This is a presentation that describes the different forms of business as well as the types of business according to activity.

1. FORMS OF BUSINESS ORGANIZATIONS

2. DEFINITION
OF TERMS
Organization – a collection of
people working together to achieve
a common purpose.
Business Organization – a
collection of people working
together to achieve a common
purpose in relation to their
organization’s mission, vision,
goals, and objectives, sharing a
common organizational culture.

3. SINGLE PROPRIETORSHIP
 - a form of business that
is owned, managed and
controlled by an
individual. It is the
simplest and the most
numerous form of
business organization.

4. DIFFERENT
TYPES OF SOLE
PROPRIETORSHI
P
Self-Employed Business Owner
A self-employed business owner is someone
who conducts a trade or business with the
intent of making a profit. The self-employed
individual may conduct the business on a
full-time basis or as a part-time venture.

5. DIFFERENT
TYPES OF SOLE
PROPRIETORSHI
P
Franchise
A franchise may also take on the form of a sole
proprietorship. In a franchise, the sole proprietor, also
referred to as a franchisee, pays a fee to a franchisor
in exchange for the right to use the company brand.
The franchisee is obligated to follow a predetermined
business model that controls such areas as
operations, marketing, pricing and the ability to
expand. The franchisee must also pay the franchisor
royalties, which are typically a percentage of the
franchise unit's gross sales. A franchise can be a good
choice for the sole proprietor who has little business
experience, as the franchisor provides a successful
business model as well as marketing and operational
support.

6. SOLE PROPRIETORSHIP
Advantages Disadvantages
Ease of Formation Unlimited liability
Owner has full control
of the business
Difficulty of raising
additional capital
The owner can freely
mix personal assets with
business assets
Owner’s bias
Owner has all the
profits for himself or
herself
 Simple Taxation

7. PARTNERSHIP
- By the contract of Partnership, two
or more persons bind themselves to
contribute money, property, or
industry to a common fund with the
intention of dividing the profits
among themselves.
Two or more persons may also form a
partnership for the exercise of
profession.
Art. 1767, Civil Code

8. Different Types of Partners:
 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.

9. DIFFERENT
TYPES OF
PARTNERSHIP
General Partnership
An association of two or more persons that
carry on as the co-owners of a business in
order to generate a profit. The default rule is
equality between all members and the only
way to change this is through a formal
written agreement. Each partner possesses
an equal voice in management and the
authority to act as agent for the partnership.
Each partner can be held liable for all debts
of the partnership, and for torts committed
by other partners within the course of the
partnership's business.

10. DIFFERENT
TYPES OF
PARTNERSHIP
Limited Partnership
A limited partnership is formed by two or
more persons, having one or more general
partners and one or more limited partners. A
limited partner has no voice in the active
management of the limited partnership,
which is conducted by the general
partner(s). Every limited partner's liability is
limited to the capital he has contributed to
the partnership.

11. DIFFERENT
TYPES OF
PARTNERSHIP
Limited Liability Partnership
With an LLP, partners will receive the same
beneficial taxation provided by a general
partnership, and will also be shielded from
the debts, and liabilities of the business. In
addition, every partner in an LLP will be
protected from the actions of other partners.

12. PARTNERSHIP (General Partnership)
Advantages Disadvantages
 Easier to create than
corporation
 Unlimited liability
 Better ability to acquire
additional capital than
sole proprietorships
 Mutual agency
 Larger pool of human
capital than sole
proprietorship
 Limited life

13. CORPORATION
Is an artificial being created by
operation of law, having the
right of succession and
powers, attributes and
properties expressly
authorized by law or incident
to its existence.
- Sec. 2 of B.P. Blg. 68
(Corporation Code of the
Philippines)

14. Many different types of corporations exist, and they are
generally classified depending on specific factors, which
include:
 The business purpose of the corporation
 The manner in which the corporation's income is taxed
 The number of shareholders and amount of stock to be
issued
 Whether the corporation is incorporated to make a profit

15. DIFFERENT
TYPES OF
CORPORATION
Business Corporation
A corporation formed to
engage in commercial activity
for a profit. Another name for
this type is a "for-profit"
corporation.

16. DIFFERENT
TYPES OF
CORPORATION
C Corporation
A corporation whose income is
taxed through the corporation
rather than its shareholders.
Any corporation that does not
choose S Corporation tax status
(see below) under the Internal
Revenue Code is a C Corporation
by default.

