LAWS ON PARTNERSHIP AND CORPORATION

Art. 1767 of the New Civil Code provides,

- 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. Two or more persons may also form a partnership for exercise of a profession.

• Exist when two or more persons agree to place their money, effects, labor, and skill in lawful commerce or business, with the undertaking that there shall be a proportionate sharing of the profits and losses among them.

• PARTNERSHIP

• Limited partnership

• General partnership

• SOLE PROPRIETORSHIP

The oldest, simplest, and most prevalent form of business enterprise. It is unorganized business owned by one person. The sole proprietor is personally liable for all the debts and obligations of the business.

• PARTNERSHIP

• SOLE PROPRIETORSHIP

• General partnership

• Limited partnership

A partnership with one or more general partners and one or more limited partners. In limited partnership, the general partner will be held liable beyond his contribution. A limited partner is however liable only to the extent of his contribution.

• SOLE PROPRIETORSHIP

• PARTNERSHIP

• General partnership

• Limited partnership

Are partnership where all the partners are general partners who are liable to the extent of their separate property after the partnership asset have been exhausted.

• SOLE PROPRIETORSHIP

• PARTNERSHIP

• General partnership

• Limited partnership

What is the advantage of sole proprietorship?

• Limited ability to raise capital

• Personally liable to all debts and

• Sole enjoyment of profit

• Burdensome because all decisions and undertakings are to be carried out by him alone

What are the advantages of Sole Proprietorship? Check all that applies.

• 3. Limited ability to raise capital.

• Personally liable to all debts and

• Burdensome because all decisions and undertakings are to be carried out by him alone

• Low capitalization

• Cheaper fees paid to the government

What are the disadvantages of Sole Proprietorship? Check all that applies.

• Cheaper fees paid to the government

• Limited ability to raise capital.

• Burdensome because all decisions and undertakings are to be carried out by him alone

• Sole enjoyment of profit

• Personally liable to all debts and obligations of the business

Means no one can become a partner without consent of all partners. The consent of all the partners in the partnership must be obtained to enable them to join the parnership.

• Delectus Personae

• SOLE PROPRIETORSHIP

• PARTNERSHIP

• Business

The partnership has a juridical personality separate and distinct from that of each of the partners.

Once the partners formed the partnership, the partners actually created or formed a new person, and that new person is the partnership itself.

• Capitalist Partner

• Art. I767

• Art. I768

• Limited Partnership

The partnership has a juridical personality separate and distinct from that of each of the partners.

Once the partners formed the partnership, the partners actually created or formed a new person, and that new person is the partnership itself.

• Capitalist Partner

• Art. I767

• Art. I768

• Limited Partnership