Juniora Blessie Ann N.

Martinez
Forms of business organizations
Sole
Partnership
Proprietorship

Corporation Cooperative
Sole Proprietorship

•owned by just one

person
•easiest form of business
to start with limited
funds
•small and concentrated
in retailing and farming
 Single owner; no
legal requirements
Little capital is needed to
begin; owner in complete
control, and benefits from
flexibility, secrecy and tax
savings
Talent pool is
restricted; liability
unrestricted; credit
difficult to obtain;
business has limited
lifespan
Partnership

•legal association of two

or more persons who
act as co-owners of the
business
•combines the talent and
skill of several people
 At least two owners; General partners
written agreements usual have unlimited
though not necessary liability; ever-
present danger of
conflict between
It is easy to form; can partners; built-in
bring together many size limitations;
skilled persons; good lifespan somewhat
credit obtainable limited
Corporation
•artificial person with
unlimited lifespan
•owned by shareholders or
stockholders who are
liable for damages only to
the extent of their
holdings
•most significant in terms
of money, size and power
 May have few of many
owners (stockholders); Public disclosure is
incorporated by law under
formal charter with bylaws
often required; cost
of incorporation can
be high; heavy tax
Owners have limited burden on small
liability; have corporation
investment liquidity; it
has unlimited lifespan
Cooperative

•association of people or
small companies with
similar products,
services or interests
Association of several
Conflict interest
persons or companies
with common bond of among members is
interest common; non-
service patronage
may lead to
Members have stronger
bargaining power; they receive organizational
patronage refund. It is a tax- failure
exempt and benefits from
economies of scale; it has better
credit opportunities
Kind and size of business

Micro Small

Medium Large
Number of employees:

1 to 9

Total assets:

Less than P3 million

Number of employees:

10 to 99

Total assets:

Greater than P3 million

up to P15 million
Number of employees:

100 to 199

Total assets:

Greater than P15 million

up to P100 million
Number of employees:

200 and above

Total assets:

Greater than P100 million

 Steps and
processes in
establishing an
enterprise
Barangay Micro Business Enterprises
(BMBEs) Act of 2002
•encourages the formation
and growth of BMBEs by
granting them incentives
and other benefits
•signed into law by
President Gloria
Macapagal-Arroyo on 13
November 2002
Barangay Micro Business Enterprises
(BMBEs) Act of 2002
•defined as any business
enterprise engaged in
production, processing, or
manufacturing of
products, including agro-
processing, as well as
trading and services, with
total assets of not more
than P3 million
Barangay Micro Business Enterprises
(BMBEs) Act of 2002
•Any person,
cooperative, or
association owning an
enterprise that fits the
description of a BMBE
may register
Enrichment Activity 3 (30 pts)
• Business Registration
Group the class into 5. Interview 1 business owner and make a narrative report with
the following guide questions:
1. Who is the owner of the business?
2. What is the history of the business?
3. What are the permits they acquired?
4. How much are the fees collected?
5. What are the challenges encountered in acquiring permits and how did they
solve it?
• Note: Include photo documentation
• Format: 8.5 x 11, Bookman Old style, Font size 11
• Deadline: Sept. 11, 2023