TECHPRE MIDTERMS

Reasons why people go to business

Types of Business Organizations

The business is not a separate entity from the owner. The person doing the business is the business

• Sole Proprietorship

• Partnership

• Corporation

Both contract and a business organization. Where two or more individuals contribute money, property or industry for the purpose of sharing profits

• Sole Proprietorship

• Partnership

• Corporation

Most common type of business organization. An artificial being created by operation of law, having right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence

• Sole Proprietorship

• Partnership

• Corporation

As to Creation:
Upon approval of the Securities and

Exchange Commission (SEC) evidenced

by the issuance of the certificate of

incorporation

• Sole Proprietorship

• Partnership

• Corporation

As to composition
Not more than 15 incorporators, natural

or juridical. May be a One Person

Corporation

• Sole Proprietorship

• Partnership

• Corporation

As to powers exercised:
Based on what is provided in the

Corporation Code and any incidental

powers which are expressly granted

• Sole Proprietorship

• Partnership

• Corporation

As to management:
As a general rule, a partner can

bind the partnership.

• Sole Proprietorship

• Partnership

• Corporation

As to management:
Only the board of directors acting as a

board can bind the corporation.

Individually, a director cannot bind the

corporation. They have to act as a

board.

• Sole Proprietorship

• Partnership

• Corporation