FORMS OF BUSINESS ORGANIZATION
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila
GRADUATE SCHOOL OF MANAGEMENT
BUSINESS POLICY
(FORMS OF BUSINESS ORGANIZATION)
Submitted by:
MORESCO, MICAH RUTH S.
Submitted to:
DR. HONORATA PAGADUAN
A business is an organization that uses economic resources or input to provide goods or services to customers in exchange for money or other goods and services. After deciding to start a business, one of the most important issues is the form of business entity that will serve as the vehicle in pursuing the business that will affect the company’s and owner’s legal liability and income tax treatment. The three most common legal forms of business organization are the sole proprietorship, partnership and corporation.
SOLE PROPRIETORHIP
Sole proprietorship is a business owned and operated by an individual for his or her own profit. It is considered as the most common form of business ownership. Typically, the proprietor along with a few employees operates the proprietorship. He or she normally raises capital from personal resources or by borrowing and is responsible for all business decisions. The sole proprietor has unlimited liability meaning his or her total wealth not merely the amount originally invested can be taken to satisfy the creditors in case of dissolution. Majority of sole proprietors are found in service, wholesale or retail industry. Typical examples of sole proprietorship are bike shop, computer shop, sari-sari store or grocery, personal trainer or plumber.
The following are the characteristics of a sole proprietorship:
1. As to ownership and management, the single owner has the sole responsibility of managing the affairs, assets and liabilities of the business for its growth and failure. The proprietor and his business are considered one, which means that assets and liabilities of the business and of the owner are combined without distinction in case of dissolution of the proprietorship.
(University of the City of Manila)
Intramuros, Manila
GRADUATE SCHOOL OF MANAGEMENT
BUSINESS POLICY
(FORMS OF BUSINESS ORGANIZATION)
Submitted by:
MORESCO, MICAH RUTH S.
Submitted to:
DR. HONORATA PAGADUAN
A business is an organization that uses economic resources or input to provide goods or services to customers in exchange for money or other goods and services. After deciding to start a business, one of the most important issues is the form of business entity that will serve as the vehicle in pursuing the business that will affect the company’s and owner’s legal liability and income tax treatment. The three most common legal forms of business organization are the sole proprietorship, partnership and corporation.
SOLE PROPRIETORHIP
Sole proprietorship is a business owned and operated by an individual for his or her own profit. It is considered as the most common form of business ownership. Typically, the proprietor along with a few employees operates the proprietorship. He or she normally raises capital from personal resources or by borrowing and is responsible for all business decisions. The sole proprietor has unlimited liability meaning his or her total wealth not merely the amount originally invested can be taken to satisfy the creditors in case of dissolution. Majority of sole proprietors are found in service, wholesale or retail industry. Typical examples of sole proprietorship are bike shop, computer shop, sari-sari store or grocery, personal trainer or plumber.
The following are the characteristics of a sole proprietorship:
1. As to ownership and management, the single owner has the sole responsibility of managing the affairs, assets and liabilities of the business for its growth and failure. The proprietor and his business are considered one, which means that assets and liabilities of the business and of the owner are combined without distinction in case of dissolution of the proprietorship.