FORMS OF BUSINESS

ORGANIZATION

PRESENTED BY : GROUP 3
STEVEN MORIDO
SHYREEN MIRANDA
JUSTINE GALAMAY
WHAT IS BUSINESS ?
 BUSINESS
 IS AN ORGANIZATION THAT UTILIZES
RESOURCES AND INFORMATION,
SUPPLYING THE WANTS AND NEEDS OF
THE CUSTOMERS THROUGH GOODS OF
SERVICES, IN EXCHANGE FOR MONEY
OR GIVING BACK A DIFFERENT KIND OF
GOODS OF SERVICES.
TYPES OF BUSINESS ACCORDING
TO OWNERSHIP
THERE ARE FOUR TYPES OF BUSINESS
ACCORDING TO OWNERSHIP – SOLE
PROPRIETORSHIP – PARTNERSHIP –
CORPORATION AND COOPERATIVE. ALL
OF THESE VARY IN SOME ASPECTS AND
HAVE DIFFERENT RISKS AND BENEFITS.
SOLE PROPRIETORSHIP
A SOLE PROPRIETORSHIP IS A BUSINESS
THAT IS OWNED BY ONLY ONE
INDIVIDUAL FOR THE PRACTICE OF
TRADE OR PROFESSION.
A BUSINESS OWNED BY ONE PERSON.
EXAMPLE OF SOLE PROPRIETORSHIP
ADVANTAGE
 FULL CONTROL OF OPERATIONS
 ALL PROFITS GO DIRECTLY TO THE OWNER
 EASY TO START, EASY DISSOLVE
 EASIER TO OPERATE
 YOU CAN MAKE ALL DECISION
DISADVANTAGE
 UNLIMITED LIABILITY
 LIMITED CAPITAL
 LACK OF QUALIFIED EMPLOYEES
 RISK OF WRONG DECISIONS OR CHOICES
PARTNERSHIP
 A PARTNERSHIP IS A BUSINESS THAT IS OWNED BY TWO OR
MORE INDIVIDUAL POOLING THEIR, RESOURCES

 THERE ARE TWO MAIN TYPES OF PARTNERSHIP, ONE IS

GENERAL PARTNERSHIP, WHEREIN EACH MEMBER HAS
UNLIMITED LIABILITY, AND ANOTHER ONE IS LIMITED
PARTNERSHIP WHERE THE CREDITORS CANNOT GO AFTER
THE PARTNER’S PERSONAL ASSETS.
ADVANTAGE
 EASY TO FORM
 BETTER DECISIONS
 SHARING OF RISK
 SHARINGRESPONSIBILITIES, SO ONE OWNER
DOESN’T HAVE TO DO EVERYTHING.
DISADVANTAGE
 HARD TO FIND SUITABLE PARTNERS
 MORE PEOPLE TO SHARE IN THE PROFITS
 DISSAGREEMENTS CAN OCCUR
 LIMITED LIFE OF BUSINESS
CORPORATION
 A CORPORATION IS AN ORGANIZATION
USUALLY A GROUP OF PEOPLE OR A
COMPANY AUTHORIZED BY THE STATE
TO ACT AS A SINGLE ENTITY AND
RECOGNIZED AS SUCH IN LAW FOR
CERTAIN PURPOSE.
EXAMPLE OF CORPORATION
ADVANTAGE
MORE SOURCE OF FUND
EASY TO TRANSFER OWNERSHIP
LIABILITY IS LIMITED
UNLIMITED COMMERCIAL LIF
DISADVANTAGE
MORE REGULATIONS TO BE
FOLLOWED
DOUBLE TAXATION
HIGHER FRANCHISE FEE AND
OPERATING EXPENSES.
COOPERATIVE
ISA BUSINESS THAT IS OWNED BY A
GROUP OF INDIVIDUAL WHO ALSO
SERVE AS BENEFACTORS TO THE
BUSINESS ENDEAVOR. A COOPERATIVE
USUALLY REQUIRES AT LEAST FIFTEEN
(15) MEMBERS TO FUNCTION.
THE FOLLOWING ARE TYPES OF
COOPERATIVE
 CREDIT COOPERATIVE
 CONSUMER COOPERATIVE
 PRODUCERS COOPERATIVE
 MARKETING COOPERATIVE
 SERVICE COOPERATIVE
 MULTI-PURPOSE COOPERATIVE
 ADVOCACY COOPERATIVE
 COOPERATIVE BANK
 DAIRY COOPERATIVE
ADVANTAGE
BUYING BULK
WORKING TOGETHER TO SOLVE
PROBLEMS AND MAKE DECISIONS.
GOOD MOTIVATION OF ALL MEMBERS
TO WORK HARD AS THEY WILL BENEFIT
FROM SHARED PROFITS.
DISADVANTAGE
 MEMBERS HAVE EQUAL VOTING RIGHTS
REGARDLESS OF INVESTMENT – WHICH MAY
NOT SUIT AN INVESTOR – DRIVEN BUSINESS.

 LEGALLIMITS ON PAYMENTS OF DIVIDENDS

ON SHARES MAY NOT SUIT AN INVESTOR –
DRIVEN BUSINESS.
TYPES OF BUSINESS
ACCORDING TO ACIVITIES
SERVICE
BUSINESS
MERCHANDISING
MANUFACTURING BUSINESS
SERVICE BUSINESS
SERVICE TYPE BUSINESS FOCUS
ON PROVIDING INTANGIBLE
PRODUCTS, SUCH AS OFFERING
PROFESSIONAL SKILLS,
PROPOSAL , AND EXPERTISE
EXAMPLE OF SERVICES
AUTOSHOP
MEDICAL CLINIC
SALON
HOUSEKEEPING
ADVANTAGE
NO INVENTORY
EASY TO START UP
FLEXIBLE HOURS
DISADVANTAGE
DIFFICULTVALUATION
LACK OF OWNERSHIP
WORK AN IRREGULAR
SCHEDULE
MERCHANDISING BUSINESS
THISTYPE OF BUSINESS IS
COMMONLY KNOWN AS THEY
“BUY AND SELL“ BUSINESS.
EXAMPLE OF MERCHANDISING

GROCERY STORES
HARDWARE
DEPARTMENT STORES
ONLINE SELLING
ADVANTAGE
HIGHER PROFITS
MORE SATISFIED SHOPPERS
MORE ENGAGED BUYER
INCREASED SALES
DISADVANTAGE
DEMANDS ON STAFF
ONCE IS NOT ENOUGH
EXPENSE
RISK
MANUFACTURING BUSINESS

THISIS THE TYPE OF BUSINESS

WHEREIN MATERIALS ARE
BOUGHT TO CREATE A NEW
PRODUCT.
EXAMPLE OF
MANUFACTURING
 TOYOTA GROUP
 GROUP
 APPLE
 BAG
 BMEG
 SHOE FACTORY
ADVANTAGE
MORE JOBS OPPORTUNITY TO
PEOPLE
SAFETY OF WORKERS
ENVIRONMETALLY FRIENDLY
DISADVANTAGE
LIMITED CREATIVITY
INSUFFICIENT CAPITAL
VERY COSTLY AND TIME CONSUMING
BUSINESS RISK RUINING REPUTATION IF
NEW PRODUCT IS POOR QUALITY
THANK YOU FOR
LISTENING !