17. DIFFERENT
TYPES OF
CORPORATION
Close Corporation
Any corporation whose stock is
freely traded and is held by only
a few shareholders who are
often within the same family.
The requirements and privileges
of Close Corporations vary by
jurisdiction.

18. DIFFERENT
TYPES OF
CORPORATION
Controlled Corporation
A corporation in which the
majority of stock is held by one
individual or firm.

19. DIFFERENT
TYPES OF
CORPORATION
Cooperative Corporation
A corporation primarily organized
for the purpose of providing
services and profits to its
members rather than for a
corporate profit. The most
common kind is one formed to
purchase real property (such as an
apartment building), so that its
shareholders may lease the
apartments.

20. DIFFERENT
TYPES OF
CORPORATION
Foreign Corporation
A corporation that is registered in
one state, but is also “authorized
to do business” in one or more
different states. Usually created
to take advantage of tax breaks
and state incorporation laws. May
also refer to overseas corporations
doing business in the Philippines.

21. DIFFERENT
TYPES OF
CORPORATION
Non-Profit Corporation
A corporation organized for some
purpose other than making a
profit. Non-profits are typically
granted special tax treatment.

22. DIFFERENT
TYPES OF
CORPORATION
Private Corporation
A corporation founded by and
composed of private individuals
principally for a nonpublic
purpose, such as manufacturing,
banking, and railroad corporations
(including charitable and religious
corporations).

23. DIFFERENT
TYPES OF
CORPORATION
Professional Corporation
A corporation that provides
services of a type that requires a
professional license. These are
typically corporations made up of
architects, accountants, lawyers,
physicians, veterinarians, etc.

24. DIFFERENT
TYPES OF
CORPORATION
Public Corporation
A corporation whose shares are traded
to and among the general public. These
are government-owned corporations
that engage in activities benefiting the
general public, usually while remaining
financially independent. Such a
corporation is managed by a publicly
appointed board.

25. DIFFERENT
TYPES OF
CORPORATION
S Corporation:
A corporation whose income is taxed
through its shareholders rather than
the corporation itself. Only corporations
with a limited number of shareholders
can elect S-corporation tax status
under the Internal Revenue Code.

26. CORPORATIONS
Advantages Disadvantages
 Ability to acquire
additional capital
 Heavily regulated by the
government
 Transferable
ownership rights
 Double taxation
 Limited liability of
stockholders
 Not easy to form
 Virtually unlimited
life
 More expensive to form
than sole proprietorship
and partnership
 Large pool of human
capital

27. COOPERATIVE
- a duly registered association of persons,
with common bond of interests, who
have voluntarily joined together to
achieve a lawful common social or
economic end, making equitable
contributions to the capital required and
accepting a fair share of the risks and
benefits of the undertaking in
accordance with universally accepted
cooperative principle.
~ Cooperative Code of the Phil

28. DIFFERENT
TYPES OF
COOPERATIVE
Credit Cooperative
- is one that promotes and undertakes
savings and lending services among its
members. It generates a common pool
of funds in order to provide financial
assistance and other related financial
services to its members for productive
and provident purposes;

29. DIFFERENT
TYPES OF
COOPERATIVE
Consumer’s Cooperative
– is one the primary purpose of which is
to procure and distribute commodities
to members and non-members;

30. DIFFERENT
TYPES OF
COOPERATIVE
Producer’s Cooperative
- is one that undertakes a joint production
whether agricultural or industrial. It is formed
and operated by its members to undertake the
production and processing of raw materials or
goods produced by its members into finished
or processed products for sale by the
cooperative to its members and non-members.
Any end product or its derivative arising from
the raw materials produced by its members,
sold in the name and for the account of the
cooperative, shall be deemed a product of the
cooperative and its members;

31. DIFFERENT
TYPES OF
COOPERATIVE
Marketing Cooperative
– is one which engages in the supply of production
inputs to members and markets their products;

32. DIFFERENT
TYPES OF
COOPERATIVE
Service Cooperative
– is one which engages in medical and dental care,
hospitalization, transportation, insurance, housing,
labor, electric .light and power, communication,
professional and other services;

33. DIFFERENT
TYPES OF
COOPERATIVE
Multipurpose Cooperative
– is one which combines two (2) or more of the
business activities of these different types of
cooperatives;

34. DIFFERENT
TYPES OF
COOPERATIVE
Advocacy Cooperative
– is a primary cooperative which promotes and
advocates cooperativism among its members and
the public through socially-oriented projects,
education and training, research and
communication, and other similar activities to
reach out to its intended beneficiaries;

