Meaning of Prospectus:
According to Section 2(36) of the Companies Act, any document inviting the public to buy its shares or debentures comes under the definition of prospectus. It also applies to advertisements inviting deposits from the public.
Contents of Prospectus:
A prospectus is "the only window through which a prospective investor can look into the soundness of a company's venture". Hence it must specify at least the following matters as per Schedule II:
1. The prospectus contains the main objectives of the company, the name and addresses of the signatories of the Memorandum of Association and the number of shares held by them.
2. The name, addresses and occupation of directors and managing directors.
3. The number and classes of shares and debentures issued.
4. The qualification share of directors and the interest of directors for the promotion of company.
5. The number, description and the document of shares or debentures which within the two preceding years have been agreed to be issued other than cash.
6. The name and addresses of the vendors of any property acquired by the company and the amount paid or to be paid.
7. Particulars about the directors, secretaries and the treasurers and their remuneration.
8. The amount for the minimum subscription.
9. If the company carrying on business, the length of time of such businesses.
10. The estimated amount of preliminary expenses.
11. Name and address of the auditors, bankers and solicitors of the company.
12. Time and place where copies of balance sheets, profits and loss account and the auditor's report may be inspected.
13. The auditor's report so submitted must deal with the profit and loss of the company for each year of five financial years immediately preceding the issue of prospectus.
14. If any profit or reserve has been capitalized, the particulars of such capitalization will be stated in the prospectus.

The following are the characteristics of Commerce.
(i) Economic activities:
(1) All economic activities are undertaken to earn Profit. commerce deals with all economic activities undertaken for profit.
(2) So, commerce is concerned with all economic activities directed towards earning profit.
(ii) Exchange of goods and services :
(1) Commerce involves an exchange of goods and services for profit.
(2) Goods may be produced for the purpose of resale to the consumers.
 (iii) Earning motive :
(1) Profit is an incentive for undertaking all commercial activities.
(2) Any activity, which does not have the incentive of profit, will not be a part of commerce.
For Example: If a trader gives some goods as Charity.
(iv) Creation of Utility:
Commerce creates form, place and time utility in goods.
(v) Regularity of transaction:
The transaction should be regular. No isolated transaction will be a part of commerce.

Based on the Ownership Pattern:
Any bank in which not less than 51 percent of shares are owned by the Government are called Government banks or public sector commercial banks (Total 21). All nationalized banks (19 banks, in 2017), SBI and IDBI Ltd. are public sector commercial banks. All of them are joint stock company type banks. There are corporation type banks. Each corporation type bank is established by a separate Act of Parliament and is fully owned by Government of India.
Examples: IFCI, SIDBI, EXIM Bank, etc.
All banking companies owned by private people are called private sector commercial banks. All cooperative banks are owned by its members from the public. In 1969, there were 14 private banks. They were concentrated in cities and towns. Their objective was to earn more profits. In order to channelize the funds with these commercial banks towards national priorities and to develop agricultural and rural sector, nationalization of banks was undertaken. Government paid the share capital of those banks to the private owners and took over as Government banks. This is called nationalization of banks. 6 more banks were nationalised in 1980. New Bank of India one of the nationalised bank merged with Punjab National Bank in 1980 and today there only 19 nationalised banks (2017).
Examples:
1. Nationalised banks: Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce.
2. Public sector banks: State Bank of India, IDBI Bank Ltd. and all nationalised banks.
3. Private sector banks: Lakshmi Vilas Bank, Karur Vysya Bank, Kotak Mahindra bank.
Note Bharatiya Mahila Bank established on 19, November 2013 to serve exclusively women members of the public was merged with SBI on 31 March, 2017.

