Rheyalhane C.

Tumamao February 3, 2021

BSBA MM 2-A
19-030566

Performance Task 1

Forms of Business Ownership

Sole Proprietorship Partnership Corporation Cooperative

Source of capital  Personal resources  Partner’s  Frome the net  Operating funds
 Loans from friends/ contributions earnings like the
relatives  Loans from the  Debt capital membership fees
 Bank loans based banks and other  Equity capital  Common or
on personal financial institutions preferred stocks
creditworthiness  Getting on hire  Bonds
purchase  Loan from banks
 Retained earnings  Financing
system(revolving
capital)
Lifespan It has limited life and it will It has limited Life. It will be It has limited life. It The average life
exists as long as its owner dissolved by death, cannot exist for a period expectancy is seventeen
is alive and have the insolvency, withdrawal of a exceeding 50 years years
desires to continue the partner or expiration of
business terms in the partnership
agreement.
Owner/s Owned and run by Two or more persons One person or multiple A co-operative is a
individual people can own a member-owned business
corporation structure with at least five
members, all of whom
have equal voting rights
regardless of their level of
 involvement or
investment. All members
are expected to help run
the cooperative.
Registering Agency Department of Trade and Securities and Exchange Securities and Exchange  Cooperative Development
Industry(DTI) Commission (SEC) Commission (SEC) Authority (CDA) 
Liability to creditors The owner is solely liable Unlimited liability. All the It provides limited liability. I provide limited liability.
for all the debts and partners except limited Members are not liable Members, managers and
actions of its company partners , including for the debts. employees are not liable
industrial partners are for any debts incurred
personally liable for all the unless they are result of
debts incurred in the negligence or fraud.
partnerships
Number of persons One person Two or more persons At least five persons At least 15 persons
required to
organize