Chapter 2 of CBSE Class 12 Entrepreneurship covers the second pillar of starting up: once an opportunity is sensed, an entrepreneur must choose a legal form for the venture and write a business plan. The chapter compares the five Indian forms of business organisation — sole proprietorship, joint Hindu family business (HUF), partnership, cooperative society, and company — across ownership, liability, capital, control, continuity, and taxation.
Students learn the criteria for choosing the right form (size, capital required, liability appetite, control, continuity needs, regulatory complexity) and the procedural difference between a private company, a public company, and the newer One Person Company (OPC) introduced under the Companies Act 2013. Partnership forms — general, limited, and Limited Liability Partnership (LLP) — are also covered.
The second half of the chapter teaches how to write a business plan: the executive summary, business description, marketing plan, operational plan, organisational plan, financial plan, and risk assessment. Business plans turn an idea into a fundable, executable roadmap and serve as the entrepreneur's guide through the first 3 years.