Unit No-3

Project Planning, Skills for successful entrepreneurs & Business organizations

and business laws

3.1.Project Planning-
Project planning is the stage in project management where you determine the specific steps needed
to achieve project goals. It involves outlining the project scope, defining tasks, setting timelines,
allocating resources, and managing risks. This phase is crucial for successful project execution and
ensures everyone involved understands the "how" of completing the project.
A project plan houses all the necessary details of your project, such as goals, tasks, scope,
deadlines, and deliverables. This shows stakeholders a clear roadmap of your project, ensures you
have the resources for it, and holds everyone accountable from the start.
Project planning refers to the phase in project management in which you determine the actual steps to
complete a project. This includes laying out timelines, establishing the budget, setting milestones,
assessing risks, and solidifying tasks and assigning them to team members. Project planning is the
second stage of the project management lifecycle. The full cycle includes initiation, planning,
execution, and closing.

5 essential steps for project planning

Step 1: Research and preplanning stage-Before even writing a single line in your project plan
document, some prep work is necessary. The best plan of action is to research and know your fact
before committing to the task.This means understanding the ins and outs of the project. You want to
think about what the goals and potential outcomes would be, what partnerships you would need to
consolidate to see the project through, as well as any potential risks or issues that might
arise. Remember to review the scope of work document and all related documents such as an RFP
or notes from client team meetings. Ask thoughtful questions and be thorough with your research so
as to pinpoint critical project details.

Step 2: Outline a rough version of your project plan-With all the information gathered from the
previous step, it’s time to start designing a rough draft of your project plan. the delineation process
actually begins and it’s quite literally a pen and paper affair. Write down the who, what, when and
how of your project and make sure that you know: which are your major deliverables, how to get
them and their deadlines (included in the project schedule), who’s on the project team and how will
they work on the deliverables, when will milestones be met.

In addition, it’s important to remember that this is a draft version of the final project management

plan. Take notes of ideas and resources needed for tasks, timeframes and the client’s approval
process. All of this information will allow you to go back and forth with your team and give your

project management plan the final touches. Once your project plan’s basic needs and the way

they’ll be met have been jotted own, it’s time to bring your team into the drafting process. Project

managers should not be the only ones participating in the planning stage because sharing ideas with

your project team ensures that your work breakdown structure can be followed too.
Step 3: Build your project plan- Now that you’ve laid the ground work for what your project plan
will look like and you’ve already discussed it with the project team, it’s time to actually build your
project management plan. A great way of doing this is by using a project management tool or
project planning software such as Microsoft Project or Zoho Projects. In here you want to clearly
state the tasks, their duration, their milestones and dates. Keep it simple.Flexibility is also key, as
with plans there are no absolutes when it comes to format as long as the team understands it. Gantt
charts are a common tool used in the project planning process but others might prefer a list of tasks,
that will depend on the work methodology that you and your team members prefer. We’ve
mentioned Gantt charts as they are pretty much an IT industry standard but feel free to study the
market for project management tools and software that work for you.

Step 4. Plan presentation and confirmation -It’s the homestretch from here! Last thing you
should do is present the plan and run it by your internal team. This means that if there are any last
minute changes before you present the final version to the stakeholders, they need to be ironed out
and talked about with your project team. Things you should review with your team include: review
times, dependencies, the final deadline, time off, work breakdown structure, meetings and
milestones, etc. Doing this will ensure that you and your team are all on the same page before
delivering a presentation to the stakeholders.

Step 5: Project execution and course correction -You are now ready to carry out your plan. But
that’s not the end. You see, it’s good to think of plans as living documents. That’s why they need
constant updating and course correction in case something goes array. Some good tips to keep in
mind for this stage are the following:
Communicate at all times with your project team and stakeholders
Update your plan as things change
Monitor risks as the project evolves

3.2.Project Report-

A project report is a document that allows a company or team to have an overview of a assignment's
requirements and progress. It contains data that relates to the development and completion of an
assignment. A project report is a comprehensive document that details a project's objectives, scope,
methodology, progress, findings, and outcomes. It serves as a record of the project's lifecycle,
documenting the work done and communicating the project's status to stakeholders. Project reports
are used across various fields to assess project effectiveness and success.
A project report is a written report containing information on project aspects such as achievements,
challenges, and outcomes. It represents the present state of the project and the accomplishments,
issues faced, and deviations vis a vis the plan formulated earlier. Furthermore, this report is a
documentary, a necessary component in project management, which contains an overall analysis
that can help in the decision, thus addressing the course requirements aligned with the project goals.

