What is the difference between net profit and gross
returns?
- Gross returns: Revenue - (COGS or direct
expense = Starting inventory + purchases −
ending inventory) ; it controls excess costs
- Net profit= Gross returns - all expenses and taxes
; determine the company’s performance
Can corporations enter into partnership contracts?
As a general rule, a corporation cannot become a partner.
This limitation is based on public policy, since in a
partnership, the corporation would be bound by the acts of
persons who are not duly appointed and authorized agents
and officers.
SEC
The Securities and Exchange Commission oversees
securities exchanges, securities brokers and dealers,
investment advisors, and mutual funds in an effort to
promote fair dealing, the disclosure of important
market information, and to prevent fraud.
ART 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they may
deem convenient provided they are not contrary to law,
morals, good customs, public order, or public policy.
This Article stresses the freedom to contract. The right of
the people or the freedom to enter into a lawful contract as
to their own convenience and advantage as long as the
contract are not prohibited or contrary to law, morals, good
customs, public order or public policy.
Validity of stipulations: It is understood that the contract
is the law between the contracting parties and if there is
nothing in the contract which is contrary to law, morals,
good customs, public order or public policy the contract
must be uphold or continue.
Article 1775: Associations and societies, whose articles
are kept secret among the members, and wherein any one
of the members may contract in his own name with third
persons, shall have no juridical personality, and shall be
governed by the provisions relating to co-ownership. (Civil
Code; Republic Act No. 386) (basically no secrets dapat
sa partnership ‘no!)
Estoppel: Basically, the phrase refers to a person who is
not technically a partner, but can still be held liable as
one for any debts or damages incurred by a business or
owed to a third party.
a legal rule which prevents someone from saying in
court that something they have previously stated as true
in court, or that has been established by the court as
true, is in fact not true
What is four-fold-test of an employer-employee
relationship:
pertains to the selection and engagement of the employee,
payment of wages, the power of dismissal, and the power
of control over the employee's conduct.
Prima facie: Evidence good and sufficient on its face.
Such evidence as, in the judgment of the law, is sufficient
to establish a given fact, or the group or chain of facts
constituting the party's claim or defense, and which if not
rebutted or contradicted, will remain sufficient.
Goodwill of the business: Goodwill refers to the value a
company gets from its brand, customer base and reputation
associated with its intellectual property. Goodwill is a
long-term assets that generates value for a company over a
number of years.