Lesson 1: Basic Considerations and Formation
Less
n:
1. Partnership, definition and characteristics
2. Advantages and disadvantages of a partnership
3. Partnership distinguished from a corporation
4. Classifications of Partnership
5. Kinds of Partners
6. Articles of Partnership
7. SEC Registration for Partnership
8. Accounting for Partnership
9. Partnership Formation
10.Prepare a statement of financial position at date of formation
In a contract of partnership, two or morepersons combine themselves to contribute money,
property or industry, to a common fund, with the intention of dividing the profits among
themselves. Two or more persons may also form a partnership for the exercise of a
profession. (Civil Code of the Philippines, Article 1767)
Characteristics of a
Partnership
1. Mutual contribution
2. Division of profits or losses
3. Co-ownership of contributed assets
4. Mutual agency
5. Limited life
6. Unlimited liability
7. Income taxes
8. Partners’ equity accounts
Advantages and disadvantages of a Partnership
Partnership distinguished from corporation:
1. Manner of creation
2. Number of persons
3. Commencement of juridical personality
4. Management
5. Extent of liability
6. Right of succession
7. Terms of existence
Classification of Partnership according to
1. Object
2. Liability
3. Duration
4. Purpose
5. Legality of existence
Kinds of Partners
1. General partner
2. Limited partner
3. Capitalist partner
4. Industrial partner
5. Managing partner
6. Liquidating partner
Less
n:
1. Partnership, definition and characteristics
2. Advantages and disadvantages of a partnership
3. Partnership distinguished from a corporation
4. Classifications of Partnership
5. Kinds of Partners
6. Articles of Partnership
7. SEC Registration for Partnership
8. Accounting for Partnership
9. Partnership Formation
10.Prepare a statement of financial position at date of formation
In a contract of partnership, two or morepersons combine themselves to contribute money,
property or industry, to a common fund, with the intention of dividing the profits among
themselves. Two or more persons may also form a partnership for the exercise of a
profession. (Civil Code of the Philippines, Article 1767)
Characteristics of a
Partnership
1. Mutual contribution
2. Division of profits or losses
3. Co-ownership of contributed assets
4. Mutual agency
5. Limited life
6. Unlimited liability
7. Income taxes
8. Partners’ equity accounts
Advantages and disadvantages of a Partnership
Partnership distinguished from corporation:
1. Manner of creation
2. Number of persons
3. Commencement of juridical personality
4. Management
5. Extent of liability
6. Right of succession
7. Terms of existence
Classification of Partnership according to
1. Object
2. Liability
3. Duration
4. Purpose
5. Legality of existence
Kinds of Partners
1. General partner
2. Limited partner
3. Capitalist partner
4. Industrial partner
5. Managing partner
6. Liquidating partner
