Memorandum of Association defines the objects for which the company is formed. This is the main document of the company and is subordinate to the Companies Act. Memorandum of Association defines the relationship of the company with outsiders. Acts beyond the Memorandum of Association are invalid and cannot be ratified even by a unanimous vote of the members. Every company has to file a Memorandum of Association.

Human activities are classified into economic and non-economic activities. Economic activities are those which are performed for some economic consideration and they are undertaken to earn a living, whereas non-economic activities are performed for psychological satisfaction and out of love, sympathy, patriotism, etc. Economic activities are concerned with all those activities which are concerned with the production, consumption and distribution of goods and services which are not available for free.  But, there is no expectation of any kind of monetary reward or benefit in non economic activities. For example, when a doctor treats a patient at a hospital or a clinic, he charges a fee for that, thus it becomes an economic activity. However, when the same doctor treats his son/daughter at home, it becomes a non-economic activity. The same can be applied to a teacher teaching students in a school for which she takes the salary and hence becomes an economic activity whereas teaching her own children at home is a non economic activity.

Partnership deed is a legal document, signed by all the partners, which contains the terms and conditions of the partnership agreement.

1. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Cost and Ease at Setting up the Organization: According to the cost of setting up, sole proprietorship is the most inexpensive of all. But, the legal requirements are minimum an the sale of operations are also small. In a partnership firm, the legal requirements and the cost is minimum due to the limited scale of operations. Registrations for co-operative stores and companies are mandatory an the formation of a company is lengthy and expensive as well. Looking at the initial cost factor, sole proprietorship is the most economical. There is more cost involved in the formation of a company.</font></font>
2. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Liability: The liability o owner/partner I unlimited in the case of sole proprietorship and partnership. The owners are liable to pay the debt from their personal assets. In a Joint Hindu undivided family, the Karta has unlimited liability. In the case of companies an o-operative societies, the creditor can limit their debt only to the extent of the assets of the company. From the investors point of view, company form of organization is best suited.</font></font></font></font></font></font>
3. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Continuity: Death, insolvency or insanity affects the sole proprietorship and partnership. This is not so in the case of a Joint Hindu Undivided family, co-operative societies and companies. For short term project, sole proprietorship or partnership is preferred.</font></font></font></font></font></font>
4. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Management Ability: A sole proprietor might not be well versed in all the activities. There is no such problem in forms like partnership or companies. But there is a drawback of conflict or difference in opinion. Complexity of organizational structure also requires professional handling an for this, company form is best. Proprietorship or partnership is recommended when the operations are simple and requires less skills to run the show. Thus, the nature of operations and professional management decides the form of organization to be chosen.</font></font></font></font></font></font>
5. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Capital Consideration: Companies collect huge amount of capital from investors in the form of shares. The combined resources of all partners is available in partnership, whereas the resource of sole proprietors is limited. Depending upon the scale of operations, company form can be opted and for small or medium sized business, one can choose sole proprietorship or partnership business. In terms of expansion, company form is preferred due to the capacity to raise funds and invest them in the infrastructure.</font></font></font></font></font></font>
6. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Degree of Control: For direct control over the operations, sole proprietorship may be chosen. When the partners do not mind sharing the decision making, partnership may be the one suitable. In the company form of organization, there is total separation of opening the management because there are specialized personnel to handle the company affairs.</font></font></font></font>
7. <font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;"><font face="Verdana"><font style="text-shadow: rgba(255, 255, 255, 0.3) 0px 1px 1px; user-select: initial !important; line-height: 1.5em; -webkit-font-smoothing: antialiased; font-family: roboto, sans-serif !important;">Nature of Business: For direct contact with customers, sole proprietorship is preferred. In case of large scale operation and the contact with customers is not mandatory, then company form is preferred.</font></font></font></font></font></font></font></font></font></font>

Bank card used in cash transactions, but which is not a credit card. In a debit card transaction, the amount of a purchase is withdrawn from the available balance in the cardholder's account. If the available funds are insufficient, the transaction is not completed.

Business needs multiple objectives as it seeks to create a balance between different needs and goals of different interest groups, like consumers, employees, society at large, etc. The various multiple objectives of the business are described below:

1. Market standing: Every business should strive to create and maintain a reputable market position with regard to its competitors. In order to achieve a stronger market standing a business needs to focus on enhancing customer's satisfaction.
2. Innovation: In order to obtain an edge over its competitors and boost its public image every business needs to constantly review and revise its products and process in terms of creating better technology and utility.
3. Productivity: The ratio of values of inputs to values of outputs reflects the productivity of activities. Every business seeks to achieve a higher level of productivity by increasing its efficiency.
4. Earning profits: One of the most important objectives of every business is to earn profits. Profits are vital for the survival, growth and expansion of the business. The profitability of a business refers to the ratio of profit to capital investment.

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Economic activities are broadly grouped as Primary activities, Secondary activities, Tertiary activities and Quaternary activities.

1. Primary Activities: It refers to extraction/utilisation of raw materials from the earth's surface. These include hunting, gathering, pastoralism, fishing, forestry, mining and agriculture.
2. Secondary Activities: It includes industries that transform raw materials into finished foods having higher value. For example, manufacturing cotton textiles from raw cotton, and iron and steel from iron ore.
3. Tertiary Activities: It includes all kinds of services provided for the people such as education, health, trade and transport.
4. Quaternary Activities: It represents special kind of services, which is related to highly intellectual activities. For example, research and development service, information generation, information processing and transmission.