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Questions and Answers
What is the primary difference between a sole proprietorship and a partnership?
What is the primary advantage of registering a partnership?
What is the legal requirement for registering a partnership in the Philippines?
What type of business structure is characterized by a single owner who has unlimited liability?
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According to the data from Trading Economics, what percentage of firms in the Philippines have a legal status of sole proprietorship?
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Where are sole proprietorships registered in the Philippines?
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What is a characteristic of sole proprietorship businesses in some countries?
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Who receives the profits in a sole proprietorship?
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What is regulated under the Philippine Pharmacy Act?
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Who founded Mercury Drug?
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What was the original price of the sulfathiazole bottle that Mariano Que wanted to buy?
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What is the main difference between a general partner and a limited partner in a partnership?
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What is the main advantage of a partnership in terms of start-up?
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What is the purpose of filing Articles of Partnership?
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What type of partnership is commonly used for profession-related firms?
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Which of the following is a characteristic of a limited liability partnership?
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What is the main advantage of a partnership in terms of decision making?
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Study Notes
Business Organizations
- In the Philippines, sole proprietorships are registered with the Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), and the locality's Local Government Office.
- Sole proprietorships have relatively few regulations, but some ventures like drug stores or pharmaceutical establishments are regulated under the Philippine Pharmacy Act.
Sole Proprietorship Advantages
- The owner gets to keep the entire earnings of the business.
- There are few regulations in some countries.
Partnership Types
- General Partnership: the general partner has unlimited personal liability, while the limited partners' liabilities are only limited to the amount of their initial financial investment.
- Limited Liability Partnership: functions like a general partnership, but the liabilities of the partners are limited, often applicable to profession-related partnerships.
Partnership Advantages
- Ease of Start-up: putting up a partnership is relatively easy, with minimal documentary requirements.
- Shared Decision Making and Specialization: partners can share decision-making responsibilities and bring their specialized skills to the business.
Mercury Drug History
- Founded in 1945 by Mariano Que, who recognized the need for affordable medicines after the war.
- Started with a bottle of sulfathiazole, a "wonder drug" that was scarce and expensive at the time.
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Description
Test your knowledge of business laws and partnerships in the Philippines, including Republic Act No. 10918 and sole proprietorship. Learn about the legal aspects of business and partnerships in the country.
