PARTNERSHIP AND CORPORATION CORPORATION ACCOUNTING Name: TIAMZON, Course: BSBA
III
GENEROSO JR.G
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Unlimited liability holds a sole !o!ieto! e!sonally !esonsible !esonsible "o! all the debts o" the b#siness. In a limited a!tne!shi, a limited a!tne!&s name m#st be in'l#ded in the a!tne!shi&s a!tne!shi&s name. E)e! E)e!y y a!t a!tne ne!s !shi hi m#st m#st ha)e ha)e at leas leastt one one limi limite ted d a!t a!tne ne!!. A a!tne! +ho in)ests assets into a a!tne!shi !etains !etains 'ont!ol o)e! those se'i' assets. A a!tne a!tne!s !shi hi in)ol) in)ol)es es m#t#al m#t#al aen' aen'y, y, #nlim #nlimite ited d liabil liability ity "o! ene!a ene!all a!tne!s and limited li"e. A a!tne a!tne!&s !&s 'aita 'aitall a''o#n a''o#ntt is debite debited d to !e0e' !e0e'tt assets assets e!man e!manent ently ly +ithd!a+n. A a!tne!shi +ith 'aital o" less than 2(,333 is )oid i" it is #n!eiste!ed +ith the Se'#!ities and E4'hane 5ommission. A a!tne!shi a!tne!shi 'annot be established established "o! "o! !eliio#s !eliio#s #!oses. #!oses. A a!tne!shi has a 8#!idi'al e!sonality sea!ate and distin't "!om that o" ea'h o" the a!tne!s. 9hen the a!tne!shi 'aital is 2(,333 o! mo!e, the #bli' inst!#ment m#st be !e'o!ded +ith the Se'#!ities and E4'hane 5ommission. Unde! the a!tne!shi "o!m o" b#siness, la!e amo#nts o" 'aital 'an be !aised easily. easily. All All a!t a!tne ne!s !shi his s ha)e ha)e limi limite ted d li"e li"e and and asse assets ts a!e a!e 'o:o+ 'o:o+ne ned d by the the a!tne!s. A do!mant a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi b#siness and is not ;no+n as a a!tne!. A a!tne!shi a!tne!shi is a leal entity sea!ate and aa!t "!om "!om its o+ne!s. o+ne!s. In a limited a!tne!shi, the ene!al a!tne!&s liability is limited to his in)estment. A a!tne! #s#ally !etains title to assets 'ont!ib#ted to a a!tne!shi, so that 'e!tain assets maybe identied as belonin to a i)en a!tne!. In a limited a!tne!shi, none o" the a!tne!s has #nlimited liability "o! the b#siness debts. The!e 'an ne)e! be a a!tne!shi a!tne!shi +itho#t 'ont!ib#tion 'ont!ib#tion o" money, !oe!ty o! ind#st!y to a 'ommon "#nd. The essen'e o" a!tne!shi is that ea'h a!tne! m#st sha!e in the !ots o! losses o" the )ent#!e. A a!t a!tne ne!s !shi hi sho# sho#ld ld al+a al+ays ys be 'ons 'onsti tit# t#te ted d in +!it +!itin in. . One o" the a!tne!s in a !oosed a!tne!shi is a m#lti:millionai!e. The sti#lation in the a!ti'les o" a!tne!shi that this a!tne! shall be e4'l#ded "!om sha!in in the !ots o" the a!tne!shi is )oid 9hen the a!tne!s in)est assets othe! than 'ash in a a!tne!shi, thei! 'aital a''o#nts sho#ld be '!edited +ith the '#!!ent "ai! ma!;et )al#es o" the assets. Ea'h a!tne! is e!sonally e!sonally liable "o! all debts o" the a!tne!shi. a!tne!shi. All a!tne!s in a ene!al a!tne!shi a!e e!sonally liable "o! all debts in'#!!ed by the a!tne!shi. As lon as the a'tion +ithin the s'oe o" the a!tne!shi, a!tne!shi, any a!tne! 'an bind the a!tne!shi. One One o" the the a! a!tn tne! e!s s in a ! !oos oosed ed a! a!tn tne! e!sh shi i is is a m#lt m#lti: i:mi mill llio iona nai! i!e. e. The The sti#lation in the a!ti'les o" a!tne!shi that this a!tne! shall be e4'l#ded
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"!om sha!in in the !ots o" the a!tne!shi is )alid. A a!tne!shi +ith a 'aital o" 2(,333 o! mo!e is )alid e)en i" it is #n!eiste!ed +ith the Se'#!ities and E4'hane 5ommission. 9hen a a!tne! in)ests assets in a a!tne!shi, the assets a!e !e'o!ded at the a!tne!&s boo; )al#e.
