Business classifed as to nature of operation.

1. Heavenly Father Thank you for another
life to enjoy, another day to learn, and a
new set of things we will experience. As
we go through our lessons today, may
let us be instruments to do good things.
Help us be obedient, honest, and kind to
one another. In the name of Jesus
Christ. Amen.

3. A blessed and wonderful day ABM
Students!

4. MUSHI, MUSHI,
OLA OLA,
HELLO,HELLO,
KUMUSTA KA!
(3X)
MUSHI, OLA,

9. Let us have a short review & advance
learning

10. PICK, SHARE AND LOVE
Class will be divided into 4 groups. Each will have
a representative who will pick from the draw lots a
specific form of business organization. Each group
will be given 6 minutes to collaborate and present
for 3 minutes a song, poem, poster or role play
about the business organization picked.

12. PICK, SHARE AND LOVE
Class will be divided into 4 groups. Each will have
a representative who will pick from the draw lots a
specific form of business organization. Each group
will be given 6 minutes to collaborate and present
for 3 minutes a song, poem, poster or role play
about the business organization picked.

13. Business According
to Ownership
Partnership
Corporation Cooperative

15. CRITERIA EXCELLENT(4) GOOD (3) FAIR (2) WEAK (1)
Content (50%)
Conveys full
understanding of
the content
Creativity and
Originality (30%)
Teamwork (20%)
Total (100%)
Rubric for Pick, Share and Express

17. Forms of Business
Organization

18. Think of a business you would want to have
in the future….

19. FORMS OF BUSINESS
ORGANIZATIONS

20. What is a BUSINESS?
Businesses are organizations commonly made to
earn profit. Throughout its life, a company deals with
multiple groups of individuals to achieve its end goal
of profit generation. Nonetheless, there are
organizations established not for the pursuit of
profit. These are not-for-profit organizations which
include charitable institutions, public hospitals,
public schools, etc.
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21. FR
There are four forms of business organizations
available to aspiring businessmen – sole
proprietorship, partnership, corporation and
cooperative. Each form has its own advantages
and disadvantages. Aspiring businessmen take
this into consideration before deciding what
form their businesses will take. However, some
types of businesses formed by individuals for
the practice of their profession are not allowed
to be corporations.
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22. FR
FORMS OF BUSINESS ORGANIZATIONS
Sole Proprietorship
• As the name suggests, sole proprietorships are businesses
formed by a single individual. It is considered as the simplest
form under which a business can operate. Many businesses start
as sole proprietorships before transforming into partnerships or
corporations. A sole proprietorship has its share of advantages
and disadvantages that a person should take into account.
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23. FR
23
Sole Proprietorship
Template Editing
Instructions and Feedback
Advantages
• Ease of Formation
• The owner has full
control of the business
• Owners can mix
personal and business
assets
• Owners have all the
profits for themselves
• Simple Taxation
Disadvantages
• Unlimited Liability
• Difficulty of raising
additional capital
• Owner’s bias

24. FR
FORMS OF BUSINESS ORGANIZATIONS
Partnership
• According to the partnership code of the Philippines, Title IX of
the Civil Code of the Philippines, a partnership is a contract
whereby two or more persons bind themselves to contribute
money, property or industry to a common fund with the
intention of dividing the profits among themselves. Two or
more persons may also form a partnership for the exercise of a
profession.
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25. FR
Steps Used in Registering Partnership
• Verify business name with the SEC
• File articles of co-partnership with SEC
• Register the business name with DTI (Department of Trade
and Industries)
• Secure a barangay permit in the place where the business is
located (renewable every year)
• Apply business permit in the municipality where the
business is located (renewable every year)
• Register the business with the BIR (BIR requires an annual
registration fee)
• Register the business with the SSS, Philhealth and HDMF
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26. FR
26
General Features of a Partnership
Template Editing
Instructions and Feedback
Separ
ate
legal
existe
nce
Mutual
Agency
Unlimi
ted
Liabilit
y
Limit
ed
Life
Co-
ownersh
ip of
partners
hip
property
Partners
hip
Agreem
ent

27. FR
27
Partnership
Template Editing
Instructions and Feedback
Advantages
• Easier to create than
a corporation
• Better ability to
acquire additional
capital than a sole
proprietorship
• Larger pool of
human capital than
sole proprietorships
Disadvantages
• Unlimited Liability
• Mutual agency
• Limited life

28. FR
28
Other Forms of Partnership
Template Editing
Instructions and Feedback
In a limited partnership, at least one partner has
unlimited liability and at least one partner has
limited liability. Partners having unlimited liability
are called general partners while those with limited
liability are called limited partners.
Limited Partnership