Uses of Project Reports

These reports are versatile in their applicability in managing projects, which makes them
indispensable tools. The following are some of the key uses:
1. Performance Tracking
Project reports are used to monitor the actual performance of the project relative to the set goals. It
is a direct comparison between how much has been done and what should have been done
according to the project management plan and the project manager acts accordingly. Thus, it is
especially relevant for PMP certification holders as performance measurement and tracking are
among the competencies of project management.
2. Stakeholder Communication
Stakeholder communication is an important component of project management to enhance project
outcomes. Project reports serve the purpose of escalating the information concerning the progress of
the projects. Moreover, it assists in keeping expectations under control and retaining the
stakeholders’ support during the complete life cycle of the project.
3. Decision-Making-
Business project reports supply the details and the findings essential for making the appropriate
business decisions. In summary, project reports contain the information necessary to make strategic
decisions about the project, such as when to allocate more resources, change the timing of the
project, or effectively address new risks.
4. Risk Management
Risk mitigation is an important consideration when it comes to project management, and project
reports are integral in this process. Also, Project managers discuss and evaluate different risks in
daily reports, actively working to prevent their impact on success.
5. Financial Management
Cost reports and other financial project reports are invaluable for monitoring the project budget.
Planners identify cost overruns by comparing actual expenses to the budget and adjust costs to stay
within budget limits.
6. Resource Management
Resource reports assist project managers in determining the efficient and effective use of resources.
Thus, the information about the actual distribution helps to determine their scarcity and to decide on
further actions.
7. Documentation and Reporting
Project reports are legal documents that can provide a formal account of a project that has been
implemented. Project Documentation is important not only for the particular project it is created for
but also for the future. Use these reports in lessons-learned sessions, post-project evaluations, or
during planning for related projects.

3.3.Project Appraisal-

Project appraisal is the process of assessing, in a structured way, the case for proceeding with a
project or proposal, or the project's viability. [1] It often involves comparing various options,
using economic appraisal or some other decision analysis technique. To ensure success, a project
should be objectively appraised during the feasibility study, taken into account principal
dimensions, technical, economic, financial, and social implications. To establish the justification for
a project the project appraisal is the process of judging whether the project is profitable or not to
client.

Project appraisal is a systematic process of evaluating the feasibility and viability of a proposed
project, aiming to determine whether it should be implemented. It involves a thorough assessment
of various aspects, including financial, technical, economic, social, and environmental factors. The
goal is to provide a comprehensive understanding of the project's potential before committing
resources.
It involves a comprehensive assessment of the project's economic, financial, technical, social,
management, and environmental aspects. The purpose of it is to determine whether the project is
worth investing in/suitable from a financing angle and whether it aligns with the organization's
goals and objectives.

3.4.Setting up an industrial unit procedure and formalities in setting up an industrial unit-

Setting up a manufacturing plant in India requires meticulous planning to ensure long-term success.
Maximizing efficiency and safety from the outset is crucial for cost reduction. While India's rapid
economic growth offers opportunities, navigating regulations and cultural nuances demands
strategic foresight

Upon assessment of market viability, the range of products, the target customer base and other
aspects of the business operation, the following key parameters shall be required to be taken into
consideration before undertaking the process of establishing a manufacturing plant in India:

Establishing a presence in India

In order to establish a manufacturing plant in India, any entity, be it domestic or foreign, will be
required to establish its physical presence in India. The same may be done either by incorporating a
partnership firm (including a limited liability partnership) or a company in accordance with the
applicable laws of India. In furtherance of the aforementioned, if a foreign entity opts to set up its
presence in India, the foreign entity will have to undertake the requisite compliances under the
Foreign Exchange Management Act, 1999 and the rules and policies framed thereunder in its
entirety. The foreign entity may either choose to acquire an existing entity or incorporate a fresh
entity and establish its wholly-owned subsidiary in India. However, the same will be subject to the
foreign direct investment policies as the compliances required to be undertaken are sector-specific
and therefore, plays an important role in deciding the quantum of inflow of funds and the approvals
required to be undertaken thereby determining the feasibility of the operation of the said
manufacturing plant in India.