#i!ements "o! its establishment. 9o!; o! se!)i'es that may eithe! be e!sonal man#al e?o!ts o! intelle't#al may also be 'ont!ib#ted to a a!tne!shi. A a!tne!shi and a 'o!o!ation 'annot "o!m a a!tne!shi. Ban;!#t'y o" a a!tne! +ill dissol)e the a!tne!shi. O+ne!shi is easily t!ans"e!!ed in a a!tne!shi. A a!tne!shi m#st al+ays ha)e at least t+o o+ne!s. Not all o" the a!tne!s in a ene!al a!tne!shi a!e e!sonally liable "o! all debts in'#!!ed by the a!tne!shi. A !o!ieto!shi has a limited li"e +he!eas as a!tne!shi may ha)e an #nlimited a li"e. One ad)antae o" a a!tne!shi o)e! a 'o!o!ate "o!m o" o!ani@ation is the #nlimited liability o" a!tne!s. Assets in)ested in the a!tne!shi sho#ld be !e'o!ded at thei! 'ost to the a!tne!. A se'!et a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi b#siness and is not ;no+n as a a!tne!. In a 'ont!a't o" a!tne!shi, t+o o! mo!e e!sons bind themsel)es to 'ont!ib#te money, !oe!ty o! ind#st!y to a 'ommon "#nd, +ith the intention o" di)idin the !ot amon themsel)es. Ea'h a!tne! has a 'aital a''o#nt and a d!a+in a''o#nt. These a''o#nts a!e #sed in a slihtly di?e!ent +ay 'oma!ed to those in a sole !o!ieto!shi. A a!tne!shi is '!eated by me!e a!eement o" the a!tne!s. Ad8#stments !io! to "o!mation may be omitted sin'e these +ill not a?e't the a!tne!s& 'aital '!edits. A do!mant a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi b#siness tho#h may be ;no+n as a a!tne!.
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In a ene!al a!tne!shi, ea'h a!tne!&s liability "o! losses is limited to his in)estment in the !m. A a!tne!shi has a limited li"e be'a#se any 'hane in the !elationshi o" the a!tne!s dissol)es the a!tne!shi. The a!tne!&s 'aital a''o#nt is debited "o! the debit balan'e o" the d!a+in a''o#nt at the end o" the e!iod. A a!tne!shi a!eement sho#ld in'l#de the !o'ed#!e "o! endin the b#siness. A disad)antae o" a!tne!shis o)e! 'o!o!ations is the a!tne!s& #nlimited liability. The!e is no in'ome ta4 imosed on a a!tne!shi. A a!tne!shi m#st al+ays ha)e t+o o! mo!e o+ne!s. iabilities !elated to assets in)ested in a a!tne!shi by a ne+ a!tne! 'annot be t!ans"e!!ed to the a!tne!shi. A''o#ntin "o! a a!tne!shi 'omes 'lose! to a''o#ntin "o! a sole !o!ieto!shi than to a''o#ntin "o! a 'o!o!ation. The manne! in +hi'h !ots a!e to e sha!ed sho#ld be se'ied in the a!ti'les o" a!tne!shi. A #bli' inst!#ment needs to be e4e'#ted +hen immo)able !oe!ty o! !eal !ihts a!e 'ont!ib#ted to the a!tne!shi. M#t#al aen'y means that ea'h a!tne! has the !iht to bind the a!tne!shi to 'ont!a'ts. A a!tne!shi +ith a 'aital o" less than <(,333 is )alid e)en i" it is #n!eiste!ed +ith the Se'#!ities and E4'hane 5ommission.