Basis	Economic activities	Non - economic activities
(1) Definition	Economic activities are those activities which are undertaken to earn money or financial gain for livelihood. e.g : Fruit seller selling fruits.	Non-economic activities are those activities which are undertaken for the sake of pleasure, performed out of love, sympathy, sentiments etc. e.g : Mother cooks for her family,
(2) Motive	The Sole motive is to earn money or financial gain. e.g : Working as lawyer	Undertaken for satisfaction of social, psychological or emotional needs. e.g : Visit to a temple
(3) Money Measurement	All economic activities can be valued in monetary terms. e.g : Doctor charges a fee for consultation.	Non-economic activities cannot be valued in monetary terms. These are an expression of a thought, feeling or a gesture. e.g : An NGO distributes free clothes to poor children.
(4) Relationship	Economic activities are related to creation of wealth. e.g : Ram saved part of his salary to purchase a house of his Own.	Non-economic activities do not create wealth.  e.g : Money received as donation is spent on charity work.
(5) Outcome	All economic activities result In production, procurement, distribution and consumption of goods and services. e.g: Nokia produces cell phones and sells across India through its distributors.	The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity.  e.g : Sona enjoys teaching orphans in an orphanage.
(6) Duration	Economic activities are repetitive. They are done on a regular basis to earn a living. e.g : Kulfi ice cream seller sells ice creams every evening.	Non-economic activities may not be undertaken regularly. Usually they are done during free time. e.g : Sankar visits orphanage in his free time
(7) Source of Initiation	Economic activities are initiated to satisfy human needs and wants.	Non-economic activities are initiated to satisfy emotional or sentimental pleasures.

The essential characteristics of business are as follows:
(i) Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.
(ii) Sale, Transfer or Exchange:
There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.
(iii) Dealing in Goods and Service :
Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.
(iv) Regularity of Dealing :
An isolated dealing in buying and selling does not constitute business. The transactions must be regular. For example, if a person buys a scooter for his use and later on disposes it of at a profit, he cannot be said to have been engaged in business. The buying and selling must be recurrent to constitute business.
(v) Profit Motive :
An important feature of business is profit motive. Business is an economic activity by which human beings make their living. It is, in fact, the attraction of profit which spurs people to do business.
(vi) Element of Risk :
The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessman. For example, change in consumer preference, shortage of raw materials, transport
bottlenecks, power-crisis, etc., may upset business calculations and result in loss. That is why profit is said to be reward for risk-taking. Thus any business activity includes an element of risk too.

Registration of Partnership:
The Indian Partnership Act does not make the registration of a partnership compulsory. Registration is optional. But the disabilities of non-registration virtually make it compulsory.
Procedure for Registration:
A statement should be prepared stating the following particulars.
(1) Name of the firm.
(2) The principal place of business.
(3) Name of other places where the firm carried on business.
(4) Names and addresses of all the partners.
(5) The date on which each partner joined the firm.
(6) The duration of the firm.
This statement signed by all the partners should be produced to the Registrar of Firms along with the necessary registration fee. Any change in the above particulars must be communicated to the Registrar within 14 days of such alteration.

1. The business of the Joint Hindu Family is controlled and managed under the Hindu law.
2. All the affairs of a Joint Hindu Family are controlled and managed by one person who is known as 'Karta' or Manager'.
3. The Karta is the senior most male member of the family.
4. The members of the family have full faith and confidence in Karta.
5. Only Karta is entitled to deal with outsiders.
6. But other members can deal with outsiders only with the permission of Karta.
7. In a joint family firm, only Karta has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the businesses of the firm.
8. Except the Karta, the liability of all other members is limited to their shares in the business.
9. The Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and amount of debt can be recovered from his personal property.

