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GAMES

GROUP INTO 4
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVE
WRITE WHAT ISN REQUIRED:
• NOUMBERS OF MEMBERS
• EXTEND OF LIABILITY
• CAPITALIZATION
• OWNERS
1. SOLE PROPRIETORSHIP
•owned by only one person
•easy to set-up and is the least costly
•the owner faces unlimited liability - the creditors
of the business may go after the personal assets
of the owner if the business cannot pay them.
•the sole proprietorship form is usually adopted by
small business entities.
•Income tax
2. PARTNERSHIP
•owned by two or more persons who contribute
resources, divide the profits of the business among
themselves 1) general partnerships, all partners have
unlimited liability 2)limited partnerships, creditors
cannot go after the personal assets of the limited
partners.
•Tax on individual income
3. CORPORATION
• organization that has a separate legal
personality from its owners.
ownership in a stock corporation is represented
by shares of stock.
•owners enjoy limited liability but have limited
involvement in operations, the board of directors,
an elected group from the stockholders, controls
the activities of the corporation.
OTHER FORMS: limited liability company
•limited liability companies (llc)
•characteristics of both a corporation and a
partnership, it is not a corporation.
•owners enjoy limited liability like in a corporation. an
llc may elect to be taxed as a sole proprietorship, a
partnership, or a corporation.
OTHER FORMS: Cooperative
•owned by a group of individuals and is operated for
their mutual benefit. Owner- members
•some examples of cooperatives are: water and
electricity (utility) cooperatives, cooperative
banking, credit unions, and housing cooperatives
COOPERATIVE
•some examples of cooperatives are:
water and electricity (utility)
cooperatives, cooperative banking,
credit unions, and housing
cooperatives
Assignment: Fill Up Advantages and Disavantages

FORMS OF BUSINESS ORGANIZATION


Forms of Number Advantages Disadvantages
organization of Owners
Sole 1 Low start up cost Unlimited liability
proprietorship Easy to form Lack of continuity
Fast decision Difficult to raise
making -1 owner capital
Free from govt.
control
Income tax only on
owner
Assignment: Fill Up Advantages and Disavantages

FORMS OF BUSINESS ORGANIZATION


Forms of Number of Advantages Disadvantage
organization Owners s
Partnership 2 or more Easy to form Unlimited liability
Subject to minimal Difficulty in capital
govt. requirements Divided authority
Low start up cost Lack of continuity
Additional sources
Limited outside
regulation
Assignment: Fill Up Advantages and Disadvantages

FORMS OF BUSINESS ORGANIZATION


Forms of Number of Advantages Disadvantages
organization Owners
Corporation At least 5 Easier to raise Extensive record
capital keeping
Limited lability Closely regulated
Specialized Most expensive to
management organize
Continuous legal Double taxation
existence
Ownership is
transferable
Assignment: Fill Up Advantages and Disadvantages

FORMS OF BUSINESS ORGANIZATION


Forms of Number of Advantages Disadvantages
organization Owners
Cooperative At least 5 Patronage Limited return on
refund capital
Limited liabilities -educational
Tax free for 5 fund
years -building fund
Open -reserve fund
membership
Democratic
BUSINESS AND BUSINESS ORGANIZATION

BUSINESS IS AN ACTIVITY THAT IS PART AND PARCEL OF HUMAN SOCIETY, AN


ENTITY IN WHICH ECONOMIC RESOURCES OR INPUTS, SUCH AS MATERIAS
AND LABOR, ARE PUT TOGETHER AND PROCESSED TO PROVIDE GOODS OR
SERVICES OR OUTPUTS TO CUSTOMERS
MAJOR ACTIVITIES OF A BUSINESS
PURCHASING,
MANUFACTURING,
MARKETING,
ADVERTISING,
SELLING, AND
ACCOUNTING
Evaluate the business on their

ACTIVITY 1: CHOOSE BUSINESS ORGANIZATION WITHIN TRECE


Business Number of Capitalizati Taxation Advantage/
Name Owner on disadvantag
e
1.

LAST
2...

NATURE
OF
BUSINESS
3.