29. FR
29
Other Forms of Partnership
Template Editing
Instructions and Feedback
This type of partnership aims to protect innocent partners
from the malpractice and wrongdoings of other partners.
The limited liability partnership is mostly used by
individuals forming a partnership for the practice of a
profession (e.g., lawyers, accountants, medical
professionals, auditors).
Limited Liability
Partnership

30. FR
30
Other Forms of Partnership
Template Editing
Instructions and Feedback
This is another form of organization having
partnership characteristics. Limited liability
companies have features of both a corporation and
a partnership. The owners are called members and
they enjoy limited liability.
Limited Liability Company

31. FR
FORMS OF BUSINESS ORGANIZATIONS
Corporation
•Our law defines a corporation as “an artificial being created
by operation of law, having the rights of succession and the
powers, attributes, and properties expressly authorized by
law or incident to its existence.
•Unlike in the definition of partnership, the law did not
mention the purpose of a corporation. Corporations can be
organized to generate profit or it may be not-for-profit. This
is one classification of corporations. It can also be classified
as being publicly held with thousands of stockholders or
privately held with only a few. 31

32. FR
32
General Features of a Corporation
Template Editing
Instructions and Feedback
Separ
ate
legal
existe
nce
Limi
ted
Liabi
lity
Trans
ferabl
e
owne
rship
rights
Virtu
ally
Unlim
ited
Life
Corp
oratio
n
Mana
geme
nt
Gove
rnme
nt
regul
ation
s
Dou
ble
Taxa
tion
Divi
de
nds

33. FR
33
Corporation
Template Editing
Instructions and Feedback
Advantages
• Ability to acquire
additional capital
• Transferable
ownership rights
• Limited liability of
stockholders
• Virtually unlimited life
• Large pool of human
capital
Disadvantages
• Heavily regulated by
the government
• Double Taxation
• Not easy to form
• More expensive to
form than sole
proprietorships and
partnerships

34. FR
Steps Used in Registering Corporation
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• Verify business name with the SEC
• Draft and execute the articles of incorporation and bylaws
by incorporators
• Deposit the cash collected from subscription
• File articles of incorporation anb bylaws with SEC
• Register the business with the DTI
• Secure a barangay permit in the place where the business is
located (renewable every year)
• Apply business permit in the municipality where the
business is located (renewable every year)
• Register the business with the BIR (BIR requires an annual
registration fee)
• Register the business with the SSS, Philhealth and HDMF

35. FR
A cooperative is a business that is owned by a group
of individuals who also serves as benefactors to the
business endeavor. A cooperative usually requires
at least fifteen members to function. Usually, a
board of directors and officers are elected to
manage the business operation. Members can
become part of the cooperative by purchasing
shares. A cooperative can either be corporated or
unincorporated.
35

36. FR
36
Corporation
Template Editing
Instructions and Feedback
Advantages
• Unlimited life. The
change of members does
not dissolve the
business.
• Democratic organization.
Social equality of
members is the most
important component of
cooperatives. It ensures
that it serves its
members’ needs.
Disadvantages
• Obtaining capital through
investors. Cooperative has a
“one-member-one vote”
philosophy. Big investors
may choose to invest their
money to other firms where
their voting power is equal
to the ownership interest
• Lack of membership
participation. The
cooperative may not fully
function if members do not
involve themselves in the
routine business operations.

37. FR
Steps Used in Registering Cooperative
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• Prepare general statement to help measure
the cooperative’s chance of success.
• Draft cooperative’s by-laws
• Draft the articles of cooperation
• Secure bond for accountable officer/s.
• Register with cooperative development
authority (CDA)

38. FR
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39. Let us check your
understanding!!!

40. Identification: Identify what
concept is being referred to.
Choose from the given
words/phrases. Write only
the letter of the best answer.

41. 1.A business organization
formed by at lease fifteen
individuals, operated to
benefit each member.

42. 2. Business operation that
involves purchasing and
converting raw materials
into finished products.

43. 3. An economic unit that
sells goods and services
with the prime objective of
generating profit.

44. 4. A business organized by
two or more individuals
who agreed to contribute
money or property.

45. 5. Contains provisions for
internal administration of
the corporation.

46. 6. A business which is easy
to form and with minimal
requirement.

47. 7. A vulcanizing shop

48. 8. A business organization
with unlimited commercial
life.

49. 9. Owners who originally
formed the corporation

50. 10. A botique shop

52. Assignment:
Identify three businesses in the
community. Determine what kind of
business organization each company is.
https://www.businesslist.ph/location/gapan

53. Answer these questions:
1. Why do you think these companies elect to use
the particular form of business organization?
2. What are the advantages derived by the
companies in the form of business organization
they use?
3. How can these companies overcome the
disadvantages of form of business organization
they use?

54. A blessed and wonderful day ABM
Students!