Ma. Sofia S.

Pedernal 1/25/2022
ABM 12-A

James 4:17
“So whoever knows the right thing to do and fails to do it, for him it is sin.”

1. If you were to start a business, what form would be the best? Why?
2. Consider the situation we are now and also the economic capability that we have
or we may not have.
ANSWER:
The Philippine economy would increase 5.1 % in 2021 and 6.0 % in 2022,
according to the supplement to the Asian Development Outlook (ADO) 2021, higher
from the bank's September prediction of 4.5 percent in 2021 and 5.5 percent in 2022.
"The Philippine economy has demonstrated tremendous resilience," stated Kelly Bird,
Country Director of the Asian Development Bank in the Philippines. But some analysts
are concerned about an uncertain and slow recovery as a result of the country's
protracted lockdown and failure to adapt to a more efficient management strategy. The
Philippines' economic model appears to be more prone to disease outbreaks, and
pandemic response has also been problematic. This appears to be the situation in the
Philippines, which gained international headlines for instituting one of the world's
longest lockdowns during the pandemic yet failed to flatten its COVID-19 curve.
Given the Philippines' pandemic status and economic capability, I believe it is
better to start a firm as a single proprietorship. You can immediately legalize
your business because it is simple and affordable to set up. There are no major upfront
costs, and you’re only responsible to yourself for the continued operation of the
business. Yet, the most significant disadvantage to be mindful of is liability. As a sole
proprietor, you are individually liable for all of your company's debts and
responsibilities, such as loans, leases, credit accounts, and lawsuits. To be honest, since
the pandemic began, the market's income has become unstable, making it difficult to
expect that forming a partnership or corporation will yield a fair return on your
investment; in that case, your business will be financed primarily by debt rather than
equity, which is a major risk for a newbie to manage. Sole proprietorships are the
greatest option if you have an idea and want to get started in the middle of a pandemic.
You only need to be patient and adaptable to the circumstances because once you start
producing money and showing yourself in your chosen industry, it will be simple to
convert your sole proprietorship into a partnership or a corporation.