Control and structural forms of business organization, suitable laws, requirements for their composition, and advantages and disadvantages Type of Ownership
* Single or Sole Proprietorship. It is a kind of business organization which is held by one individual. The owner privately manages his business. Most of businesses in the Philippines (including those which aren't registered) participate in single proprietorship. Examples happen to be retailers, market vendors, barbers, tailors, and so on. a)В В В В В В Advantages of Single or Sole Proprietorship
1)В В В В В В It is possible to organize. Economic capital is usually small , and registration requirements are not hard to comply with. In fact , in the distant rural areas small businesses tend not to even trouble to apply for certificate. 2)В В В В В В The only proprietor may be the boss. He makes the decisions and likes substantial independence of actions. Possibilities of issues or quarrels are reduced. 3)В В В В В В The master acquires all the profits coming from his business. This gives him more bonuses to make his business expand. b)В В В В В В Drawbacks of One or Single Proprietorship 1)В В В В В В In general the financial resources of the single proprietorship are not enough to transform the company into a mass enterprise. Taking into consideration its tiny assets and high fatality rate, banking institutions are hesitant to give big financial loans to solitary proprietorship form of business organizations. 2)В В В В В В Benefits of specialization in business managing are not within small scale proprietorship. There is only one manager. In not a couple of cases, the owner is the just employee. 3)В В В В В В The owner hasВ unlimited liability. Because of this the owner of the business enterprise risks not only the possessions of his small enterprise, but also his various other personal assets like his piece of land, traditional bank deposits, and also other personal properties which are not part of his business. In the case of loss, these kinds of assets will be subject to financial claims simply by creditors. c)В В В В В В В Requirements pertaining to formation
As it is the most basic form of organization it is the easiest to register. It is registered throughout the Bureau of Trade Control and Customer Protection (BTRCP) of the Section of Trade and Market (DTI). d)В В В В В В Applicable Laws
Republic Act No . 9178 Barangay Micro Business Enterprises (BMBEs) Act of 2002 * Partnership. It is just a form of organization organization in which two or more people agree to personal and operate a business. The partners accept to combine their very own resources (money, materials, and management). They also share their very own profits and losses. Yet , there are " silentвЂќ lovers. They simply provide the economical capital however they do not participate in the supervision. There is also the " industrialвЂќ partner. He does not bring about money to the business corporation but he could be responsible for the management. a)В В В В В В Advantages of Collaboration
1)В В В В В В Additionally it is easy to coordinate like sole proprietorship. Legal red tape associated with its subscription is very little. 2)В В В В В В Better management due to presence or even more participants inside the operations with the business. 3)В В В В В В Possibility of larger resources within the single proprietorship exists. Financial institutions may extend bigger loans to this sort of business corporation considering the put together resources in the partners. b)В В В В В В Disadvantages of Partnership
1)В В В В В В Conflicts or perhaps quarrels among or among the partners regarding the management or policies with the business will probably crop up. In fact , under Philippine style, several partners defraud their other partners in matters of profits or expenses. 2)В В В В В В It lacks stability. The death or perhaps withdrawal of just one partner dissolves the collaboration. To continue its operation, a complete reorganization is required. 3)В В В В В В Just like the single manager, the companions are also subject to unlimited responsibility, except theВ limited partners. These kinds of partners, liabilities are only confined to their talk about of capital contributions in the form of cash or property. c)В В В В В В В Requirements intended for formation...