Identifying Location & Land

Apart from undertaking the incorporation process, the entity intending to establish a manufacturing
plant must make an informed decision with respect to the location in which the said plant is
intended to be established. The crucial factors that must be taken into consideration before
identifying the location of the manufacturing plant are proximity to materials, transportation &
infrastructure costs, availability of skilled and unskilled labour, access to the target markets, supply
chains, etc. Further, as state governments offer varying incentives based on the nature of the
industry, it is essential for businesses to identify and determine an area in accordance with the
identified industry in order to maximise the incentives offered in such identified state

Registration Process, Licenses and Compliances

Upon completion of the incorporation process and identification of a suitable location to setup the
manufacturing plant in India, the entity would also require to on board certain workers and
employees who will be responsible for the operation of the manufacturing plant. In case there are 10
or more workers working with the aid of power or 20 or more workers working without the aid of
power, and are involved in a manufacturing plant, on any day of the preceding 12 months, such
manufacturing plant would be mandated to obtain a registration under the Factories Act, 1948
(“Factories Act”).

In order to obtain a registration under the Factories Act, certain pre-requisites shall be required to be
fulfilled by the entity which include the following i.e., registration of the proposed building plan as
the same is mandatorily required prior to commencing manufacturing activities, compliance with
the safety and welfare measures, procurement of a non-objection certificate from several
departments such as the fire, water and pollution department in order to seek environmental
compliances, formulate and submit a detailed factory plan which shall incorporate details pertaining
to machinery and send a notice to the chief inspector approximately 15 (fifteen) days prior to
commencing their manufacturing activities.

In furtherance of the aforementioned pre-requisites, manufacturing plants catering to certain

industries such as pharmaceuticals or drugs, would require certain additional pre-requisites as per
the requirement of the industry.

Upon fulfilment of the prerequisites, a manufacturing plant can apply for registration under the
Factories Act, wherein such registration is permitted to be made online with the respective state
government. The timeline and approvals to obtain the registration vary by state and depend on the
nature of the manufacturing plant.

Once the manufacturing plant obtains a registration under the Factories Act; the manufacturing
plant would have to obtain and fulfil certain additional registration and compliances. The additional
registration and compliance to be obtained are as follows:

Labour Law Compliances

As a manufacturing plant in India may employ several workers and employees ranging from
unskilled to semi-skilled to skilled workers, the manufacturing plant would have to adhere to the
labour laws in India and its compliance requirements. The compliance and registration requirements
would be in relation to including but not limited the (i) Employee’s Provident Fund scheme, (ii)
Minimum Wages Act, (iii) Payment of Bonus Act, (iv) Maternity Benefits, (v) Industrial Disputes
Act and (vi) Employee’s State Insurance scheme. Such labour law registrations and compliances are
imperative as they encompass various facets like, minimum wage standards, prescribed working
hours, overtime regulations, as well as ensuring the safety, health, and welfare of the workers
employed at the manufacturing plant.

Import Export Code (IEC)

If a manufacturing plant is involved in the export and import of goods, such manufacturing plants
are required to obtain an IEC. The IEC is issued by the Director General of Foreign Trade (DGFT).
This 10-digit code is valid for a lifetime. Importer merchants cannot import goods without the IEC,
and similarly, exporters cannot avail benefits from DGFT export schemes without it.

Environmental Clearances and Consents

Manufacturing plants set up in India must adhere to a range of environmental laws aimed at
safeguarding the environment and fostering sustainable growth. Among these regulations, obtaining
consent from the central and state Pollution Control Board (PCB) is an essential requirement. This
consent guarantees that manufacturing operations prioritize environmental friendliness and refrain
from causing any harm to the ecosystem.

Industry-specific registrations and compliances

Similar to the additional pre-requisites required in order to obtain a registration under the Factories
Act, certain manufacturing plants catering to specific industries would require certain specific and
additional registrations and compliances. Herein, the manufacturing plants in such industries would
have to adhere to the requirements of their respective sectoral regulators.

