Ownership and Structural Forms of Business Enterprise<br />Chapter 5<br />
Ownership<br />It  means the legal title to a thing or control over the thing owned, the right possession and disposal.<br...
Types of business ownership<br />Private Ownership<br />When an enterprise is so organized that private individuals exerci...
Types of business ownership<br />Public  Ownership<br />Controlled by political bodies as a municipal , provincial or nati...
Types of business ownership<br />Mixed Ownership<br />It exists when the elements of ownership are divided such that priva...
Forms of private ownership<br />Individual or single or sole proprietorship<br />Partnership<br />Cooperative Organization...
Factors  involved  in business forms<br />The nature and size of the business<br />The capital required and the means of p...
1. Single Proprietorship<br />The ownership is vested in one person.<br />This form of ownership is small, requires  but l...
Advantages of single proprietorship<br />It is easy to start and to terminate<br />Control and management lies entirely in...
Disadvantages of single proprietorship<br />Limited judgment and wisdom. <br />Limited amount of capital<br />Unlimited li...
2. Partnership <br />The business partnership  is a business relationship between two or more persons competent to make co...
Advantages of partnership<br />It could be as easily formed as the single proprietorship.<br />There are more persons to c...
Disadvantages of partnership<br />Unlimited liability of partners<br />Disagreement between partners often lead to delay a...
Limited partnership<br />One or more of the partners in a limited partnership must be general partners, who have unlimited...
Advantages of limited partnership<br />There is a single direction of management , thus there is unity and prompt action<b...
Disadvantages of limited partnership<br />The unlimited power given to general partners may result in abuse.<br />Possibil...
Kinds of partners<br />General Partner<br />Limited Partner<br />Capitalist partner<br />Industrial Partner<br />Managing ...
Cooperative organization	<br />A cooperative association has some elements of a large partnership  and also many features ...
Kinds of cooperative<br />The Consumer’s Cooperative<br />It draws its members from the general public. This cooperative c...
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Chapter 6 Forms Of Business Enterprise

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Chapter 6 Forms Of Business Enterprise

  1. 1. Ownership and Structural Forms of Business Enterprise<br />Chapter 5<br />
  2. 2. Ownership<br />It means the legal title to a thing or control over the thing owned, the right possession and disposal.<br />Title to and possession of the assets of the enterprise , the power to determine the policies of the operation and the right to receive and dispose of the proceeds.<br />
  3. 3. Types of business ownership<br />Private Ownership<br />When an enterprise is so organized that private individuals exercise and enjoy the rights and privileges of an owner in their own interest.<br />
  4. 4. Types of business ownership<br />Public Ownership<br />Controlled by political bodies as a municipal , provincial or national government or by any instrumentality created by them<br />
  5. 5. Types of business ownership<br />Mixed Ownership<br />It exists when the elements of ownership are divided such that private persons and public bodies share in the operation of the same enterprise<br />
  6. 6. Forms of private ownership<br />Individual or single or sole proprietorship<br />Partnership<br />Cooperative Organization<br />Corporation<br />Corporate combination<br />
  7. 7. Factors involved in business forms<br />The nature and size of the business<br />The capital required and the means of procuring it<br />The length of time the enterprise is expected to operate<br />The technical conditions affecting the enterprise<br />The types of products to be manufactured<br />The method and volume of production<br />The kind of markets to be supplied and methods of marketing<br />The competitive nature of the chosen industry.<br />
  8. 8. 1. Single Proprietorship<br />The ownership is vested in one person.<br />This form of ownership is small, requires but little amount of capital and is readily established under the control of one man.<br />
  9. 9. Advantages of single proprietorship<br />It is easy to start and to terminate<br />Control and management lies entirely in the hands of the owner<br />Only a small amount of capital is required in starting<br />Profits belong entirely to the owner <br />High Credit Standing<br />
  10. 10. Disadvantages of single proprietorship<br />Limited judgment and wisdom. <br />Limited amount of capital<br />Unlimited liability<br />Difficulties of Management<br />
  11. 11. 2. Partnership <br />The business partnership is a business relationship between two or more persons competent to make contracts for the purpose of engaging in a business activity.<br />
  12. 12. Advantages of partnership<br />It could be as easily formed as the single proprietorship.<br />There are more persons to conduct the business and to handle its problems.<br />A partnership has access to greater or better credit facilities<br />The combined ability and resources of partners are a source of strength.<br />Retention of Valuable Employees<br />
  13. 13. Disadvantages of partnership<br />Unlimited liability of partners<br />Disagreement between partners often lead to delay and difficulties which could endanger the enterprise.<br />Easy dissolution <br />Frozen Investment<br />
  14. 14. Limited partnership<br />One or more of the partners in a limited partnership must be general partners, who have unlimited liability. The limited or special partners have only limited liability, which is up to the extent of their investment.<br />
  15. 15. Advantages of limited partnership<br />There is a single direction of management , thus there is unity and prompt action<br />The limited liability of special or limited partners , serves as good inducement of investments.<br />
  16. 16. Disadvantages of limited partnership<br />The unlimited power given to general partners may result in abuse.<br />Possibility of collusion among partners to defraud the creditors.<br />
  17. 17. Kinds of partners<br />General Partner<br />Limited Partner<br />Capitalist partner<br />Industrial Partner<br />Managing Partner<br />Liquidating Partner<br />Ostensible Partner<br />Secret Partner<br />Silent Partner<br />Dormant Partner<br />Nominal Partner<br />
  18. 18. Cooperative organization <br />A cooperative association has some elements of a large partnership and also many features of a corporation , although it is distinct from both .<br />
  19. 19. Kinds of cooperative<br />The Consumer’s Cooperative<br />It draws its members from the general public. This cooperative carries on retail trade operations.<br />

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