The criteria for the selection of the form of organisation are:
a) The risk involved in the business
          Before starting the business organisation we need to know the risk involved in the business.Different form of organisation has different types of risk.So we need to understand the type of risk in which we decided to start
b)The flexbility of the business
      The second important thing we need to consider id the flexibilty of the business.The flexibility means the flexibility of the internal management of the business ie,different sections of the business organisations
c)The nature of the business
     This means that we need to understand the nature of the business we are going to start .It means that ,if the organisation suffer from risk or the type of profit earned by the organisation
d)The cost and the government regulation regarding to the business
    The most important factor we need to consider is the cost and the expense incurred in the business.And also we need to consider the rules and regulations laid by the government
e)The capital require to start the business
    In the business organisation , first needed to understand the capital incurred in the business to start.The amount of profit will be earned will be the amount of capital we contribute in the business.