3.5.Skills for successful entrepreneurs and business organizations-

1.Communication skills -are abilities you use when giving and receiving different kinds of
information. While these skills may be a regular part of your day-to-day work life, communicating
in a clear, effective and efficient way is an extremely critical and useful skill. Learning from great
communicators around you and actively practicing ways to improve your communications over
time can certainly support your efforts to achieve various personal and professional goals.

Communication skills involve listening, speaking, observing and empathizing. It’s also helpful to
understand the differences in how to communicate through face-to-face interactions, phone
conversations and digital communications, like email and social media.

There are four main types of communication you might use on a daily basis, including:

1. Verbal: Communicating by way of a spoken language

2. Nonverbal: Communicating through body language, facial expressions and tone
3. Written: Communicating with written language, symbols and numbers
4. Visual: Communication by way of photography, art, drawings, sketches, charts and graphs

Communicating effectively in the workplace

While there are several communication skills you may use in different scenarios, there are a few
ways you can be an effective communicator at work:

Be clear and concise

Making your message as easy to consume as possible reduces the chance of misunderstandings,
speeds up projects and helps others quickly understand your goals. Instead of speaking in long,
detailed sentences, practice reducing your message down to its core meaning. While providing
context is helpful, it’s best to give the most necessary information when trying to communicate your
idea, instruction or message.

Practice empathy

Understanding your colleague’s feelings, ideas and goals can help you when communicating with
them. For example, you might need help from other departments to get a project started. If they’re
not willing to help or have concerns, practicing empathy can help you position your message in a
way that addresses their apprehension.

Assert yourself

At times, it’s necessary to be assertive to reach your goals whether you’re asking for a raise,
seeking project opportunities or resisting an idea you don’t think is going to be beneficial. While
presenting with confidence is an important part of the workplace, always be respectful in
conversation. Keeping an even tone and providing sound reasons for your assertions may help
others be receptive to your thoughts.

Be calm and consistent

When there’s a disagreement or conflict, it can be easy to bring emotion into your communications.
Remain calm when communicating with others in the workplace. Maintain a calm attitude and keep
an even tone of voice so you can reach a conclusion peacefully and productively.

2.Creativity and problem solving-

Creative problem solving (CPS) is the strategic process to find answers to problems and ways to
take advantage of opportunities. Key steps in the process include: identifying a problem, generating
alternative solutions, and selecting the best/right answer.

CPS can help you do the things that get you recognized for being innovative.

1. Stay Informed – Stay Informed of your own business, your customers, your industry, and
your competitors.
2. Problem Recognition – The ability to notice that change is about to take place.
3. Problem Identification – Once you realize you’ve got a problem, the next step is to
determine the cause of an issue. You are identifying the root cause of a problem.
4. Brainstorming – Idea generation. Thinking up new ideas.
5. Decision Making – Reviewing all the ideas generated and measuring them against the
objectives of what you’re trying to solve.
6. Plan Crafting – Writing your planned approach. This is the step where it all comes together.
7. Be The Champion – Ideas – especially new or those perceived as risky – need champions—
ambassadors to share the benefits of testing and implementing.
8. Implement – Implementation is where all the pre-work comes together and take action.
9. Return to Stay Informed

3.Innovation-
A new idea or method, or the use of new ideas and methods

Innovation, the creation of a new way of doing something, whether the enterprise is concrete
(e.g., the development of a new product)

Innovation is the practical implementation of ideas that result in the introduction of

new goods or services or improvement in offering goods or services

Innovation often takes place through the development of more-effective products,

processes, services, technologies, art works or business models that innovators make available
to markets, governments and society.

Innovation is related to, but not the same as, invention: innovation is more apt to involve the
practical implementation of an invention (i.e. new / improved ability) to make a meaningful impact
in a market or society, and not all innovations require a new invention.

