M4-TECHNICAL

MODULE 4: FORMS OF BUSINESS ORGANIZATIONS

ANSWER THE FOLLOWING QUESTONS:

1. Enumerate all the forms of business organizations by nature of ownership.

 Sole Proprietorship
 Partnership
 Corporation

2. Differentiate a corporation from a partnership according to number of owners and their

liabilities.

 A partnership is a business started and managed by at least 2 to 5 people while

a corporation is divided into the share of stocks, it is managed by a board of
directors while the said owners are called shareholders.
 A partnership has all owners liable for the fault of one while in a corporation,
shareholders are not liable for the faults of the corporation.

3. Differentiate a corporation from cooperative.

 They have the same goal of doing business but corporation is made for the
intention of making profit and is a legal entity with legal rights and liabilities and is
owned by those we call the shareholders while cooperative is normally made for
non-profit purposes, sometimes it just provides benefits for its members.

4. Give two examples of corporations in the Philippines.

 Nestle Philippines
 San Miguel Corporation

5. Give two examples of cooperatives in the Philippines.

 Red Root Cooperative

 Health Care Providers Cooperative