LAW (2)

• Sole Proprietorship


  Form of business ownership wherein the owner is in command of his whole business and stands to lose as much as he puts in and even more to extent of all his personal holdings
• Registration


  Dept. Of Trade & Industry Bureu of Trade Regulation an Consumers Protection
• Partnership


  Business owned by Two or more people, each partner participates equally in the operation and personally liable for all debts of the business
• Essential requisites of a partnership


  • Agreement to contribute money, property, industry to a common fund
  • Intent to divide the profits among themselves
• Classification of Partnership


  • Universal Partnership
  • Particular Partnership
  • General Partnership
  • Limited Partnership
  • Silent Partnership
  • Partnership for a Fixed Term
• Universal Partnership


  Partnership formed by persons who agree to contribute to the partnership all of their individually owned property
• Particular Partnership


  Partnership formed for a single transaction or enterprise as distinguished from one organized for carrying on a general business
• General Partnership


  Form of partnership in which all other partners manage the business and are personally liable for the debts
• Limited Partnership


  The liability partners is limited to their investment in the partnership
• Silent Partnership


  Partners who usually provide capital to the business, share in the profits and losses, uninvolved in the management, and/or whose association with the business in not publicly known
• Partnership for a Fixed Term


  Term of its existence has been agreed upon expressly or impliedly, as when a particular enterprise or transaction is undertaken
• ARTICLE 1772 - Every contract of partnership having a capital of three, thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange Commission
• ARTICLE 1767 - By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.
• FORMS OF BUSINESS ORGANIZATION

  1. SOLE PROPRIETORSHIP  

  2. PARTNERSHIP

  3. CORPORATION
• ADVANTAGES of Forming a PARTNERSHIP

  1. Easy to Form
  2. Combination of Knowledge and Skills
  3. Shared Decision Making

   
• DISADVANTAGES of Forming a PARTNERSHIP

  1. Instability
  2. Unlimited Liability
  3. Lack of Community
  4. Partner are held Liability for each other's Actions
• CLASSIFICATION OF PARTNERSHIP

  ACCORDING TO SUBJECT MATTER:

  ACCORDING TO LIABILITY

  ACCORDING TO DURATION
• ACCORDING TO LIABILITY

  GENERAL PARTNERSHIP

  LIMITED PARTNERSHIP

  SILENT PARTNERSHIP
• OBLIGATIONS OF THE PARTNERS

  1. Contribution is money or property 
  2. Contribution is industry
  3. Obligation of the capitalist partner
  4. Responsibility between partnership and partner
• ACCORDING TO SUBJECT MATTER

  UNIVERSAL PARTNERSHIP

  PARTICULAR PARTNERSHIP