Innovation is production or adoption, assimilation, and exploitation of a value-added novelty in

economic and social spheres; renewal and enlargement of products, services, and markets;
development of new methods of production; and the establishment of new management systems. It
is both a process and an outcome.
4.Negotiation skills-

Negotiating skills aren’t only for salespeople or corporate deal-makers. Everyone, at some
point, will need to know how to deal. The more you practice, the better you’ll become — as
will the people you’re negotiating with. Many essential negotiation skills are the
same leadership skills you’ve likely cultivated over the years. It’s just a matter of leveraging
them to persuade your audience. Negotiation is a strategic dialogue where two or more parties
aim to receive something — and they want to convince the listener to give it to them.
Ultimately, the hope is that everyone walks away feeling good about the outcome. This means
negotiations often end in compromise to ensure the results satisfy all parties. While
negotiations might seem limited to big decisions like international trade treaties or legal
disputes, anytime you work to maintain a relationship through compromise, you’re negotiating.

5.Risk Management-

Risk management is the systematic process of identifying, assessing, and mitigating threats or
uncertainties that can affect your organization. It involves analyzing risks’ likelihood and impact,
developing strategies to minimize harm, and monitoring measures’ effectiveness.“Competing
successfully in any industry involves some level of risk,” says Harvard Business School Professor
Robert Simons, who teaches the online course Strategy Execution. “But high-performing businesses
with high-pressure cultures are especially vulnerable. As a manager, you need to know how and
why these risks arise and how to avoid them.”

According to Strategy Execution, strategic risk has three main causes:

1.Pressures due to growth: This is often caused by an accelerated rate of expansion that makes
staffing or industry knowledge gaps more harmful to your business.2.Pressures due to
culture: While entrepreneurial risk-taking can come with rewards, executive resistance and internal
competition can cause problems.3.Pressures due to information management: Since information is
key to effective leadership, gaps in performance measures can result in decentralized decision-
making.These pressures can lead to several types of risk that you must manage or mitigate to avoid
reputational, financial, or strategic failures. However, risks aren’t always obvious.

3.6.Types of Business Organization-

A key aspect differentiating the different types of business organizations is the degree of liability.
Defined as the legal financial obligations of the company, liabilities include note payables, bank
debts, and accounts payables. Regardless of the type of business organization, all companies must
assume liabilities to facilitate growth and operations. Other examples of liabilities include IOUs,
unpaid bills, loans, and mortgages.
The liability of business owners depends on the specific type of business organization. A key
difference is that while some business types attach owner liabilities for debts, others do not. For
example, in sole proprietorships and specific types of partnerships, owners, shareholders, trustees,
partners, or members are personally liable for business debts. What does this mean? Owner liability
means responsibility for business losses. In other words, the property/assets of sole proprietors and
partners are not protected against creditor claims.
In addition to the internal structure and business strategy, other features that differentiate types of
business organizations are management characteristics and organizational relationships. Notably,
some businesses operate independently from legal, strategic, and internal structures. Such entities
are hybrid organizations.
1.Sole Proprietorship
The ownership of one individual characterizes a sole proprietorship. It is the least complex type of
business due to the minimal government regulation on this type of business. However, due to the
absence of a separate legal entity, a sole business owner is not separate from liabilities associated
with the business. There is no distinction between the business and the owner because the entity is
incorporated.
Small businesses such as local grocery stores are examples of sole proprietorships. A local grocery
store is typically owned by one person who works as the manager and employee. The sole owner is
then responsible for all operational aspects of the business.

The benefits of being a sole owner are listed below.

1. A sole proprietor is entitled to all profits

2. Starting this type of business is less complicated than other options due to low start-up costs
and minimal paperwork required
3. Taxation rules are relaxed. Any profit generated is treated as income
4. Running a sole proprietorship is straightforward because the sole owner makes all decisions,
including hiring and marketing plans
5. Sole owners exercise complete control of their business

2.Patnership-

Partnership. Partnerships are the simplest structure for two or more people to own a business
together. There are two common kinds of partnerships: limited partnerships (LP) and limited
liability partnerships (LLP)

Types of Partnerships
1.General Partnership

General partnerships (GP) are the easiest and cheapest type of partnership to form. Two or
more general partners own it, with joint and several legal liabilities for all debts and obligations.
They jointly manage and control the business.A general partnership can immediately start when
partners decide to conduct business together, even without an oral or written contract. This ease
contrasts with potentially costly disputes that may arise between partners if they cannot resolve
them amicably. This type of partnership is simple to dissolve. For example, the partnership
dissolves if any partners leave, go into bankruptcy, or pass away. Partnership rules differ
worldwide. Some jurisdictions may offer alternatives for the remaining partners who wish to
continue with the business[ 1 ]
Except for registering a business name, there are few government requirements specific to this type
of partnership.Ongoing government requirements are also limited. For example, holding an annual
general meeting like a corporation or other kinds of business structures is unnecessary. The
partnership and its partners must regularly report and pay taxes on the partnership income. Taxes
are paid by the partners rather than by the partnership.

