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Prayer

Father of Light and Wisdom, thank you for giving me a mind that
can know and a heart that can love.

Help me to keep learning every day of my life-- no matter what the


subject may be. Let me be convinced that all knowledge leads to
you and let me know how to find you and love you in all the things
you have made.

Encourage me when the studies are difficult and when I am tempted


to give up. Enlighten me when my brain is slow and help me to
grasp the truth held out to me.

Grant me the grace to put my knowledge to use in building the


kingdom of God on earth so that I may enter the kingdom of God in
heaven.
Amen.
REVIEW
REVIEW
Business Plan- A business plan is made up of a narrative section
that includes a description of the products or services, short-
and long-range objectives, discussion of the industry, business
model, competition, marketing strategies, management team
and capital required. The plan also contains spreadsheets with
financial projections. Venture capitalists and angel investors
focus on four parts of the plan in particular.
Parts of the Business Plan
1. Executive Summary
2. Company Description
3. Products/Services
4. Market Analysis
5. Strategy and Implementation
6. Organization and Management Team
7. Financial Plan and Projections
Objectives
At the end of the lesson, students are expected to:

1.Identify the types of business ownership: Sole


Proprietorship, Partnership and Corporation.
2.b.) Differentiate Sole Proprietorship, Partnership and
Corporation through role playing.
3.Explain the importance of having a business.
Types of Business
Ownership
Sole Proprietorship

A business owned and managed by one


individual; the business and the owner
are one and the same in the eyes of
the law
Sole Proprietorship
Advantages
Simple to create

Least costly form

Profit incentive

Total decision-
making
No special legal
restrictions
Easy to discontinue
Sole Proprietorship
Disadvantages
Unlimited personal

liability
Limited skills and

abilities
Feelings of isolation

Limited access to capital

Lack of continuity of

business
Partnership
An association of
two or more
people who co-
own a business
for the purpose of
making a profit

A partnership agreement or the Uniform Partnership Act


Partnership
Advantages
Easy to establish

Complementary skills

Division of profits

Larger pool of capital

Ability to attract limited


partners
Little governmental regulation

Flexibility

Taxation
Partnership
Disadvantages
Unlimited liability of at
least one
Difficulty in disposing
of interest
Lack of continuity
Potential for
personality and
authority conflicts
Partners bound by law
of agency
Corporations

A separate legal entity apart from its


owners which receives the right to
exist from the state in which in
which it is incorporated
Domestic
Foreign
Alien
Publicly held
Closely held
Corporations
Certificate of Incorporation
Name
Statement of purpose
Time horizon
Names and addresses of incorporators
Place of business
Capital stock authorization
Capital required at time of incorporation
Provisions for preemptive rights
Restrictions on transfering shares
Names and addresses of officers
By-laws
Corporations
Advantages
Limited liability of
stockholders
Ability to attract
capital
Ability to continue
indefinitely
Transferable
ownership
Corporations
Disadvantages
Cost and time in

incorporating
Double taxation

Potential for

diminished incentives
Legal requirements and

red tape
Potential loss of control
Activity: Role Playing
Aim
This activity is designed to help participants

differentiate the types of business ownership


both the advantages and disadvantages.
At least 8-10 members, the duration of the

play is min of 5 to 10 minutes


Group 1- Sole Proprietorship

Group 2- Partnership

Group 3- Corporation