Name: De Lemos, Lovely Joyce S. Professor: Ms.

Acio
Year/Section: 3.1 BSBA-FM

Activity 1.1 (A-B)

Sole proprietorship
A form of business organization which is owned by one person. It is
the simplest and often used form of business organization. It is not
separate from the owner, or it does not exist independently of the
owner.
The amount of capital available is limited because there is only
one owner, or the amount of capital limits by the proprietor's
wealth.

Partnership
A contract between two or more people in which they agree to
contribute money, property, and industry to a common fund, as
well as knowledge about the business, with the purpose of sharing
or dividing the profits among themselves. The owners are called
partners and the details of the arrangement between the partners
are outlined in a written documents called article of partnerships.
Have a higher capital because two or more persons will contribute
to the common fund.

Corporation
A form of business organization in which the ownership is divided
into shares of stock and the business is organized as a separate
legal entity or artificial person under the corporation law.
Corporation should be formed by five or more incorporators and
the owners are called stockholders or shareholders.
Easy to raise huge capital because there’re so many stockholders
or shareholders