Creative Story

The Founding of Bean Corporation

On year 2021, a billionaire named Bean and his co-billionaires planned to create a
corporation who sell primer coffee in the Philippines. These group of friends did a
background about how corporation is being established. On their research it, was
defined that it is created by the operation of law, which in the Philippines, corporations
are governed by the Corporation Code of the Philippines or the Batas Pambansa Blg. 68
that was imposed since May 1, 1990. On their deeper assessment, they compared which
one is better between the other forms of business to corporation. Compared to sole
proprietorship, owners or the shareholders have limited liability and on the case of sole
proprietorship, owners have unlimited liability. Furthermore, they are flabbergasted
with the fact that the maximum corporate terms of the corporation are 50 years, almost
the half of their life of estimated existence. If ever they have given the authority to
established a corporation, they want to run a stock corporation because their primary
goal is to earn profits and these dividends will be shared among shareholders. On the
other hand, they chose corporation as the form of their business because Bean and his
friends will be the shareholders that are not the general agents of the business. On
contradictory side, they are not the one who will manage the business. Board of
directors are the one who are responsible in managing the whole business operations.
Also, due to high acquiring of funds and capital of a corporation, they have determined
that there is a lower risk in this type of business venture but have a heavier taxation.
Through the all the research and background check about a corporation, Bean and his
co-billionaires decided to prepare all the needed requirements to the government of
the Philippines.