3. Business organization
•is a collection of people
working together to achieve a
common purpose in relation to
their organization’s mission,
vision, goals, and objectives,
sharing a common
organizational culture.
5. A. Sole proprietorship
• Also referred to as “single proprietorship”.
• A business that is owned by only one individual for the
practice of trade or profession.
• Simple and least costly form of ownership among other
forms of business. It is registered through the Bureau of
Trade Regulation and Consumer Protection (BTRCP) of the
Department of Trade and Industry (DTI).
• Common to small business entities like beauty salon,
computer shop, repair shop, and grocery store.
6.
7.
8. B. Partnership
• Business that is owned by two or more persons pooling their
resources together as common fund. (The details of the
arrangement between the partners are outlined in a written
document called Articles of Partnership).
• Just like corporation, it is registered with the Securities and
Exchange Commission (SEC).
• The partners are normally involved in the management and
operation of the business.
• Profits are divided among partners based on their agreed
sharing. The owner is called partner.
• The most common example of partnerships are professional
partnerships, such as law and accounting firms.
9.
10.
11. C. Corporation
•A business organized as a separate legal entity
(artificial person) under the corporation law with
ownership divided into transferable shares of stocks. It
is a business required to have five to fifteen
incorporators. Incorporators refer to those who
originally formed the corporation. The existence of the
corporation is evidenced by Articles of Incorporation
and by-laws that are duly approved by Securities and
Exchange Commission (SEC).
12. •Section 2 of the Corporation Code
of the Philippines defines
corporation as “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.”
13. •It has a legal personality that is separate and distinct
from the owners. The owners are called stockholders
or shareholders. The voting rights of a shareholder is
generally based on the percentage of ownership.
•Management of the business is delegated by the
shareholders to the Board of Directors.
•Example includes :
•- General Motors Corporations - an icon for
craftsmanship, Apple Corporations - one of the
famous tech companies and Amazon Corporation as
the world’s leading ecommerce and innovation
company.
14.
15.
16. D. Cooperative
• Duly registered association of persons with a common bond
of interest, voluntarily joining together to achieve their
social, economic and cultural needs.
• Usually requires at least fifteen members to function.
Usually a board of directors and officers are elected to
manage the business operation.
The owners are called members who contribute
equitable to the capital of the cooperative.
The members are expected to patronize their products
and services.
17. •The word “cooperative” appears in the
name of the entity.
•This form of business organization is
regulated by the Cooperative
Development Authority (CDA).
•Shall exist for a period not exceeding
fifty (50) years from date of registration
sooner dissolved or unless said period is
extended.
18. •Types of cooperatives:
credit cooperative,
consumer cooperative
multi-purpose cooperative
electric cooperative
water service cooperative
fishermen cooperative
health service cooperative
cooperative bank
marketing cooperative
19.
20. ROLES OF BUSINESS ORGANIZATIONS IN
RELATION TO THE ECONOMY
•Business plays an important role in the economy of
the country. The success of business translates to the
economic well-being of a company and offers
improved quality of life of the citizens of the country
hence, as a whole affect directly to the world’s
economy.
•Here, we will delve the several aspects that relate the
importance of business in today’s economic
environment and society.
21. A. Provide Employment
• New employment opportunities provide chances for previously
unemployed or underemployed workers to increase take-home pay
and meet their financial obligations.
• Increased employee’s earnings lead to a higher rate of consumer
spending, which benefits other businesses who depend on consumer
sales to stay open thus, contributes to a healthier economy in the
locality.
• Providing employment opportunities for all is the single most effective
means of tackling poverty and social exclusion, thus improve an
individual’s standard of living.
• Employing people at each local business contributes to the economy
of the country.
22. B. Drives the Economy through Investment
• Businesses encourage investment by keeping their profit margins large
and their cost of doing business low.
• “Investing money in a business either in the form of technology or in the
form of money definitely helps the economic development. If businesses
have sufficient investment, it will produce more goods and can provide
more employment opportunities to the public (labors or staff members).
If employment opportunity increases in a country, income and standard
of living of the employees also increases. If standard of living increases
automatically the employees (labors or staff members) consumption
power also increases as employees and public consume more goods
from the business consequently, businesses will be benefited so the
economic conditions of the country will also develop” (TS 2018)
23. C. Production of Goods and Services
• Businesses are designed to serve a particular need that people have, and
to provide trusted goods and services related to that need.
