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A business organization refers to how a business is structured and owned. It can be owned and managed by one person or multiple individuals.
Forms of Business Organization
- Sole Proprietorship
This is a business owned and registered by a single person. It’s the most common form of business organization, particularly among micro and small enterprises. Entrepreneurs often start with this structure and later reorganize as the business grows. - Partnership
A partnership is a business owned by two or more people who voluntarily contribute money, property, or skills. Profits are shared based on an agreed-upon arrangement. Legal requirements include creating Articles of Partnership and By-Laws. - Corporation
A corporation is a business structure governed by the Corporation Code of the Philippines. Ownership is divided into shares of stock, and the owners are known as stockholders. A corporation can be privately owned, like a family business, or publicly owned, with shares traded on the stock market. - Cooperative
A cooperative is a business organization primarily formed to produce goods and services for its members. The member-owners manage the cooperative, and profits are shared among them. Like a corporation, it is governed by its own laws, specifically the Cooperative Code (R.A. 9520), and regulated by the Cooperative Development Authority (CDA).
If you’re trying to decide which type of organization is best for your business, take a look at the pros and cons of each option from this site greengarageblog.
