Business and Industry.pptx

3 forms of business organization

1. If you are going to put up a business during these trying times, what would it be and why? THINK and REFLECT!!!

2. The concepts of Economics like scarcity, opportunity cost, trade off, demand and supply principles, and market structures are also applied to business analysis or evaluation to seek opportunities for business ventures. In fact, one important application of economics principles is in the form of business economics.” To understand this further, let us first define business and industry.

3. Business - “it is an entity or organization that is intended for commercial , industrial or any professional activities - its main objective is to earn profit for the owners” - “A business is just a small portion of an industry”

4. Industry - It is a group of companies or businesses that carry on the same line of business activities or undertaking

5. FORMS OF BUSINESS ORGANIZATIONS 1. SOLE PROPRIETORSHIP 2. PARTNERSHIP 3. CORPORATION

6. 1. SOLE PROPRIETORSHIP - This form of business organization consists of one person who runs business. - “Among all business organizations, this takes the simplest method to set-up and even to dissolve.” - “The owner has sole control over business management and gets solely the profit earned from its operations.”

7. 1. SOLE PROPRIETORSHIP

8. 1. SOLE PROPRIETORSHIP -- “However, the sole proprietor also carries the whole responsibility for all the debts and obligations and absorbs all the losses in the course of the business operations” - “The owner faces the risk of unlimited liability in which his personal assets might be exhausted to pay for the business’ loans”

9. I’ll give you an example for this kind of business, sole is kind of business which have a full and exclusive ownership meaning there is only one owner and this is considered as a small enterprise. Just take note there is only one owner. for example you owned a bakeshop or halo-halo store, you are the manager, the accounting and everything, your  name is a sole proprietorship. A Sole proprietorship business must be registered to Department of trade and industry.

10. 2. PARTNERSHIP - “A partnership consists of two or more people who combine their resources and run the business together with an aim to gain profit.” - “There must be a partnership agreement and profits are divided among partners according to the terms of agreement”

11. 2 types of partnership: a. General Partnership- “all partners take part in the management of the business. The general partners have unlimited liability wherein their personal properties might be used just to pay for the debts of the company” b. Limited Partnership- “These are the partners who contribute only capital and do not take part in the management of the business. They have limited share in the profit, but they are also only liable to business debts to some extent only”

12. 3. CORPORATION Corporations are owned by multiple people (also known as shareholders). These shareholders can either be real or judicial persons, and their identities are separate from that of the business they own. The shareholders have limited liability A business needs 15 people to be considered a corporation, with the minimum contributed capital being Php 5,000.00.

13. 3. CORPORATION Assets and liabilities reaped by the incorporators would depend on the amount of capital they put in. there are two types of corporations: stock and non-stock. Stock corporations focus on earning profit for its shareholders, whereas non-stock corporations are only created to undertake public functions (charities, foundations, etc.).  - Among all forms of business organizations, corporations are heavily taxed and regulated by the government.

14. Jollibee and Mang Inasal are under Corporation type of Business. They are registered in  Security and exchange commission covered with a corporation by laws. In business there are three types of ownership, the sole proprietorship, partnership and corporation.

15. ACTIVITY: Using the Venn diagram, differentiate the sole proprietorship, partnership and corporation.