• In the modern economy, most firms and employees have found that to be
competitive with other firms and employees they must become very good
at producing quality goods and services because, when consumer’s
confidence or trust dips in business, it is not just sales that are affected, this
mistrust has a ripple effect which can result in a decline in a country’s
general economy.
• No matter how efficiently you make a product or how special the service is
that you deliver, if you lose consumer confidence as a result of your
business decision, consumers won’t support you by purchasing your goods
and services, and then nobody benefits.
24. D. Increase Government’s Revenue
• Businesses help increase governments revenue through the payment
of taxes hence, without business, there would not be much tax which
will on the other hand affect the government’s revenue generation.
• The increased presence of companies in the region translates to
increased tax revenue. Taxes that are collected by the government will
be used to fund government expenditures and programs. It is also
used for the salaries of public employees such as teachers, nurses,
doctors, agriculturist, policemen and many more.
• Additionally, business growth and increased sales contribute to better
national income in the form of higher tax revenue and higher
government spending, which can directly translate to better
maintenance and offerings of local infrastructure and services that
benefit the community.
25.
26.
27.
28.
29.
30.
31. Changing Forms of Business
Organization
•Change is constant and
organizations continue to
undergo various changes to
ensure effectiveness,
efficiency, and relevance in
the world of business.
32. Simple business organizations
•These refers to business organizations
with few departments, centralized
authority with a wide span of control,
and with few formal rules and
regulations. These are easy to manage
because of their simple form. However,
change of form follows as the company
expands its operation.
33. Functional business
organizations
•These pertain to business organizations
that group together those with similar or
related specialized duties that introduce
the concept of delegation of authority to
functional managers like the personnel
manager, sales manager, or financial
manager but allow CEO’s to retain
authority for strategic decisions.
34.
35. Divisional business
organizations
•These are business organizations
made up of separate business
units that are semi-autonomous
or semi-independent, with division
head responsible for his or her
unit’s performance.
36.
37.
38. Profit business
organizations
•These are business organizations designed
for the purpose of achieving their
organization’s mission, vision, goals, and
objectives and maintaining their
organizational stability through income
generation and profit-making activities.
Immediate revenues or cost factors account
for their success or failure.
39.
40. Non-profit
organizations
•These are business organizations designed
for the purpose of achieving organization’s
mission, vision, goals, and objectives,
providing service to clients without
expecting monetary gains or financial
benefits for their endeavours. Their success
or failure may be measured by the high or
low evaluation scores they obtain.
41.
42.
43. Business organizations
affect and are affected by
the environment: therefore,
change becomes inevitable.
Other forms of business
organizations:
44. 1. Team structures
– where organizations as a
whole is made up of work teams
(small, but focused) that work
together to achieve the
organization’s purpose; popular
in collectivist culture.
45. 2. Matrix business organizations
– those which assign experts or
specialist belonging to different
functional departments to work
together on one or more projects;
exhibits dual reporting relationships
in which managers report to two
superiors – the functional manager
and the divisional manager.
46. 3. Project business structure
– a business organizational form
with a flexible design, where the
employees continuously work on
projects assigned to them; projects
may be short-term or long-term
and members disband when the
project is completed.
47. 4. Boundaryless business organization
- a business organization whose
design eliminates vertical,
horizontal, or external boundaries,
and is described to be flexible and
unstructured; there are no barriers
to information flow and, therefore,
completion of work is fast.
48. 5. Virtual business organization
– made up of a small group of
full-time workers and outside
experts who are hired on a
temporary basis to work on
assigned projects; members
usually communicate online.
49. TYPE OF BUSINESS SOLE/SINGLE PROPREITORSHIP
Number of Business Owner One ( 1 )
How it is formed • Raise capital
• Register / secure necessary documents
Termination of Business • The business is sold to another person or
persons.
• The owner abandons the business.
• If the owner files for personal bankruptcy.
Example • Sampaloc Hardware
• Dano’s Hardware
• Norie’s Pharmacy
50. TYPE OF BUSINESS PARTNERSHIP
Number of Business Owner Two (2) or more
How it is formed • Raise capital
• Register / secure necessary documents
Termination of Business •One of the partners resigns or otherwise withdraws from the
partnership;
•One or more partners expel another partner;
•The partnership business files for bankruptcy;
•The partners agree to dissolve the partnership;
•The partnership business is illegal;
•One partner buys out all the other partners.
Example • J&S Lucky Ink Co
