Nature of Organization and Forms of Business Organizations

Nature of Organization

refers to the fundamental characteristics, structure, purpose, and way of functioning of an organization. It describes what the organization is, what it does, and how it operates to achieve its goals.

Sole proprietorship, partnership, corporation

The 3 basic forms of business orgs

Sole proprietorship

simplest form of a business organization. One owner. It is DTI registered

Partnership

a business owned by two or more owners called partners. Shared

Corporation

Most complex form of business organization. Owned by many owners called stockholders or shareholders. Mostly profit oriented. Ownership is defined by shares of stock. Separate and distinct from ownership

Cooperative

volunteers who come together to achieve a common economic, social, or cultural goal. It is owned, controlled, and operated by its members, how much you earn is how much you have a say. Advocacy type of approach.

The Corporation Code

Governs all corporations in the Philippines

Securities and Exchange Commission

This is where corporations are registered