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OWNERSHIPAND

STRUCTURALFORMS OF BUSINESS

ENTERPRISE

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OWNERSHIP It means the legal title to a thingor control over the thing owned,

the right possession and disposal. Title to and possession of theassets of the enterprise , the

power to determine the policiesof the operation and the right toreceive and dispose of the

proceeds.

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TYPES OF BUSINESS

OWNERSHIP Private Ownership

When an enterprise

is so organized thatprivate individualsexercise and enjoythe rights and

privileges of anowner in their owninterest.

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TYPES OF BUSINESS

OWNERSHIP Public Ownership

Controlled bypolitical bodies as amunicipal , provincialor nationalgovernment or byany instrumentalitycreated by them

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TYPES OF BUSINESS

OWNERSHIP Mixed Ownership

It exists when the

elements ofownership aredivided such thatprivate persons and

public bodies sharein the operation ofthe same enterprise

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FORMS OF PRIVATEOWNERSHIP

1. Individual or single or sole

proprietorship2. Partnership

3. Cooperative Organization

4. Corporation

5. Corporate combination

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FACTORS INVOLVEDIN BUSINESS FORMS

The nature and size ofthe business

The capital requiredand the means ofprocuring it

The length of time theenterprise is expectedto operate

The technical conditions

affecting the enterprise

The types of productsto be manufactured

The method andvolume of production

The kind of markets to

be supplied andmethods of marketing

The competitivenature of the chosen

industry.

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1. SINGLE

PROPRIETORSHIP The ownership is vested in oneperson.

This form of ownership is small,requires but little amount of

capital and is readily establishedunder the control of one man.

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ADVANTAGES OF

SINGLE PROPRIETORSHIP It is easy to start and to terminate

Control and management lies

entirely in the hands of the ownerOnly a small amount of capital isrequired in starting

Profits belong entirely to theowner

High Credit Standing

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DISADVANTAGES OF

SINGLE PROPRIETORSHIPLimited judgment and

wisdom.Limited amount of capital

Unlimited liability

Difficulties of Management

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2. PARTNERSHIPThe business partnership is a

business relationship betweentwo or more persons competentto make contracts for the

purpose of engaging in abusiness activity.

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ADVANTAGES OF

PARTNERSHIP It could be as easily formed as the single

proprietorship.

There are more persons to conduct thebusiness and to handle its problems.

A partnership has access to greater or

better credit facilities The combined ability and resources of

partners are a source of strength.

Retention of Valuable Employees

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DISADVANTAGES OF

PARTNERSHIPUnlimited liability of partners

Disagreement betweenpartners often lead to delayand difficulties which could

endanger the enterprise.Easy dissolution

Frozen Investment

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LIMITED PARTNERSHIPOne or more of the partners ina limited partnership must begeneral partners, who haveunlimited liability. The limited or

special partners have onlylimited liability, which is up tothe extent of their investment.

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ADVANTAGES OF

LIMITED PARTNERSHIPThere is a single direction ofmanagement , thus there isunity and prompt action

The limited liability of

special or limited partners ,serves as good inducement

of investments.

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DISADVANTAGES OF

LIMITED PARTNERSHIPThe unlimited power

given to general partnersmay result in abuse.

Possibility of collusionamong partners to

defraud the creditors

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KINDS OF PARTNERS1. General Partner2. Limited Partner

3. Capitalist partner4. Industrial Partner

5. Managing Partner

6. Liquidating Partner

9. Ostensible Partner

10. Secret Partner

11. Silent Partner12. Dormant Partner

13. Nominal Partner

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3. COOPERATIVE

ORGANIZATIONA cooperative association

has some elements of alarge partnership and alsomany features of a

corporation , although it isdistinct from both .

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KINDS OF

COOPERATIVEThe Consumers Cooperative

It draws its members from thegeneral public. Thiscooperative carries on retail

trade operations.

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4. CORPORATIONA corporation is an artificial

being created by operation oflaw having the right ofsuccession and the powers,

attributes, and properties,expressly authorized by law or

incident to its existence.

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NATURE ANDCHARACTERISTICS OF A

CORPORATION:1. It is an artificial business unit, and its

creation is through the process of law.

2. The basic structure of a corporation issimple.

3. The corporation is of wide scope.

4. The existence of a corporation ispractically permanent by operation oflaw.

5. The function of a corporation is public.

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