Chapter 1: Business Organization

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Created by
April Kurta

Cards (22)

  • Business - is an enterprise which distributes or provides services where other members of the community need and are able and willing to pay for it.
  • FORMS OF ORGANIZATION:
    • Sole proprietorship
    • Partnership
    • Corporation
  • sole proprietorship - is a legal in which the owner maintains sole and complete control of the business and personally liable for business debts
  • Partnerships - is a form of a legal business organization that consists two or more business partners that share the management, profit, and risk of a business
  • General partnerships (GP) - are the most simple form of partnership. They are the easiest to form and the cheapest to maintain.
  • Unlimited liability partnerships - It also implicate the liability of every partner when one partner of an organization or business committed in to a responsibility, The obligations of every partner is shared to one another
  • Limited partnerships - are a form of partnership that provides more protection for partners. In an LP, there is at least one general partner that manages operations and takes on unlimited liability
  • Corporations - It is a legal entity in the same sense that a person is, Considered as a separate legal entity, can sue and can be sued
  • Companies are owned by -shareholders and run by - directors
  • Corporations Example:
    • Jollibee
    • PLDT
    • San Miguel Corporation
    • BDO
    • UniBank
    • Ayala Malls
  • Department of Trade Industry (DTI) - This is where you register if your enterprise is a single proprietorship. The agency will issuea certificate of registration of business name
  • Securities Exchange and Commission (sec)-If your enterprise is a partnership or corporation, this is where you will register. Itwill issue a certificate of registration.
  • Local Government Unit (LGU)-You register with the municipality or citywhere you will set up your business. This office will issue the business permit.
  • Barangay Hall - You register with the specific barangay in themunicipality or city where you will operate your business. This office will issue the barangay clearance.
  • Bureau of Internal Revenue (BIR)- You register your business with this office and apply for your business's taxpayer identification number (TIN), registration of books of accounts, authority to print
  • Social Security System (SSS)- You register your business as an employer, yourself as a self-employed or as employee, and your workers as employees. This office will issue an SSS number for your business, for yourself, as well as for your workers.
  • Home Development Mutual Fund (HDMF) - RA 7742 requires all SSS members earning at least P4,000 a month to register with thisagency. HDMF administers the Pag-lbig Fund.
  • Philippine Health Insurance Corp, (Philheath) - The New National Health Insurance Act (RA 7875) as amended by RA 9241 requires all employers of the government and private sectors and their employees to register with this agency. PhilHealth manages and administers the government health care system.
  • Laws is connected to the word - order
  • Liberty - "Right to do good and never wrong"
  • Department of Labor and Employment (DOLE)- If you employ five workers or more, register your business with this agency. The___ isasked to promote gainful employment opportunities, protect workers and promote their welfare, develop human resources, and maintain industrial peace.
  • 3 Branches of the government:
    1. Legislative
    2. Judicial
    3. Excecutive