Chapter 2

The first challenging task for any small or medium sized business is to _________. This is because of tax purposes and legal obligation to operate as a business entity. Normally, there are three forms of business which are a sole proprietorship,

partnerships, and a corporation or a company.

it contains a narrative description of the legal requirements for

establishing your business and why you feel this is the right structure for your business.

Here, you should discuss the pros and cons of alternative business structures.

a type of business organization in which an individual personally

owns the business. ______ has no separate legal personality from its owner

and the latter is personally liable for all its debts and obligations. Registration is with the Department of Trade and Industry (“DTI”).

is formed when two or more persons bind themselves to contribute money,

property or industry to a common fund with the intention of dividing the profits and

ownership among themselves. It is a separate legal entity from its

partners, the latter are personally responsible for the debts and obligations of the

partnership. Registration is with the Securities and Exchange Commission

(“SEC”).

owned by several people, called shareholders, and has a personality

separate and distinct from them. Shareholders are responsible for the debts of the

corporation only up to the extent of their capital contribution. it can either be

stock or non-stock and are controlled by the Board of Directors or Trustees. Registration

is with the SEC.

One of the best ways to present this

information is with an organizational chart. An organizational chart shows the hierarchy or

chain of command in your business. It lists key positions and subordinate positions under

department heads, supervisors, and managers.

A business’s strengths come from the talent, skills, and experience of those running the

company. In this section, you give a brief overview of all founders, employees, and partners

involved in the business that will be contributing their skills and input into how the business is

operated. You should also include any board members, directors, and officers.

This guide provides the basics of writing a job description and covers the following sections of

the job description

is a formal written statement that reveals the company’s stance

on employee pay and rewards.

can vary from company to company.

However, they often involve addressing the” what”, ”why”, “how”, “how much” and “how

often” of employee rewards in a manner that aligns with the company's mission, vision

and strategic objectives. Ultimately, the result is a synchronized set of practices and policies

that guide decision- making when it comes to creating and distributing compensation.