BUSINESS

My India Project Report

Submitted in partial fulfilment for the award of the Degree of

Bachelor of Commerce

By

NAWAZ AHMED S

Reg. No.: RA2031201040101

Under the Guidance of

DR SATISH KUMAR

Associate / Assistant Professor

 DEPARTMENT OF COMMERCE

COLLEGE OF SCIENCE & HUMANITIES

SRM INSTITUTE OF SCIENCE & TECHNOLOGY

VADAPALANI CAMPUS, CHENNAI

OCTOBER – 2021
 CERTIFICATE

This is to certify that the My India Project work titled “BUSINESS” is a bonafide

work of NAWAZ AHMED S (Reg. No.: RA2031201040101) carried out in partial

fulfilment for the award of the degree of Bachelor of Commerce, College of Science &

Humanities, SRM Institute of Science & Technology, Vadapalani campus under my

guidance. This Project work is original and not submitted earlier for the award of any degree

of any other institutions.

Subject Name: My India Project

Subject Code: UMI20S01L

Marks Awarded: _____ / 50

Place: Chennai
Guide Head of the Department

(NAME) (DR. V. VENKATRAGAVAN)

Assistant Professor

Date of Submission: 07/10/2021

INTRODUCTION

Business is the activity of making one's living or making money by producing or buying and
selling (such as goods and services). It is "any activity or enterprise entered into for profit.

Having a business does not separate the business entity from the owner, which means that the
owner of the business is responsible and liable for debts incurred by the business. If the
business acquires debts, the creditors can go after the owner's personal possessions. A
business structure does not allow for corporate tax rates. The proprietor is personally taxed on
all income from the business.
The term is also often used colloquially (but not by lawyers or by public officials) to refer to
a company. A company, on the other hand, is a separate legal entity and provides for limited
liability, as well as corporate taxes rates. A company structure is more complicated and
expensive to set up, but offers more protection and benefits for the owner.

DEFINITION

According to well-known professors William Pride, Robert Hughes, and Jack

Kapoor, business is 'the organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs.' A business, then, is an organization which
seeks to make a profit through individuals working toward common goals. The goals of the
business will vary based on the type of business and the business strategy being used.
Regardless of the preferred strategy, businesses must provide a service, product, or good that
meets a need of society in some way.
Business is either an occupation, profession, or trade, or is a commercial activity which
involves providing goods or services in exchange for profits.

Profits in business are not necessarily money. It can be a benefit in any form which is
acknowledged by a business entity involved in a business activity.

FORMS OF BUSINESS
 Sole proprietorship: A sole proprietorship, also known as a sole trader, is owned by
one person and operates for their benefit. The owner operates the business alone and may
hire employee. A sole proprietor has unlimited for all liability obligations incurred by the
business, whether from operating cost or judgements against the business. All assets of
the business belong to a sole proprietor, including, for example, a computer
infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as
any real property owned by the sole proprietor.
 Partnership: A partnership is a business owned by two or more people. In most
forms of partnerships, each partner has unlimited liability for the debts incurred by the
business. The three most prevalent types of for-profit partnerships are general
partnerships, limited partnership, and limited liability partnerships.

 Corporation: The owners of a corporation have limited liability and the business has

a separate legal partnership from its owners. Corporations can be either government-
owned or privately owned, and they can organize either for profit or as nonprofit
organizations. . A privately owned, for-profit corporation is owned by its shareholders,
who elect board of directors to direct the corporation and hire its managerial staff. A
privately owned, for-profit corporation can be either privately held by a small group of
individuals, or publicly held, with publicly traded shares listed on a stock exchange.

 Cooperative: Often referred to as a "co-op", a cooperative is a limited-liability

business that can organize as for-profit or not-for-profit. A cooperative differs from a
corporation in that it has members, not shareholders, and they share decision-making
authority. Cooperatives are typically classified as either consumer
cooperatives or worker. Cooperatives are fundamental to the ideology of economic
cooperatives.

 Limited liability companies (LLC), limited liability partnerships, and other specific

types of business organization protect their owners or shareholders from business
failures by doing business under a separate legal entity with certain legal protections. In
contrast, unincorporated businesses or persons working on their own are usually not as
protected.

 Franchises: A franchise is a system in which entrepreneurs purchase the rights to

open and run a business from a larger corporation. Franchising in the United States is
widespread and is a major economic powerhouse. One out of twelve retail businesses in
the United States are franchised and 8 million people are employed in a franchised
business.

 A company limited by guarantee: Commonly used where companies are formed for

non-commercial purposes, such as clubs or charities. The members guarantee the
 payment of certain (usually nominal) amounts if the company goes into insolvent
liquidation, but otherwise, they have no economic rights in relation to the company. This
type of company is common in England. A company limited by guarantee may be with or
without having share capital.

 A company limited by shares: The most common form of the company used for
business ventures. Specifically, a limited company is a "company in which the liability of
each shareholder is limited to the amount individually invested" with corporations being
"the most common example of a limited company." This type of company is common
in England and many English-speaking countries. A company limited by shares may be a

o Publicly traded company or a

o Privately held company.

