Prof. Dr. Zulfiqar Hasan

Business Organization

A business organization is an establishment intended to carry commercial business by producing goods or services and meet the customers' needs.

Most of the organizations have a standard such as social structure, purpose goals, utilization of resources, rules and regulations, etc.

03 Main forms of Business Organization

Sole proprietorship: A business owned by one person and operated for his or her own profit. “The sole proprietorship is the form of business ownership which is owned and controlled by a single individual”.-B. O. wheeler

Partnership: A partnership has roughly the same advantages and disadvantages as a sole proprietorship. Business formed by two or more owners is called Partnership.

Corporation: A business entity that legally functions separate and apart from its owners. A business firm which sells its shares in the financial market or already got the permission to sell its shares is called Corporation.

Suitable Field for Sole Proprietorship

  1. Business of minimum capital
  2. Product of limited demand
  3. Retain product
  4. Perishable goods
  5. Professional and service oriented
  6. Product of changing demand
  7. Small and cottage industry
  8. Business of industrial arts

  9. Business of limited risk
  10. Mobile and temporary business

Numerical Problems 01

A shopkeeper bought 5 dozen ball pen at Tk 450. He also spent Tk 60 as transportation costs. Calculate –
Cost of one ball pen.
          a. Profit from one ball pen if he sells it Tk 10.5,
          b. What will be the total profit from this business?


a.  Total Costs = Total Purchase Price + Transportation Costs
= Tk 450 + Tk 60 = Tk 510
Cost price of one Ball Pen = Total Costs/Number of Ball Pen
= (Tk 510/60) = Tk 8.5
b.  Profit from One Ball Pen = Selling Price – Cost Price
= Tk 10.5 – Tk 8.5 = Tk 2
Total Profit = Profit from One Ball Pen x Number of Ball Pen
= Tk 2 x 60 = Tk 120