Professional Documents
Culture Documents
Module Objectives
SOLE PROPRIETORSHIP
• Business is owned (and usually managed) by one person, it is a single (sole)
proprietorship.
• Person is called a “single proprietor”.
• Very easy to form because only one owner decides when to engage in business.
• Owner’s legal liability is unlimited.
• Existence limited within the desire or death of the owner.
1. Legal Structure of Business
PARTNERSHIP
• Two or more persons bind themselves to contribute resources to a common fund in
their co-owned business for a profit.
• Owners are called “partners”.
• Resources contributed may be money, property or industry (or all).
• Due to mutual agency, any partner can bind the partnership into a contract
irrespective of the consent of the other partners as long as he is with authority and
is for the benefit of the partnership.
1. Legal Structure of Business
PARTNERSHIP
• Not considered a separate entity from the partners when it involves debts to third
party creditors.
• A mere change (due to withdrawal, admission, death, insolvency or insanity of any
one partner) in the parties of partnership agreement dissolves the partnership.
1. Legal Structure of Business
CORPORATION
• A more formal business organization than a partnership; formed by operation of the
law (The Corporation Code). Individuals forming a corporation are required to seek
approval from the government for its legal existence which starts when the SEC
approves and issues its certificate of incorporation.
• Composed of 5 or more owners generally called “incorporators” or “stockholders”.
• Has the power of succession can continue to exist in spite of death, acceptance,
withdrawal, insolvency, or incapacity of any director, officer or stockholder.
1. Legal Structure of Business
CORPORATION
• Stockholders cannot bind the Corporation in contracts. Only the Board of Directors
and other authorized officers can bind the Corporation.
• Stockholders are not legally liable for the corporate unpaid indebtedness. They are
liable only to the extent of their subscription.
• Shall exist for a period not exceeding 50 years from date of incorporation unless
sooner dissolved or unless the said period is extended.
1. Legal Structure of Business
COOPERATIVE
• An autonomous and duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve their social, economic, and
cultural needs and aspirations by making equitable contributions to the capital
required, patronizing their products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with universally accepted
cooperative principles.
• Formed primarily to provide service to its owners called “members”.
• A formal organization of cooperative members that number at least 15; registered
with the Cooperative Development Authority.
2. Ownership
Organizational Chart
3. Organizational Structure & Key Personnel
Job Description
Position : President
Reporting to : Chairman & Member of the Board of Directors
Tasks & Responsibilities:
• XXXXXXXXXXXXXXXX
• XXXXXXXXXXXXXXXX
• XXXXXXXXXXXXXXXX
3. Organizational Structure & Key Personnel
Job Description
Position : President
Reporting to : Chairman & Member of the Board of Directors
Tasks & Responsibilities:
• XXXXXXXXXXXXXXXX
• XXXXXXXXXXXXXXXX
• XXXXXXXXXXXXXXXX
3. Organizational Structure & Key Personnel
Key Personnel
Name Position
3. Organizational Structure & Key Personnel
What pre-operating activities must be undertaken before the business can operate?
These may include:
• Attendance to training programs (skills-related, management or entrepreneurship)
• Preparing the business plan
• Doing market survey
• Making trips to machinery and raw materials suppliers
• Registering the business
• Hiring a consultant
Indicate here all other fixed assets needed for office or administrative aspects of the
business. These may include:
• Computers
• Typewriters
• Furniture & Fixtures
• Cabinets
• Aircondition units/fans
• Calculators
7. Administrative Expenses