To enhance our understanding of this course and obtain practical perspectives of real life partnerships, we have conducted an interview

with an owner of a serviceoriented business in Sta. Cruz St. Poblacion 4, Bauan, Batangas. The business is mainly engaged in serving various delicacies and food, particularly pasta and is known as Pancit Malabon Express. They have been visited by many customers, especially foreigners, because of their great service and Filipino trademark that keeps all from coming back.

The respondent in our interview was one of the partners of the business and was not just only a successful businessman, but was also a successful doctor in profession. The other partner had to run some other errands which is why she has no direct participation in the interview. The interviewees name is Dr. Anastacio Alvarez. He has been handling numerous businesses in the city of Batangas and one of these, as what has been aforementioned is the Pancit Malabon Express. Unlike his other businesses, he has a partner in operating this service-oriented business. His partner is as well a successful doctor and she is known as Dr. Matilde M. Cruz in the city. They decided to form the business to make use of their spare time and pursue their interest in dining. Accordingly, they have been operating since 2006 and their partnership is about to turn 6 this year (2012). In addition, they entered this business because they want to make use of their spare time and be able to generate more income.

Dr. Alvarez oriented our group with the actual structure of the partnership. The respondent said that they organized the business as a partnership because he said that

two heads are better than one. He also said that he has many businesses and cannot handle many of them at the same time. Having a partner in business lessens that of a responsibility if one was to create a sole proprietorship business especially if you were to find the right partner, management would be so much efficient. Some of the advantages he thinks are that one covers for each other as far as entrepreneurial skills are concerned and a larger capital compared to a sole proprietorship business. However, he would have to share the net income that was supposedly to be his only. Another problem raised was the changing decision of both partners that causes delay in some aspect and affect their relationship as co-owners of the business.

The business was established as a general partnership because they think that this would only be fair to both of them. He also added that they would be able to personally pay the liabilities of the partnership if ever the business resulted in a net loss. Currently, the business is doing well for both partners and they think that it would still grow in Batangas City.

A brief history about the business was that the partnership was formed six years ago (2006) with both Dr. Anastacio Alvarez and Dr. Matilde M. Cruz as the owners of the business. They do not have an explicit written agreement since they were related by blood and could trust each other. In terms of managing the business, both of the partners make sure that they monitor the business if possible. If one of them, however, is on duty (as a doctor) and the other partner is free, then only the free partner will check on the business. There are circumstances, however, that both of them are not on

the business itself. Making decisions for the business is a different topic. Both partners make sure that evaluate the subject matter, deliberate on the best decision to make and then decide. They do this every time so that they can avoid decisional errors. Also, they both think that they are able enough to handle the business itself. They did not, nor will have any plans on admitting a new partner because they plan to continue it as a family industry. No partners also have withdrawn from the partnership because it seems that both partners have enough money for themselves.

Regarding the operations of the business, both of the partners agreed to a 50:50 ration on the net income, after deducting the twenty percent (20%) for the addition to their capital. This twenty percent will be closed to their respective capital accounts. No income sharing devices such as interest on capital, bonuses, salaries etc. are agreed upon by the partners. They think it is the easiest way to divide profit because it is faster and both share the same effort in making its industry grow.

They do not have an accounting system in operations of their business. They do not plan to hire an accountant for the business because they feel that while the business is doing well, it will still continue to work. Besides, they assured us that their experience in running the business is good enough to tell them the business status.

On a side note, Dr. Alvarez also gave us some tips in choosing a partner. He said that we need to choose the committed ones. He added that a partner have a great help in the low times of the business. With this interview, we were able to discover and

find out many things that were so helpful for business students like us. Partnership has its share of advantages and disadvantages compared to other business forms. We were able to relate with how income is divided between the partners, the rules of the partnership and its operations. Summing it up, there really is no best form of business because it all boils down to the people who run the business that dictates the health of the business.

Disclaimer: A copy of the Financial Statements was not possible since they do not have a formal accounting system for their business. The reason for not having an accounting system is that they did not hire an accountant who would formulate or make financial statements for the said business. As said before, their experience was enough to run the business well and they seem to accept that structure for the business.