https://flic.

kr/p/dobti1
1. Sole proprietorship is owned by
two person.
NO
• Owned by one (1) person
• The one who manage the business is
called the “owner”
• Keep all the profits.
• The owner makes all the decisions.
2. In partnership profits are divided
among partners based on their
agreed sharing.
YES
• Owned by two or more persons.
• The owner is called a partner
• The details of the arrangement are outlined in
the articles of partnership.
• Profits are divided among the partners.
3. Corporation is easy to set-up.
NO
• Complicated to set up.
• Formed at least 5 person
• Owners are called stockholders or shareholders
• Board of Directors and operating management
manages the business
4. Cooperatives is a duly registered association of
persons with a common bond of interest to
achieve their social, economic and cultural
needs.
YES
• Promotes the concept of sharing resources •
Owners are called members
• Board of Directors and operating management
manages the business
• Formed by 15 or more person.
5. The life of the business in sole proprietorship
is limited to the life of the owner
YES
• The business and the owner are inseparable

6. A partner cannot be held liable for the acts of

the other partners.
NO
• partner can be held liable for the acts of the
other partners
7. A corporation can easily raise additional funds.
YES
• by selling shares of stocks to the public. • Proof
of ownership is evidenced by a stock certificate.

8. The members of cooperatives have active and

direct participation in the business.
YES
• members are expected to patronize their products and
services.
• Requires continuous education programs for
members.
9. The life of a corporation or cooperatives may
exceed 50 years
NO
• As stated in the Articles of Incorporation /
cooperation, not to exceed 50 years.

10. The most common form of business organization is

the corporation.
NO
• Sole proprietorship is the most common and simplest
form of business organization.
https://flic.kr/p/dob1eE
A business owned and managed by one person.

https://flic.kr/p/dob26Q
Easiest type of business to form,
the owner has almost complete control of business,
the owner get to keep all the profit, &
is only taxed once.

https://flic.kr/p/dobfnr
No legal separation of the owner from the business,
limited capital,
unlimited liability, &
limited business lifetime.

https://flic.kr/p/doaTZ1
End at the decision or death of the owner, & are
funded by the owner’s personal money, gifts,
loans, and/or other sources of capital.

https://flic.kr/p/doaRgM
https://flic.kr/p/dobtq3 https://flic.kr/p/dobkmt
 A Business owned by two or more people, &
managed according to the partnership agreement.

https://flic.kr/p/dobtaw https://flic.kr/p/dobsXS
 Easy to form,
more capital and credit available,
work load more evenly shared, &
losses are also shared

https://flic.kr/p/dobioc https://flic.kr/p/dobnG3
 Unlimited liability,
limited lifetime (if partner leaves or dies),
profits are shared,
decisions are made jointly, &
hard to add other partners

https://flic.kr/p/dob1oT https://flic.kr/p/doaZut
 Are terminated by actions of the partners, bankruptcy, death, and/or court order, &
are funded by the personal account of the partners, gifts, loans, and other capital resources.

https://flic.kr/p/dob3WG https://flic.kr/p/dob2VN
https://flic.kr/p/dobkGa
A business with the authority to act as a single person.
(legally a person)

https://flic.kr/p/dobkGa
Ownership is determined by stocks (a
shareholder/stockholders owns a piece of the
company).

Corporations are managed by a board of

directors who were voted/appointed by
shareholders.

https://flic.kr/p/dobruq
An article of incorporation with the state
government must be filed. The business must
create corporate bylaws, name a board of
directors, and issue shares of stock.

https://flic.kr/p/dobfTZ
Capital easy to obtain,
limited liability for shareholders,
ownership without having to manage,
possibility of unlimited lifetime, &
decision-making is shared.

https://flic.kr/p/doboUq
Double taxation: profits and earnings
Subject to more laws than other types of ownership,
more difficult to form,
operations controlled by shareholders
and board of directors instead of original owner(s)

https://flic.kr/p/dobs8W
Corporation may have unlimited life. Determined by
charter or articles of dissolution, and must be approved
by the majority of the board of directors and/or
stockholders (shareholders), &
capital is raised through the issuing of stocks.

https://flic.kr/p/dobeLF