 A company limited by guarantee with a share capital: A hybrid entity, usually

used where the company is formed for non-commercial purposes, but the activities of the
company are partly funded by investors who expect a return. This type of company may
no longer be formed in the UK, although provisions still exist in law for them to exist.

 A limited liability company: "A company—statutorily authorized in certain states—

that is characterized by limited liability, management by members or managers, and
limitations on ownership transfer", i.e., L.L.C. LLC structure has been called "hybrid" in
that it "combines the characteristics of a corporation and of a partnership or sole
proprietorship". Like a corporation, it has limited liability for members of the company,
and like a partnership, it has "flow-through taxation to the members" and must be
"dissolved upon the death or bankruptcy of a member".

 An unlimited company with or without a share capital: A hybrid entity, a

company where the liability of members or shareholders for the debts (if any) of the
company are not limited. In this case, the doctrine of a veil of incorporation does not
apply.
  Companies formed by letters patent: Most corporations by letters patent
are corporation soles and not companies as the term is commonly understood today.

 Charter cooperation: Before the passing of modern companies, legislation, these

were the only types of companies. Now they are relatively rare, except for very old
companies that still survive (of which there are still many, particularly many British
banks), or modern societies that fulfill a quasi-regulatory function (for example,
the Bank of England is a corporation formed by a modern charter).

 Statutory companies: Relatively rare today, certain companies have been formed by

a private statute passed in the relevant jurisdiction.

Types Of Business

Businesses can be classified into but are not limited to 4 types. These are –

Manufacturing

Manufacturing businesses are the producers who develop the product and sell it either
directly to the customer or the middlemen to conduct sales. Examples of manufacturing
businesses are steel factories, plastic factories, etc.
Service

This type of business deals in selling intangible goods to the consumers. Unlike tangible
goods, services cannot be stored or separated from the provider.

Service firms offer professional services, expertise, commission-based promotions, etc.

Examples include salons, schools, consultancy etc.

Merchandising

Merchandising is a middlemen business strategy where the business buys products from a
manufacturer, wholesaler, or other partners, and sells the same at the retail price. It is usually
known as a ‘buy and sell’ business as they make profits by selling the products at a price
higher than their cost price.

Examples of a merchandising business are grocery stores, supermarkets, distributors etc.

Hybrid

Hybrid businesses have the characteristics of two or more types of businesses explained
above. For example, a restaurant develops its own dishes (manufacturing), sells the products
like cold drinks which are manufactured by other businesses (merchandising), and provide
service to the customers (service).
 CLASSIFICATION OF BUSINESS

There are various forms of business entities in India:

 Private Ltd Company

 Public Ltd Company

 Unlimited Company

 Sole proprietorship

 Joint Hindu Family business

 Partnership

 Cooperatives

 Limited Liability Partnership(LLP)

 Liaison Office
 Branch Office

 Project Office

 Subsidiary Company

Private Ltd Company

A private company has the following features:

1. Restricts the right of the shareholders to transfer their shares.

2. Has a minimum of 2 and maximum of 50 members.

3. does not invite public to subscribe to its share capital

4. Must have a minimum paid up capital of Rs. 1 lakh or such a higher amount which
may be prescribed from time to time.

Public Ltd Company:

A public Ltd company has the following characteristics:

1. It allows the shareholders to transfer their shares.

2. Has a minimum of 7 members, and for maximum there is no limit.

3. it invites the general public to subscribe to its shares

4. Must have a minimum paid up capital of Rs 5 lakh or such a higher amount as may be
prescribed from time to time.

Unlimited Company
Unlimited Company is a form of business organization under which the liability of all its
members is unlimited. The personal assets of the members can be used to settle the debts. It
can at any time re-register as a limited company under section 32 of the Companies Act.

Sole proprietorship

Sole proprietorship is a form of business entity where a single individual handles the entire
business organization. He is the sole recipient of all profits and bearer of all loses. There is no
separate law that governs sole proprietorship.

Joint Hindu Family

Joint Hindu Family is a form of business organization wherein the members of a family can
only own and manage the business. It is governed by Hindu Law.
Partnership

Partnership is “the relation between persons who have agreed to share the profits of the
business carried on by all or any one of them acting for all”. It is governed by the Indian
Partnership Act 1932.

Co-operatives

Co-operatives is a form of voluntary organization, wherein the members work together for
the promotion of the interests of its members. There is no restriction to the entry or exit of
any member. It is governed by Cooperative Societies Act 1912.

Limited Liability Partnership

Under LLP (Limited Liability Partnership) the liability of at least one member is unlimited
whereas rest all the other members have limited liability, limited to the extent of their
contribution in the LLP. Unlike general partnership this kind of partnership does not get
terminated by the death or insolvency of the limited partners. It is governed by Limited
Liability Partnership Act of 2008.

