FORMS OF BUSINESS ORGANIZATIONS

Various forms of business organizations

Sole/Single Proprietorship

The simplest form of business structure, where an individual owns and operates the business. They have complete control over the business, owns all assets and profits, and are personally liable for all debts and losses.

Partnership

A form of business owned by two or more persons. The details of the arrangement between the partners are outlines in written document caled Article of Partnership.

Corporation

Is a business organized as a separate legal entity (Artificial person) under the corporation law with ownership divided into transferable shares of stocks. The owners are called stockholders or shareholders. The management of the business is delegated by the shareholders to the Board of Directors. The ownership is divided into shares and the value of one share may be denominated at a smaller amount. The proof of ownership is evidenced by a Stock Certificate.

Cooperatives

A duly registered association of persons with a common bond of interests, voluntarily joining together to achieve their social, economic, and cultural needs. The owners are called members who contribute equitably to the capital of the cooperative.