6 business plan development business description

Business Plan Development:

Business Description

Business Plan Development:

Business Description

Session 6

Powerpoint Presentation by:Powerpoint Presentation by:

RUDOLPH D. VELASCORUDOLPH D. VELASCO

Entrepreneurship and Business Entrepreneurship and Business PlanningPlanning

Choosing the Form of Business Organization

Form of Business Organization

1.Sole or Single Proprietorship

2.Partnership

3.Corporation

4.Cooperative

SINGLE PROPRIETORSHIP

This is a form of business organization that is owned and usually managed by one person.

It is the oldest and simplest form of business ownership.

The easiest to start.

They dominate the retailing, agriculture and service industries.

ADVANTAGES OF SINGLE PROPRIETORSHIP

1. Ease and low cost of formation and dissolution.

2. Retention of all profits.

3. Independence and flexibility.

4. Tax advantage and less government regulation

DISADVANTAGES OF SOLE PROPRIETORSHIP

1. Unlimited Liability

2. Lack of Stability

3. Limited access to credit

4. Limited business skills and knowledge

PARTNERSHIP

It is an association of two or more persons who act as co-owners of a business.

Each partner contributes money, property or service to their organization.

They are usually engaged in accounting, law, advertising, real estate and retailing.TWO TYPES OF PARTNERS

General PartnersLimited Partners

ADVANTAGES OF PARTNERSHIP

1. Easy to organize2. Availability of more

capital and credit.3. Retention of profits4. Better business skills

and knowledge

DISADVANTAGES OF PARTNERSHIP

1. Unlimited Liability

2. Lack of Stability

3. Management Disagreement

4. Idle investment

CORPORATION

It is an artificial being created by operation of law, having the right of succession, and the powers, attributes and properties expressly authorized by law or incident to its existence.Stocks – shares or certificates of ownership of a corporation.Two types

Private or close corporationsOpen corporations

ADVANTAGES OF A CORPORATION

1.Limited liability

2.Easy to raise capital

3.Perpetual life

4.Specialized management

DISADVANTAGES OF A CORPORATION

1. Difficult to organize

2. Strictly regulated and supervised by the government

3. Some corporations are socially irresponsible

4. Formal and impersonal employer-employee relationship

The COOPERATIVE : An Enterprise for the Poor

A duly registered association of persons, with a common bond of interest, 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 principles of cooperation which include the following

1.Open and voluntary membership

2.Democratic control

3.Limited Interest on capital

4.Division of net surplus

5.Cooperative education

6.Cooperation with other cooperatives

TYPES OF COOPERATIVE

1.Credit cooperative

2.Consumers cooperative

3.Producers cooperative

4.Marketing cooperatives

5.Service cooperative

6.Multi purpose cooperative

Output # 2

Business DescriptionBusiness DescriptionBusiness Background Proposed Name of the Business and

Rationale Type of Business Organization Location of Head Office and Factory

REFERENCES

Entrepreneurship, Fajardo, Feliciano R.; Capitol Publishing House Inc. 1994

Other Matters

Learning Materials and Powerpoint Lectures are available online

http://rdvonlineclassroom.weebly.com

End of Presentation