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Questions and Answers
A corporation must habitually involve itself in commerce to be considered a merchant.
True
Registration with the Securities and Exchange Commission is necessary for a partnership to acquire juridical personality.
True
A joint account has juridical personality while a partnership does not.
False
A merchant must be at least 21 years old.
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In a partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund with intention of dividing the profits among themselves.
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Registration with the Securities and Exchange Commission is necessary for a partnership with a capital of P2,000.00.
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In a sole proprietorship, the owner has a juridical personality to file or defend an action in court.
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A business name is the same as the true name of an individual.
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A sole proprietor is not required to register their business name with the Bureau of Trade Regulation and Consumer Protection of the Department of Trade and Industry.
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Juridical persons are required to register the names they use for selling their products with the Securities and Exchange Commission.
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A business name that is similar to an existing business name can be allowed.
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A branch or satellite office does not require separate registration of a business name.
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Study Notes
Business Organizations and Registrations
- Corporations and partnerships registered with the Securities and Exchange Commission (SEC) are considered merchants.
- A merchant must be at least 21 years old.
Partnerships
- A partnership is formed when 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.
- Registration with the SEC is necessary if the capital of the partnership is ₱3,000.00 or more.
- Registration with the SEC is not necessary for a partnership to acquire juridical personality.
Joint Accounts
- A joint account is an arrangement where merchants may interest themselves in the transactions of other merchants.
- A joint account is also known as an accidental partnership, and there is no indication to the public that there is an existing arrangement because only the ostensible partner is conducting the business.
- A joint account has no juridical personality, while a partnership has a personality separate and distinct from the partners.
Business Names
- A Business Name is any name that is different from the true name of an individual which is used or signed in connection with their business.
- A proprietor is required to register their business name other than their true name with the Bureau of Trade Regulation and Consumer Protection of the Department of Trade and Industry.
- Even without registration with the DTI, a sole proprietor can exhibit their business name in public.
- Juridical persons need not register the names that are registered with the SEC when they use a different name for selling their products.
- Certain business names, such as "Sex Merchandise store", may be allowed in the Philippines, but it is not clear if "DOLE manpower agency" can be allowed as a business name.
- A business person cannot use a similar name to an existing business, such as "Affordable McDonald's burgers".
Sole Proprietorship
- A sole proprietorship does not possess a juridical personality and has no legal personality to file or defend an action in court.
- A sole proprietor is not considered a merchant under the Code of Commerce.
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Description
This quiz covers the basics of corporations and partnerships, including the qualifications to be considered a merchant and the characteristics of partnerships. Understand the roles and responsibilities of merchants and partners in business organizations.
