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If one is planning to set up a business or is concerned in expanding a business that already exists, an important decision has to be taken relating to the choice of the form of organization. The most apt form is resolute by weighing the pros and cons of each type of organization against one's own requirements.

Diverse forms of business organizations from which one can decide the right one include:
  1. Sole proprietorship,
  2. Joint Hindu family business,
  3. Partnership,
  4. Cooperative societies, and
  5. Joint stock company.
We shall start our discussion with sole proprietorship which is the simplest form of business organization, and then proceed further to analyse more difficult and multifaceted forms of organizations.

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