The private sector consists of those business enterprises which are owned by a single individual or a group of individuals. The various types of organizations in the private sector are:

a. Sole proprietorship: A form of business organization which is owned, managed and controlled by one individual. He is the sole recipient of all the profits and has the complete liability of all the risks.

b. Partnership: A form of business organization in which two or more people who have agreed to share the profit earned in the business. The liability is also shared among them on the basis of the extent of the capital contributed.

c. Joint Hindu Family Business: A form of business organization which exists only in India It is governed by the rules of the Hindu law. The eldest member of the family called the, owns, manages and controls the business. He is the sole recipient of all the risks in the business. Other members of the family also help in carrying on the business. In case the Karta dies, the next eldest members take up his position and the business continues.

d. Cooperative: A cooperative is a form of a business organization in which a group of people come together and work together for their own interest. For example, a housing cooperative society, a farming cooperative society, etc.

e. Company: A company is an artificial person, perpetual succession, has a separate legal entity, a common seal. It has both public and private sector.