ADVANTAGES

assist entrepreneur in improving theirproduction methods and developingsystematic management process

financial facilities or accommodation isprovided by financial institution foran entrepreneur to start andperform a business

provide assistance to entrepreneur indistributing and marketing theirproducts in domestic and foreignmarkets

information assistance is offered toan entrepreneur in the form ofbusiness opportunities, statisticdiscovery, research and developmentand technological development

research and analysis include projectpossibilities, marketing research andresearch on technology

training provided to entrepreneur tohelp them possess the right skills inmanaging their business

2. MISSION: indicates the way how abusiness will achieve its purposes

set for a long period of time (5 yearsand above)

set by middle managers of a business

set for period 15 years

set by first line managers

set for 1 year and less

simplest form of business ownership

owned by one person

does not need to be operated by oneperson solely instead it can havelarge number of employees

usually in small size

largest number of business in mostcountries

entirely responsible for debts and risk

unlimited personal liability

limited access of capital

limited skills and capabilities

feeling of isolation

short life of business

an association of two or more personsto act as coowners of a business fora profit

GENERAL PARTNERSHIP

they can lose the capital but they arenot required to pay partnership debts

partners are not legally liable fordebts beyond the amount theyinvested

LIMITED PARTNERSHIP

may or may not participate inmanaging the business

able to raise more capital

tax advantages

combined business skills and knowledge

retention of profits

losses are shared

lack of continuity

difficulty in raising large sum ofcapital

bound by the act of one partner

at least one partner has unlimitedliability

most complex form of business

a legal entity separate from itsconstituent members

formed by several persons who areable to own property, draw contractsand employ people

LIMITED BY SHARES

LIMITED BY GUARANTEE

UNLIMITED CORPORATION

limited liability

easy to raise capital through sale ofshares

able to transfer ownership

relative permanence of existence

increase expertise and skills

able to delegate authority

activities limited by law

costly incorporation process

high taxation

loss of control by the founder

extensive governmental regulationsand reports required