ENTREP FINALS

• Sole Proprietorship


  A business venture owned by one person only
• Sole Proprietorship

  • It is easy to form and manage
  • It is a simple business operation
  • It has a limited pool of resources
  • Its growth is limited
  • The owner has unlimited liability
• Primary advantage of Sole Proprietorship

  Formation & management
• Partnership


  A business venture that is owned by two or more persons
• Reasons why partnerships are easily dissolved

  • Death of one of the partners
  • Admission of a new partner in an existing partnership
  • Personal insolvency of one of the partners
  • Permanent withdrawal of the investment of a partner
• Corporation


  An entrepreneurial venture formed by at least five but not more than fifteen persons
• Types of Corporations

  • Stock corporation
  • Non-stock corporation
  • Domestic corporation
  • Foreign corporation
• Stock Corporation


  Authorized to issue shares of stock to stockholders
• Non-Stock Corporation


  Not authorized to issue shares of stock, the members
• Domestic Corporation


  Organized under the laws of the Philippines
• Foreign Corporation


  Organized under the laws of the foreign country but has the authority to operate in the Philippines
• Nature of Entrepreneurial Venture

  • Merchandising
  • Service
  • Manufacturing
  • Agriculture
  • Hybrid business
  • Special Corporation
• Merchandising

  Engaged in the buying and selling of products or goods, does not alter the appearance of the product purchased from the seller
• Service


  Provides services to customers, primary sources of income are the different services rendered or provided to customers
• Types of Service Businesses

  • Professional
  • Non-professional
• Manufacturing


  A producer of goods or products, engaged in buying raw materials and supplies to be processed into finished products, the salient feature is the conversion process
• Agriculture


  Engaged in the production of agricultural goods and animals, may sell its products as raw materials or as finished goods
• Hybrid Business


  Possesses the characteristics and nature of combined types of business entities, is inherent in the business to produce and sell goods and at the same time provide services to customers
• Special Corporation


  May include cooperatives, joint ventures, and non-profit organizations
• The production system consists of input, production process, and output
• Entrepreneurial venture


  Business opportunity that the entrepreneur seeks to exploit, arising from changes in the environment, government policy, or technological advancements
• Entrepreneurial Process of Creating a New Venture

  1. Creation of entrepreneurial ideas

  2. Identification of entrepreneurial opportunities

  3. Opening of entrepreneurial venture

  
• Layers of the business environment

  • Physical environment
  • Societal environment
  • Industry environment
• Physical environment


  • Composed of the natural elements that are inherent in the Earth, divided into climate, physical resources, and wildlife
• Changes in the physical environment

  Have a direct impact on the societal environment, which then affects the industry environment
• Societal environment

  • Composed of social, political, cultural, economic, legal, and technological forces

  
• Environmental scanning


  Critical evaluation and thorough study of the environment where the business operates
• Industry environment


  • The external environmental layer where the trends and changes are easily and immediately felt by the business

  
• Industry forces

  • Government
  • Suppliers
  • Customers
  • Competitors
  • Employees
  • Creditors
• Competency of the entrepreneur


  One of the two significant factors that must be considered before opening a business
• Competency of the business


  One of the two significant factors that must be considered before opening a business, after conducting environmental scanning
• Forms of entrepreneurial venture

  • Sole proprietorship
  • Partnership
  • Corporation
• Sole proprietorship


  • Easy to form and manage, simple business operation, limited pool of resources, limited growth, owner has unlimited liability
• Partnership


  • Owned by two or more persons, partners are held personally liable for the partnership's liabilities, life of the partnership is easily dissolved
• Corporation


  • Formed by at least five but not more than fifteen persons, can be stock or non-stock, profit or non-profit, domestic or foreign
• Nature of entrepreneurial venture

  • Merchandising
  • Service
  • Manufacturing
  • Agriculture
  • Hybrid business
  • Special corporation
• Merchandising business


  Engaged in the buying and selling of products or goods, without altering the appearance of the product
• Service business


  Provides services to customers, primary sources of income are the different services rendered or provided
• Manufacturing venture


  Producer of goods or products, engaged in buying raw materials and supplies to be processed into finished products
• Agricultural entrepreneurial venture


  Engaged in the production of agricultural goods and animals, may sell products as raw materials or finished goods