Forms and Functions of
Business Organization
2
•Establishing a business individually or by a group leads to a formation of a business organization
3
Forms of Business Ownership
• Sole or Individual Proprietorship
• Partnership
• Corporation
4
Sole or Individual Proprietorship
• owned and operated by an individual
• best illustrated as professional and service businesses such as
• repair shops, beauty parlors, dental clinics and more
5
Sole or Individual Proprietorship
Easy to start because of small capital for instance P100,00 for a small grocery
6
PARTNERSHIP
• Two or more people contribute money, property or industry for a common fund
• Profit is divided among the partners • The contract is filed with the Securities
and Exchange Commission• A contract of partnership is formed
with the necessary provisions in it called the Articles of Co-partnership
7
PARTNERSHIP
Advantages:– Easy to organize with relatively simple legal
requirements– There are more personal talents are
available– There are more resources (e.g, capital)– Provision for better conditions and facilities
8
PARTNERSHIP
Disadvantages:
– Partnership may be terminated due to death or withdrawal of partners
– Sharing of managerial responsibilities may be a problem
– Management disagreements may happen
9
CORPORATION
a.Composed of 5 to 15 original members organized on a voluntary basis
b. Members are called stockholders or shareholders
10
Roles of stockholders
• share in the ownership of the company jointly with the incorporators
• appoint directors that systematize plans and policies and designate officers
11
CORPORATION• Has its own name• May enter into contracts • May borrow or loan money
• Various persons, through the purchase of shares through stocks, hold ownership
• The principal administrators of the corporation are the following: President, Vice President, Corporate Secretary and Treasurer
12
www.brainybetty.com 13
What stores do you usually patronize?
What stores do you usually patronize?
www.brainybetty.com 14
Retailing is an entrepreneurial
activity which involves all marketing transactions between a seller and a buyer or an end user
www.brainybetty.com 15
Retailing dates back to ancient civilization when trading took place between tribes by exchanging their products. This was known as the barter system- goods exchanged with other goods, one skill
changed with goods,
or one skill exchanged
with another skill.
16
Classification of Retail Outlets
17
According to Ownership
1. Independent Stores- owned and operated by its owner
18
According to Ownership
2. Company store- owned and operated by a company engaged either in a manufacturing or servicing business
19
According to Ownership
3. Manufacturer’s Outlet Stores- line of merchandise which is the product manufactured by its own company and sells it at factory price
20
According to Ownership
4. Chain Stores- group of stores selling the same line of merchandise established in different localities
21
According to Ownership
Cooperative stores- most popular type is the consumer’s cooperative
Patronized by the members itself
Middlemen is eliminated
www.brainybetty.com 22
According to Line of Merchandise
Classification according to the kind of goods or merchandise they sell
1. General Merchandise Store
www.brainybetty.com 23
According to Line of Merchandise
2. On-line or Specialty store- a single type or closely allied types of merchandise.ex. hardware stores,bakeries, shoe stores, grocery stores, RTW’s, furniture stores
www.brainybetty.com 24
According to Line of Merchandise 3. Department Store-One big organized
store divided into departments or units.Eas department carries a single line of merchandise.
25Classification According to Method of Operation
(
26According to Method of Operation1. Traveling Store- -go directly to the consumers instead of the other way around
27According to Method of Operation2. Mail-order Store- Sells good by mail
28According to Method of Operation3. Automatic Vending machine- sell merchandise like softdrinks, sandwiches, candies, and other snack items
29According to Method of Operation
4. Self-Service Stores- consumers are free to pick his choice of merchandise from open shelves and pay these in the cashier’s boot
30According to Method of Operation
5. Full service stores– 24 hours full service allowing consumers to avail of services or merchandise at anytime of the day
31
32
1. Personalized or face –to- face
transactions
33
2.Impersonalized services- Involve less personal
contact between buyers and sellers.
34
3. Indirect level of services
Use of vending machines and the mail-order stores that provide no opportunity at all for a face-to face contact.