2.Limited Partnership

A limited partnership (LP) is a type of partnership that limits the legal liability of some partners for
debts and obligations. At least one limited partner is a passive contributor of cash and assets. An
LP gives contributors a way to invest without incurring legal liability. In some jurisdictions,
this business structure is considered a separate legal entity that can enter into contracts and take on
obligations.There is at least one general partner with unlimited legal liability. The general
partner manages and controls the business.When starting or dissolving this partnership, the LP must
register and report to the local authorities. It is more expensive and complex than forming a general
partnership.

To start, an LP must register the limited partnership’s name and the general partners’ details with
the local authorities. To dissolve, an LP typically files a document, sometimes called a “Statement
of Dissolution” or “Statement of Cancellation.”

A written contract is an essential component when forming this type of partnership[ 4 ] . A partnership
agreement between partners covers their rights and responsibilities while protecting the limited
partner’s contributions. There may be ongoing government requirements. For example, some
jurisdictions need LPs to regularly file information reports to local authorities responsible for
businesses in the area. However, holding an annual general meeting is not mandatory unless stated
in the partnership agreement, unlike a corporation or some other kind of business structure.The
partnership and its partners must regularly report and pay taxes on the partnership income. The
partners’ portion is outlined in the partnership agreement. Taxes are paid by the partners rather than
by the partnership.

3.Limited Liability Partnership

A limited liability partnership (LLP) is an extension of a general partnership that limits the legal
liability of all partners. General partners in this type of partnership have protection
from the wrongful acts of the other partners, such as negligence, misbehavior, and other
unprofessional conduct.

Local authorities may restrict the structure to eligible businesses in knowledge-based industries, for
example, legal and accounting professionals. Authorities may require proof of permission from the
professional governing body before partners may form an LLP.The partners manage and control the
business.

When starting or dissolving this partnership, an LLP must register and report to the local
authorities. It is more expensive and complex than forming a general partnership.To start, an LLP
must register the limited liability partnership’s name and the number of partners with the local
authorities. To dissolve, an LLP typically files a document, sometimes called a “Statement of
Dissolution” or “Statement of Cancellation.”

A written contract is an essential component when forming this type of partnership. A partnership
agreement between partners covers their rights and responsibilities while protecting the partner’s
contributions. There are ongoing government requirements. For example, an LLP must regularly
file information reports to local authorities responsible for businesses in the area. However, holding
an annual general meeting is not mandatory unless stated in the partnership agreement, unlike a
corporation or other kinds of business structure.The partnership and its
partners must regularly report and pay taxes on the partnership income. The partners’ portion is
outlined in the partnership agreement. Taxes are paid by the partners rather than by the partnership.

4.Corporate Governance-

Corporate governance is the system of rules, practices, and processes by which a company is
directed and controlled. Establishing and implementing these practices involves balancing the
interests of a company's many stakeholders, including:

 Employees
 Shareholders
 Senior management
 Customers
 Suppliers
 Lenders
 Local, state, and federal governments
 Community members and groups

Corporate governance encompasses practically every sphere of management, from action plans
and internal controls to performance measurement and corporate disclosure. Governance refers to
the set of rules, controls, policies, and resolutions put in place to direct corporate behavior.
A board of directors is pivotal in governance, while proxy advisors and shareholders are important
stakeholders who can affect governance. Communicating a company's corporate governance is a
key component of community and investor relations. For instance, Apple Inc.'s investor relations
site profiles its corporate leadership (the executive team and board of directors) and provides
information on its committee charters and governance documents, such as bylaws, stock ownership
guidelines, and articles of incorporation.

