1.

FORMS OF BUSINESS
ORGANIZATIONS NAZ CARCOSIA
INTERMS OF OWNERSHIP
SENIOR HIGH SCHOOL
SOLE / SINGLE PROPRIETORSHIP
- A sole proprietorship is the What form of Business Organization
most basic and legal form of does the picture depict?
business
- It has only ONE OWNER
- A proprietor owns and
manages the business and
responsible for all business
transactions.
Ex: Cellphone repair services,
laundry shop and small-scale
businesses selling and bakery.
 WHAT ARE THE POSSIBLE ADVANTAGES AND DISADVANTAGES OF
SOLE PROPRIETORSHIP

ADVANTAGES DISADVANTAGES
A sole proprietor has  Proprietor has limited ability to
complete control and raise capital
decision-making power over
the business  and unlimited personal liability
for the obligations of the
Generally has uncomplicated
business transactions and business
minimal regulatory
requirements and cost
With one only decisions can
be arrived in less time and
implemented faster
 PARTNERSHIP

 It is an association of two or What form of Business Organization

does the picture depict?
more persons who bind
themselves to contribute money,
property or industry to a
common fund
 Governed by the Civil Code of the
Philippines
 Partners AGREEE among
different things (Manage
business, contributions capital,
profit/ losses, form and mode of
settlement)
 WHAT ARE THE POSSIBLE ADVANTAGES AND DISADVANTAGES OF
PARTNERSHIP

ADVANATAGES DISADVANATAGES
 Easier to organize The life of a partnership is
fragile
compared corporation
The liability of the partners
 can raise more capital for the debts of the business
compared to sole is unlimited.
proprietorships
 T YPES OF PARTNERSHIP

General partners -who invest in the partnership,

participate in the day-to-day operations and are
liable for debts and lawsuits of the partnership
Limited partners -who invest in the partnership
but who have no participation in day-to-day
operations and who are not usually considered to
have liability.
 CORPORATION
 A corporation is the most What form of Business Organization
complex form of business does the picture depict?
organization.
 A corporation is a legal entity
that is separate and distinct
from its owners.
 A corporation has standardized
procedures for its creation,
organization ,
 Corporations are subject to
greater scrutiny, regulations,
control and supervision by the
government
 What are the possible advantages and disadvantages of
CORPORATION
ADVANTAGES DISADVANTAGES
 The liability of the owners  Cost of forming and managing
towards the creditors is  Complex process and requires
limited to their investment in registration with the central
the company. regulatory authority and
 Additional capital can be listing on a stock exchange
raised easily through stock which required fulfillment of
markets certain requirements related
to the amount of capital,
number of directors
 Corporations are subject to a
high income tax rate
 COOPERATIVE
Cooperatives are defined by the International
Cooperative Alliance’s Statement on the Cooperative
Identity as “Autonomous associations of persons united
voluntarily to meet their common economic, social, and
cultural needs and aspirations through jointly owned and
democratically controlled enterprises ”
 ADVANTAGES OF COOPERATIVE

Easy Formation
Limited liability
Perpetual Existence
Social Service
Open Membership
 Tax Advantage
Democratic Management
 DISADVANTAGES OF COOPERATIVE

Lack of Secrecy
Lack of Business Acumen
Lack of Interest
Corruption
Lack of Mutual Interest