FORMS OF ENTREPRENEURIAL VENTURE 3.

MANUFACTURING
1. SOLE PROPRIETORSHIP
- owned by a single individual
Characteristics:
- easy to form and manage
- simple business operation
- has a limited pool of resources
- its growth is limited
- owner has unlimited liability
2. PARTNERSHIP
- two or more persons combine their resources to
make a profit
Reasons why partnerships easily dissolve:
- death of one of the partners
- admission of a new partner in an existing
partnership
- personal insolvency of one of the partners
- permanent withdrawal of the investment of a
partner
3. CORPORATION
- formed by at least 5 but not more than 15 persons.
The persons originally forming the corporations are
called INCORPORATORS
It can either be:
1. STOCK CORPORATION – when it is authorized to
issue shares of stock to stockholders
* STOCKHOLDERS OR SHAREHOLDERS - owner of a
stock corporation
2. NON-STOCK CORPORATION – is not authorized to
issue shares of stock to the members
* MEMBERS - the owners of a non-stock corporation
* CERTIFICATE OF STOCK – evidence of ownership of a
corporation
3. DOMESTIC CORPORATION - is organized under the
laws of the Philippines
4. FOREIGN CORPORATION – is organized under the
laws of the foreign country but has the authority
to operate in the Philippines.
4. COOPERATIVE – an entity organized by people with
similar needs to provide themselves with goods or
services
- producer of goods or products
- engaged in buying raw materials and supplies to be
processed into finished products
4. AGRICULTURE
- production of agricultural goods and animals. It may
sell its products as raw material or as finished goods
5. HYBRID BUSINESS
- combined types of business entities
- produce and sell goods and at the same time
provide services to customers
6. SPECIAL CORPORATION
- may include cooperatives, joint ventures and
non-profit organizations
The concept of innovation or creativity must be
introduced and practiced by entrepreneurs
PRODUCTION SYSTEM
1. INPUT
- includes: manpower, materials, machines,
design, instructions
2. PRODUCTION PROCESS
- transformation or conversion process
- stage of production where the materials are
transformed into the final product with the
aid of manpower and machine
It involves the following activities:
➔ Procurement or acquisition of raw materials
& manufacturing supplies
➔ Inspection of materials & supplies upon
receipt at the receiving section
➔ Storage of acquired materials & supplies
➔ Issuance of materials & supplies to the
production line
➔ Inspection of damaged or broken goods &
assessment of losses
➔ Rework or repair of defective goods
➔ Transfer of finished goods to the storeroom
3. OUTPUT
- Represents the final products from the
production process and distributed to the
customers

NATURE OF ENTREPRENEURIAL VENTURE

1. MERCHANDISING
- Is engaged in the buying and selling of the products
or goods. It does not alter the appearance of the
product purchased from the seller
- [local grocery store or retail clothing store]

2. SERVICE
- provides services to customers
- classified as:
1. NON-PROFESSIONAL SERVICE - bank, laundry
shop, salon, car repair shop, school
2. PROFESSIONAL SERVICE - law office, dental clinic,
auditing, consulting services