The presentation discusses different forms of business organization including sole proprietorships, partnerships, corporations, and cooperatives. It describes the key advantages and disadvantages of each structure. Recommendations are provided on how to choose the most suitable legal form of business based on factors such as ownership, liability, access to financing, and regulatory requirements.

1. Session 6
Business Plan Development:
Business Description
Powerpoint Presentation by:
RUDOLPH D. VELASCO
Entrepreneurship and Business
Planning

2. Choosing the Form of Business Organization
Form of Business Organization
3.Sole or Single Proprietorship
4.Partnership
5.Corporation
6.Cooperative

3. 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.

4. ADVANTAGES OF SINGLE PROPRIETORSHIP
1. Ease and low cost of formation and
dissolution.
2. Retention of all profits.
3. Independence and flexibility.
4. Tax advantage and less government
regulation

5. DISADVANTAGES OF SOLE PROPRIETORSHIP
1. Unlimited Liability
2. Lack of Stability
3. Limited access to credit
4. Limited business skills and
knowledge

6. PARTNERSHIP
It 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

7. ADVANTAGES OF PARTNERSHIP
1. Easy to organize
2. Availability of more
capital and credit.
3. Retention of profits
4. Better business skills
and knowledge

8. DISADVANTAGES OF PARTNERSHIP
1. Unlimited Liability
2. Lack of Stability
3. Management
Disagreement
4. Idle investment

9. CORPORATION
It is an artificial being created by operation of
law, having the right of succession, and the
powers, attributes and properties expressly
authorized by law or incident to its existence.
Stocks – shares or certificates of ownership of
a corporation.
Two types
Private or close corporations
Open corporations

10. ADVANTAGES OF A CORPORATION
1.Limited liability
2.Easy to raise capital
3.Perpetual life
4.Specialized
management

11. DISADVANTAGES OF A CORPORATION
1. Difficult to organize
2. Strictly regulated and supervised by
the government
3. Some corporations are socially
irresponsible
4. Formal and impersonal employer-
employee relationship

12. The COOPERATIVE : An Enterprise for the Poor
A duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful
common social or economic end, making equitable contributions
to the capital required and accepting a fair share of the risks and
benefits of the undertaking in accordance with universally
accepted principles of cooperation which include the following
2.Open and voluntary membership
3.Democratic control
4.Limited Interest on capital
5.Division of net surplus
6.Cooperative education
7.Cooperation with other cooperatives

13. TYPES OF COOPERATIVE
1.Credit cooperative
2.Consumers cooperative
3.Producers cooperative
4.Marketing cooperatives
5.Service cooperative
6.Multi purpose cooperative

14. Output # 2
Business Description
Business Description
Business Background
 Proposed Name of the Business and Rationale
 Type of Business Organization
 Location of Head Office and Factory

15. REFERENCES
Entrepreneurship, Fajardo, Feliciano R.; Capitol Publishing House Inc.
1994

16. Other Matters
Learning Materials and Powerpoint
Lectures are available online
http://rdvonlineclassroom.weebly.com

17. End of Presentation