BUSINESS ORGANIZATION

1. Sole Proprietorship – this is generally the

simplest way to set up business. A sole
proprietorship is owned by single individual who
singly responsible for running the business and is
accountable for all debts and obligations related
to the business.
2. Partnership- is an agreement in which two or
more persons combine their resources in a
business with a view to making profit.
 The General Partnership – all owners share
the management of the business and each is
personally responsible for and must assume the
consequences of the actions of the other
partners. All the general partners have unlimited
liability which means loan payments will extend
to their personal property.
 The Limited Partnership – some members are
general partners who control and manage the
business and may be entitled to a greater share
 of the profit while other partners are limited and
contribute only capital, take no part in control or
management, and are liable for debts to a
specific extent only.
3. Corporation – a corporation is a legal entity
that is separate from its owners, the shareholders.
No shareholder is personally liable for the debts,
obligations, or acts of the corporation. Directors
and officers can bear liability for their involvement
with the corporation. The legal entity of the
corporation gives it an individual identity of its
own.
4. Cooperative – is an entity organized by people
with similar needs to provide themselves with goods
or services or to jointly use available resources to
improve their income. Cooperative members have
an equal say in decision-making with one vote per
member regardless of number of shares held, there
is open and voluntary membership and surplus
earning is returned to the members according to the
amount of their patronage.
THE SWOT ANALYSIS
SWOT, which stands for Strengths, Weaknesses, Opportunities, and
Threats, is an analytical framework that can help a company meet its
challenges and identify new markets.

THREATS
The first element of a SWOT analysis is Strengths.
 Things your company does well

 Qualities that separate you from your competitors

 Internal resources such as skilled, knowledgeable staff
 Tangible assets such as intellectual property, capital,

proprietary technologies, etc.

WEAKNESS
 Things your company lacks

 Things your competitors do better than you

 Resource limitations

 Unclear unique selling proposition

OPPORTUNITIES
Next up is Opportunities.
 Underserved markets for specific products

 Few competitors in your area

 Emerging needs for your products or services

 Press/media coverage of your company

THREATS
The final element of a SWOT analysis is Threats –
everything that poses a risk to either your company itself
or its likelihood of success or growth.
 Emerging competitors

 Changing regulatory environment

 Negative press/media coverage

 Changing customer attitudes toward your company

SWOT analysis internal and external factors

The four elements above are common to all SWOT analyses.
However, many companies further compartmentalize these
elements into two distinct subgroups: Internal and External.
INTERNAL FACTORS
Typically, Strengths and Weaknesses are considered
internal factors, in that they are the result of organizational
decisions under the control of your company or team.
A high churn rate, for example, would be categorized as a
weakness, but improving a high churn rate is still within
your control, making it an internal factor.
EXTERNAL FACTORS
Similarly, emerging competitors would be categorized as a
threat in a SWOT analysis, but since there’s very little you
can do about this, this makes it an external factor. This is
why you may have seen SWOT analyses referred to as
Internal-External Analyses or IE matrices.