1.

Recognize and explain the different forms of business organization and their importance to socio-
economic development.

Sole Proprietorship- Sole Proprietor business is owned by an individual who has full control or authority
of its own and owns all the assets, as well as personally answers all liabilities or losses. The fact that it
is run by the individual means that it is highly flexible in which the owner has absolute control over
the business. The only downside of this form of organization is that the owner faces unlimited
liability; meaning, the creditors of the business may go after the personal assets of the owner if the
business cannot pay them. In other words, the law basically treats the business and the owner as one
and the same. The sole proprietorship form is usually adopted by small business entities and may
work as an independent contractor. Many home-based businesses are operated by sole
proprietors. Understanding common businesses operated by sole proprietors can help you decide if it is
the right structure for you. The importance of Sole proprietorship in socio- economic developments is
that an owner can make decisions quickly and decisively without having to consult others. And an
individual proprietor, by law, pays fewer taxes.

Partnership- A general partnership is a legal entity binding two or more business partners in
responsibility and liability for their business. There are two types of general partnerships:
unlimited and limited. In an unlimited general partnership; all partners in the business are equally
responsible for the debts and other liabilities incurred by the business, and they all participate in
operations. In limited partnerships; individuals invest in the company and share in its profits, but
are not responsible for daily business activities and do not share in the business’s liabilities. General
partnerships can occur when two or more people develop a business with the intent to earn profit. The
importance of partnership in socio- economic development is that it can be grouped as: resource
availability, effectiveness, and efficiency. First, the nature of the problems facing local economies are
multi-faceted requiring a combined response from a number of private and public key actors in order to
be effective and efficient.

Corporation- A corporation is a business organization that has a separate legal personality from its
owners. Ownership in a stock corporation is represented only by its shares of stock. The owners or
stockholders enjoy limited liability but have limited involvement in the company's operations. The board
of directors, an elected group from the stockholders, are the ones that controls the activities of the
corporation. Some examples of cooperatives are: utility cooperatives such as for water and
electricity, cooperative banks , credit unions, and cooperative for housing projects. The importance
of corporation in the socio- economic developments is that Neoclassical economics and several
management theories assert that the corporation's sole objective is maximizing shareholder wealth it
benefits of corporations to society can benefit society while still being rooted in profit motivation.
Establishing a business gives owners, a competitive advantage over others. Businesses play a vital role
because they provide financial prosperity, but they also provide fulfillment and riches in diverse ways.

Cooperative- A cooperative is a business organization owned by a group of individuals and is operated

for their mutual benefit. The persons making up the group are called members. Cooperatives may
be incorporated or unincorporated. The importance of cooperatives in socio- economic development is
that cooperatives are specifically seen as significant tools for the creation of decent jobs and for the
mobilization of resources for income generation. They contribute to sustainable human development
and have an important role to play in combating social exclusion.
2. Specify the role of business organizations in social and economic development.

The primary role of business has remained reasonably constant is to provide goods and services that
people may need and will want. What has changed dramatically over time are the expectations on these
businesses. Boards of directors, management and investors of large corporations are now expected to
address an array of social, economic and ecological challenges. Business produces and distributes goods
and services to satisfy certain public needs. But the role of businesses is far more than just the making
revenue but it is also a venue providing opportunity to expand job opportunities to others and creates
opportunities to pay salaries and wages. This is but a way the whole business goes around: everyone
employed spends money they earn in buying all kinds of goods and favor further into developing more
business ventures. A business responding to all these contributes more to national well-being. It does
in several ways by; 1. collecting taxes that helps the government maintain all kinds of public and social
institutions and services; 2. by investing money in developing science and technology and constructing
more business enterprises. A business also helps enlighten and educate people and encourages their
further personal growth. High level of competition makes it vital for both businessmen and their
employees to be involved in the constant process of learning and developing their personal qualities
such as creativity and resourcefulness, determination, practicing and learning communication skills and
expands their vision in deriving new business opportunities.

3. Explain the common practices in business organization

a. Decorum- is a behavior that people consider to be correct, polite and respectable. There are Do’s and
Don’ts

In-person meetings- How you conduct yourself during an in person meeting will leave a lasting
impression on your boss and colleagues.

On the phone- While the cell phone has allowed us to take calls anywhere and at any time, there is still
an art to proper phone etiquette.

In email- Email can be an extremely efficient communication tool, but it is not always the best choice.
Know when it is appropriate to email, and when it is better to pick-up the phone.

Dress and appearance- Showing a lack of concern for your personal appearance can be interpreted as a
sign of disrespect to clients or co-workers and managers.

Social functions- Impressions made during a cocktail party, dinner or reception can make or break a
business deal

b. Protocol- Is a crucial for business people to recognize that rules dominant in business practice.
Ignorance is no excuse it will usually mean the loss of a good business contact. Learning protocol,
particularly the elements that initiate business contacts appointment, greetings and gift- giving is
essential

c. Policies- As employees are hired, it is important that they understand the correct work process to
ensure that the service or product maintains high quality. Policies and procedures provide a guide for
meeting organizational objectives and describe the steps that employees are to take when creating a
product or delivering a service. This ensures consistency in practice and helps to maintain product
quality. A policy will set the expectation for employee behaviors and the procedure outlines the steps
for it

d. Marketing- is a process that involves a product or service attributes, pricing, distribution and
promotion. All of these activities must work together to assure successful marketing

e. Documentation- A code of ethics is a formal document rather than merely an "environment," an

"understanding," a consensus, "unwritten rule," or just an aspect of "corporate culture." It is a minimum
a published document. In many organizations employees are also required to sign a statement to the
effect that they have read and understood it. Variations on this theme exist. In very large corporations
or corporations reacting to recent scandals, sometimes only corporate officers or only financial officers
are required to sign. In other cases multiple codes of ethics may exist tailor-made to such functions as
purchasing, sales, accounting, etc.