1.

FORMS OF BUSINESS
ORGANIZATIONS Group E
SENIOR HIGH SCHOOL
 SOLE / SINGLE
PROPRIETORSHIP
 A sole proprietorship is the What form of Business Organization
most basic and legal form of does the picture depict?
business
 It has only ONE OWNER
A proprietor owns and
manages the business and
responsible for all business
transactions.
Ex: Cellphone repair services,
laundry shop and small-scale
businesses selling and bakery.
WHAT ARE THE POSSIBLE ADVANTAGES AND DISADVANTAGES OF
SOLE PROPRIETORSHIP

AD VAN TAG ES DI SA D V A NT AGE S

A sole proprietor has complete Proprietor has limited ability to
control and decision-making raise capital
power over the business and unlimited personal liability
Generally has uncomplicated for the obligations of the
business transactions and business
minimal regulatory
requirements and cost
With one only decisions can be
arrived in less time and
implemented faster
 PARTNERSHIP

It is an association of two or What form of Business Organization

more persons who bind does the picture depict?
themselves to contribute money,
property or industry to a
common fund
Governed by the Civil Code of
the Philippines
 Partners AGREEE among
different things (Manage
business, contributions capital,
profit/ losses, form and mode of
settlement)
WHAT ARE THE POSSIBLE ADVANTAGES AND DISADVANTAGES OF
PARTNERSHIP

ADVANATAGES DISADVANATAGES
 Easier to organize The life of a partnership is
fragile
compared corporation
The liability of the partners
 can raise more capital for the debts of the business
compared to sole is unlimited.
proprietorships
 TYPES OF PARTNERSHIP

General partners -who invest in the partnership,

participate in the day-to-day operations and are
liable for debts and lawsuits of the partnership
Limited partners -who invest in the partnership
but who have no participation in day-to-day
operations and who are not usually considered to
have liability.
 CORPORATION
A corporation is the most complex What form of Business Organization
form of business organization. does the picture depict?
A c o r p o r a t i o n  is a legal entity that
is separate and distinct from its
owners. 
A corporation has standardized
procedures for its creation,
organization ,
Corporations are subject to greater
scrutiny, regulations, control and
supervision by the government
What are the possible advantages and disadvantages
of
CORPORATION
ADVANTAGES DISADVANTAGES
Cost of forming and managing
 The liability of the owners
Complex process and requires
towards the creditors is registration with the central
limited to their investment regulatory authority and listing on
in the company.  a stock exchange which required
 Additional capital can be fulfillment of certain requirements
related to the amount of capital,
raised easily through stock number of directors
markets Corporations are subject to a high
income tax rate
 COOPERATIVE
Cooperatives are defined by the International
Cooperative Alliance’s Statement on the Cooperative
Identity as “Autonomous associations of persons united
voluntarily to meet their common economic, social, and
cultural needs and aspirations through jointly owned and
democratically controlled enterprises ”