its about type of business

1. “Types of Business”
Prepared By: Danica Hermoso
Victorias National High School – Grade 12 ABM 2

2.  Sole Proprietorship
 Partnership
 Corporation
 Cooperatives

3.  It is a business owned by only one person. It is
the simplest organization to form. Most
business, including large ones, started as sole
proprietorship. In a sole proprietorship, you and
your business are one. In other words, your
business income is taxed as personal income.
When the sole proprietorship dies, the life of the
business also ends.

4.  A partnership is a form of business where two or
more people share ownership, as well as the
responsibility for managing the company and the
income or losses the business generates. That
income is paid to partners, who then claim it on
their personal tax returns – the business is not
taxed separately, as corporations are, on its
profits or losses.

5.  General partnership
 Limited partnership
 Joint venture

6.  In a general partnership, each partner shares
equally in the workload, liability, and profits
generated and paid out to the partners. All
partners are actively involved in the
business’s operations.
10/16/2018

7.  Limited partnerships allow outside investors
to buy into a business but maintain limited
liability and involvement, based on their
contributions. This is a more complicated
form of partnership, which also has more
flexibility in terms of ownership and
decision-making.

8.  Short-term projects or alliances that bring
together multiple partners for a project are
typically structured as joint ventures. If the
venture performs well, it can be continued as
a general partnership. Otherwise, it can be
shuttered.

9.  A corporation or a company involves five or more
persons owning a business. A corporation is a “legal
person” in the eye of the law. The ownership of a
corporation is divided into units known as “shares of
stock”. The buyers of these stocks, called
stockholder, also become part-owners of the
business. Management of a corporation is vested on
board of directors elected by stockholders on a
regular basis.

10.  A cooperative is an association of persons (organization) that
is owned and controlled by the people to meet their common
economic, social, and/or cultural needs and aspirations
through a jointly-owned and democratically controlled
business (enterprise). The people of the cooperative are
those who use its products, supplies, and/or services. Profits
are also often returned back to the members of the
cooperative, however, cooperatives are often more focused
on services for members than for investments.