Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: Forms of Business Organizations
Description: Understanding of the various forms of business organizations.
Description: Understanding of the various forms of business organizations.
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
FUNDAMENTALS OF ABM1 | Forms of Business Organizations
Philippine Normal University (PNU)
Understanding of the various forms of business organizations
...
It is not separate from the owner
...
Advantages of sole/single proprietorship
• The owner keeps all the profits
...
• It is easy to form and operate
...
Once the owner dies,
the business will cease to operate under the name of the proprietor
...
Concept of Partnership
A form of business owned by two or more persons
...
Profits are divided among partners based on their agreed sharing
...
Advantages of a Partnership
• Higher capital because two or more persons will contribute to the common fund
...
• A partner can be held liable for the acts of the other partners
...
Concept of a Corporation
A corporation is a business organized as a separate legal entity (artificial person) under
the corporation law with ownership divided into transferable shares of stocks
...
The corporation begins its existence from the date the Articles of
Incorporation is approved by the Securities and Exchange Commission (SEC)
...
The owners are called stockholders or
shareholders
...
/Inc
...
The voting rights of a shareholder is generally based on the percentage of
ownership
...
The ownership is divided into shares and the value of one share may
be denominated at a smaller amount, for example at PHP10 per share
...
Advantages of a Corporation
• Can easily raise additional funds by selling shares of stocks to the public
...
The extent of
their liability is limited to their equity (ownership) in the corporation
...
• Subject to several legal restrictions as listed in the Corporation Code of the Philippines
Nature of Cooperatives
A cooperative is a duly registered association of persons with a common bond of
interest, voluntarily joining together to achieve their social, economic and cultural
needs
...
The members are expected to patronize their products and services
...
This form of business organization
is regulated by the Cooperative Development Authority (CDA)
...
• The members have active and direct participation in the business of the cooperative
Title: Forms of Business Organizations
Description: Understanding of the various forms of business organizations.
Description: Understanding of the various forms of business organizations.