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41 Cards in this Set
- Front
- Back
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Partnership |
By contract of partnership, two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing profits among themselves |
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Money Property Industry |
Types/kindss of contributions for partnership |
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Common Fund |
What do you call the contibution of the partnership? |
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Articles of Co-partnership |
The written partnership contract |
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Partnership capital reaches 3,000 |
When does a written contract needed? |
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1. SEC 2. DTI 3. City/Municipal Mayor's Office 4. BIR 5. Sss, Philhealth and Pagibig Fund |
Partnership is required to register to what govt offices |
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SEC |
To secure certificate in order to operate a business |
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DTI |
To register partnership trade or business name to ensure that the business name will not be used by others |
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City/Municipal Mayor's Office |
To secure license to operate in the city |
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BIR |
For tax related transactions |
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SSS, Philhealth and Pagibig Fund |
To register the partnership as an employer and for remittinf the employee's contribution together with the employer's share |
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Mutual Agency Unlimited Liability Profit and Loss Sharing Limited Life Coownership of Partnership Asset Legal Entity Taxable |
Characteristic of a partnership |
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Mutual Agency |
Partner is considered an agent and will act on behalf of the partnership |
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Unlimited liabilitu |
Each partner has an unlimited liability in the firm |
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Capital contribution |
If profit and loss sharinf is not stated, what will be the basis of the division? |
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profit and loss sharing |
Agreement on how the partners will share the profit and loss of the business |
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Limited life |
Maybe dissolve anytime by action of the partner or by operation of law |
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Co ownership of partnership asset |
property invested by a partner becomes the property of the partnership |
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Legal entity |
Partnership has its own legal personality separate and distinct from that of each the partner |
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Taxable - 30% |
Partnership is subjected to -- annual income tax rate. |
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Easy Formation Larger resources Better maangement Unlimited liability (POV of creditors) |
Advantages of Partnership |
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Instability Unlimited liabilitt Lack of harmony Transfer of ownership |
Disadvantages of Parrnership |
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Servicing Merchandising Manufacturing |
Kinds of partnership according to activities |
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Limited partner General Partner |
Kinds of partnership according to liabilitt |
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1. Universal Partnership a. UP of all present property b. UP of profits 2. Particular partnership |
Kinds of partnership according to object |
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Partnership at will Partnership with a fixed term |
Duration of partnership existence |
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Ordinary partnership Partnership by estoppel |
According to representation to others |
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Secret partnership Open partnership |
According to publicity |
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De jure partnership (complied) De facto partnership (failed to comply) |
Legality of existence |
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Capitalist Partner (money or property) Industrial Partner (skill, industry, labor or services) Capitalist- industrial partner (both) |
Classes of partner according to contribution |
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Managing Silent (no active part but known as a partner) |
Class of partners according to management participation |
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Secret (active , not known to be a partner) Dormant (both secret and silent) Nominal/Ostensible partner (in name only) Liquidatinf partner |
Other classes of partners |
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face value |
Cash contributed by a partner is recorded at -- |
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1. value agreed upon by ALL the partners 2. Fair value (current market value) |
Non cash or property is recorded by -- |
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memorandum entry |
Partner who contributed insdustry or special skill is recorded as -- |
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The articles of co partnership under Article no. 1767 - 1867 of the civil code of the Phil. |
A business in the form of partneship is governed by -- |
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Article 1797 of Phil law on partnership |
In the absence of agreement on proft and loss sharing. This article provides that share of each partner shall be in proportion of their capital contribution and INDUSTRIAL PARTNER SHALL NOT SHARE IN THE LOSS |
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Equally Arbitrary ration |
Most common method in dividing profits |
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net income after tax |
The amount of net income divided among partners shall be -- |
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original capital |
Amount fo capital invested by the partners at the start of their partnership |
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Average capital |
Method that provides recognition of the changed in capital during the period |
