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Chapter 10

“THE BUSINESS
ORGANIZATIONS”
Business and government work
together for progress and development.
Businesses pay the necessary taxes to the
government, and in return, the government
provides the proper infrastructures, such as
electricity, water, roads and highways,
communication, railways, etc. These factors
are essential in improving the efficiency of
operations of the business sector.
FORMS OF BUSINESS
ENTERPRISES
Single or Sole Proprietorship
 a form of business owned by a single person,
known as the proprietor.
 it is the easiest enterprise to set up.
 most of the country’s businesses (including
those who are not registered) belong to single
proprietorship.
 the bulk of self-employed people are single
proprietors, and this include the informal or
unorganized sector.
Example:
 Tutoring – is a business provides learning
assistance to students in a variety of
subjects. Tutors may work with students in
person or through online video chats. Many
tutors have teaching experience or extensive
knowledge on the subject they are teaching.
ORGANIZING A SOLE
PROPRIETORSHIP (MEJORADA 1999)
 Register the business name with the
Department of Trade and Industry.
 Pay the municipal licenses to the local
government.
 Apply for VAT or non- Vat number with the
Bureau of Internal Revenue (BIR).
 Register with the BIR the books of accounts
(simplified bookkeeping records or journals and
ledger) and the business forms to be used (sales
invoices, cash sales invoices, officials receipts,
etc.).
ADVANTAGES OF SOLE
PROPRIETORSHIP
 It is easy to organize.
 Its organization and operation only involve
few business requirements.
 The single proprietor is the boss.
 Financial operations are not complicated
 The owner acquires all the profits.
DISADVANTAGE OF SOLE
PROPRIOTORSHIP
 Limited ability to raise capital.
 The sole proprietor has unlimited liability.
 Limited ability to expand.
 Business is entirely a responsibility of the
owner.