Beruflich Dokumente
Kultur Dokumente
OWNERSHIP
There are three major types of business
ownership: sole proprietorship, partnership and
corperation. The minor types consist of the joint
stock company, the joint venture, and the business
trust.
SOLE
PROPRIETORSHIP
• The sole proprietorship is a type of business entity owned
and operated by a single person.
ADVANTAGES OF SOLE
PROPRIETOSHIP
• 1. EASE AND COST OF FORMATION
• Among the three ownership forms, the sole
proprietorship is the easiest and least costly to
organize. The only requisites for its legal existence
are the following:
a. the sole owner's resolve to start operating; and
b. getting the required pemits and license.
• 2. SECRECY
• The sole proprietor has the advantage of keeping his
intentions secret. As he does not have, and is not
required by law, to share information with anyone, he
can proceed with his activities in secrecy.
• 3. DISTRIBUTION AND USE OF PROFITS
• If because of his efforts, the business made some
profits, the sole proprietor is the sole beneficiary.
• 6. TAXATION
• The net income of the sole proprietorship is treated as the
personal income of the sole owner and is taxed accordingly.
• 7. CLOSING THE BUSINESS
• Sole proprietorships can be dissolved by the
owners at will. If business conditions had
become unprofitable, the sole proprietor has
the advantage of immediate cessation of
operations.
DISADVANTAGES OF SOLE
PROPRIETORSHIP
• 1. OWNER'S LACK OF ABILITY AND EXPERIENCE
• The success of the sole proprietorship will depend largely on
the management skills of the owner.
• 5. TAX ADVANTAGE
• The income of the partnership is not taxed separately from
the partners' incomes. Any profits derived by the partners are
treated and taxed as their individual incomes.
DISADVANTAGES OF
PARTNERSHIPS
• 1. UNLIMITED LIABILITY
• Although one or two partners may opt to have limited
liability, the remaining partner or partners carry the
burden of unlimited liability
• 2. LIMITED LIFE
• When a partner dies or withdraws from the business,
the partnership is terminated.
• 3. POTENTIAL CONFLICT BETWEEN PARTNERS
• There are occasions when partners diasgree on certain ways
of operating the business; and there are many potential
areas for disagreement.
• 2. LIMITED PARTNERSHIP
• is an arrangement in which the liability of one or more
partners is limited to the amount of asstes they have
invested in the business.
CORPORATION
• A corporation is an enterprise charterd by law,
with most pf the legal rights of a person,
including the right to conduct a business, to
own and sell property, to borrow money, and
to sue or be sued.
ADVANTAGES OF
CORPORATIONS
• 1. LIMITED LIABILITY
• The liability of stockholders is limited to the amount of their
shareholdings.
• 2. EASE OF EXPANSION
• The authority granted to corporations to sell its own shares of
stockprovides a means to pool large amount of funds.
• 3. EASE OF TRANSFERRING OWNERSHIP
• If a stockholder loses interest in the corporation he partly
owns, he may disassociate himself from it by selling or
donating his shares to another person.
• 1. CREDIT UNION
• 2. PRODUCERS COOPERATIVE
• 3. MARKETING COOPERATIVE
• 4. COSUMERS COOPERATIVE
• 5. SERVICE COOPERATIVE
MUTUAL COMPANIES
• is a financial-service firm( such as an insurance company or a
savings and loan association) owned by its policy holders or
depositors.
• BUSINESS TRUST
• it is a legal form of organization in which a trustee is
appointed to manage the business and its opertations
through a trust relationship.