forms of agribusiness organisation
TRANSCRIPT
AEC & RI, KUMULUR, TNAU - 62171205/09/12
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FORMS FORMS OF AGRIBUSINESS OF AGRIBUSINESS ORGANISATIONSORGANISATIONS
AGRIBUSINESS
Agribusiness is defined as all business enterprises that buy from or sell to farmers.
Transaction may involve either
an input or a produce or service and Encompasses items such as:
Productive resources
Agricultural commodities
Facilitative services
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Agribusiness Organisation
Involves in Production Distribution Retailing Franchising Professional services Financial services
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Legal Forms of Agribusiness Organization
Sole Proprietorship Partnership Coop. Society Joint Stock Company
Pvt. Ltd Company
Public Ltd Company
State Enterprise
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Sole Proprietorship
A business owned by a single individual.
Owner maintains title to the firm’s assets.
Owner has unlimited liability.
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Partnership
Similar to a sole proprietorship, except that there are two or more owners.
All partners have unlimited liability.
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Cooperatives
Minimum of 10 members No maximum limit Regulates by RCS Elected Board One man one vote Dividend Bonus based on business turnover
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Cooperatives
Advantages: Limited liabilityEasy to start
Disadvantages: Raising funds is limitedPolitical Influence
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Private Ltd Company
Distinct legal entity from its members
Shareholders can’t be held liable for actions of the company
Public can’t be invited to subscribe capital Members: 2 to 50 Liability: Limited Shares:Not transferable
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Pvt. Ltd Company
Advantages:
Limited liability
Promoters enjoy control Disadvantages:
Tax rate is higher (income, dividend)
Shares are not transferable
Raising funds is limited
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Public Ltd Company
Members: Minimum : 7
Maximum : unlimited Invite public to subscribe capital Limited liability Free transfer of shares
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Public Ltd Company
Advantages: Unlimited lifeLimited liabilityCompany can raise funds
Disadvantages: Income taxedDividend taxedSetting up procedures more
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State Enterprise
Owned by the government is public undertaking or
state enterprise.
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State Enterprise
Started for the following reasons: It brings about rapid economic development. It ensures that the benefits of development are
shared by all the people. The state can raise huge capital, which could not be
raised by the private sector. As a monopoly enterprise, it enjoys several
advantages.
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Factors affect the business form
Nature & type of organization Exposure to financial risk Ability to raise capital Tax treatment of income Regulatory frame work
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