THE COMMON PROBLEMS IN BUSINESS ARISING FROM SOLE
PROPRIETORSHIP AND PARTNERSHIP AMONG
BUSINESSMEN IN TAGUM CITY
A Research Paper Presented to the Faculty of the College Department
In Partial Fulfilment of the Requirements in English 2A
Maghanoy, Laira M.
Luma-ad, Chriselle Mae P.
Lumotos, Flora Mae D.
THE PROBLEM AND ITS SETTING
Background of the Study
Sole proprietorship and partnership are forms of business organization which have one thing in common; they are businesses but they each serve their own purpose to the business world. Sole Proprietorship is a form of organization that has a single owner called proprietor who generally is also the manager. Sole proprietorship tends to be small service-type (e.g. physician, lawyers and accountants) business and retail establishments. The owner receives all profits, absorbs all losses and is solely responsible for all debts of the business. Thus, the accounting records of the sole proprietorship do not include the proprietor’s personal financial records (Basic accounting made easy 2011 edition by Win Ballada, CPA). On the other hand, Partnership is a form of organization that is being owned and operated by two or more persons who bind themselves. Each partner is personally liable for any debt incurred by the partnership. Accounting considers the partnership as a separate organization, distinct from the personal affairs of each other (Basic accounting made easy 2011 edition by Win Ballada, CPA). Our study focuses on determining the common problems in business arising from sole proprietorship and partnership among businessmen in Tagum City or the obstacles, impediments, difficulties or challenges, or any situations that invite resolutions; the resolutions of which is recognized as solutions or contributions toward a known purpose or goal. Business in the world today, either sole proprietorship or partnership, is a complex undertaking if not steered through a proper channel and an accurate approach (especially there are many businesses existing around the world today) that can cause problems to the businessmen or to the ones who manage the businesses. Some possible problems that may arise are: Lack of knowledge about what is happening in the business, failure to understand on how their business relate to the others, failure to look into the future and plan future decisions, and lack of certain critical business strategies (http://www.bizcoach.org/factsf .htm#Problems, 2003). Based on this scenario or the reality that the business world is facing today, it’s very important to determine the competitiveness of your business compares to the other. In this way, you can say that your business is doing good or not. In the Philippines, the World Economic Forum released its Global Competitiveness Report for 2007-2008. The Philippines is ranked 71 in the Global Competitiveness Index rankings. This is definitely not something to be happy about, as the Philippines is 71 out of 131 countries/economies ranked, and lagging behind its neighbors, including Korea (11), Taiwan (14), Malaysia (21), Thailand (28), India (48), Indonesia (55), Vietnam (68) and Sri Lanka (70). The most interesting aspect of this Report is the portion on the most problematic factors for doing business in the Philippines. The identified most problematic factors only in sole proprietorship and partnership, in regards to our study are: policy instability (15.20), inefficient government bureaucracy (14.80%), government instability/coups (9.60%), tax rate (4.60%), tax regulations (3.60%), access to financing (3.30%), restrictive labor regulations (3.60%), crime and theft (2.30%), poor work ethic in national labor force (1.30%), inflation (1.10%), inadequately educated workforce (0.70%) and foreign currency regulations (0.50%). It's very significant to note that half of the perceived problems are attributable to the...
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