Warehouses are classified as follows:
(i) On the basis of ownership :
(1) Private Warehouses
(2) Government Warehouses
(3) Public Warehouses
(4) Co-operative Warehouses
(5) Bonded Warehouses
(6) Institutional Warehouses
(7) Distribution Centre Warehouses
(ii) On the Basis of Commodities Stored :
(1) General Warehouses
(2) Special Commodity Warehouses
(3) Cold Storages or Refrigerated Warehouses
(4) Climate Controlled Warehouses.
(i) On the basis of ownership :
(a) Private Warehouses:
Private warehouses are built and owned by private business enterprises to store their own products. They are exclusively for their use and are not meant for other manufacturing or business units.
(b) Government Warehouses:
They are created and operated by the Government to implement the programmes of the government. Their services mostly available to government only.
(c) Public Warehouse:
It is open for public at large. Most of the business organisations, especially small and medium scale units cannot afford to have their own warehouses. They may be owned by an individual or some agency. These warehouses operate as per the rules and regulations formed by the Government.
(d) Co-operative Warehouses:
There are warehouses owned and managed by the marketing co-operative societies or agricultural co-operative societies. They are set up to provide warehousing facilities to their members. Example: National Co-operative Development Corporation (NCDC).
(e) Bonded Warehouses:
Bonded warehouses are those warehouses, which are licensed by the government to accept storage of imported goods which are not cleared due to non-payment of customs duty by the importer. Branding can be undertaken in the warehouse itself. Bank loans can be obtained by submitting the receipt issued by these warehouses as collateral security. Strict supervision and control is imposed by custom authorities on their operation and functioning.
(f) Institutional Warehouses:
Different institutions and bodies have their own warehouses on account of the nature of operation. For Example: Banks, Railways, etc,. Various transport agencies also maintain warehouses for storing the goods which are to be dispatched and received.
g) Distribution Center Warehouses:
Goods which need to be temporarily stored for one or two days so that they can be distributed to other offices or customers are stored in Distribution Centers. They are owned by the manufacturer or wholesalers.
B. On the basis of commodities Stored:
a) General Warehouses:
They are ordinary warehouses which are useful for storing most of the dry food grains, fertilisers, etc. Protective measures against rat, insects, etc. are undertaken by them.
b) Special Commodity Warehouses:
These warehouses are specially constructed for storing specific type of commodities like tobacco, cotton, wool, etc. These warehouses reduce loss of quality and quantity to a great extent. Storage of petrol and oil requires special type of vertical, cylindrical storage tanks.
c) Cold storages or Refrigerated warehouses:
Goods are transported in refrigerated containers and stored in refrigerated warehouses. These warehouses are used for storing perishable goods like fruits, vegetables, eggs, butter, fish, meat, etc. Goods stored in cold storages without deterioration in quality, can be made available throughout the year.
d) Climate Controlled Warehouses:
The controlled climate environment can reduce the rate of metabolism in fruits and vegetables. Humidity controlled environments for delicate products such as flowers in dirt-free facilities is provided in these warehouses.
e) Automated Warehouses:
Automated facilities can handle several hundreds of kilograms of product at a time. Inside the warehouse premises physical distribution activities are carried out by moving product filled pallets (i.e. platforms that hold large amounts of product). It requires huge investment, latest technology and large turnover of goods.

Coastal Trade in Ancient Tamil Nadu:
1. Big cities like Poompuhar had the 'Maruvurappakam' (inland town) and 'Pattinapakkam' (coastal Town) had market and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and food stuff.
2. Port towns like Tondi, Korkai, Puhar and Muziri were always seen as busy with marts and markets with activities related to imports and exports.
3. In such a brisk trade, people of the coastal region, engaged themselves in coastal trade and developed their intercontinental trade contacts.
4. They were engaged in different kinds of fishing pearls, and conches and produced salts and built ships.
5. Boats like 'Padagu', 'Thimil', "Thoni', 'Ambu' 'Odampunai', etc... were used to cross rivers for domestic trade while Kalam, Marakalam, Vangam, Navai, etc.. were used for crossing oceans for foreign trade.

(i) Ownership by one Man:
(1) This is owned by the single person.
(2) The sole trader contributes the required capital.
(3) He is not only the owner of the business but also manages the entire affairs.
(ii) Freedom of work and Quick Decisions:
1. Since the individual is himself as an owner, he need not consult anybody else.
2. Hence he can take quick decisions.
(iii) Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
(iv) Enjoying Entire Profit:
He strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.
(v) Absence of Government Regulation:
1. A sole proprietor concern is free from Government regulations.
2. No legal formalities are to be observed in its formation, management or in its closure.
(vi) No Separate Entity:
The sole trading concern comes to an end with death, disability, insanity, and insolvency of the individual.
(vii) Maintenance of Secrecy:
In sole proprietorship as the sole owner manages all the affairs of the business, the secrecy can be maintained easily.