Q2 BUSINESS ORGANIZATIONS Flashcards
economic institutions that engage in production and any business endeavors to earn profit
business organizations
managed and owned by one individual
sole proprietorship
organization of two or more individuals who agree to put their money and properties together to put up a business or industry
partnership
kinds of partnership
limited and general
the ownership of the organization is shared by many individuals.
corporation
an organization in which the members own the stocks.
cooperative
the characteristics of sole proprietorship
one man entity
characteristics of partnership
built on mutual trust, limited partnership, general partnership
characteristic of corporation
open and closed corporations, stock and non-stock
characteristics of cooperative
pro-people democratic, service over profit
the registration of sole proprietorship
local government units
the registration of partnership
Securities and Exchange Commission
the registration of corporation
Securities and Exchange Commission
the registration of cooperative
Cooperatives Development Authority
examples of sole proprietorship
IKEA, Mars,
examples of partnership
Red Bull, GoPro
examples of corporation
Apple, Amazon
examples of cooperative
Ace hardware, Ocean spray
advantages of sole proprietorship
simple to form and involve less legal documentation, the owner has complete ownership and control
disadvantages of sole proprietorship
less financial and legal protection, higher self-employment taxes
advantages of partnership
better work life balance, easy information flow
disadvantages of partnership
shared liability, conflict between partners.
advantages of corporation
Has a greater ability to acquire funds, Has a continuity of existence
disadvantages of corporation
Costly, It is complicated
