The disadvantages of Government company:
(i) Board of directors packed with 'Yes-Men':
On the Board of Directors of a government company, there are Government appointed directors (Government being the major shareholder); who are 'yes-men' of the Government. They are unable to run the company, in a business like manner.
(ii) Autonomy only in name:
Independent character of a Government company exists only in name. In reality, politicians, ministers, Government officials, interfere excessively in the day-to-day working of the government company.
(iii) A Fraud on companies act and constitutions:
A Government company is criticised as being a 'fraud on the companies act and on the constitution. This criticism is valid on the ground that the Government can exempt a Government company, from application of several provisions of the companies act. Again, the Parliament is not taken into' confidence, while creating a Government company.
(iv) Fear of exposure:
The annual report of the government company is placed before the Parliament/ State Legislature. The working of the company is exposed to press criticism: Therefore, management of the Government company often gets demoralized and may not take initiative to come out with and implement something innovative.
(v) Lack of expertise in deputationists:
The key personnel of a Government company are often deputed from Government departments. These deputationists generally lack expertise and commitment; leading to lower operational efficiency of the government company.
(vi) Selfish functioning:
The Government company works neither for the government nor for the public at large. It serves the personal interests of people who work in the company and who dictate policies of the company

One-man control is the best in the world:
William R. Basset has said that one-man control is the best in the world only when the business is small indeed, to allow one actually to know and supervise everything in the business.
Following are some of the points in favour of one-man control:
(i) Easy and quick formation,
(ii) Direct control,
(iii) Efforts and reward are linked,
(iv) Retaining business secrets,
(v) Close touch with the consumers,
(vi) Enjoying all profits,
(vii) Inexpensive management,
(viii) No legal restrictions,
(ix) Direct contact with the employees and
(x) Social desirability.
Limitations of one-man control:
Though there are many advantages of one-man control, still it suffers from many drawbacks. One man is unable to manage all the affairs by himself. Basset says, "The danger is always present that he thinks, he knows which really he does not know".
Following are some points unfavourable for one-man control:
(i) Limited capital,
(ii) Limited managerial ability,
(iii) Unlimited liability,
(iv) Absence of large-scale business operation,
(v) Risky decisions and
(vi) Uncertainty.
In conclusion, one-man control is the best from the point of view of profitability and efficiency,provided that one man is big enough to manage everything efficiently.

1. Roman and Greek traders frequented the ancient Tamil country and forged trade relationship with ancient Kings of Pandya, Chola and Chera dynasties. Cholas had a strong trading relationship with Chinese Song Dynasty. The cholas conquered the Sri Vijaya Empire of Indonesia and Malaysia to secure a sea trading route to China.
2. During the 16^th and 18^th centuries, India's overseas trade expanded due to trading with European companies. The discovery of new all-sea routes from Europe to India via Cape of Good Hope by Vascoda Gama had far-reaching impact on the civilised world. The arrival of Portuguese in India was followed by the advent of other European communities. India's maritime trade was a monopolised one over Europeans and at one stage the global trade share of India was 55 percent which is just 2 percent in 21^st century. The European merchants who came to India were not only individual merchants but also represented their respective governments. They gained a strong foothold in India's maritime trade by virtue of their strong naval power. In course of time, their commercial motives turned into territorial ambition like the East India Company which became the British Empire here.
3. Textiles and shipbuilding earned name and fame in the 17^th and 18^th centuries. Britishers gradually abolished Princely order in the Indian territories. Thus the demand for Indian goods declined during the British rule. Britishers put in place policies prohibiting the export of some of the popular goods like Indian textile goods, handicrafts, to Great Britain. Between early 1600and mid-19th century, the British East India company led establishment and expansion of foreign trade all over Asia. Although initial interest of the East India . Company was aimed at reaping profits, their single-minded focus was on establishing a trade, monopoly throughout Asia Pacific made them heralding agent of British Colonial Imperialism.

India is an agrarian country but the importance of warehousing was not felt till 1950. Agriculture contributes 16 percent of the overall GDP and accounts for employment of approximately 52 percent of the Indian population. It is estimated that more than 40 percent of our agricultural productions wasted due to poor storage facilities. On the recommendation of the All India Rural Credit Survey Committee, the Agricultural Produce( Development and Warehousing) Corporation Act enacted in 1956 authorized the Government to setup National Co-operative Development and Warehousing Board to develop agricultural Co-operatives and warehousing.

On the basis of ownership business activities may be broadly grouped into three categories.
1) Private Enterprises:
An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government.
2) Sole proprietorship.
Example - Sundar Stationeries
3) Partnership firms.
Example - Ramesh Bros.
4) Public Enterprises:
An enterprise is said to be a public enterprise where it is owned, managed and controlled by Government or any of its agencies or both.
Public enterprises may be organized in several .forms such as,
(i) Departmental undertaking - Public Works Department (PWD)
(ii) Public Corporation - Oil and Natural Gas Corporation (ONGC)
(iii) Government Company - State Trading Corporation (STC).
5) Joint Enterprises:
An enterprise is said to be ajoint enterprise where it is owned, managed and controlled by Government and private entrepreneurs. Example - Maruti Suzuki.

