Week 002
Business Organizations
and Activities
Week 002: Business Organizations and Activities
Module Coverage
Business Organizations as To Ownership
Sole Proprietorship
Partnership
Corporation
Business Organizations as To Nature of Activity
Service Concern
Merchandising Concern
Manufacturing Concern
Different Categories of Business Activities
Operating Activities https://www.google.com.ph/search?q=business+organ
izations+and+activitiesimages+and+photos
Investing Activities Retrieved: August 12, 2017
Financing Activities
Week 002: Business Organizations and Activities
Learning Objectives
At the end of the module, you are expected to be able to
•Enumerate, define, and differentiate the different
business organizations as to ownership; as to nature of
business activity
•Enumerate, define, and cite examples of different
business activities
Week 002: Business Organizations and Activities
Types of Business Organizations
According to Ownership
• Sole Proprietorship- owned by one person.
• Partnership- consists of two or more individuals
called partners.
• Corporation- consists of at least five persons to
incorporate; created by operation of law.
https://www.google.com.ph/search?q=+business+org
anizations+images+and+photos
Retrieved: August 12, 2017
Week 002: Business Organizations and Activities
Comparison of Business Organizations
Sole
Proprietorship Partnership Corporation
One owner, Two or more
called owners, called Many (at least five) owners, called
Ownership proprietor partners shareholders
Limited, depends
Organization's Limited, on the owner's Indefinite life ( in the Philippines, 50
life span depends on the decision or death years renewable
owner's
decision or
death
Owners'
personal Owner
liability for the personally Partners
business liable personally liable Shareholders are not personally liable
obligations or
debts
Organization's
accounting Separate from Separate from the
status the proprietor partners Separate from the corporation
https://www.google.com.ph/search?q=+business+o
rganizations+images+and+photos
Retrieved: August 12, 2017
Week 002: Business Organizations and Activities
Types of Business Organizations (continued)
According to the Nature of Activity
• Service concern- rendering services to clients as the
source of income
• Merchandising – buying goods and selling the same
as is.
• Manufacturing Concern – producing finished goods
to be sold in the market https://www.google.com.ph/search?q=merch
andising+and+manufacturing++images+and+
photos
Retrieved: August 12, 2017
Week 002: Business Organizations and Activities
Categories of Business Activities
Operating Activities - generation of revenues and incurrence of
expenses in the company’s main line of business.
Examples:
Collections from customers
Interest received on Notes Receivable
Dividends received on investments in stocks
Payments to suppliers
Payments to employees
https://www.google.com.ph/search?q=op
Payments for interest erating+activitiess+images+and+photos
Retrieved: August 12, 2017
Payments for income taxes
Week 002: Business Organizations and Activities
Categories of Business Activities (continued)
Investing Activities. Related to buying and selling of the long-
term assets (plant, property, and equipment, stocks, bonds) for
business use.
Examples :
Sale of plant assets
Sale of investments that are not cash equivalent
Receipts on loans receivable
https://www.google.com.ph/search?q=investing
Acquisition of plant assets +activitiess+images+and+photos
Retrieved: August 12, 2017
Purchase of investments that are not cash equivalents
Making loans
Week 002: Business Organizations and Activities
Categories of Business Activities (continued)
Financing activities. Raising funds from prospective investors
and creditors needed by the firm to start or to sustain the
business.
Examples :
Issuance of stocks
Selling treasury stocks
Borrowing funds
Payment of dividends
https://www.google.com.ph/search?q=financing+
Purchase of treasury stocks activitiess+images+and+photos
Retrieved: August 12, 2017
Payment of principal amount of long-term debts
Thank you very
much and
God bless you all…
