UNIT I. CONCEPTS OF ORGANIZATION AND BUSINESS 4.

Bureau of Internal Revenue

Lesson 1: Nature and Types of Organizations
Concepts of Organization
- Organization is a social unit of people that is
structured and managed to meet a need or to pursue
collective goals.
- An organization is a group of people who work
together in an organized way for a shared purpose.
- Organization refers to a group of people who work
together.
Classifications and types of organizations
1. THE FIRST CLASSIFICATION IS ACCORDING TO
WHO CONTROLS THE ORGANIZATION.
public organizations - Organizations that are
controlled by political bodies such as those
elected in positions or designated by appointing
officials
Private organizations - Organizations controlled
by individuals or companies whose main
objectives are primarily for profit or service.
5. Register your employees to the following:
a. Social Security System
b. Philippine Health Insurance Corporation
c. Home Development Mutual Fund
1. All types of Cooperatives are mandated to
register at the Cooperative Development
Authority (CDA).
3. According to Purpose
• Profit seeking organizations - Business
organizations
• Non-profit organizations - Charitable
Institutions
- Foundations
- Professional/trade associations
- Religious organizations
4. ACCORDING TO CAPITALIZATION AND NUMBER OF
EMPLOYEES

2. ACCORDING TO FORM OF OWNERSHIP

Sole Proprietorship - Type of business that is
owned and managed by a single individual.
Partnership - An organization of two or more
persons who bind themselves to contribute
money, property, or industry to a common ACCORDING TO ACTIVITY
fund, with the intention of dividing the profits
among themselves. Commerce or trade - Involves activities that relate to
Corporation - It is a company recognized by law the buying and selling of goods and services.
as a single body with its own powers and - Distributors are needed to
liabilities, separate from those of the individual facilitate such movement
members.
Cooperative - an autonomous and duly Industry - Refers to the organized action of making of
registered association of persons, with a goods and services for sale.
common bond of interest, who have voluntarily • Primary
joined together to achieve their social,
economic, and cultural. • Secondary
WHERE TO REGISTER?
• Tertiary
1. Department of Trade and Industry
2. Securities and Exchange Commission
3. Local Government Units where your business is
located:
a. Barangay
b. Mayor’s Office