5.Joint Hindu family business-

Known as the Joint Hindu Family Business, it is a type of organisation that is only found in India.
The operation of the law results in the formation of a Joint Hindu Family Firm. It does not exist as a
separate and distinct legal entity from the members who make up the organisation.The business of a
Joint Hindu Family is governed by Hindu Law, rather than the Partnership Act, which governs other
businesses. It is only through birth or marriage to a male person who is already a member of the
Joint Hindu Family that one can become a member of this type of business organisation.

“A composite family is formed when two or more families agree to live and work together, pool
their resources and labour into a common stock, and share both profits and losses.”There are two
schools of Hindu law: Dayabhaga, which is prevalent in Bengal and Assam, and Mitakshara, which
is prevalent throughout the rest of the country. Dayabhaga is the more traditional school of Hindu
law. According to Mitakshara law, a son has a natural right to inherit the property of his joint family
if he is born into it. It means that when a son is born into a family, he automatically becomes a co-
owner of the property that the family owns together. The Joint Hindu Family’s business is
controlled and managed by a single individual who is referred to as the ‘Karta’ or the ‘Manager’.
Initially, the Karta of the family manager works in consultation with the other members of the
family, but he has the final say in everything. Karta’s liability is without limit, whereas the liability
of the other members is limited to their respective shares in the business.
 Joint Hindu Family Business Examples

 Reliance Industries Limited.

 Tata Sons Private Limited.
 Mahindra & Mahindra Limited.
 Haldiram’s Private Limited.

3.7.Franchising-

Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee)

that allows the business owner to use the licensor's brand and method of doing business to distribute
products or services to consumers.

A franchise is a business arrangement in which a person purchases the right to engage in marketing
a particular product or service according to a specified or suggested plan. For example, a hotel chain
may want to open new hotels in a particular region.

One of the ways it can accomplish this is to enter into agreements with persons in that region,
granting each the right to operate a hotel under the name of the chain and according to a business
plan established by the chain.
Under such an arrangement, both the business itself and the right to engage in the business are often
referred to as a "franchise." The person or business entity that sells to others the right to engage in
the business is the "franchisor." The buyer of that right is the "franchisee."

 A Marketing Plan
 A Trademark Association
 A Franchise Fee

A Marketing Plan is designed by the franchisor to guide the operation of the business by the
franchisee. The plan typically includes a list of products and services to be sold to the public, along
with required or suggested procedures for product preparation and marketing, advertising, and
recordkeeping.
 A Trademark Association is the use of an identifying mark, such as a trade name or logo, which
associates the franchisee with the franchisor and its products and methods of doing business.

A Franchise Fee consists of any direct or indirect payment made by the franchisee for the right to
enter into the business under a franchise agreement. The fee may consist of a one-time payment or
continuing payments. It may include or consist entirely of payments to the franchisor of royalties - a
percentage of sales receipts. The fee also may consist of price mark-ups on products in excess of
bona fide wholesale prices.

3.7.Business Laws in india to start business-

Business law safeguards employers and employees by setting standards for employment contracts,
anti-discrimination policies, and workplace rights. It also plays a pivotal role in resolving disputes,
maintaining industrial harmony, and upholding ethical business practices.Starting a business in
India requires compliance with several key business laws. . Specific legal requirements for starting
a business include choosing a business name, creating a founder's agreement, obtaining necessary
licenses and registrations, understanding tax and accounting rules, and being aware of labor laws.

Key Business Laws and Regulations:

Companies Act, 2013:
This Act is the foundation for corporate governance in India, regulating the formation, operation,
and dissolution of companies.
Goods and Services Tax (GST) Act:
This law governs indirect taxation on goods and services in India, impacting all businesses.
Competition Act, 2002:
This Act aims to prevent anti-competitive practices and ensure fair trade in the market.
Intellectual Property Laws:
These laws protect inventions, trademarks, copyrights, and designs, ensuring the rights of creators
and businesses.
Contract Law:
The Indian Contract Act, 1872, forms the basis of contract law in India, governing agreements
and obligations.
Labor Laws:
Various labor laws govern employment relationships, including those related to wages, working
hours, and employee benefits.

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