HONEY LIZETTE B.

SUNTHORN
CBET 01-202 P
ACCOUNTING FOR PARTNERSHIP AND CORPORATION
SIMILARITIES AND DIFFERENCES OF SOLE PROPRIETORSHIP, PARTNERSHIP, COOPERATION AND
COOPERATIVE

SOLE PROPRIETORSHIP PARTNERSHIP COOPERATION COOPERATIVE

Start up Easy to start since there Easy to start since Difficult to start Easy to start since
process are minimal costs and there are minimal costs they have a common
requirements in the and requirements in bond of interest.
formation. the formation.
Liability Unlimited liability Unlimited liability Limited liability Limited liability
Taxation Single taxation Single taxation Double taxation Single taxation
Access to Limited access to capital Easier to access than Easier to access than There is limited
credit and and credit. sole proprietorship. other forms. capital due to
capital unprivileged
members.
After an owner Ends when owner dies. The death, retirement, Life continues after an Life is indefinite.
dies or leaves withdrawal, or owner dies. A
incapacity of a partner corporation has
results in the continuous existence
dissolution of the as its life is indefinite.
partnership.
Business Registered under Registered with the Registered with the Registered with the
Register Department of Trade and Securities and Securities and Cooperative
Industry (DTI) under its Exchange Commission Exchange Commission Development
Bureau of Trade (SEC). (SEC). Authority (CDA).
Regulation and
Consumer Protection.
Management Infusion of knowledge in There can be division Management of the Cooperatives are
the management of the of labor between or corporation is vested managed by the
business is limited to one among partners. upon its board of members; thus,
person only which is the directors. saving on
owner. management costs
which leads to lower
prices of products
inuring to the benefit
of the consumers.

Composition Business owned and Owned and managed Managed by an Association of small
managed by only one by two or more people. elected board of producers and
person. directors. The consumers who
investors are called come together
stockholders and the voluntarily to form a
unit of ownership is business which they
called share of stock. own, manage, and
patronize.