The methods which influence the total volume of credit in Indian economy are called quantitative or general methods. An increase in the first three measures will reduce the volume of money in circulation in India and vice versa.
i. Bank Rate Policy:
Bank rate refers to the rate at which the RBI rediscounts the bills given by the Scheduled banks.
ii. Cash Reserve Ratio (CRR):
It is the ratio of Cash reserves with the RBI kept by Scheduled bank in proportion to the total Time and Demand Liabilities with them.
iii. Statutory Liquidity Ratio (SLR):
It is the ratio of money and money equivalents kept within the bank in proportion to the total Time and Demand Liabilities with them.
IV. Open Market Operations:
The RBI directly buys or sells the securities and bills in the money market either to decrease or to increase the total volume of money.

i. Danger for Domestic Industries:
MNCs, because of their vast economics power, pose a danger to ho domestic industries; which are still in the process of development. Domestic industries cannot face challenges posed by MNCs. Many domestic industries have to wind up, as a result of threat from MNCs. Thus MNCs give a setback to the economic growth of host countries.
ii. Transfer of Outdated Technology:
Where MNCs transfer outdated technology to host nation, it serves, no purpose.
iii. No Benefit to Poor People:
MNCs produce only those things, which are used by the rich, Therfore, poor people of host countries do not get, generally, any benefit, out of MNCs.
iv. Danger to Independence :
Intially MNCs help the Government of the host country, in a number of ways; and then gradually start interferring in the political affairs of the host country. There is, then, an implicit danger to the independence of the host country, in the long - run.
v. Deprivation of Job Opportunity of Local People:
MNCs may not generate job opportunities to the people of home country.
vi. Misuses of Mighty Status:
MNCs are powerful economic entities. They can afford to bear losses for a long while, in the hope of earning huge profits once they have ended local competiton and achieved monopoly. This may be the dirty marketing strategy of MNCs to wipe off local competitors from the host country.
vii. Careless Exploitation of Natural Resources:
MNCs tend to use the natural resources of the host country carelessly. They cause rapid depletion of some of the non-renewable natrual resources of the host country. In this way, MNCs cause a permanent damage to the economic development of the host country.
viii. Selfish promotion of Alien Culture:
MNCs tend to promote alien culture in host country to sell their products. They make people forget about their own cultural heritage. In India, e.g. MNCs have created a taste for synthetic food, soft drinks etc. This promotion of foreign culture by MNCs is injurious to the health of people also.
ix. Neglect of Industrial and Economic Growth of Home Country:
An investment in host countries is more profitable, MNCs may neglect home countries industrial and economic development.

(i) Personalised service :
Individuals and Private Institutions selling their services to others. Eg. Plumber, servant maid, etc.
(ii) Public service:
Government hospitals, schools, police, government offices, etc., provide services to the people on behalf of the government without profit motive.
(iii) Distributive service:
Transportation, warehousing logistics, salesmanship, etc., come under this type of service.
(iv) Financial service:
Banking, factoring, accounting and insurance, etc., are grouped under this type of service.
(v) Quaternary service:
(1) Professional or specialised skills and high technology are used to provide this type of service.
(2) Eg : Software development, auditing, research and development, etc.
(vi) Quinary Service:
(1) New ideas are generated, new technologies are evolved, new policies are implemented by selected individual experts.
(2) Their decisions influence nations, international institutions etc. i.e. inventors.

(i) Costly and difficult to form:
(1) Number of legal formalities must be observed in the formation of the company.
(2) To observe these legal formalities,promoters have to spend much time and money.
(ii) Scope for dishonest and unscrupulous management:
(1) The directors manage the company with the help of paid officers.
(2) If the directors are dishonest,they may make the personal gain at the expense of the company.
(iii) Management oligarchy:
(1) A few rich persons may secure control over the affairs of the company.
(2) Thus, the management of a joint stock company might become oligarchic in character.
(iv) Speculation:
A few individuals may corner the shares to gain control over the company.
(v) Lack of interest:
(1) The officers of the company do not have the incentive to work hard.
(2) They are not usually' inclined to take risks. They lack initiative.
(vi) Lack of good labour relations:
(1) In sole trading business personal supervision is possible.
(2) But in company form of organization, there is lack of personal contact between owners and workers.
(vii) High taxation: 
Joint stock companies have to pay tax at higher rates compared to other forms of organizations

The main disadvantages of Partnership are given below:
(i) Lack of harmony: Each partner vies with one another in dishonest dealings. This mutual conflict and lack of team spirit pave the way for the dissolution of the firm.
(ii) Absence of Legal Status and Instability: The partnership firm has no separate legal existence. As a result, it is terminable on the death or insolvency of a partner.
(iii) Limited Resources: In view of this, only limited resources are available. Modern large-scale enterprises which require huge capital outlay cannot be started.
(iv) Limited Risk-taking: In view of the danger of unlimited liability, the partners tend to be overcautious. So, normally they do not want to assume risks starting new ventures.
(v) Risk of implied authority: Every partner can bind the firm and his other partners by his acts. Therefore all other partners become liable to a greater extent because of the folly and fraud committed by a fellow partner.
(vi) Lack of public confidence: As its accounts need not be audited and published, it lacks public confidence.