Name: John Kyle Ramos

Grade and Section: 12 Diamond

Types of Business Organization

SOLE PROPRIETORSHIP
This is a type of business where there is no legal distinction between the
business entity and its owner, so it best fits situations where the
organization only has one owner.

Examples of sole proprietors include small businesses such as, a local

grocery store, a local clothes store, an artist, freelance writer, IT consultant,
freelance graphic designer, etc.

PARTNERSHIP
Constitutes a formal agreement between two or more individuals who
agree to run a business together. It can also be established between two or
more businesses or between businesses and individuals.
There are two types of partnerships: General and Limited
GENERAL PARTNERSHIP
A general partnership is an unincorporated business with two or more owners who
share business responsibilities. Each general partner has unlimited personal liability for
the debts and obligations of the business. Each partner reports their share of business
profits and losses on their personal tax return.
LIMITED PARTNERSHIP
In a limited partnership, some of the partners are solely investors who have no
managerial control or liability. As their name suggests, limited partners play a much
more limited role in the business. Limited partners are often called “passive investors” or
“silent partners.” They typically contribute money to the business and share in the
income stream of the business.
Example:
Spotify & Uber Spotify partnered with Uber because they both had the same goal of
getting more users even though they had different products. Uber riders can pick out a
Spotify playlist to choose what they'll listen to during their ride. This helps both Spotify
and Uber fans have a better experience during their ride in the car.

CORPORATION
These are companies that have been authorized to act as single entities.
Under the law, corporations possess many of the same rights and
responsibilities as individuals. They can enter contracts, loan and borrow
money, sue and be sued, hire employees, own assets, and pay taxes.
Example: Almost all large businesses are corporations, including Microsoft
Corp., the Coca-Cola Co., and Toyota Motor Corp.

COOPERATIVE
A cooperative is a business that is operated solely for the benefit of those
who own it and use its services. This implies that the business distributes
its generated earnings to its members, also called user-owners.
Examples:
1. ACDI Multi-purpose Cooperative
2. Cebu CFI Community Cooperative
3. PLDT Employees Credit Cooperative (PECCI)