DELA PAZ, ARCHIE ARCILLA DICT 2-1

LESSON 2 – ORGANIZATION

ACTIVITIES/ASSESSMENTS:

1. Are businesses all corporations? Are all corporation in the doing business? Are they all for
profit? If not, why do they register a corporation?
- All corporations are considered companies and not every company is considered a corporation.
A corporate can be formed as a for-profit or a not-for-profit entity which means not all corporations are
for profit. A not-for-profit entity operate under the category of charitable organizations, which are
dedicated to a particular social cause such as educational, religious, scientific, or research purposes.
Rather than to distribute revenues to shareholders, not-for-profit organizations use their revenues to
further their objectives. The main reason for forming a corporation is to limit the liability of the owners.
In a sole proprietorship or partnership, the owners are personally liable for the debts and liabilities of
the business, and in many instances, creditors can go after their personal assets to collect business debts.

2. What is virtual organization? When does virtual organization applicable?

- A virtual organization is one whose employees are spread geographically and communicate via
phone, email, and the Internet. Virtual organization has lots of advantages. Some of which are improved
employee satisfaction and efficiency, access to new markets, larger talent pool, and many more.
Nowadays, due to the pandemic, virtual organizations are applicable and widely used for the safety of the
people and to help in stopping the spread of the virus and to completely eliminate it.

3.You are going to start –up business with your friend. How are you going to register your
company? Where will you register your company name?
- We are registering our company name at the SEC. It is a government agency responsible for the
securities law and regulating the securities industry in the Philippines. After registering, we must secure a
Certificate of Registration from the SEC in order to have the license to operate a business. Next, the
barangay clearance is a prerequisite for the issuance of business t o permit to operate. To get the barangay
clearance, it is necessary to submit the following documentary requirements to the Barangay: Application
form, SEC Certificate of Incorporation and approved articles of incorporation and bylaws, location
plan/site map, and the contract of lease over the corporation’s office. This clearance is obtained from the
Barangay where the business is located. We should also register our business and employees with the
SSS, obtain permit from the Mayor’s office, and lastly, register our business with the Bureau of Internal
Revenue which will give us an authorization to print official receipts, register books of accounts, and
obtain a separate Tax Identification Number.
4.What is the difference between joint venture and sole proprietorship?
-A joint venture is a strategic alliance where two or more parties, usually businesses, form a
partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. Each entity
contributes assets to the joint venture and agrees on how to divide up income and expenses. Sole
proprietorship, on the other hand, is usually preferred because it is simpler, requiring no legal filings to
start the business. It is especially suitable if you’re planning on starting a one-person business and you
don’t expect the business to grow beyond yourself.