Chapter 3

• Sole Proprietorship - only one individual owns the business
• Partnership - by the contract of partnership, two or more person bind themselves to contribute money, property, or industry to a common fund with the intention of dividing the profits among themselves according to Articles 1767 New Civil Code
• Corporation - and artificial being created by operation of low, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence according to Sec. 2, The Corporation code of the Philippines
• Limited Partner - One whose liability for parnership debts is limited to his or her capital contribution
• General Partner - Liable for partnership debts to the extent of his personal property after all the partnership assets have been exhausted.
• General-Limited Partner - One who has all the rights, powers, and subject to all the restrictions of a general partner whose liability is limited to his general contribution
• Industrialist partner - contributes labor
• Capitalist Partner - Contributes money or property
• Capitalist-Industrialist Partner - Contributes money or property as well as his work
• Manufacturing - Converts raw materials to finished goods
• Merchandising - Reselling finished products
• Service - Offers acts of service as their product