1. Session 6
Business Plan Development:
Business Description
Powerpoint Presentation by:
RUDOLPH D. VELASCO
Entrepreneurship and Business
Planning
2. Choosing the Form of Business Organization
Form of Business Organization
3.Sole or Single Proprietorship
4.Partnership
5.Corporation
6.Cooperative
3. SINGLE PROPRIETORSHIP
This is a form of business organization that
is owned and usually managed by one
person.
It is the oldest and simplest form of business
ownership.
The easiest to start.
They dominate the retailing, agriculture
and service industries.
4. ADVANTAGES OF SINGLE PROPRIETORSHIP
1. Ease and low cost of formation and
dissolution.
2. Retention of all profits.
3. Independence and flexibility.
4. Tax advantage and less government
regulation
5. DISADVANTAGES OF SOLE PROPRIETORSHIP
1. Unlimited Liability
2. Lack of Stability
3. Limited access to credit
4. Limited business skills and
knowledge
6. PARTNERSHIP
It is an association of two or more persons
who act as co-owners of a business.
Each partner contributes money, property
or service to their organization.
They are usually engaged in accounting,
law, advertising, real estate and retailing.
TWO TYPES OF PARTNERS
General Partners
Limited Partners
7. ADVANTAGES OF PARTNERSHIP
1. Easy to organize
2. Availability of more
capital and credit.
3. Retention of profits
4. Better business skills
and knowledge
9. CORPORATION
It is an artificial being created by operation of
law, having the right of succession, and the
powers, attributes and properties expressly
authorized by law or incident to its existence.
Stocks – shares or certificates of ownership of
a corporation.
Two types
Private or close corporations
Open corporations
10. ADVANTAGES OF A CORPORATION
1.Limited liability
2.Easy to raise capital
3.Perpetual life
4.Specialized
management
11. DISADVANTAGES OF A CORPORATION
1. Difficult to organize
2. Strictly regulated and supervised by
the government
3. Some corporations are socially
irresponsible
4. Formal and impersonal employer-
employee relationship
12. The COOPERATIVE : An Enterprise for the Poor
A duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful
common social or economic end, making equitable contributions
to the capital required and accepting a fair share of the risks and
benefits of the undertaking in accordance with universally
accepted principles of cooperation which include the following
2.Open and voluntary membership
3.Democratic control
4.Limited Interest on capital
5.Division of net surplus
6.Cooperative education
7.Cooperation with other cooperatives
14. Output # 2
Business Description
Business Description
Business Background
Proposed Name of the Business and Rationale
Type of Business Organization
Location of Head Office and Factory