Lanz William Macuha

Types of Business Based on Ownership

ITEM Sole Proprietorship Partnership Corporations Cooperatives

Number of Possible Owners 1 2 or more At least 5 15 or more
Management (who Owner (but he may hire Partners (for they may hire Board of directors and Board of directors and
manages somebody). managers). operating management. operating management.
the business)
Termination of the business Death of the owner Death of my partner or As stated in the articles of As stated in the articles of
withdrawal of a partner. incorporation not to incorporation not to
exceed 50 years. exceed 50 years.
Government agency In limited company DTI. In limited company DTI. SEC CDA
assigned primarily to regulate
Transfer of Ownership Still the business (it's a Sell the business on Sell stocks. Cannot transfer nor sell
new entity under a new interest of a his membership.
owner). partner(content in other
partners in necessary)
Liability of Owners Unlimited; other properties Generally unlimited the Limited to stock Limited to the capital
not used in the business other properties of the investment of the contribution of the
may be held liable for the partners may be held shareholder. member.
obligation of the business. liable for the obligation of
the partnership.

There are types of

partnership that limit the
liability of the partners.