INTERMS OF OWNERSHIP
Naz Carcosia
Senior High School Department
PARTNERSHIP
It is an association of two or more persons who bind themselves to contribute money, property or industry to
a common fund
Governed by the Civil Code of the Philippines
Partners AGREEE among different things (Manage business, contributions capital, profit/ losses, form and
mode of settlement)
What are the possible advantages and disadvantages of partnership?
ADVANTAGES
Easier to organize compared corporation
can raise more capital compared to sole proprietorships
DISADVANTAGES
The life of a partnership is fragile
The liability of the partners for the debts of the business is unlimited.
TYPES OF PARTNERSHIP
General partners -who invest in the partnership, participate in the day-to-day operations and are liable for
debts and lawsuits of the partnership
Limited partners -who invest in the partnership but who have no participation in day-to-day operations and
who are not usually considered to have liability.
CORPORATION
A corporation is the most complex form of business organization.
A corporation is a legal entity that is separate and distinct from its owners.
A corporation has standardized procedures for its creation, organization,
Corporations are subject to greater scrutiny, regulations, control and supervision by the government
ADVANTAGES
The liability of the owners towards the creditors is limited to their investment in the company.
Additional capital can be raised easily through stock markets
DISADVANTAGES
Cost of forming and managing
Complex process and requires registration with the central regulatory authority and listing on a stock
exchange which required fulfillment of certain requirements related to the amount of capital, number of
directors
Corporations are subject to a high income tax rate
COOPERATIVE
Cooperatives are defined by the International Cooperative Alliance’s Statement on the Cooperative Identity as
“Autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs
and aspirations through jointly owned and democratically controlled enterprises”
Advantages of cooperative
Easy Formation
Limited liability
Perpetual Existence
Social Service
Open Membership
Tax Advantage
Democratic Management
Disadvantages of cooperative
Lack of Secrecy
Lack of Business Acumen
Lack of Interest
Corruption
Lack of Mutual Interest
BUSINESS DEFINED
MAY BE ORIENTED TOWARDS PROFIT GOALS/ NON PROFIT GOALS