PBO Lesson 3 Flashcards
An establishment intended to carry commercial business by producing goods or services and meet the customers’ needs.
Most of the organizations have a standard such as social structure, purpose goals, utilization of resources, rules and regulations, etc.
Business Organization
Three Main Types of Business Organization:
- Sole proprietorship,
- partnership, and
- corporation (also include
- cooperatives and
- non-profit organizations)
The Philippine law defines sole ___________ as a business structure owned by a lone individual who has complete control/authority of its own and holds all the assets, personally owes and answers to all liabilities and losses.
- Sole Proprietorship
The Philippine Civil Code provides for a definition of a ___________ as follows: Art. 1767.
By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.
- Partnership
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 incidental to its existence.
- Corporation
Types of Partnership
- General Partnership
Easiest and cheapest type of partnership to form.
Two or more general partners own it, with joint and several legal liabilities for all debts and obligations.
They jointly manage and control the business, simple to dissolve.
- Limited Partnership
Type of partnership that limits the legal liability of some partners for debts and obligations.
At least one limited partner is a passive contributor of cash and assets.
- Limited Liability Partnership
An extension of a general partnership that limits the legal liability of all partners.
General partners in this type of partnership have protection from the wrongful acts of the other partners, such as negligence, misbehavior, and other unprofessional conduct.
Easiest and cheapest type of partnership to form.
Two or more general partners own it, with joint and several legal liabilities for all debts and obligations.
They jointly manage and control the business, simple to dissolve.
- General Partnership
Type of partnership that limits the legal liability of some partners for debts and obligations.
At least one limited partner is a passive contributor of cash and assets.
- Limited Partnership
An extension of a general partnership that limits the legal liability of all partners.
General partners in this type of partnership have protection from the wrongful acts of the other partners, such as negligence, misbehavior, and other unprofessional conduct.
- Limited Liability Partnership
A legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals.
Corporations
Or equity, is a security that represents the ownership of a fraction of the issuing corporation.
Stock
Combinations of two or more corporations into a larger corporation.
They are closely watched by the government to prevent the creation of monopolies.
Mergers
Types of Mergers
A merger occurring between companies in the same industry.
Ex:
a. Disney+ and HotStar
b. Facebook, WhatsApp, Instagram, and Messenger
- Vertical Merger
Merger between two or more companies that produce separate services or components along the same supply chain.
A way for companies to significantly cut costs, increase profits, expand their market, and turn their focus on bigger goals of improving their company.
Ex:
eBay and PayPal
Globe and Innove
- Conglomerate
A company that owns a controlling stake in smaller companies-independent operators in similar, but sometimes unrelated, industries (i.e. Meta, Google, Unilever, Avala. SM. Aboitiz, etc.)
Any corporation that is registered and operates in more than one country at a time.
Generally, the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries.
Its subsidiaries report to the corporation’s central headquarters (i.e Apple Inc., Microsoft, Amazon, Coca-Cola, etc.).
Multinational Corporations
is an association of persons that is owned and controlled by the people to meet their common economic, social, and/or cultural needs and aspirations through a jointly-owned and democratically controlled business (enterprise).
Cooperatives
A proactive and responsive lead government agency for the promotion of sustained growth and full development of the Philippines cooperatives for them to become broad - based instruments of social justice, equity and balanced national progress.
Cooperative Development Authority (CDA)
A non profit designation and tax-exempt status are given only to organizations that further religious, scientific, charitable, educational, literary, public safety, or cruelty-prevention causes or purposes.
Examples of nonprofit organizations include hospitals, universities, national charities, churches, and foundations.
Non-Profit Organizations (NPOs)
In the Philippines, Non-Profit organizations (NPOs) are typically organized as _________ registered under the Corporation Gode
“non-stock corporations”
