Business Life Cycle, Business Registration in the Philippines, Forms of Business Organization and Advantages and Disadvantages of Different Forms of Business Organization Source of Capitalization for Agricultural Entrepreneur

Self-funding

- Often called 'bootstrapping' - is often the first step in seeking finance. It involves funding from your personal finances and business revenue.

Partnership

- Two or more people share ownership of a single business.

Sole Proprietorship

- Type of business owned and controlled by one individual - Also called SOLE TRADER or SOLE ENTREPRENEURSHIP

Disadvantages of Sole Proprietorship include

- Unlimited liability - Lack of structure: - Difficulty in raising funds:

Home Development Mutual Fund

- also known as the Pag-IBIG Fund, or the Fund - created on June 11, 1978 by virtue of Presidential Decree (PD) No. 1530 to address two of the country's basic needs: generation of savings and provision of shelter for the Filipino workers.

Phase Two: Growth

- companies experience rapid sales growth. - the cash flow during this phase becomes positive, representing an excess cash inflow.

Phase Five: Decline

- cycle, sales, profit, and cash flow all decline. - companies accept their failure to extend their business life cycle by adapting to the changing business environment.

Corporation

- is comprised of many individuals (maximum of 15) who act as a single entity to advance the interest of the corporation as a whole. - Formed through the operation of law

Factor companies

- provide finance by buying a business's outstanding invoices at a discount.

Phase One: Launch

- sales are low but slowly (and hopefully steadily) increasing. - focus on marketing to their target consumer segments by advertising their comparative advantages and value propositions.

Maturity

- sales begin to decrease slowly. - profit margins get thinner, while cash flow stays relatively stagnant.

Phase Three: Shake-out

- sales continue to increase, but at a slower rate, usually due to either approaching market saturation or the entry of new competitors in the market. - sales peak during this phase - cash flow increases and exceeds profit.

Certificate of Occupancy.

A sketch or pictures of your business' location and Fire Inspection Certificate will be required to get this

DBA (doing business as)

A trade name is also called a

Philippine Health Insurance Corporation (PhilHealth)

All government and private sector employers are required to register with this to enable them to provide social health insurance coverage to their employees.

Stock market

Also known as an Initial Public Offering (IPO), floating on the stock market involves publicly offering shares to raise capital.

a. launch B. growth C. Shake-Out D. Maturity E.Decline

Five stages of business cycle

debt finance arrangement.

If a friend or relative offers you a loan, it's called a

Retailers

If you need finance to buy goods like furniture, technology or equipment, many stores offer store credit through a finance company. Generally, this is a higher interest option. It suits businesses that can pay the loan off quickly within the interest-free period.

BOARD OF DIRECTORS

In the matter of management of business affairs of the corporation, this is the supreme voice

Private investors

Investors (such as business angels) can also work in your business to provide expertise and advice.

SEC

It is the government agency responsible for the securities law and regulating the securities industry in the Philippines.

Republic Act No. 11232

Revised Corporation Code of the Philippines.

CAPITAL STOCK

The account that you use to keep track of the ownership of stock in a corporation

SECURITIES AND EXCHANGE COMMISSION

The government institution that regulates securities for a corporation is known as the

BOARD OF DIRECTORS

The major policy and financial decision makers of a corporation are determined by the.

Shareholders, Board of Directors, CEO

The order in which a corperation is created is

PAR VALUE

The value of a share of stock that is printed on a stock certificate is known as

Venture capitalists

These are often big corporations that invest large amounts in start-up businesses. The businesses usually need to have potential for high growth and profits.

Community Tax Certificate or CEDULA.

This can be easily obtained at the City Treasurer's Office in your city hall.

Barangay Business Permit Clearance

This clearance signifies that the business owner has obtained the necessary approval from their local community and has complied with all the barangay's rules and regulations.

CERTIFICATE OF STOCK

This is the written acknowledgement of an interest of a stockholder in the corporation

General Partnership

a business arrangement where two or more people, agree to share among themselves all assets, profits, and financial and legal liabilities of the business;

Non-Stock Corporation

a corporation that neither generates profit nor issues shares of stock to its members, and could have any of the following purposes: Charitable; Religious; Educational;

Stock Corporation

a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares, dividends or allotments the profits of the business based on equity of shares

Limited Partnership

a type of partnership where the partners, are only held liable to the extent of their investment in the partnership; have no management authority or input towards the operations of the company

TREASURY SHARES

are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation through purchase, redemption,donation, or some other lawful means.

Debt and equity

are the two main types of finance available to businesses.

INCORPORATORS

are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof.

Judicial personality

begins the date of issuance of Certificate of Incorporation

Mayor's Permit or Business Permit

ensures that your business complies with all the ordinances of the particular city or municipality you operate in and act as proof that your business follows certain laws and ordinances.

A One Person Corporation, or OPC

is a special corporation with a single stockholder. The concept was introduced in the Philippine corporate setting by Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines.

Debt finance

is money provided by an external lender, such as a bank.

trade name

is the name your business is commonly known as or the name you use when advertising or doing business.

Bureau of Internal Revenue (BIR)

is the tax governing agency in the Philippines. As such, they collect internal revenue taxes, charges, and fees.

Business Name Law (Republic Act 3883)

it's illegal for anyone to use any name for a business other than the owner's true name without first registering the business name with the DTI.

Supplier

offer trade credit. This allows your business to delay payment for goods.

Equity finance

provides funding in exchange for part ownership of your business, such as selling shares to investors.

Business life cycle

the progression of a business in phases over time

1. Domestic corporation 2. One-Person Corporation

two types of corporations in the Philippines,