View
4.530
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
OWNERSHIP AND STRUCTURAL FORMS OF BUSINESS ENTERPRISEChapter 5
OWNERSHIP
It means the legal title to a thing or control over the thing owned, the right possession and disposal.
Title to and possession of the assets of the enterprise , the power to determine the policies of the operation and the right to receive and dispose of the proceeds.
TYPES OF BUSINESS OWNERSHIP
Private Ownership When an enterprise
is so organized that private individuals exercise and enjoy the rights and privileges of an owner in their own interest.
TYPES OF BUSINESS OWNERSHIP
Public Ownership Controlled by
political bodies as a municipal , provincial or national government or by any instrumentality created by them
TYPES OF BUSINESS OWNERSHIP
Mixed Ownership It exists when the
elements of ownership are divided such that private persons and public bodies share in the operation of the same enterprise
FORMS OF PRIVATE OWNERSHIP
1. Individual or single or sole proprietorship
2. Partnership3. Cooperative
Organization4. Corporation5. Corporate
combination
FACTORS INVOLVED IN BUSINESS FORMS
The nature and size of the business
The capital required and the means of procuring it
The length of time the enterprise is expected to operate
The technical conditions affecting the enterprise
The types of products to be manufactured
The method and volume of production
The kind of markets to be supplied and methods of marketing
The competitive nature of the chosen industry.
1. SINGLE PROPRIETORSHIP
The ownership is vested in one person. This form of ownership is small, requires but
little amount of capital and is readily established under the control of one man.
ADVANTAGES OF SINGLE PROPRIETORSHIP
It is easy to start and to terminate
Control and management lies entirely in the hands of the owner
Only a small amount of capital is required in starting
Profits belong entirely to the owner
High Credit Standing
DISADVANTAGES OF SINGLE PROPRIETORSHIP
Limited judgment and wisdom.
Limited amount of capital
Unlimited liability Difficulties of
Management
2. PARTNERSHIP
The business partnership is a business relationship between two or more persons competent to make contracts for the purpose of engaging in a business activity.
ADVANTAGES OF PARTNERSHIP
It could be as easily formed as the single proprietorship.
There are more persons to conduct the business and to handle its problems.
A partnership has access to greater or better credit facilities
The combined ability and resources of partners are a source of strength.
Retention of Valuable Employees
DISADVANTAGES OF PARTNERSHIP
Unlimited liability of partners
Disagreement between partners often lead to delay and difficulties which could endanger the enterprise.
Easy dissolution Frozen Investment
LIMITED PARTNERSHIP
One or more of the partners in a limited partnership must be general partners, who have unlimited liability. The limited or special partners have only limited liability, which is up to the extent of their investment.
ADVANTAGES OF LIMITED PARTNERSHIP
There is a single direction of management , thus there is unity and prompt action
The limited liability of special or limited partners , serves as good inducement of investments.
DISADVANTAGES OF LIMITED PARTNERSHIP
The unlimited power given to general partners may result in abuse.
Possibility of collusion among partners to defraud the creditors.
KINDS OF PARTNERS
1. General Partner2. Limited Partner3. Capitalist partner4. Industrial Partner5. Managing Partner6. Liquidating Partner7. Ostensible Partner8. Secret Partner9. Silent Partner
10. Dormant Partner11. Nominal Partner
COOPERATIVE ORGANIZATION
A cooperative association has some elements of a large partnership and also many features of a corporation , although it is distinct from both .
KINDS OF COOPERATIVE
The Consumer’s Cooperative It draws its members
from the general public. This cooperative carries on retail trade operations.