It is a form of a business organization initiated, organized, owned or capitalized, and managed by a single person.

It is a known as the capitalist, manger, administrator and in the beginning of the business, he/she practically does everything for the business.

It can be easily brought into existence without any formalities and is easily terminated.

The ownership, control, and management are vested in one person.

The owners works for himself/herself and determines his/her own destiny

The owner is free to adopts change readily

It is generally known as free from control.

Advantages -Easily created and terminated -Direct, undiluted action - All rewards to owners -Flexibility -Minimum regulation and taxation

Owners must be prepared to satisfy business debts with their own personal assets if the business is unable to meet its obligations.

Equity capital is limited to the assets of the owner.

This can be a serious restriction on growth and expansion

If the owner dies or becomes seriously ills, the business is immediately jeopardized.

Skills that can benefit the business are limited to the skills and capabilities of the owner, which might not be enough for the demands of the business

A two or more business partner who co-own a business for the purpose of making a profit

Shares.. -Assets -Liability -Profit of the business according to the terms of the partnership agreement

What are the types of Partners?

The one who shares ownership and management of the business, and is liable to the extent of his/her separate property after all the assets of the partnership are exhausted

Refers to partners with limited financial liability and they do not take active role in the management of the firm.

Refers to partners who do not take active participation in the operation of the business, but they are generally known to be partners of the business.

They are neither to active in the partnership nor they are generally known to be associated with the business.

Type of partner who contributes money or property to the common fund of the partnership

Who is designated to manage the operations of the business of the partnership

Who contribute knowlegde or personal services to the partnership

Who takes active part in the business, but is not known to be partner by outside parties

This is a partner who is actually not a partner, but is held out or represented as a partner

This is a partner who is designated to wind up or settle the affairs of the partnership after dissolution

-Pooling Resources - Ability to Obtain Capital - Simplicity and Incentive - Limited Regulation and taxation

Two or more persons who, as a group, have more business potential than as individual. -Ideas -Managerial talent - Money -Fixed Assets Frequently combined to produce a succesful business

Combined financial resources of all the partners stand behind the negotations for the business borrowing

Motivated by knowing that the success of the partnership is in part due to his or hero own efforts.

A partnership, much like a proprietorship , is subject to a minimum amount of regulation, and the partners are taxed on their own individual incomes.

-Unlimited liability -Tenuous existence -Independence on managment harmony and coordination -Problems in share liquidation

An articial being Invisible intangible Exist only in contemplation of law

who can sell their interest in the corporation without affecting the continuity of its operations. The life of the corporation is dependent or distinct from that of the owners or stockholders.

The liability of a stockholder in a corporation is limited to the amount invested in the stock

May own property , but is not affected by the death or withdrawl of its stockholders, and is entitled to due process and equal protection under the " FOURTEEN AMENDMENT OF THE CONSTITUTION."

Shares of stock can be sold or transferred at will

new corpation with a salable ideas can provide oppurtunities to sell stock to a variety of investors.

A better chance to create incentives for employees. -Stockownership -Bonuses -Pension plan -Insurance Program -Other fringe benefits - Tax advantages

Creating a corporation may require considerable... - Time - Efforts - Expense

Considerably more control and more exacting compliance with regulations than proprietorship or partnership

The cost involved and time requirement for the formation or incorporation registration process

nature of corpation is subject to certain tax regulation, which is more costly from the viewpoints of both national income tax and local government tax rule

nature of a corporation, boundary between the powers of the owner/founder and the managers of the busines, may pose contraint and threat to the founders or stockholders of the corporation

Also Cooperative code of the Philippines

Cooperative as duly registered association of persons, with a common bond of interest, who have vouluntarly joined together to achieved a lawful common social or economic end, making equitable contribution to the capital required , and accepting a fair share of the risk

Membership is open to all individuals, regardless of their social, politcal, radical or religious background or beliefs

Affairs of the organization are administered by personal elected or appointed in accordance with their approved constitution and By-laws

Shared capital receives strictly limited rate of interest

Net surplus arising out of the operations of cooperative belongs to its members and shall be equitably distributed for cooperative developement common services individual reserved fund, and for limited interest on capital and/ or patronage

All cooperatives are mandated to make provision for the education of their member officers, employees, and of the general public based on the principles of the cooperatives

All cooperatives, in order to best serve the interest of their members and communities, have to actively cooperate with other cooperatives at local, national, and international levels

Tax Privileges Ability to provide direct benefits Inequality of profit distribution The Pro-masses or pro-poor bias

In some government-sponsored projects, the cooperative usually receives subsidy and the other forms of privileges directed at its member

Its members and the entire community its serves in the form of relatively cheaper products and services consistent with its mission of providing services, rather than existence for purely profit motives

Profits are distributed according to the number of stocks. the enterprising or entrepreneurial member of the cooperative who spent much effort will in turn receive relatively lesser rewards as compared to the rest.

The cooperatives appears diametrically opposed to the entrepreneurs' idea of servicing a market niche that is well-off enough to address its dream of profit

which empowers the local government units to take full administrative control of their respective jurisdiction and make legislation , as well as ordiances

- Mayor's permit -Building permit - Sanitary permit -Cigar and liquor permit - NBI Clearance - Barangay Clearance