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    4 Ways To Form A Business:: 1. Sole Proprietorship

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    Gileah Ymalay Zuasola
    There are 4 main ways to form a business: sole proprietorship, partnership, corporation, and cooperative. A sole proprietorship is owned by a single individual who enjoys full control but also bears full liability. A partnership involves two or more people combining resources to make a profit, with profits divided according to agreement. A corporation is a separate legal entity where shareholders have limited liability but the entity pays taxes. A cooperative is formed by people with similar needs to provide goods/services or jointly use resources to improve income.

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    4 Ways To Form A Business:: 1. Sole Proprietorship

    Uploaded by

    Gileah Ymalay Zuasola
    390 views6 pages
    There are 4 main ways to form a business: sole proprietorship, partnership, corporation, and cooperative. A sole proprietorship is owned by a single individual who enjoys full control but also bears full liability. A partnership involves two or more people combining resources to make a profit, with profits divided according to agreement. A corporation is a separate legal entity where shareholders have limited liability but the entity pays taxes. A cooperative is formed by people with similar needs to provide goods/services or jointly use resources to improve income.

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    Business organization

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    There are 4 main ways to form a business: sole proprietorship, partnership, corporation, and cooperative. A sole proprietorship is owned by a single individual who enjoys full control but also bears full liability. A partnership involves two or more people combining resources to make a profit, with profits divided according to agreement. A corporation is a separate legal entity where shareholders have limited liability but the entity pays taxes. A cooperative is formed by people with similar needs to provide goods/services or jointly use resources to improve income.

    Copyright:

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

    4 Ways To Form A Business:: 1. Sole Proprietorship

    Uploaded by

    Gileah Ymalay Zuasola
    There are 4 main ways to form a business: sole proprietorship, partnership, corporation, and cooperative. A sole proprietorship is owned by a single individual who enjoys full control but also bears full liability. A partnership involves two or more people combining resources to make a profit, with profits divided according to agreement. A corporation is a separate legal entity where shareholders have limited liability but the entity pays taxes. A cooperative is formed by people with similar needs to provide goods/services or jointly use resources to improve income.

    Copyright:

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

    BUSINESS ORGANIZATION

    4 Ways to form a business:

    1. SOLE PROPRIETORSHIP
    - This is generally the simplest way to set up a
    business and is owned by a single individual. The
    sole proprietor enjoys exclusive control and
    decision-making as well as gets all the profits
    earned but he also shoulders all losses and has
    unlimited liability.
    2. PARTNERSHIP
    - A partnership is an agreement in which two
    or more persons combine their resources in a
    business with a view to making profit. A
    partnership agreement is drawn up and profits
    are divided among the partners according to
    the terms of agreement.

    There are two types of partnership:


    a. THE GENERAL PARTNERSHIP
    - All owners share the management of the business and
    each is personally responsible for and must assume the
    consequences of the actions of the other partners and all
    general partners have unlimited liability.

    b. THE LIMITED PARTNERSHIP


    - Some members are general partners who control and
    manage the business and may be entitled to a greater
    share of the profit while other partners are limited and
    contribute only capital, take no part in control or
    management, and are liable for debts to a specific
    extent only.
    3. CORPORATION
    - Is a legal entity that is separate from its
    owners, the shareholders. No shareholder is
    personally liable for the debts, obligations, or
    acts of the corporation. Directors and officers
    can bear liability for their involvement with the
    corporation. The legal entity of the corporation
    gives it an individual identity of its own.
    Corporations normally can exist for a life of 50
    years, which is renewable for another 50 years.
    Owners have limited liabilities. However,
    corporations are burdened by heavy taxes.
    4. COOPERATIVE
    - A cooperative is an entity organized by
    people with similar needs to provide
    themselves with goods or services or to jointly
    use available resources to improve their
    income. Cooperative members have an equal
    say in decision-making with one vote per
    member regardless of number of shares held,
    there is open and voluntary membership and
    surplus earning is returned to the members
    according to the amount of their patronage.
    MICRO BELOW 1, 500 ,001 PESOS

    BUSINESS

    SMALL FROM 1,500,001 - 15, 000, 000 PESOS

    BUSINESS
    FROM 15, 000, 001 - 60, 000, 000
    MEDIUM PESOS
    BUSINESS

    ANY BUSINESS WITH ASSETS IN EXCESS


    OF
    60, 000, 000 PESOS IS CONSIDERED LARGE
    SCALE.

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