Documente Academic
Documente Profesional
Documente Cultură
Business Defined
It is any lawful economic activity concerned with the production and / or distribution of goods or services for profit. The amount of capital investment, the size of the organization, and the number of employees are also immaterial in determining if an economic activity qualifies as business.
Sole proprietorship it is a one-person business that is perhaps the easiest and simplest business enterprise to organize in the Philippines. it is inseparable from its owner. The law recognizes the business entity and the owner. The owner must report all business income and losses as the entrepreneur files and pays taxes.
Sole Proprietorship
Advantages Relatively low start-up costs Disadvantages Unlimited liability
Partnership
It is simply a business owned by two or more people who havent filed to become a corporation. No paperwork needs to be filed to business with another person.
Limited partnership General partnership
partnerships
Advantages Ease of formation compared to corporations Relatively low start-up costs Additional sources of investment capital Possible tax advantages Limited regulation Broader management base Disadvantages Unlimited liability Lack of continuity in case a partner withdraws or dies Divided authority among partners Difficulty raising additional capital due to needed consent of all partners Hard to find suitable partners Possible development of conflict between partners
Corporation
It acquires a juridical personality upon formal registration and recognition with the SEC. This means that a corporation is treated as a person, separate and district from its owners. Owners are generally called incorporators and stockholders.
Corporations
Advantages Limited liability Specialized management due to presence of corporate officers Disadvantages Closely regulated and monitored by the SEC Most expensive form of business organization to organize
Double taxation of dividends (corporations and stockholders) Possible development of conflict between shareholders and executives Limited range of business, dependent on corporate charter
Cooperatives
A corporation organized and controlled by its members, who pool resources together to provide themselves and their patrons with goods, services, or other benefits. A cooperative business structure provides democratic control base on one-member-onevote, open and voluntary membership and patronage dividends.
Cooperatives
Advantages Owned and controlled by members Democratic control (i.e one member, one vote) Limited liability Profit distribution (surplus earnings) To members in the form of dividends Dividends are in proportion to a members use of cooperatives services Disadvantages Possible development of conflict between members Numerous members tend to diminish ones share in total dividends Longer decision making process than corporations due to more votes to count Requires members to participate for success Extensive record keeping necessary
Highly encouraged by government due to Less incentives for members to invest the benefits received by a greater number additional capital of people
Corporations
At least 5
Cooperatives
At least 15