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CHARACTERISTICS:
ADVANTAGES DISADVANTAGES
Easy to Start Limited Capital
Easy to Wind-Up Unlimited Liability
Quick decision and Prompt Action Lack of Continuity
Flexibility in Operations Limited Size
Direct Maintenance of Business Lack of Managerial Expertise
KINDS OF PARTNERSHIP:
1. General Partnership – partners have unlimited liability for the debts and obligations of the partnership
2. Limited Partnership – one or more general partners have unlimited liability and the limited partners have liability
that is only up to the amount equal to their capital contributions.
ADVANTAGES DISADVANTAGES
Extra Set of Hands Less Independence
Additional Knowledge Potential Conflict
Reduced Financial Burden Divided Profits
Less Paperwork Lack of Separation from Business
Fewer Tax Forms Individual Taxation
CORPORATION
A legal entity created by individuals, stockholders, and shareholders with the purpose of operating for profit
TYPES OF CORPORATION
1. Stock Corporation – has capital stock divided into shares and dividends
2. Non-stock Corporation – do not issue shares of stock and is established primarily for public interests
ADVANTAGES DISADVANTAGES
Owner’s have unlimited liability. Shareholders are exposed to double taxation.
Infinite life unless go bankrupt or merge by May suffer from potentially serious governance
others. problems.
INCORPORATION
Involves a legal process where legal documents containing the primary purpose of the business, name and
location, and the number of shares and types of stocks issued, are drafted (5,000)
SERVICE – an enterprise composed of a professional or team of experts that deliver work or aid in
completing a task for the benefit of its customers.
MERCHANDISING – a type of business that purchase products from other businesses and sells them to
customers at a higher retail price.
MANUFACTURING – where raw materials are transformed into finished goods through product
processing, labor and other manufacturing processes. (Agriculture, Aquaculture, Mining)
Planning…
VISION describes what the company wants to achieve and where it want to go in the future. It determines the
course direction of the company.
GRAPHIC
– it projects to the market the kind of company aspires to be.
DIRECTIONAL
– it describes the path where the company wants to go. It presents specific plan in order to move from the
future.
FOCUSED
– is very specific to managers.
FLEXIBLE
– it allows room for managers to change based on technological advertisements.
FEASIBLE
– achievable or realistic.
DESIRABLE
– it should serve the interest of your client in a long-term aspect.
EASY TO COMMUNICATE
– easy to understand or straightforward.
CHARACTERISTICS OF MISSION:
KINDS OF PLANS:
Strategic Plan is the company’s vision and these are designed by the top management such as the CEO or the
President.
Tactical Plan creates specific plans for specific areas of the company.
Operational Plan these are specific procedures and processes made by frontline or low-level managers.
Brainstorming
- Common technique
- Stimulate thinking in order to generate ideas
Nominal Group Technique
- Highly structured method
- It allows others to input
Delphi Technique
- Similar to nominal group technique
- Formulating the courses of action
Decision tree
- Excellent tool for selecting different alternatives
- Uses graph
Payback method
- Evaluating purchase