35. DIFFERENT
TYPES OF
COOPERATIVE
Agrarian Reform Cooperative
– is one organized by marginal farmers majority of
which are agrarian reform beneficiaries for the
purpose of developing an appropriate system of
land tenure, land development, land consolidation
or land management in areas covered by agrarian
reform;

36. DIFFERENT
FORMS OF
COOPERATIVE
Cooperative Bank
– is one organized for the primary purpose of
providing a wide range of financial services to
cooperatives and their members;

37. DIFFERENT
FORMS OF
COOPERATIVE
Dairy Cooperative
– is one whose members are engaged in the
production of fresh milk which may be processed
and/or -marketed as dairy products;

38. DIFFERENT
FORMS OF
COOPERATIVE
Education Cooperative
– is one organized for the primary purpose of
owning and operating licensed educational
institutions, notwithstanding the provisions of
Republic Act No. 9155, otherwise known as the
Governance of Basic Education Act of 2001;

39. DIFFERENT
TYPES OF
COOPERATIVE
Electric Cooperative
– is one organized for the primary purpose of
undertaking power generation, utilizing renewable
energy sources, including hybrid systems,
acquisition and operation of sub-transmission or
distribution to its household members;

40. DIFFERENT
TYPES OF
COOPERATIVE
Financial Service Cooperative
– is one organized for the primary purpose of
engaging in savings and credit services and other
financial services;

41. DIFFERENT
TYPES OF
COOPERATIVE
Fishermen Cooperative
– is one organized by marginalized fishermen in
localities whose products are marketed either as
fresh or processed products;

42. DIFFERENT
TYPES OF
COOPERATIVE
Health Services Cooperative
– is one organized for the primary purpose of
providing medical, dental and other health
services;

43. DIFFERENT
TYPES OF
COOPERATIVE
Housing Cooperative
– is one organized to assist or provide, access to
housing for the benefit of its regular members who
actively participate in the savings program for
housing. It is co-owned and controlled by its
members;

44. DIFFERENT
TYPES OF
COOPERATIVE
Insurance Cooperative
– is one engaged in the business of insuring life and
property of cooperatives and their members;

45. DIFFERENT
TYPES OF
COOPERATIVE
Transport Cooperative
– is one which includes land and sea
transportation, limited to small vessels, as defined
or classified under the Philippine maritime laws,
organized under the provisions of this Code.

46. DIFFERENT
TYPES OF
COOPERATIVE
Water Service Cooperative
– is one organized to own, operate and manage
water systems for the provision and distribution of
potable water for its members and their
households;

47. DIFFERENT
TYPES OF
COOPERATIVE
Worker’s Cooperative
– is one organized by workers, including the self-
employed, who are at the same time the members
and owners of the enterprise. Its principal purpose
is to provide employment and business
opportunities to its members and manage it in
accordance with cooperative principles; and

48. CORPORATIONS
Advantages Disadvantages
 different types may be
formed (farmers’,
producers’ credit, or
multi-purpose)
 business control is shared
 most cooperative may
apply for tax exemption.
 ideas and decisions made
by the board of directors have
to be accepted by the general
membership
 large pool of talents,
skills, and knowledge
 limited liability of
members

49. TYPES OF BUSINESS ACCORDING TO ACTIVITY

50. SERVICE
- firms that generally
use their employees to
provide intangible
products or services to
customers.

51. Cash on Hand
Pays employees
and other
expenses
Performs
services
Receives
payment from
customers

52. MERCHANDISING / TRADING
firms that buys
finished or almost
finished goods from
their suppliers and
resells the same to
customers.

53. Cash on Hand
Buys goods
Stores goods
as inventory
Sells inventory
Receives
payment from
customers

54. MANUFACTURING
firms that create or
manufacture their own
products / goods.

55. Cash on Hand
Buys goods
Stores goods
as inventory
Sells inventory
Receives
payment from
customers

56. THANK YOU
SOMEONE@EXAMPLE.COM
Types Input Output Examples
Service Labor Intangible
Service
Accounting and law firms,
hospitals, schools, and
salons
Merchandising
/ Trading
Goods /
merchandise
bought from
suppliers
Tangible;
merchandise
Supermarkets, convenience
stores, bookstores,
department stores
Manufacturing Raw Materials,
labor, overhead
Tangible;
manufactured
products
Car companies, Consumer
products, electronic
companies

57. THANK YOU