Transcript of "6 business plan development business description"
Session 6Business Plan Development:Business Description Powerpoint Presentation by: RUDOLPH D. VELASCO Entrepreneurship and Business Planning
Choosing the Form of Business OrganizationForm of Business Organization3.Sole or Single Proprietorship4.Partnership5.Corporation6.Cooperative
SINGLE PROPRIETORSHIP This is a form of business organization that is owned and usually managed by one person. It is the oldest and simplest form of business ownership. The easiest to start. They dominate the retailing, agriculture and service industries.
ADVANTAGES OF SINGLE PROPRIETORSHIP1. Ease and low cost of formation and dissolution.2. Retention of all profits.3. Independence and flexibility.4. Tax advantage and less government regulation
DISADVANTAGES OF SOLE PROPRIETORSHIP 1. Unlimited Liability 2. Lack of Stability 3. Limited access to credit 4. Limited business skills and knowledge
PARTNERSHIPIt is an association of two or more persons who act as co-owners of a business.Each partner contributes money, property or service to their organization.They are usually engaged in accounting, law, advertising, real estate and retailing. TWO TYPES OF PARTNERS General Partners Limited Partners
ADVANTAGES OF PARTNERSHIP1. Easy to organize2. Availability of more capital and credit.3. Retention of profits4. Better business skills and knowledge
DISADVANTAGES OF PARTNERSHIP1. Unlimited Liability2. Lack of Stability3. Management Disagreement4. Idle investment
CORPORATIONIt is an artificial being created by operation oflaw, having the right of succession, and thepowers, attributes and properties expresslyauthorized by law or incident to its existence.Stocks – shares or certificates of ownership ofa corporation.Two types Private or close corporations Open corporations
ADVANTAGES OF A CORPORATION1.Limited liability2.Easy to raise capital3.Perpetual life4.Specialized management
DISADVANTAGES OF A CORPORATION1. Difficult to organize2. Strictly regulated and supervised by the government3. Some corporations are socially irresponsible4. Formal and impersonal employer- employee relationship
The COOPERATIVE : An Enterprise for the PoorA duly registered association of persons, with a common bond ofinterest, who have voluntarily joined together to achieve a lawfulcommon social or economic end, making equitable contributionsto the capital required and accepting a fair share of the risks andbenefits of the undertaking in accordance with universallyaccepted principles of cooperation which include the following2.Open and voluntary membership3.Democratic control4.Limited Interest on capital5.Division of net surplus6.Cooperative education7.Cooperation with other cooperatives