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    Forms of Bus Org

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    Aaron Tabancay
    The document defines key terms like entrepreneurship and business. It also outlines the main forms of business organization - sole proprietorship, partnership, and corporation. Sole proprietorships are the simplest to start but offer no liability protection. Partnerships are relatively easy to establish but there is no full autonomy. Corporations provide limited liability but have a complex formation process and are subject to double taxation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Forms of Bus Org

    Uploaded by

    Aaron Tabancay
    18 views6 pages
    The document defines key terms like entrepreneurship and business. It also outlines the main forms of business organization - sole proprietorship, partnership, and corporation. Sole proprietorships are the simplest to start but offer no liability protection. Partnerships are relatively easy to establish but there is no full autonomy. Corporations provide limited liability but have a complex formation process and are subject to double taxation.

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    FormsOfBusOrg

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    The document defines key terms like entrepreneurship and business. It also outlines the main forms of business organization - sole proprietorship, partnership, and corporation. Sole proprietorships are the simplest to start but offer no liability protection. Partnerships are relatively easy to establish but there is no full autonomy. Corporations provide limited liability but have a complex formation process and are subject to double taxation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views6 pages

    Forms of Bus Org

    Uploaded by

    Aaron Tabancay
    The document defines key terms like entrepreneurship and business. It also outlines the main forms of business organization - sole proprietorship, partnership, and corporation. Sole proprietorships are the simplest to start but offer no liability protection. Partnerships are relatively easy to establish but there is no full autonomy. Corporations provide limited liability but have a complex formation process and are subject to double taxation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    DEFINITIONS

    Entrepreneurship – is the process of designing,


    launching and running a new business, which is
    often initially as small business, or as the capacity
    and willingness to develop, organize and manage a
    business venture along with any of its risks to make
    a profit.

    Business – is an organization or enterprising entity


    engaged in commercial, industrial, or professional activities. It
    is also refers to the organized efforts and activities of
    individuals to produce and sell goods and services for profit.
    FORMS OF BUSINESS ORGANIZATIONS
    Sole Proprietorship – is also referred to as
    “single proprietorship.” It is the most simple form of
    business and the easiest to register, through the
    Bureau of Trade Regulation and Consumer
    Protection of the Dept. of Trade & Industry.

    Partnership – is consist of two or more persons who bind


    themselves to contribute money or industry to a common
    fund, with the intention of dividing the profits among
    themselves. It is registered with the Securities and Exchange
    Commission.
    FORMS OF BUSINESS ORGANIZATIONS

    Corporation – is a juridical entity established


    under the Corporation Code and registered with
    the Securities and Exchange Commission. It
    must be created by or composed of at least 5
    natural persons up to a maximum of 15,
    technically called “incorporator” the (5-person
    minimum has removed under the Revised
    Corporation Code)

    Sole Corporation (New) – a mixture of the features


    of sole proprietorship and a corporation is found in a new
    entity authorized under the Revised Corporation Code and
    also called One Person Corporation.
    FORMS OF BUSINESS ORGANIZATIONS

    ADVANTAGES AND DISADVANTAGES OF SOLE PROPRIETORSHIP


    Advantages
    1. Less paperwork to start running
    2. Easier processes and less requirements
    3. Minimal registration fees
    4. More straightforward banking
    5. Simple business ownership

    Disadvantages
    1. No liability protection
    2. Difficult to obtain financing and business credit
    3. Harder to sell your business
    FORMS OF BUSINESS ORGANIZATIONS

    ADVANTAGES AND DISADVANTAGES OF PARTNERSHIP

    Advantages
    1. Partnerships are relatively easy to establish.
    2. Capital
    3. Flexibility
    4. Shared responsibilities
    5. Decision making

    Disadvantages
    1. No full control or autonomy over the business.
    2. Disagreements
    3. Agreement
    4. Liability
    5. Taxation
    6. Profit Sharing
    FORMS OF BUSINESS ORGANIZATIONS

    ADVANTAGES AND DISADVANTAGES OF CORPORATION

    Advantages
    1. Limited Liability
    2. Easy Access of Capital
    3. Perpetual Existence
    4. Ownership Transfer
    5. Build Credibility

    Disadvantages
    1. Complex Process
    2. Double Taxation
    3. Conflict of Interest
    4. Lacks Business Confidentiality
    5. Extensive Rules

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