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Lesson 3

The document discusses three main forms of business ventures: sole proprietorships, partnerships, and corporations. A sole proprietorship is owned and controlled by one individual, while a partnership has two or more owners who share profits and losses. A corporation is a legal entity owned by shareholders who elect a board of directors to oversee it. Each type has advantages like ease of formation or access to capital, and disadvantages like unlimited liability or complex reporting requirements.

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26 views

Lesson 3

The document discusses three main forms of business ventures: sole proprietorships, partnerships, and corporations. A sole proprietorship is owned and controlled by one individual, while a partnership has two or more owners who share profits and losses. A corporation is a legal entity owned by shareholders who elect a board of directors to oversee it. Each type has advantages like ease of formation or access to capital, and disadvantages like unlimited liability or complex reporting requirements.

Uploaded by

ag clothing
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Forms of

Entrepreneurial Venture
FORMS OF BUSINESS
• Sole Proprietorship
• Partnership
• Corporation
SOLE PROPRIETORSHIP

is a business venture owned by one


person only.

a business that can be owned and


controlled by an individual, a company or a
limited liability partnership.
SOLE PROPRIETORSHIP
The word "Sole" which means single and
the "Proprietorship" which means
ownership.
The legal business activities which is
owned and control by an individual
FEATURES OF SOLE
PROPRIETORSHIP
Only one will be the owner of the business.

The formation of sole enterprises is very


easy. There are afew documents, sometimes
no document to be needed for forming
single enterprise.
FEATURES OF SOLE
PROPRIETORSHIP

Owner always involve with the activities of


single ownership business. That is why
owner has direct relation with business

Full amount of profit or loss will be entitled


by the owner.
ADVANTAGE OF SOLE PROPRIETORSHIP

Easy management
Low tax
Proper decision making
Personal relation with the costumer
Better control
DISADVANTAGE OF SOLE
PROPRIETORSHIP
Unlimited liability
Limited capital
Lack of stability
Limited size
Lack of expert management
PARTNERSHIP
A partnership is a business venture
that is owned by two or more persons.
The owners are usually called
partners.
PARTNERSHIP
Whatever profit or loss the results from the
entrepreneurial operation is divided between or
among the partners.
The relationship of partners depends on
contract among them.
PARTNERSHIP

The profit which is earned from the


partnership business must be shared
among the partners according to the
predetermine ratio.
ADVANTAGE OF PARTNERSHIP
More capital
Joint efforts
Collective decision
Sharing of risks
Efficient administration
DISADVANTAGE OF PARTNERSHIP

Delay in decision making


Limitation of capital
Lack of mutual trust
WHO CAN BE OR CAN NOT BE
A PARTNER
WHO CAN BE OR CAN NOT BE A
PARTNER
Who can be?
Any person who is qualified to
make a contract can be a partner of a
partnership business.
WHO CAN BE OR CAN NOT BE A
PARTNER
Who can not be?
A minor
A man of unsound mind
Mentally sick person
Insolvent person
CORPORATION
A corporation is a business entity that is
owned by its shareholder(s), who elect a
board of directors to oversee the
organization's activities.

The persons originally forming the


corporation are called incorporators.
ADVANTAGE OF CORPORATION

• The life of the corporation can


extend beyond that of the founders
• Owners benefit from limited
liability.
• Better access to capital
DISADVANTAGE OF CORPORATION

• the company can be expensive to


establish
• the reporting requirements can be
complex
• your financial affairs are public
• profits distributed to shareholders are
taxable.
Thank you!

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