Podcast
Questions and Answers
A partnership is an organization formed by two or more individuals who contribute money, property, or ______ to a joint fund.
A partnership is an organization formed by two or more individuals who contribute money, property, or ______ to a joint fund.
industry
In the Philippines, partnerships are governed by the ______ Code.
In the Philippines, partnerships are governed by the ______ Code.
Civil
A partnership has its own legal ______, distinct from its individual partners.
A partnership has its own legal ______, distinct from its individual partners.
identity
A standard partnership is taxed like a corporation, at a ______% rate since 2000.
A standard partnership is taxed like a corporation, at a ______% rate since 2000.
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A general professional partnership is exempt from taxation under the National Internal Revenue ______.
A general professional partnership is exempt from taxation under the National Internal Revenue ______.
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Study Notes
Partnership Formation
- Individuals form partnerships to combine resources, skills, and experiences
- Partnerships are common in service industries where professionals collaborate
- Partnerships are governed by country or state rules and regulations
- The Philippines' Civil Code regulates partnerships and corporations (Articles 1767-1867)
- The Civil Code outlines legal requirements for partnership and corporate accounting
Defining Partnerships
- Partnerships are formed by two or more individuals who contribute money, property, or industry to a joint fund
- The joint fund is used to share profits
Partnership Features
- Partnerships are formed through voluntary association
- Partnerships are legal entities with separate identities from their partners (Article 1768)
- Partnerships can own property, incur debt, and conduct business under their legal names
- Partnerships are taxed as a corporation at a 32% rate (Tax Reform Act of 1997)
- General professional partnerships, formed for practicing specific professions (accounting, medicine, etc.), are exempt from taxation under Philippine tax code sections 20 and 24
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Description
This quiz explores the essential aspects of partnership formation, including the legal framework governing partnerships, especially as outlined in the Philippines' Civil Code. Participants will learn about the characteristics of partnerships, their tax implications, and their role in the service industry.
