Unit 2 - Business Organizations

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BUSINESS

ORGANIZATIONS
ORGANIZATION, OPERATIONS, REGULATION, SAMPLES
APPREHENSIONS REGARDING BUSINESS
FORMS OF
SINGLE
BUSINESS PROPRIETORSHIP
PARTNERSHIP
ORGANIZATIONS
According to Organization

CORPORATION
SINGLE PROPRIETORSHIP
• Single owner
• The business is the owner

ADVANTAGES DISADVANTAGES

All profits go to the owner Death of the owner – death of the


All decisions made by the business
owner Limited capital
Easiest to form and operate

NOTE: Once the owner of a single proprietorship dies, whoever takes over
the business must re-register with the Department of Trade and Industry.
SINGLE PROPRIETORSHIPS

Michael Dell Jeff Bezos


1984 1994
SINGLE PROPRIETORSHIPS

Tony Tan Caktiong


Founded: 1978
PARTNERSHIP
• Two or more persons
• Written document stating the terms of partnership
• Includes agreed upon profit sharing arrangement
• Owner is called a partner
• Advantages? Disadvantages?

For enrichment: Civil Code of the Philippines Articles 1767 - 1867


PARTNERSHIPS

Gordon Bowker
Jerry Baldwin
Zev Siegl
1971
PARTNERSHIPS

Steve Jobs
Steve Wozniak
Ronald Wayne
1976
PARTNERSHIPS

Founded: 1942
Socorro Ramos & Jose Ramos
CORPORATIONS
• Business organized as a separate legal entity
• Ownership divided into transferable shares of stocks
• Owners = stockholders or shareholders each with a stock
certificate
• Voting rights proportionate on percentage of ownership
• Management of the business is delegated to the Board of
Directors

Regulated by the Securities and Exchange Commission


BUY STOCKS!!!
CORPORATION CURRENT PRICE 52-WEEK HIGH 52-WEEK LOW Min Shares
Ayala Corp 920 1,024 838 10
BDO 141 143 107 10
GLOBE 2,196 2,380 1,610 10
JFC 282 328 243 10
PETRON 6 9 5 100
SM PRIME 38 43 31 100
URC 178 180 119 10
PRICE RANGE BOARD LOT
0.00001 to 0.0099 1 million
0.010 to 0.049 100 K
0.050 to 0.495 10 K
0.5 to 4.99 1K
10 to 49.95 100 shares
50 to 999.50 10 shares
1,000 UP 5 shares
COOPERATIVES

• Open and voluntary membership


• Democratic control – equal voting rights
• Division of net surplus
• Cooperative education
• Federation - Cooperative among cooperatives
COOPERATIVES

CREDIT CONSUMER PRODUCER SERVICE MULTIPURPOSE

Regulated through the Philippine Cooperative Code of 2008 and by the


Philippine Cooperatives Authority
COOPERATIVES

ADVANTAGES CHALLENGES
• Tax exemption privilege • Limited distribution of surplus
• Promotes concept of • Requires continuous education
sharing resource programs for members
• Requires active and direct
participation
COOPERATIVES

Zenaida Maranan
President
FEJODAP
COOPERATIVES

Federation of Manila
Public School
Teachers
COOPERATIVES

• Veterans Federation of the Philippines


• Alliance of Philippine Fishing Federation Incorporated
• Philippine Federation of Credit Cooperatives
• National Federation of Women’s Clubs in the Philippines
• Federation of Mutual Savings and Credit Cooperatives of the Philippines
How do the following businesses earn
TYPES OF profit?
BUSINESS • Bruno’s Barbers
ORGANIZATIONS
BASED ON • Manila Hotel
OPERATIONS • Susan’s Roces Flower Shop
• Wash Your Problem Laundry Shop
• Bread Pit Bakeshop
• Fish be with You Fish Shop
TYPES OF BUSINESSES ACCORDING TO
OPERATIONS

SERVICE MERCHANDISING MANUFACTURING


Service, Merchandising or Manufacturing?
• Provides services to customers
• Sells goods to customers
• Raw materials are available
• Goods to be sold are purchased from a supplier
• Goods to be sold are produced by the company itself
• Bakery
• Barbershop
• Cellphone store
• Abenson appliances

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