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BK Lesson 5

The document describes four main forms of business organization: sole proprietorship, partnership, corporation, and cooperative. It provides details on the number of possible owners, management structure, how the business can be terminated, the regulating government agency, how ownership can be transferred, and the liability of owners for each type of organization. It also describes three main types of businesses: service businesses, merchandising businesses, and manufacturing businesses, and provides examples for each.

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Invento Gretchen
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89 views9 pages

BK Lesson 5

The document describes four main forms of business organization: sole proprietorship, partnership, corporation, and cooperative. It provides details on the number of possible owners, management structure, how the business can be terminated, the regulating government agency, how ownership can be transferred, and the liability of owners for each type of organization. It also describes three main types of businesses: service businesses, merchandising businesses, and manufacturing businesses, and provides examples for each.

Uploaded by

Invento Gretchen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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FORMS OF BUSINESS

ORGANIZATION
1.SOLE PROPRIETORSHIP
Number of Possible Owners: 1
Management (who manages the business):Owner (but he
may hire somebody)
Termination of the Business: Death of the owner
Government agency assigned primarily to regulate: DTI
Transfer of Ownership: Sell the business (it’s a new entity
under a new owner)
Liability of Owners: Unlimited ; other properties not used in
the business may be held liable for the obligations of the
business
2.PARTNERSHIP
Number of Possible Owners: 2 or more
Management (who manages the business):Partners (or they
may hire
managers)
Termination of the Business: Death of any partner or
withdrawal of a partner
Government agency assigned primarily to regulate: DTI
Transfer of Ownership: Sell the business or interest
of a partner (consent of other
partners is necessary
Liability of Owners: Generally unlimited;
the other properties of the partners may
be held liable for the obligations of the
partnership. There are types of
partnerships that limit the liability of the
partners
3.CORPORATIONS
Number of Possible Owners: At least 5
Management (who manages the business):Board of Directors
and operating management
Termination of the Business: As stated in the Articles of
Incorporation, not to exceed 50 years
Government agency assigned primarily to regulate: SEC
Transfer of Ownership: Sell stocks
Liability of Owners: Limited to the stock
investment of the shareholder
4.COOPERATIVES
Number of Possible Owners: 15 or more
Management (who manages the business):Board of Directors
and operating management
Termination of the Business: As stated in the Articles of
Cooperation, not to exceed 50 years
Government agency assigned primarily to regulate: CDA
Transfer of Ownership: Cannot transfer nor sell his
membership
Liability of Owners: Limited to the capital
contribution of the member
3 types of business organizations:

• Service Business -This type of business offers


professional skills, advice and consultations.

Examples: barber shops and beauty parlors,


repair shops, banks, accounting and law firms
• Merchandising Business -This type of
business buys at wholesale and later sells
the products at retail. They make a profit by
selling the merchandise or products at
prices that are higher than their purchase
costs. This type of business is also known as
"buy and sell".
Examples are: book stores, sari-sari stores,
hardware stores
• Manufacturing Business
This type of business buys raw materials and
uses them in making a new product, therefore
combining raw materials, labour and expenses
into
a product for sale later on.
Examples are: shoe manufacturing businesses,
car manufacturing plants

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