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CORPORATION

Definition:An artificial being created by the operation of law, having the rights of succession and the powers and attributes and properties expressly authorized by law or incident to its existence

Types:1. PRIVATE OR CLOSE CORPORATIONOwned by few individuals; usually relatives and friends Example:SS7 Security Services Corporation: security company providing an intelligent tailor-made security solutions

Types:2. OPEN CORPORATIONOwned by individual who buys shares of stocks which are open traded in the stock market Example:DSOURCE INC.: providing Database Solutions, Enterprise Solutions, Service and Support to clients.

Advantages:Limited liabilityEasy to raise capitalLonger or perpetual lifeSpecialized managementGreater room for professionalismDissolution is least likely to occurCan involve a wide range of people in business including employees

Disadvantages:Difficult to organize/setting up processStrictly regulated and supervised by the governmentSome corporations are socially irresponsibleFormal and impersonal employers-employees relationshipMajor decisions cant be done by the owner without the approval of the BOD (Board of Directors)

Disadvantages:Corporate and individual profits in the form of dividends are taxed separatelyMore expenses are involvedMore rules and regulations to comply withLimited influence on management by individualTendency to institutionalized bureaucracy

Premises or Reasons for Incorporating:To protect finances and assets from business creditorsTo protect the owners from actions of the businessTo take advantage of executive privileges afforded to cooperate employees and officersTo allow a flexibility in fund raising

Premises or Reasons for Incorporating:To begin a business operations with structured set up that can withstand succession issuesTo have a better image of the business

Vinz CuribangNestorJhon Dave SibayanRaiza LangcayJamineLeanneAlpha Chelsea RamosRochelle FrogosoMalouCarol PascualKim Pascua