Escolar Documentos
Profissional Documentos
Cultura Documentos
GROUP INTO 4
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVE
WRITE WHAT ISN REQUIRED:
• NOUMBERS OF MEMBERS
• EXTEND OF LIABILITY
• CAPITALIZATION
• OWNERS
1. SOLE PROPRIETORSHIP
•owned by only one person
•easy to set-up and is the least costly
•the owner faces unlimited liability - the creditors
of the business may go after the personal assets
of the owner if the business cannot pay them.
•the sole proprietorship form is usually adopted by
small business entities.
•Income tax
2. PARTNERSHIP
•owned by two or more persons who contribute
resources, divide the profits of the business among
themselves 1) general partnerships, all partners have
unlimited liability 2)limited partnerships, creditors
cannot go after the personal assets of the limited
partners.
•Tax on individual income
3. CORPORATION
• organization that has a separate legal
personality from its owners.
ownership in a stock corporation is represented
by shares of stock.
•owners enjoy limited liability but have limited
involvement in operations, the board of directors,
an elected group from the stockholders, controls
the activities of the corporation.
OTHER FORMS: limited liability company
•limited liability companies (llc)
•characteristics of both a corporation and a
partnership, it is not a corporation.
•owners enjoy limited liability like in a corporation. an
llc may elect to be taxed as a sole proprietorship, a
partnership, or a corporation.
OTHER FORMS: Cooperative
•owned by a group of individuals and is operated for
their mutual benefit. Owner- members
•some examples of cooperatives are: water and
electricity (utility) cooperatives, cooperative
banking, credit unions, and housing cooperatives
COOPERATIVE
•some examples of cooperatives are:
water and electricity (utility)
cooperatives, cooperative banking,
credit unions, and housing
cooperatives
Assignment: Fill Up Advantages and Disavantages
LAST
2...
NATURE
OF
BUSINESS
3.