Commercial Applications
Answer
| S.No. | Basis of Distinction | Organisation | Firm | Company |
|---|---|---|---|---|
| 1. | Meaning | A group of persons jointly undertaking some activity. | An individual or group undertaking some business. | A group of persons registered as a legal entity. |
| 2. | Registration | May or may not be registered. | May or may not be registered. | Always registered (under the Companies Act). |
| 3. | Nature of work | Can be commercial or non-commercial. | Always commercial. | Can be commercial or non-commercial. |
| 4. | Legal entity | May or may not be a separate legal entity. | Generally not a separate legal entity from owners. | Has a separate legal entity distinct from its members. |
| 5. | Scope | Widest term — covers all institutional arrangements. | Narrower than organisation — refers to business units. | A specific type of organisation, incorporated by law. |
| 6. | Examples | (a) Government of India (b) University of Delhi (c) Big Bazaar (d) Board of Cricket Control of India | (a) Birla Bros. (b) Aggarwal & Sons (c) Goyal Brothers Prakashan | (a) Coca Cola Corporation (b) ICICI Bank (c) LIC of India Ltd. (d) Air India Ltd. (e) Colgate India Ltd. |
In summary:
- Organisation is the widest term — includes business and non-business entities.
- Firm is narrower — refers to business units owned by one or more persons, may not be a separate legal entity.
- Company is the most specific — an incorporated body with perpetual existence and a separate legal identity.
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