Understanding of concepts,

underlying principles and

processes of starting and
operating a simple business.
 it is an organization or
enterprising entity
engaged in commercial,
industrial, or professional
activities.

SIENUBSS
 is an individual or
business that
purchases another
company’s goods or
services.
REMUSTOC
A person who organizes
and operates a business
or businesses, taking on
greater than normal
financial risk in order to do
so.

PETRERENRUNE
isa place where two
parties can gather to
facilitate the
exchange of goods
and services
TEAMKR
 it is a legal entity
formed by a group of
individuals to engage in
and operate a business
– commercial or
industrial.
POMACYN
 THE BUSINESS PLAN
 A business plan is defined as a detailed
and integrated written document that
describes the various activities involved
in opening and operating a new
entrepreneurial venture.

 Is the blueprint of individuals,

organizations or groups who would like
to engage in business.
The purposes of the business plan
are:
Entice partners, investors, and
bankers to fund a business
venture.
Communicate what the
enterprise is all about, what
market it wants to serve.
Show what financial returns it
could muster.
The business plan should contain important information
about the following:
The business itself;
The organizers;
The management and technical people;
The financial structure;
Its market potential;
Its target market;
Its projected sales, expenses, and profits;
and
Its probable risks.
Organizing and Structuring the
Enterprise
The Business Plan must be able to
estimate the capital required by the
enterprise. The capital required would be
dictated by the investment in the assets of
the enterprise. These assets are composed
of the following:
1. The current assets, which are short-
lived assets. They are composed of
cash, inventory, accounts receivables,
and other current assets.
2. The long-lived or fixed assets. They
are composed of property, plant, and
equipment.
3. The other assets. They are composed
of organizational and pre-operating
expenses. interest rate, therefore, is the
obvious choice of the manager when
asked to make a decision.
The assets of the enterprise are
financed by its liabilities. These
liabilities are composed of:
Current liabilities such as
suppliers’ credit and other short-
term credit;
Long term debt; and
Owner’s equity
Sole Proprietorship
The simplest and easiest
enterprise to organize. The
owner or the entrepreneur
has sole control over the
enterprise. He or she reaps all
the profits and, also, all the
losses. But he or she will also
incur all the risk.
 The following are clearances that must be obtained
to secure a mayor’s permit or municipal license
before they can operate in a locality.

- Barangay clearance
-Fire safety clearance
-Certificate of electrical inspection
-Certificate of occupancy

-Department of Trade and Industry (DTI)

certificate
-Lease contract if space is leased
-Locational clearance
There may be additional requirements depending on the type of business and the
ordinances issued by the concerned local government.
Partnership
If two or more persons bind themselves into a contract
to contribute money, property, and expertise in a
common venture with the intention of dividing the profits
among themselves, then they would have entered into a
partnership.
General partnership
Is composed of partners who are liable individually
and collectively to all those who have claims against
them.

A limited partnership
Consist of partners who have limited liabilities while
others in the partnership have unlimited liabilities. A
limited partner is not personally liable for all the
obligations of the partnership beyond his or her prorated
capital contribution to the partnership.
 The partnership should obtain
all the required government
clearances, permits, and
licenses. It should get:
- A bank certificate of deposit on
the money contributions of the
partners; and
- The approval for its partnership
name form the Department of
Trade and Industry.
Corporation
The third form of business
organization. Like the
partnership, the corporation
also has a separate legal
personality quite distinct from
the investors who contributed
money to the enterprise.
Four Types of Corporation
1. Stock Corporation. Issues
capital stocks divided into
shares (or proportions of the
total capital). The corporation
is authorized to raise capital
that has a corresponding
number of shares.
2. Non-Stock Non-Profit
Corporation. Is organized to carry
out a purpose or purposes other than
generating profits for investors. All
the surpluses (or profit equivalents)
generated by the corporation are not
distributed to the funders in the form
of dividends. Rather, they are plowed
back into the corporation or the
foundation to contribute further to the
attainment of its mission.
3. Close Corporation. Has
articles of incorporation that limit
the ownership of issued stocks to
at most 20 persons. There are
strict restrictions on the transfer
of stocks. The stocks cannot be
listed in any stock exchange nor
can any public offering of shares
be made.
4. Corporation Sole. It is a
special form of corporation
allowed by law, usually
associated with the clergy. The
Corporation Sole is a trusteeship
that is set up for the purpose of
administering and managing the
affairs, property, and
temporalities of a church or group
of clergy.