Chapter 2 Flashcards
(19 cards)
Factors to be considered before it could materialize in establishing a business
Feasibility study
Capital
Location
Human resources
Forms of business organization
Sole proprietorship
Partnership
Corporation
In this form of business the owner is in command of his whole business and stand to lose as much as he put in and even more to extent of all his personal holdings
Sole proprietorship
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
Partnership
Two or more person may also form a partnership for the exercise of profession
Article 1767 civil code of philippines
Partnership has a juridical personality separate and distinct from each of the partners even the case of failure to comply with the requirements
articles 1768
It is required to operate under a prime name in order to manifest its juridical personality
Article 1815 ccp
With their separate property partners except i limited partnership are personally liable of the prorata for the debts of the partnership
Article 1813 ccp
Forms of partnership
General partnership
Limited partnership
Limited liability partnership
Types of partners
General partners
Limited partners
Silent partners
It is a basic form of partnership in which all other partner manage the business and are personally liable for it debts
General partnership
In this form of partnership certain limited partners relinquish their ability to manage the business in exchange for limited liability for the partnership debts
Limited partnership
All partners how have some degree of limited liability
Limited liability partnership
They have an obligation of strict liability to third parties injured by the partnership
General partners
The liability of ________is limited to their investment in the partnership
Limited partners
Partners who are usually provide the capital to the business
Silent partners
Partnership is ________ in character
Fiduciary
In partnership a person has a right to choose the person he or she want to become his or her partner taking into considerations such sterling qualities as honesty integrity and more importantly are trust and confidence
Delectus personae
Define as an artificial being created by operation of law having the right of succession and powers
Corporation
