is by launching it in the market or to offer it for sale. A sale or exchange must take place between the seller and the buyer.

Regularity in Dealings

Business is a repeatable economic activity that generates money. For example, if you sell your old bike and it generates money. Also, it’s an economic activity but is you doing this on a regular basis? No. As it has no regularity in it, it cannot be accepted as a business activity. Similarly, there is a dealer who deals in the purchase and sells of second-hand bikes. For him, it’s a business activity as there is a regularity in his dealing. A single transaction of purchase or sale cannot be classified as a business.

Profit Earning

The sole purpose of business is the maximization of profit. It steps into the market with the main objective of earning a profit. For the survival of business in a market, generating profit is extremely necessary. If a business can’t produce profit, it is expected of it to go downhill financially. Therefore the businessman does all the possible tricks to maximize its profits by increasing the volume of sales or decreasing the costs

Risk Factor

It is well known “Higher the risks, higher the return”. Business attracts risk. While initiating business it is not guaranteed 100% that the business will be successful. There is an anticipation that there might be demand for its product or service in the market. But the market is always dwindling the subject to risk. The business may even earn profit but the amount of profit earned may vary.

Uncertainty of Returns

Businessmen invest huge capital in their activities to sustain and extract profit from the business. As we discussed the risk above, it is very uncertain as to what amount the profit will be earned. Often there are situations where is no return of profit. There are always chances of losses in the business activities.

Legal Activity

The business has to be legal and lawful. Business is an extremely important activity for a country but it is not above the law. Every economic activity has to be within the limits of the law. The country’s legislation puts clauses on the functioning of the business to control its activities.

Specialised Banks These banks are formed to cater to specific needs of industries, export units. There are foreign exchange banks, industrial development bank, export-import banks etc. . . . . . , .

Aids to Trade are the activities which are necessary for smooth flow of goods from producers to consumers. These activities facilitate trade by removing various barriers in the buying and selling of goods.
 

Since there is no separation between the owner and the business, the liability of the owner is also unlimited. So if the business is unable to meet its own liabilities, it will fall upon the proprietor to pay them. All of his personal assets (like his car, house, other properties etc) may have to be sold to meet the liabilities of the business.

"Perpetual Succession" in a company is best defined by this line -
Members may come and go but the company goes on forever.
It is one of the fundamentals of a company's existence. Perpetual succession means that a company's life is not determined by the longevity of its members, shareholders, promoters, directors, employees or anyone else. If a shareholder dies, or hypothetically, all the shareholders die, only their shares in the company will be transferred to new people. If even a key director resigns, she will be replaced but the company will continue on. 

According to the renowned personality James Stephenson, “commerce embraces all those activities which help to break file harriers between produces and consumers. It is the sum total of all those processes which are engaged in the removal of hindrance of person, place or time”.
Following is the description how these hindrances get removed
(i) Hindrance of person refers to the problem of contact between producers and consumers commerce removes. This hindrance is removed by trade.
(ii) Hindrance of place refers to the problem of distribution of goods at distant places without loss. Commerce removes this hindrance by transportation.
(iii) Hindrance of time refers to the problem of existance of time gap between production and consumption of goods. This hindrance is solved by warehousing or storage.

It refers to that document which contains all the relevant information to the issue and through which the company invites the public to apply for shares , debentures , etc .

The form of "business organization" which is only found in India is the "Joint Hindu Family". The "Joint Hindu Family" is controlled under "Hindu Law" instead of a partnership. In this firm, a member can acquire "membership only by birth" or "by marriage" to a male person who is "already a member" of the "Joint Hindu Family". The matters of a "Joint Hindu Family" are empowered and directed by one person who is known as "Karta" or "Manager". The 'Karta' or 'Manager' is the "senior most male member" of the family.

Promoter is one who undertakes to form a company with reference to a given object and to set it going, and who takes the necessary steps to accomplish that purpose.

1. Focused approach : Every business have limited resources and every manager has limited time. Outsourcing can help business to shift its focus from peripheral activities towards work that serves the customers and helps’ managers to set their priorities more clearly.
2. Make faster deliveries to customers : Outsourcing helps us to make quicker deliveries to customers. An outsourcing partner will be able to provide faster deliverables and one in turn will be able to make quick deliveries to his customers. It also helps to save time.
3. Operational efficiency : Outsourcing gives an organisation exposure to vendor specialised systems. Specialisation provides more efficiency that allows for a quicker turn around time and higher levels of quality.
4. Benefits of latest development: With the help of outsourcing the benefits of latest development could be derived out by the concern in the most economical manner.
5. Improved customer satisfaction : With timely delivery and high quality services one can impress his customers. Outsourcing leads to increased customer satisfaction and they will remain loyal to the organisation.

• The public sector consists of various organizations owned and managed by the government.
• These organizations may be either partly or wholly owned by the central or state government.
• The government can participate in economic activities through these enterprises of the country.
• The forms of organization which a public enterprise may take are as follows:
  • Departmental undertaking
  • Statutory corporation
  • Government company