1ConsMeth Legal Forms of Business Organization

Universal Colleges of Paranaque
8273 Dr. Arcadio Santos, Avenue. Paranaque City
College of Engineering
Civil Engineering Department
Construction Methods and Project Management
LEGAL FORMS OF BUSINESS ORGANIZATION
Rating
Submitted By:
Franz Anfernee F. Generoso
BSCE-5
Submitted To:
Engr. Akira Q. Nakaegawa
Date of Submission:
October 6, 2020
INSTRUCTIONS: Answer the following situations in no less than 5 sentences.
Please research thoroughly and refrain from copy-pasting your work from the
source. You will be graded accordingly.
1. Determine and define the Legal forms of an Organization.

The local form of the business organization is one of the most important
decisions that a business owner should have to make. Because this decision will
have long-term implications, it is important to consult an attorney and an
accountant to help make the right choice. The following below are some factors
that a business owner should consider before making the choice:
✓ The owner’s vision – having a vision provides a purpose and direction for
the business, the owner’s vision will help to define the short and long-term
goals, and guide the decisions because it driven by passion and dreams which
reflected through exerting efforts to create successful results.
✓ The desired level of control - the owner wants to own the business personally
or share ownership with others and the owner want to share responsibility
for operating the business with others.
✓ The level of structure – the owner willing to deal with a very structured
organization or something more informal.
✓ The acceptable liability exposure – the owner willing to deal with risk
personal assets or the owner willing to accept liability for the actions of
others.
✓ Tax implications - the owner must pay business income taxes and then pay
personal income taxes on the profits earned.
✓ Sharing profits – the owner must share the profits with others or personally
keep the profits or might expect loss of profit of the business.
✓ Financing needs - the owner must provide all the financing needs or might
also need outside investor. If outside investors are needed, the owner should
convince the investor to invest on the business.
Different forms of business organizations:
A. Sole Proprietorship – A one-owner business in which the owner is
personally liable for all business depts. Sole proprietors can be independent
contractors, freelancers or home-based business.
B. Partnerships – two or more people share ownership of a single business. The
Partners should have a legal agreement that sets forth how decisions will be
made, profits will be shared, disputes will be resolved, how future partners
will be admitted to the partnership, how partners can be bought out, or what
steps will be taken to dissolve the partnership when needed. They also must
decide up front how much time and capital each will contribute. There are
two (2) types of partnership:
1. General Partnership - A business entity formed by two or more people,
all of whom are personally liable for all partnership debts. When two or more
people are in business together and have not formed a limited partnership,
corporation, or limited liability company (LLC), they are treated as a general
partnership by law even if they have not signed a formal partnership
agreement. A partnership does not pay federal incomes taxes; a partner’s
share of the profits or losses is reported on his or her personal tax return.
2. Limited Partnership - A business entity formed by one or more general
partners and one or more limited partners. Ordinarily, only the general
partners are personally liable for the partnership debts.
C. Corporation - A business entity formed by one or more shareholders or
usually a group of company which authorized by the state to act as single
entity and recognize as such in law for certain purposes. Ordinarily, a
shareholder is not personally liable for the corporation’s debts. This is so
whether or not the corporation is organized for tax purposes as a regular (C)
corporation or an S corporation; the two types of corporations differ only in
terms of tax treatment. The big difference is that the undistributed income of
a regular corporation is taxed at the corporate level. That is not true with an
S corporation; for tax purposes, income and losses pass through to the
individual shareholders as if they were partners in a partnership.
D. Limited Liability Company (LLC) - A business entity formed by one or more
members. LLC combines elements of a partnership, sole proprietorship and
a corporation to ensure that the company owners are not personally liable for
the debts of the company or liabilities. Limited liability means that its owner
also called members. Ordinarily, a member is not personally liable for the
LLC’s debts and is taxed in the same way as if he or she were a partner
(unless the LLC chooses to be taxed as a corporation) and lawsuits. If an
LLC files for bankruptcy, the members do not have use personal money to
pay the company’s debt. If the LLC faces lawsuit, the members do not risk
losing their home to cover settlement.
2. Define leadership and give three attributes that a leader should possess and
why they are important to have.
Leadership is both a research area and a practical skill encompassing the
ability of an individual, group or organization to “lead”, influence or guide
individuals or entire organizations. There are many qualities or attributes of a
great leader that is important to possess. But for me, these are only attributes
that I really liked most. These attributes can be learned and needs to be practice
in a repetitive situation and must be learned by a great leader.
The first attribute of great leader is Courage, the quality of courage means
that the great leader is willing to take risk in achieving goals without the
assurance of success. Because there is no certainty in life for business, every
commitment you make and every action you take entails a risk in some kind.
Among qualities of leader I ever know, the quality of courage is the most
outwardly identifiable trait of leader.
The second attributes of great leader will be is the Integrity. The core of
integrity is the truthfulness. Integrity requires that you always tell the truth to
people in every situation. Truthfulness is the foundation quality of trust that is
necessary for the success for every business. Integrity is the essential for the
individual and the organization. It is important when you are going to make a
countless decision that is regarded honesty and truthfulness especially to
politicians because they are chosen, appointed, or elected to serve the society.
To be able to serve, politicians are given power to make decisions, execute,
control policy. The organization should reinforce the significance of integrity
to leaders at various level.
The last attribute of a great leader would be is Delegating task completely,
for me, great leaders realized that they cannot do everything themselves, so they
primarily focused on the most difficult task and delegate the unaccomplished
works to others. Delegating task means fully trusting because you believed that
someone can helped you to do the job even you are not sure that the task can be
accomplished as soon as possible. Great leaders delegate task to others and trust
them to get the job done.

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Universal Colleges of Paranaque

8273 Dr. Arcadio Santos, Avenue. Paranaque City

Civil Engineering Department

Construction Methods and Project Management

LEGAL FORMS OF BUSINESS ORGANIZATION

Franz Anfernee F. Generoso

Engr. Akira Q. Nakaegawa

1. Determine and define the Legal forms of an Organization.

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