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BUSINESS ORGANIZATION

 Refers to commercial or industrial enterprise


and the people who constitute it.
FORMS OF BUSINESS ORGANIZATION
FOUR FORMS OF BUSINESS
ORGANIZATION
1.Sole Proprietorship
2.Partnership
3.Corporation
4.Cooperative
SOLE PROPRIETORSHIP
SOLE PROPRIETORSHIP

It means that the business is owned and managed by one individual only.
SOLE PROPRIETORSHIP

Example:
Sari-sari store
Shoe repair
Vegetable vending
Dry goods
Fish vending
PARTNERSHIP
PARTNERSHIP
A legal relationship formed by an
agreement between two or more
individuals to carry on a business as
co-owners.
PARTNERSHIP
Each member is called a
‘partner’. Their agreement in
writing is called ‘ partnership
deed’.
PARTNERSHIP
• The partners share the profit and loss of the business
• No partner can sell or transfer his interest in the firm
to anyone without the consent of other partner/s.
• Easier to raise funds
PARTNERSHIP
Example:
Retail and wholesale trade
Professional service
Small manufacturing units
CORPORATION
CORPORATION
It is a voluntary association of persons to carry-on a business.
CORPORATION
• Artificial person
• It can sue and can be sued
• Perpetual existence
• Transferability of shares
CORPORATION
Members are called ‘shareholders’.
Capital is called ‘ share capital’.
The one who got the biggest share is what we
call the ‘Chairman of the Board’.
Professional management is being practiced.
CORPORATION

Example:
Large Food Chains
Banks
Schools
COOPERATIVE
COOPERATIVE
Functions under the Cooperative Societies Act, 1912
and other State Cooperative Societies Acts. The main
objective of cooperative society are:
A . Rendering service rather than earning profit;
B. Mutual help instead of competition;
C.Self help in place of dependence.
COOPERATIVE
Voluntary association
Service motive
Democratic set-up
Return on Capital
COOPERATIVE

Example:
Multi-purpose cooperatives
Electric cooperatives
Farmers cooperatives
THUMBS-UP ACTIVITY

Directions: Listen carefully to the statements. Identify what


form of business organization is being described in each
number. Wait for the GO signal before answering. The first
group who will raise the thumbs-up sign will be the one to
answer. Every correct answer is equivalent to one point. In
case the answer is wrong, other groups will have the chance to
answer with the same procedure.
1.The owner decides for the business.
2.The members of the organization
are called shareholders.
3. The members share the profit of
the business equally.
4. The main purpose of the group is to
render service.
5. The other member cannot sell or transfer his
interest without the consent of the other.
6. The organization can be perpetual.
7.The owner of the business is the only
source of capital.
8. The organization does not compete instead it
advocates mutual help.
9. The business profits belong to the owner alone.
10. It is also called an artificial person.
ASSIGNMENT:

List down at least 2 advantages and 2


disadvantages of each form of organization.