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BASIC CONSIDEDRATION and FORMATION
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Based on Civil Code of the Philippines, Article
1767
Two or more persons bind themselves
Contribution of money, property, or
industry to a common fund
Intention of dividing the profit among
themselves
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Based on Civil code of the
Philippines, Article 1768
It has a juridical personalityseparate and distinct from
that of each partners
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1. Mutual Contribution
2. Division of Profit and Losses
3. Co-ownership of Contributed Assets4. Mutual Agency
5. Limited Life
6. Unlimited Liability7. Income Taxes
8. Partners Equity Accounts
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Oral Recitation:
2. What are the advantages
of partnership comparedto Corporations? Explain
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Oral Recitation:
3. What are the
disadvantages ofPartnership? Why do you
think that it is a
disadvantage?
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1. According to object
a. Universal partnership of all present property
b. Universal partnership of profits
c. Particular Partnership
2. According to liability
a. General
b. Limited
3. According to duration
a. Fixed Term/ Particular Undertaking
b. At will
4. According to purpose
a. Commercial/ Trading Partnership
b. Professional/ Non-trading Partnership
5. According to legality of existence
a. De jure Partnership
b. De Facto Partnership
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I am a classification of
partnership whose
contributions aredeterminate such as use or
fruit, specific undertaking or
the exercise of a profession
or vocation.
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I am a classification ofpartnership wherein all that thepartners may acquire by their
industry or work during theexistence of the partnershipand the use of whatever thepartners contributed at thetime of the institution of thecontract belong to thepartnership.
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I am a classification of
partnership on which my
creditors can go after theseparate properties of the
partners to suffice payment
of my liabilities.
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I am a classification of
partnership on which creditors
can only go after the personalcontributions of the partners to
suffice payment of partnership
liabilities. However in mypartnership there should be at
least one general partner.
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I am a classification of
partnership on which
duration of existence isdetermined and specified.
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I am a classification of
partnership on which I am
formed for the exercise ofprofession.
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I am a classification of
partnership on which I am
formed for the transaction ofbusiness.
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My partnership has failed to
comply with all the legal
requirements for itsestablishment.
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General Partner
Limited Partner
Capitalist Partner
Industrial PartnerManaging Partner
Liquidating Partner
Dormant Partner Silent Partner
Secret Partner
Nominal Partner or Partner by estoppel
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- Embodies the agreements of the partnershipEssential provisions that it should contain:
1. The partnership name, nature, purpose andlocation;
2. The names, citizenship and residences of thepartners;
3. The date and formation and the duration ofthe partnership
4. The capital contribution of each partner, the
procedure for valuing non-cash investments,treatment of excess contribution (as capital oras loan) and the penalties for a partnersfailure to invest and maintain the agreedcapital;
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T register a partnership with the SEC, here are thebasic steps to follow:
1. Have your proposed business name verified in theverification unit of SEC;
2. Submit the following documents:
Articles of Partnership Verification slip for the Business Name
Written undertaking to change business name if required
Tax identification number of each number and/or that ofthe partnership
Registration data sheet for partnership dulyaccomplished in six copies
Other documents that may be required
3. Pay the registration/filing and miscellaneous fees;
4. Forward documents to the Sec Commissioner forsignature.