Why do you go to business?
1. Personal Satisfaction – they enjoy challenges and risk-taking ventures. Their business success gives them a sense of fulfillment. 2. Family involvement- they feel it is their responsibility to continue the business of their parents, especially if it is profitable. 3. Independence and power- they want to be the boss.
4. Social Activities- there are people who are really born socializers. 5. Profit experience- some individuals are gently motivated by profit or the chance to amass wealth. Checklist for going to business
Here is a test on your probable success in starting your business: 1. About YOU
2. About CAPITAL
3. About a PARTNER
4. About your CUSTOMERS
5. About your QUALITIES
What is an Organization?
An organization is a group of two or more persons who work together to attain a common set of goals. Ex:
* Sari-sari Store, store owned and managed by a family is an organization. * San Miguel Corporation
* Credit Cooperative
* Is a process of combining and coordinating resources and activities in order to accomplish efficiently and effectively certain objectives. * This is the proper development of human resources.
* The best resources of the organization are its employees.
The Inscription on the tombstone of Andrew Camegie:
Here lies a man
Who knew how to enlist
In his service
Better men than himself
Choosing the Form of Business Organization
Ex: the Apple Corporation
In 1976, two young engineers worked together on an idea for a small computer for personal use. Steven Jobs, then 21, and Stephen Wozniah, then 26, spent 6 months designing a model and 40 hours building it. Their idea became a reality. Soon they had an order for 50 of their personal computers.
JOD AND WOZNIAH BECAME THE WORKERS FIRST.
Forms of Business Organization
1. Single Proprietorship – is owned and usually managed by one person.
a) Ease and low cost of formation and dissolution
b) Retention of all profits
c) Independence and Flexibility
d) Tax advantage and less government regulation.
a) Unlimited Liability
b) Lack of Stability
c) Limited access to credit
d) Limited Business skills and knowledge
2. Partnership – is an association of two or more persons who act as co-owners of a business.
a) Easy to organize
b) Availability of more capital and credit
c) Retention of profits
d) Better business skills and knowledge
a) Unlimited Liabilities
b) Lack of Stability
c) Management disagreement
d) Idle investment
3. Corporation – 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.
a) Limited Liabilities
b) Easy to raise capital
c) Perpetual Life
d) Specialized Management
a) Difficult to organize
b) Strictly regulated and supervised by the government c) Some corporations are socially irresponsible
d) Formal and impersonal employer-employee relationship
The Cooperatives: An Enterprise for the Poor
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
1. Credit Cooperative – promotes thrift among its members and creates funds. 2. Consumers Cooperative – Procures and distributes commodities to its members and non-members. 3. Producers Cooperative –...