THE NATURE AND

FORMS OF BUSINESS
ORGANIZATIONS
 LEARNING COMPETENCY

Differentiate the forms of business

organizations in terms of their purpose and role in
socio-economic development.
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

1. You engage into this if you want profits.

S U S B IS E N
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

1. You engage into this if you want profits.

BUSINESS
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

2. This refers to two or more people who work

together or do business together.

A NR S P E R T
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

2. This refers to two or more people who work

together or do business together.

PARTNERS
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

3. This is another term for the owner of a business.

R UE NE P
E R T R E N
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

3. This is another term for the owner of a business.

ENTREPRENEUR
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

4. This is what most business aim for.

F R IT O P
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

4. This is what most business aim for.

PROFIT
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

5. It is an organization enjoying the rights and duties

that of an individual.

P OA T R OC ONIR
 WHAT’S IN?
Direction: Arrange the following jumbled letters to form
the correct words as described by the given clues.

5. It is an organization enjoying the rights and duties

that of an individual.

CORPORATION
BASIC FORMS OF BUSINESS ORGANIZATION

ORGANIZING A BUSINESS
The three main types of business organizations are:

Sole
Partnerships Corporations
Proprietorships
BASIC FORMS OF BUSINESS ORGANIZATION

SOLE PROPRIETORSHIPS
A sole proprietorship is a business owned by
only one person. It is easy to set-up and is
the least costly among all forms of
ownership.
SOLE PROPRIETORSHIP EXAMPLES
BASIC FORMS OF BUSINESS ORGANIZATION

Advantages of Sole Proprietorships

Easy to start Proprietors keep all the profits

Proprietors are in charge Flexibility

Prompt Decision Less Legal Formalities

BASIC FORMS OF BUSINESS ORGANIZATION

Disadvantages of Sole Proprietorships

Limited access Many run out

to credit/resources of money

The owner may not have The business ends

the necessary skills when the owner dies

Unlimited Liability

unlimited when the owner is responsible

liability for the company’s debts
BASIC FORMS OF BUSINESS ORGANIZATION

PARTNERSHIP
A partnership is a business owned by two or
more persons who contribute resources into
the entity.
TYPES OF PARTNERSHIP
BASIC FORMS OF BUSINESS ORGANIZATION

Advantages of Partnerships

Easy to Easier to Easier to

start obtain capital obtain credit

Not dependent
Only taxed Diversity in
on a sole
once skills
person
BASIC FORMS OF BUSINESS ORGANIZATION

Disadvantages of Partnerships

If one partner
Unlimited legal
Business risk is makes a mistake,
and financial
shared all partners are
liability is shared
responsible
BASIC FORMS OF BUSINESS ORGANIZATION

CORPORATION
A corporation is a business organization that
has a separate legal personality from its
owners. Ownership in a stock corporation is
represented by shares of stock.
BASIC FORMS OF BUSINESS ORGANIZATION

Advantages of Corporation

Ability to raise Business does

Limited liability money by not end when an
selling stock owner dies

limited liability
holds a firm’s owners responsible for no
more than the capital that they have
invested in it
BASIC FORMS OF BUSINESS ORGANIZATION

Disadvantages of Partnerships

Difficult and
Double taxation Complex Process
costly to start

1. Income is taxed. More government

2. Stockholders pay taxes regulation
on profits issued to them
 COOPERATIVE
• Cooperatives are people-centered enterprises
owned, controlled, and run by and for their
members to realize their common economic,
social, and cultural needs and aspirations.
• Democratically managed by the ‘one
member, one vote' rule.
 COOPERATIVE
• Members share equal voting rights
regardless of the amount of capital they put
into the enterprise.
• Businesses driven by values, not just profit,
cooperatives share internationally agreed
principles and act together to build a better
world through cooperation.
THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC DEVELOPMENT

What Is the Role of Business in Society?

• To produce and distribute goods and
services to satisfy a public need or demands.
• To have a Corporate Social Responsibility
(CSR) it is "a business practice that involves
participating in initiatives that benefit a
society."
THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC DEVELOPMENT

What Is the Role of Business? in Society?

• Corporate social responsibility is more than

just a simple business practice.
• It is not only for profit but working to help
maintain the social order.
THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC DEVELOPMENT

What Is the Role of Business? in Society?

• Businesses should join forces and cooperate

towards the elimination of increased
endemic, pandemic issues, and humanitarian
crisis in the society, including environmental
degradation, poverty, human rights
violation, and diseases such as HIV/AIDS.
THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC DEVELOPMENT

What Is the Role of Business? in Society?

• Companies have a duty of eliminating poverty
from society through job creations for clients,
co-workers, distributors, and suppliers, among
others.
• Society does not exist without some form of an
economy, and businesses are what make up the
economic system of the world
 LET US CHECK!
Directions: Identify what is being described by the following statements.

1. Business operated by two or more people as co- owner.

2. A business owned by one person.
3. An entity created by law that separates and distinct from its owners and
continued existence is dependent upon the corporate statues of the state in
which it is incorporated.
4. It is owned by the people who used its products and services.
5. An organization or economic system, a system where goods and services
are exchanged for one another or for money.
 WRITTEN WORK #1

• WHAT I KNOW 10 points

• WHAT’S MORE 10 points
• ASSESSMENT 6 points
TOTAL 26 POINTS

GOOGLE FORM
The link will be posted in Google Classroom and FB Group.
 PERFORMANCE TASK #1

BUSINESS NAME 10 points

Think of the name for your business, be sure to

make it catchy and appealing, for you to invite clients or
customers. Be creative in doing this.

BUSINESS LOGO 60 points

Create your business logo.
 RUBRICS

BUSINESS NAME 10 points

CATCHY 5 points
ORIGINALITY 5 points

BUSINESS LOGO 60 points

CREATIVITY/ORIGINALITY 20 points
LOGO DESIGN/APPEARANCE 20 points
RELEVANCE OF THE LOGO TO THE BUSINESS 15 points
PUNCTUALITY 5 points