BESR

• Role of Business Organizations in modern society

  • Play an integral role in modern society
  • Help economies grow by developing, producing, and supplying products, and services to consumers
  • Create job opportunities for the local community
• Business Organization


  An entity that aims to earn a profit by providing products to satisfy the needs of the market
• Types of Products

  • Tangible or Physical Objects
  • Intangible or Non-Physical Items
• Common Forms of Business Organization

  • Sole Proprietorship
  • Partnership
  • Corporation
• Sole Proprietorship


  • Owned and operated by one individual who makes all the decisions related to the business
  • The sole proprietor owns all the assets of the business and the profits generated by it and has the total liability for any losses or debts
  • Does not need big capital
  • Relatively easy to set up and maintain
  • Unlimited Liability
  • The Business and the Owner are the same entity
• Partnership

  • Composed of two or more individuals who pool their resources to manage and operate a business
  • Partners enjoy the profits and losses of the business together
  • General Partner has unlimited liability for the debts and obligations of the business
  • Limited Partner has liability up to the extent of his or her capital contributions
• Corporation


  • Formed legally through its articles of incorporation filed with the Securities and Exchange Commission (SEC)
  • Formed by at least five (5) but not more than fifteen (15) persons of legal age
• Requirements for a valid property transfer

  • Property is not made, signed by parties, attached to the public instrument
• Corporation is formed legally through its articles of incorporation filed with the Securities and Exchange Commission (SEC)
• Requirements for forming a corporation

  • Formed by at least five (5) but not more than fifteen (15) persons of legal age, majority of whom are residents of the Philippines
  • Has its own legal personality, distinct, and separate from the persons forming the corporation
  • Has the same rights, duties, and liabilities as a person
• Advantages of a corporation

  • Unlimited life
  • Credibility
  • Ease of transferring ownership
  • Protecting personal assets
• Classifications of corporations


  • Close
  • Open
• Types of corporations


  • Stock
  • Nonstock
• One-Person Corporations are based on Republic Act No.11232: The Revised Corporation Code of the Philippines
• One Person Corporation is a corporation with a single stockholder
• One Person Corporation is not required to have a minimum authorized capital stock
• One Person Corporation shall file articles of incorporation according to the requirements under Section 14 of the Code
• Liability of a single shareholder in a One Person Corporation
• If the single stockholder cannot prove independence of property, they are liable for debts of the One Person Corporation
• Principles of piercing the corporate veil apply to one-person corporations
• One Person Corporation is not required to submit and file corporate bylaws
• A One-Person Corporation must display the letters "OPC" in its corporate name
• The single stockholder is the sole director and president of the One Person Corporation
• Within fifteen (15) days from issuance, the single stockholder shall appoint Treasurer, Corporate Secretary, and Other Officers
• Requirements for a One Person Corporation

  • Single stockholder shall be the sole director and president
  • Appoint treasurer, corporate secretary, and other officers within 15 days of incorporation
  • Single stockholder may not be appointed as the corporate secretary
• Cooperatives are regulated by the Cooperative Development Authority
• Philippine Cooperative Code defines a cooperative as an autonomous and duly registered association of persons with a common bond of interest who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations
• Members of the cooperative join by contributing a membership fee and building up share capital over time
• A cooperative has more members than a cooperation, and the funds they use come from membership fees
• Membership in a cooperative is voluntary
• Types of Cooperatives


  • Credit cooperative
  • Consumer cooperative
  • Producers Cooperative
• Credit cooperative promotes and undertakes savings and lending services among its members
• Consumer cooperative's primary purpose is to procure and distribute commodities to members and non-members
• Producers Cooperative undertakes joint production whether agricultural or industrial
• External Factors that affect businesses

  • Political Factors
  • Economic Factors
  • Sociocultural Factors
  • Technological Factors
  • Environmental Factors
  • Demographic Factors
  • Regulatory/Legal Factors
• Economic Systems study how resources are used in the production of goods and services
• Factors of Production


  • Land
  • Labor
  • Capital
  • Entrepreneurship
• Economic Systems


  • Describe how society distributes its resources to produce goods and services
• Economic Systems influenced by different ideologies

  • Capitalism
• Adam Smith is the father of Modern Capitalism and the author of the book Wealth of the Nations