20 Questions
What is the main goal of for-profit organizations?
To make a profit to sustain the business
What distinguishes nonprofit organizations from for-profit organizations?
They advocate and implement activities for public interest
What is the primary characteristic of a sole proprietorship?
Operated by one individual who makes all decisions related to the business
What distinguishes a nonprofit organization from a for-profit organization in terms of ownership?
No one person owns or controls a nonprofit organization
What is the main difference between a general partner and a limited partner in a partnership?
A general partner has unlimited liability, while a limited partner has liability up to the extent of their capital contributions
According to Article 1772, what is the requirement for every contract of partnership having a capital of 3,000 pesos or more?
It must be recorded in the office of the securities and exchange commission
What type of corporation is San Mig and PLDT classified as?
Stock - Profit
According to Republic Act No.11232, who can form a one person corporation?
Only a natural person, trust, or an estate
Under what conditions is a contract of partnership void according to Article 1773?
When immovable property is contributed and an inventory is not made and attached to the public instrument
What is the legal basis for One Person Corporation according to the text?
Republic Act No.11232: The revised corporation code of the Philippines
What is the primary distinguishing feature of a nonprofit organization?
It raises funds to advocate and implement activities for public interest
Which form of business organization requires DTI registration every five years?
Sole proprietorship
What distinguishes a for-profit organization from a nonprofit organization in terms of ownership?
No one person owns or controls a for-profit organization
What is the main goal of a for-profit organization?
To make a profit to sustain the business
Which classification does a nonprofit organization often fall under?
Non-government organization (NGO)
In a partnership, what is the liability of a general partner?
Unlimited liability for the debts & obligations of the business
What is the legal requirement for contracts of partnership having a capital of 3,000 pesos or more?
Must appear in a public instrument
What distinguishes a one person corporation from other types of corporations?
Separates owner's asset from the business asset
Under what conditions is a contract of partnership void according to Article 1773?
If immovable property is contributed and no inventory is made, signed by parties, and attached to the public instrument
What distinguishes stock corporations from non-stock corporations?
Profit status - profit or nonprofit
Study Notes
Types of Organizations
- The main goal of for-profit organizations is to earn profit.
Nonprofit vs. For-Profit Organizations
- Nonprofit organizations are distinguished from for-profit organizations in terms of ownership: nonprofit organizations do not have owners, whereas for-profit organizations do.
Sole Proprietorship
- The primary characteristic of a sole proprietorship is that it is owned and operated by a single individual.
Partnerships
- The main difference between a general partner and a limited partner in a partnership is that a general partner has unlimited personal liability, while a limited partner has limited personal liability.
- According to Article 1772, every contract of partnership having a capital of 3,000 pesos or more requires a public instrument.
Corporations
- San Mig and PLDT are classified as stock corporations.
- According to Republic Act No.11232, a single natural person can form a one person corporation.
- A one person corporation is distinguished from other types of corporations in that it has a single stockholder.
Void Partnerships
- A contract of partnership is void if it is contrary to law, morals, or public policy, or if it is with an impossible or unlawful object, according to Article 1773.
Nonprofit Organizations
- The primary distinguishing feature of a nonprofit organization is that its purpose is not to earn profit, but to fulfill a social or charitable mission.
- Nonprofit organizations often fall under the classification of foundations or charitable institutions.
Registration and Liability
- Partnerships require DTI registration every five years.
- In a partnership, a general partner has unlimited personal liability.
Legal Requirements
- The legal requirement for contracts of partnership having a capital of 3,000 pesos or more is a public instrument, according to Article 1772.
- The legal basis for One Person Corporation is Republic Act No.11232.
Explore the forms and characteristics of business organizations, the relationship between business and the economy, and the crucial roles that business entities play in modern society, such as driving economic growth, creating job opportunities, and supplying products and services to consumers.
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