Organizing the Enterprise

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ORGANIZING THE ENTERPRISE
Why do you go to business?
Reasons:
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
Organizing
* 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

Organizational Structure
Ex:

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.
Advantages:
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.
Disadvantages:
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.
Advantages:
a) Easy to organize
b) Availability of more capital and credit
c) Retention of profits
d) Better business skills and knowledge
Disadvantages:
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.

Advantages:
a) Limited Liabilities
b) Easy to raise capital
c) Perpetual Life
d) Specialized Management

Disadvantages:
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
Principles:
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
Objectives
Types:
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 –...
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