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Activity 1. Understanding The Forms of Business Organizations

This document discusses different forms of business organizations including sole proprietorships, partnerships, corporations, limited liability companies, and cooperatives. It provides the key advantages and disadvantages of each type. For sole proprietorships, the main advantage is control but the main disadvantage is unlimited liability. Partnerships allow for management expertise but have a limited lifespan. Corporations can easily raise funds through stock sales but are costly to establish and run. Limited liability companies protect owners from business debts but can face dissolution risks. Cooperatives have low management costs but lack capital. The document also provides examples of classifying different businesses as sole proprietorships or partnerships based on their owners.

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Kristine Martinez
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243 views

Activity 1. Understanding The Forms of Business Organizations

This document discusses different forms of business organizations including sole proprietorships, partnerships, corporations, limited liability companies, and cooperatives. It provides the key advantages and disadvantages of each type. For sole proprietorships, the main advantage is control but the main disadvantage is unlimited liability. Partnerships allow for management expertise but have a limited lifespan. Corporations can easily raise funds through stock sales but are costly to establish and run. Limited liability companies protect owners from business debts but can face dissolution risks. Cooperatives have low management costs but lack capital. The document also provides examples of classifying different businesses as sole proprietorships or partnerships based on their owners.

Uploaded by

Kristine Martinez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: MARTINEZ, KRISTINE S.

Date: 02/22/2022
Section: G12-ABM-COELHO Score:

SUBJECT: Business Ethics and Social Responsibility


QUARTER 3
MODULE 1
Activity 1. Understanding the Forms of Business Organizations
Forms of Business Advantage/s Disadvantage/s
Organization

1. Sole One of the most valuable and One of the most significant
Proprietorship dominating advantages of sole disadvantages of a sole proprietorship is
proprietorship is that you keep control that it carries unlimited liability and is
as the business owner. A sole legally responsible for any business
proprietor is an individual who runs a debts. Their personal and business assets
firm without any formal partners. are under risk.
When you own your own company,
you have complete control over the
decisions that affect your company.

2. Partnership The benefit of managing partnerships The disadvantage of managing a


is that partners can provide business partnership is that it has a limited
management expertise. Within the lifespan. When a new partner is
partnership agreement, partners may accepted into the partnership, a partner
agree to put capital into the company leaves, a partner dies, or the partnership
as a financial contribution to assist dissolves, the partnership comes to an
cover start-up costs or donations of end. As a result, most partnerships have
equipment, services, or property. a limited lifespan.

3. Corporation The main advantage of a corporation The main disadvantage of managing a


is the ease with which it can raise corporation is the high cost of doing so.
funds or money. Because most Corporations are costly to establish and
corporations sell their shares, they can run. Established corporations may find it
readily raise capital by selling stock. simple to raise funds by selling stock,
Other entity types do not have access but establishing and sustaining a
to this amount of wealth. corporation can be costly. To get a
corporation up and operating, you'll
almost certainly require a lot of cash, in
addition to paying the filing fees,
continuing expenses, and higher taxes.

4. Limited Liability Owners of limited liability companies Limited liability companies (LLCs)
Company (LLCs) are not personally liable for have a limited lifespan because a
the debts and liabilities of the company could face bankruptcy or
company. By incorporating an LLC, dissolution if one of its members dies.
only the LLC is responsible for the
business's debts and liabilities.

5. Cooperative One of the advantages of cooperative The lack of capital in cooperative


is the low cost of management. management is a disadvantage. Because
Because it is a type of business of the poor rate of return on money
organization which controlled by, they contributed by members, cooperatives
called members, they are capable to are usually at a disadvantage when it
split the costs. The voluntary services comes to raising capital.
of the members help to save some of
the management's expenses. As a
result, all marketing, supply, and
service costs are divided or pooled
among the members.

Activity 2. Classifying Business Organizations


1. Name of Business Organization: Irenia’s Sari-Sari Store
Owner/s of Business Organization: Irenia Sumoba
Form of Business Organization: Sole-Proprietorship

2. Name of Business Organization: Jake’s Lomihan


Owner/s of Business Organization: Jenibabe, Narlita, & Jake Caisip
Form of Business Organization: Partnership

3. Name of Business Organization: Lani’s Sari-Sari Store


Owner/s of Business Organization: Lani Baldos
Form of Business Organization: Sole-proprietorship

4. Name of Business Organization: Unad’s Welding Shop


Owner/s of Business Organization: Unad Manipon
Form of Business Organization: Sole-proprietorship

5. Name of Business Organization: Chowmin Milktea


Owner/s of Business Organization: Carmel De Guzman & Jonnel Tan
Form of Business Organization: Partnership

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