ulit fabm

• Ownership structure


  Defines the form of a business organization
• Ownership structure


  • Implications on the source of capital
  • Distribution of profits
  • Extent of the owner's liability
• Forms of Business Organization

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperatives
• Sole Proprietorship


  Business owned and controlled by only one person
• Sole Proprietor


  • Owns the entire company, including its profit or losses
  • Solely liable for the obligations of the business
• Sole Proprietorship


  • Easy to form and operate
  • Manageable and less expensive to establish
  • Owner has complete control over the business
  • Avoids internal conflict in decision-making
• Sole Proprietorship


  • Suppose you wanted to open your own burger shop and you needed ₱25,000.00 to start. You used your personal savings to fund the establishment of your business.
• Partnership


  Business owned by two or more persons
• Partnership


  • Mutual decisions must be agreed upon
  • Profits and losses are shared
• Partnership


  • After three years of successful business operations of your burger shop, you decided to expand the business by adding more items to your menu and building an extension to make the space bigger. However, you don't have enough money to fund the expansion. You ask your best friend if she wants to become a partner and invest in your business, which she agrees to.
• Corporation


  Business organized as a separate legal entity, ownership divided into transferable shares, owners are shareholders
• Corporation


  • Voting rights of shareholders are based on their percentage of ownership
  • Shareholders can withdraw their shares by selling their stocks
  • A corporation should be composed of at least five shareholders and cannot exceed fifty years of operations
• Corporation


  • Seeing that the burger shop is successful, you want to expand and have your own fast-food chain, but you will need a large amount of money. Your best friend is willing to invest, like your parents, but this is not enough to start your fast food restaurant. You decided to establish a corporation to acquire more capital.
• Cooperatives


  An independent association of persons who join together voluntarily to achieve their social or cultural objectives
• Cooperatives


  • Member-owners contribute to the capital and delegate the management of the business to a board of directors
  • With privileges from certain tax exemptions
  • Cooperative members become the business's customer base
  • Members share resources
• Types of Businesses According to Activities

  • Service business
  • Merchandising business
  • Manufacturing business
• Service business


  Sells intangible products and provides technical skills, professional skills, advice, and consultations
• Service business


  • Easy to organize
  • Requires persons and machines
  • Requires special skills or knowledge
• Merchandising business


  Profits from selling the merchandise or products at higher prices than their purchase costs (buy and sell)
• Merchandising business


  • Products are easy to sell
  • Products are sold without changing the form
  • No need to purchase machines for production
• Merchandising business


  • Maintains a high volume of inventories
  • High maintenance cost of inventory
  • Relies on keeping the loyalty of customers
• Manufacturing business


  Buys raw materials, employs labor and machines to make a new product
• Manufacturing business


  • Job satisfaction depends on the volume of work and the creation of new products
  • Demand for products is high
• Manufacturing business


  • Requires large capital and start-up costs
  • Relies on the availability of raw materials
• Business activities also affect financial accounting. It has implications on: source of capital, costs (variable and fixed), cashflows, tax management
• Marketing mix refers to the four P's, which are product, price, place, and promotion.
• Ownership structure


  Defines the form of a business organization
• Ownership structure


  • Implications on the source of capital
  • Distribution of profits
  • Extent of the owner's liability
• Forms of Business Organization

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Cooperatives
• Sole Proprietorship


  Business owned and controlled by only one person
• Sole Proprietor


  • Owns the entire company, including its profit or losses
  • Solely liable for the obligations of the business
• Sole Proprietorship


  • Easy to form and operate
  • Manageable and less expensive to establish
• Partnership


  Business owned by two or more persons
• Partnership


  • Mutual decisions must be agreed upon
  • Profits and losses are shared
• Corporation


  Business organized as a separate legal entity, ownership divided into transferable shares, owners are shareholders
• Corporation


  • Voting rights of shareholders are based on their percentage of ownership
  • Shareholders can withdraw their shares by selling their stocks
• Cooperatives


  An independent association of persons who join together voluntarily to achieve their social or cultural objectives
• Cooperatives


  • With privileges from certain tax exemptions
  • Members share resources