BUSINESS

ORGANIZATION
Single or Sole Proprietorship
It is a form of business organization which is owned by one person
Examples: retailers, market vendors, barbers, tailors and so forth
ADVANTAGES DISADVANTAGES
It is easy to organize Financial resources are not enough
The single proprietor is the boss Specialization in business management is
not present
The owner acquires all the profits The owner has unlimited liability
Partnership
• Art. 1767. By the contract of partnership two or more persons bind
themselves to contribute money, property, or industry to a common
fund, with the intention of dividing the profits among themselves.
ADVANTAGES DISADVANTAGES
Easy to organize Conflict or quarrels between or among
partners
Better Management Lack stability
Bigger resources Unlimited liability, except limited
partners
Corporation
• A corporation is an artificial being created by operation of law, having
the right of succession and the powers, attributes, and properties
expressly authorized by law or incidental to its existence (Sec 2, R.A.
11232)
ADVANTAGES DISADVANTAGES
Limited Liability Not easy to organize
Effective means of raising money ( Selling Abuses of corporate officials
Stocks and Bonds)
Permanent existence Some corporations are engagement in
questionable activities
Efficient Management Impersonal or formal relationship
Cooperative
• Art. 3. General Concepts. - A cooperative is a duly registered
association of persons, with a common bond of interest, who have
voluntarily joined together to achieve a lawful common social or
economic end, making equitable contributions to the capital required
and accepting a fair share of the risks and benefits of the undertaking
in accordance with universally accepted cooperative principles.
Cooperative vs. Corporation
1. Cooperative is for service while a corporation is for profit
2. Membership is a cooperative in open and voluntary while in a corporation
membership is only for wealthy relatives and friends
3. Government in a cooperative is democratic. It is one man one vote and no proxy
voting. In the case of a corporation, it is one share one vote, and more shares more
votes.
4. Savings or net profits are refunded to the members of a cooperative on the basis
of their individual patronage while a corporation, profits are distributed to the
stockholders on the basis of number of their shares