Liaison Office
Liaison Office is a kind of representative office which is set up to understand the business
and investment environment. It is barred from taking up any commercial/industrial/trading
activity and its role is limited to aggregation of information and promotion of
exports/imports. It has to maintain itself out of inward remittances received from the parent
company.

Branch Office

Foreign companies which are into manufacturing and trading activities abroad are permitted
to set up branch offices in India for various purposes like rendering of professional and
consultancy services, export/import of goods etc. Branch offices are not permitted to carry
out manufacturing activities on their own. RBI is the statutory body that grants permission to
foreign companies for setting up branch offices in India.

Project Office

Foreign companies can set up temporary project offices in India for carrying out activities related to that
specific project.

Subsidiary Company
 In India the sectors where 100% foreign direct investment is permitted there foreign companies can set up
wholly-owned subsidiary. The wholly-owned subsidiary can be either of the following business entities:

 Private Ltd Company

 Public Ltd Company

 Unlimited Company

 Sole Proprietorship

 India`s Business Confidence Growth

 India Business Confidence grew 10.8 % in Jun 2021, compared with an increase of
9.1 % YoY in the previous quarter.
 India Business Confidence: YoY Change is updated quarterly, available from Jun
2001 to Jun 2021, with an average rate of -0.4 %.
 The data reached an all-high of 23.4 % in Jun 2010 and a record low of -26.8 % in Jun
2009.

CEIC calculates Business Confidence Change from quarterly Business Expectations Index.
The Reserve Bank of India provides Business Expectations Index with range from 0 to 200
with neutral point 100. Business Confidence covers Non-government and Non-financial
publicly traded limited liability companies in the Manufacturing sector only.
LIST OF LARGEST COMPANIES IN INDIA:

This list is based on the Forbes Global 2000, which ranks the world's 2,000 largest publicly
traded company. The Forbes list takes into account a multitude of factors, including the
revenue, net profit, total assets and market value of each company; each factor is given a
weighted rank in terms of importance when considering the overall ranking. The table below
also lists the headquarters location and industry sector of each company. The figures are in
billions of US dollars and are for the year 2018. All 57 companies from India in the Forbes
2000 are listed. This list is based on the Forbes Global 2000 which ranks the world's 2,000
largest publicly traded company. The Forbes list takes into account a multitude of factors,
including the revenue, net profit, total assets and market value of each company; each factor
is given a weighted rank in terms of importance when considering the overall ranking. The
table below also lists the headquarters location and industry sector of each company. The
figures are in billions of US dollars and are for the year 2018.
 ONGOING SCENARIO OF INDIAN BUSINESS:

The recent global meltdown has changed the ongoing scenario. The growth oriented
objectives of Indian businesses changed over time and there was a stringent focus to achieve
operational effectiveness. This change in strategy was for ensuring survival and all the
different Indian businesses have undertaken various measures for achieving this. After all,
every Indian business should aim at creating job opportunities to sustain the crisis black hole.

Factors leading to downturn of Indian business:

1. Cash flow management

2. Difficulty in forecasting results
3. Maintaining employee morale
 Steps to overcome this downturn:
1. Cost reduction
2. Reduction in working capital
3. Optimization of supply chain

SCENARIO DURING COVID 19 PANDEMIC:

The Covid-19
pandemic
impacted small
businesses
heavily. Many of
them have temporarily shut down, and some went out of business because of the nationwide
lockdown in 2020. People who just started their small business before the pandemic incurred a
heavy loss. People also understood the importance of passive income through small businesses.

In these tough times, some small businesses survived by resorting to social media platforms
and e-commerce. As many of them shut down, new small businesses emerged with the help
of e-commerce services and came online. An e-commerce platform for online stores, Shopify
witnessed a 120% increase in new small businesses joining in the first six months of 2020
compared to 2019. A number of people were laid off and became unemployed because of the
pandemic. Therefore, starting an online store was an opportunity to make money.

GOVERNMENT MEASURES:

The global macroeconomic outlook for the current financial year 2020-21 has been adversely
affected by COVID-19 pandemic which has impacted the majority of countries in the world
across continents. The pandemic has cast its shadow across various economic activities with
dislocation in global production, supply chains and trade.
To address these adverse times, the Government of India has been preparing strategies and
action plans not only for business continuity and sectoral revival but also to improve Ease
of Doing business in the country by releasing notifications/amendments/circulars highlighting
measures to improve the business environment in India. Below are some of the special
measures by Central government, Reserve Bank of India, Securities & Exchange Board of
India (SEBI), Insurance Regulatory and Development Authority (IRDAI) and the sectoral
ministries to boost businesses in India.

CONCLUSION

India has stiff challenges before it to achieve millennium development goals and sustainable
development. Make in India and other parallel initiatives taken up by the government have
potential of making India as a global manufacturing Hub, poverty alleviation through
employment generation on a mass scale, eliminating discrimination from the society based
upon caste, Gender or religion and hence achieving sustainable development .It is necessary
for India that it takes further concrete decisions and steps about cost and other related issue
like political, Financial and ease of doing business policies in order to strengthen its position
as a leading manufacturing Hub.