Organizing the enterprise report maam rebecca pascual
- 1. ORGANIZING THE ENTERPRISE When one starts to organize a business enterprise, it is presumed that he has conducted a feasibility or market study. That is, he knows his resources, the needs of the community, the strengths of his competitors and so forth.
- 2. • In organizing the enterprise, there are several types of business organizations to choose from. These are the sole or single proprietorship, partnership and corporation. The cooperative is also considered a business organization, although its basic motive is service to the members and the community.
- 3. FORMS OF BUSINESS ORGANIZATION • Three most common forms of business organization in a capitalist economy: • 1. Single proprietorship. This is a form of business organization that is owned and usually managed by one person. • The advantages of a single proprietorship are: • 1.ease and low cost of formation and dissolution.
- 4. • 2. Retention of all profits • 3. Independence and flexibility • 4.tax advantage and less government regulation • The disadvantage are: • 1. Unlimited liability • 2. Lack of stability • 3.Limited access to credit • 4.Limited business skills and knowledge
- 5. • 2. Partnership. It is an association of two or more persons who act as a co-owners of a business. • Two types of partnership: • 1.General partners. The liability of general partner extends up to his personal properties while, • 2.Limited partners. Is only liable to the extent of his contribution to business.
- 6. • The advantages of partnership are: 1.Easy to organize 2.Availability of more capital and credit 3.Retention of profits 4.Better business skills and knowledge The disadvantages : 1.Unlimited liability 2.Lack of stability
- 7. • 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 expressedly authorized by law or incident to its existence. • - the shares or certificates of ownership of a corporation are called “stocks” . The owners of stocks are called “stockholder or shareholdes”
- 8. • Two types of corporation • 1.Private or close corporation- owned by a few individuals, usually relatives or friends. • 2.Open corporation-is owned by any individual who buys shares of stocks which are openly traded in the stock markets.
- 9. • The advantages of corporation are: • 1.Limited liability • 2.Easy to raise capital • 3.Perpetual life • 4.Specialized management • The disadvantages of a corporation are: • 1.Difficult to organize
- 10. • 2.Strictly regulated and supervised by the government • 3. Some corporations are socially irresponsible • 4.Formal and impersonal employer-employee relationship
- 11. DEPARTEMENTALIZATION • 1. Function. All jobs that pertain to the same activity are grouped. • 2.Product. All activities related to a particular product or product group are put together • 3.Location. Activities are grouped based on a particular geographic area. • 4.Customer. Grouping of activities in accordance to the needs of various customers.
- 12. ENTREPRENEURAL CONSIDERATIONS • 1.Financial. The entrepreneur must be knowledgeable about the financial aspects of business decisions. • 2.Marketing. The entrepreneur must be well versed on the 4ps of marketing: product, pricing, place and promotion. • 3.Managerial skills. These are vital to the growth and success of the enterprise. The entrepreneur must be able to identify the strengths and weaknesses of his personnel
- 13. • 4.Overall personal decision-making process. The entrepreneur should have a thorough evaluation of what is to be attained by going into business, and what human and financial resources are available and necessary.
- 14. STEPS IN STARTING A NEW BUSINESS • 1. Plan the business • 2. Select the appropriate form of business organization • 3. Scout for reasonable credit/financing • 4. Choose a good location • 5. Secure licenses/permits for the business operation • 6. Set up records for financial, physical and personnel resources
- 15. • 7. Insure the business if necessary • 8. Promote the business • 9.Manage the business • 10.Do your social responsibility.
- 16. • Prepared by: • Carlo R. Mabubay • D.i.t 2