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    The Forms of Business Organization: Alvin Joseph S. Pio

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    Jade Lyn Lopez
    The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned and operated by one individual who is personally responsible for the business's debts. Partnerships involve two or more individuals who share management and profits. Corporations are legally separate entities from their owners whose shares can be publicly traded. Each form has advantages like ease of formation but also disadvantages like unlimited liability for proprietorships.

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    The Forms of Business Organization: Alvin Joseph S. Pio

    Uploaded by

    Jade Lyn Lopez
    17 views10 pages
    The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned and operated by one individual who is personally responsible for the business's debts. Partnerships involve two or more individuals who share management and profits. Corporations are legally separate entities from their owners whose shares can be publicly traded. Each form has advantages like ease of formation but also disadvantages like unlimited liability for proprietorships.

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    The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned and operated by one individual who is personally responsible for the business's debts. Partnerships involve two or more individuals who share management and profits. Corporations are legally separate entities from their owners whose shares can be publicly traded. Each form has advantages like ease of formation but also disadvantages like unlimited liability for proprietorships.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    17 views10 pages

    The Forms of Business Organization: Alvin Joseph S. Pio

    Uploaded by

    Jade Lyn Lopez
    The document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned and operated by one individual who is personally responsible for the business's debts. Partnerships involve two or more individuals who share management and profits. Corporations are legally separate entities from their owners whose shares can be publicly traded. Each form has advantages like ease of formation but also disadvantages like unlimited liability for proprietorships.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    The Forms of Business

    Organization
    Alvin Joseph S. Pio
    Single Proprietorship

     Is the simplest business form under


    which one can operate a business.
    The sole proprietorship is not a legal
    entity. It simply refers to a person
    who owns the business and is
    personally responsible for its debts.
    Advantages & Disadvantages

    Advantages Disadvantages

     Easy Formation  Liability


     Cheaper  Taxes
     Taxes  Business Lifespan
     Employment  Capital
     Direct Control
    Partnership

    Is a formal arrangement by
    two or more parties to
    manage and operate a
    business and share its profits.
    Types of Partnership

    1. General Partnership
    Partners divide responsibility for
    management and liability, as well as the
    shares of profit or loss according to their
    internal agreement.  Equal shares are
    assumed unless there is a written agreement
    that states differently.
    2. Limited Partnership and Partnership with limited
    liability
    “Limited” means that most of the partners have limited
    liability (to the extent of their investment) as well as
    limited input regarding management decision, which
    generally encourages investors for short term projects, or
    for investing in capital assets.  This form of ownership is
    not often used for operating retail or service businesses. 
    Forming a limited partnership is more complex and formal
    than that of a general partnership.
     3. Joint Venture
    Acts like a general partnership, but is clearly for a
    limited period of time or a single project.  If the
    partners in a joint venture repeat the activity,
    they will be recognized as an ongoing partnership
    and will have to file as such, and distribute
    accumulated partnership assets upon dissolution
    of the entity.
    Advantages & Disadvantages

    Advantages Disadvantages

     Easy Formation  Lack of Harmony


     Large Resources  Restricted Enterprise
     Flexibility  Restriction on Transfer of Interest
     Decisions  Burden of Implied Authority
     Sharing of Risks  Liability after Retirement
     Easy Dissolution
    Corporation

    Firm that meets certain legal requirements to


    be recognized as having a legal existence, as
    an entity separate and distinct from its owners.
    Corporations are owned by their stockholders
    (shareholders) who share in profits and losses
    generated through the firm's operations
    Advantages & Disadvantages

    Advantages Disadvantages

     Limited liability  Taxes


     Capital  Independent management
     Ownership transfers
     Business Lifespan

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