BUSINESS is an organization that utilizes resources and information, supplying the wants and needs of the customers through goods or services, in exchange for money or giving back a different kind of goods or services.
TYPES OF BUSINESS ACCORDING TO OWNERSHIP
SOLE PROPRIETORSHIP is a business that is owned by only one individual for the practice of trade or profession.
ADVANTAGES
- full control of operations
-easy to start, easy to dissolve
-all profits go to the owner
-less regulations
-the government taxes the owner not the business
DISADVANTAGES
-unlimited liability
-limited life
-difficulty in raising capital
BUSINESS REQUIREMENTS
- register the preferred business name with the DTI
-secure a barangay permit in the barangay where the business will be located
- apply for the business permit in the municipality where the business is situated
-register the business with the BIR requires a sole proprietorship business to pay its registration fee every year.
-register the business with the SSS, PhilHealth, and Home Development Mutual Fund (HDMF) or pag -ibig
PARTNERSHIP is a business that is owned by two or more individuals pooling their resources. The partners are normally involved in the management and operation of the business. The profit is divided among the partners as per the partners agreement. The written agreement between or among partners is called Articles of co-partnership.
THE ARTICLES OF CO-PARTNERSHIP CONTAINS THE FOLLOWING :
1. Name of partnership
2.Name of partners
3. Partnership effectivity date
4. Nature of business
5. Investment of each partner and the corresponding capital, credit, right, power, and duties of the partners.
6. Accounting period
7. Profit and loss sharing
8. Compensation for services offered by partners
9. Treatment and dissolution procedure
TYPES OF PARTNERSHIP
1.GENERAL PARTNERSHIP where in each member has unlimited liability.
2. LIMITED PARTNERSHIP where creditors cannot go after the partners personal asset.
ADVANTAGES
-increased potentials from two or more different strengths
- easy to form with proper agreements on it's formation
-less regulations compared to corporations.
DISADVANTAGES
-unlimited liability of all members
-limited life- admission of a new partner of the retirement/ withdrawal of a partner dissolves the partnership.
- high possibility of dispute and conflicts between partners
BUSINESS REQUIREMENTS
- verify business name with the SEC
- file articles of co-partnership with SEC
- register the business name with DTI
- secure the barangay permit in the place where business is located
- register the business with the BIR (BIR requires annual registration fee)
-register the business with the SS, PhilHealth, and HDMF
CORPORATION is a business required to have five to fifteen incorporators. INCORPORATOR refer to those who originally formed the corporations.
SECTION 2 OF THE CORPORATION CODE OF THE PHILIPPINES - defines corporation as " an artificial being created bay operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incidents to it's existence."
ADVANTAGES
- more source of funds
-unlimited commercial life
-easy to transfer ownership
-liability is limited
DISADVANTAGES
- more regulation to be followed
-profit is taxed by the corporate law
-costly to incorporate
BUSINESS REQUIREMENTS
-verify business name with the SEC
-draft and execute the articles of incorporators
-deposit the cash collected from subscription
-file articles or incorporation with SEC
- register the business name with DTI
-secure a barangay permit in the place where the business is located
-register the business with the BIR (BIR requires an annual registration fee)
-register the business wit the SSS,PhilHealth, and HDMF
-apply business permit in the municipality where the business is located.
COOPERATIVE is a business that owned by a group of individuals who are serve as benefactors to the business endeavor. a cooperative usually requires at least fifteen members to function. Usually, board of directors and officers are elected to manage the business operation. (nt. home owners po yung pwedeng example dito)
ADVANTAGES
-unlimited life- the change of members does not dissolve the business.
-democratic organization. social equality of members is the most important component of cooperatives. It ensures that it serves it's members need.
DISADVANTAGES
- obtaining capital through investors. Cooperative has a "one- member- one- vote" philosophy
-lack of membership and participation.
BUSINESS REQUIREMENTS
- prepare general statement to help measure the cooperative chance of success
- draft cooperative's by-laws
-secure bond for accountable officer
-register with Cooperative Department Authority
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ABM (BASIC ACCOUNTING)
Non-FictionAbout po ito sa accounting, halata naman sa title eh. Para sa mga tulad kong ABM students, na gusto mag advance study o naghahanap ng assignment. The content here ay lahat FACT. Kung ayaw maniwala, free naman po kayong magsearch sa iba eh.. Yun lang.
