Colegado, Honey Lou

BSA 3-A5

RESEARCH ACTIVITY 01 (2)- INTRO Research Questions Continuation:

4. Create a table laying down the differences between Partnership and Corporation as
to:
a. Commencement of Juridical Personality
b. Right of Succession
c. Death of a partner/stockholder
d. Transferability of Interest
e. Term of Existence
f. Governing Law

Partnership
a. Commencement of According to Art. 1784
Juridical Personality Juridical personality
commences from the
moment of execution
of the contract of
Partnership. Unless
otherwise stipulated.
Corporation
Personality commences
from SEC’s issuance of
the certificate of
incorporation

g. Right of Succession Has no right of Has right of succession. A

Succession. corporation has the
capacity of continued
existence regardless of
the death, withdrawal,
insolvency or incapacity of
its directors or
stockholders.

h. Death of a When a partner in a The legal right to the

partner/stockholder partnership dies, the basic deceased’s shares passes
position under automatically to their
the Partnership Act 1890 personal representative
is (PR)
that the partnership is
dissolved:
‘Subject to any agreement
between the partners,
every
partnership is dissolved as
regards all the partners by
the
death… of any partner.’

i. Transferability of Interest Based on delectus Not based on delectus

personam . No Partner Personam. A stockholder
shall withdraw from the has the right
Partnership or sell, to transfer his shares
convey, transfer, assign, without the prior consent
 pledge or otherwise of
alienate its Interest in the the other stockholders
Partnership, without the
prior written consent of all
Partners.

j. Term of Existence May be established for May not be formed for a

any period of time term in excess of 50 years
stipulated extendible to not more
than
50 years

k. Governing Law Art. 1767-1867, Civil code Revised Corporation Code

of the Philippines (R.A No. of the Philippines ( R.A
386)Civil Code No. 11232)

5. What is a Joint Venture?

A Joint Venture, or JV, is an arrangement or partnership between two or more
entities in which they pool their resources to accomplish a specific task. This may be
a new project or another type of business activity.
In a joint venture, each participant is responsible for the associated profits
and costs, however the venture itself is its own entity, separate from the other
existing businesses

6. What is/are Joint Accounts?

A joint account is a bank account, which is shared by two or more individuals.
Families, spouses, or business partners who have a degree of familiarity and
confidence with each other are more likely to use joint accounts. It normally allows
access to funds inside anyone named on the account.

7. What is a Business Trust ?

Business trusts, also known as common law trusts, are legal instruments that
give a trustee the authority to manage a beneficiary’s interest in a business. A
business trust can be used as the legal entity that runs the business.

Business trust is quite similar to an individual or family trust. It helps delegate control
of assets to a trustee, who manages the trust and its contents on behalf of the
grantor. An individual trust typically contains assets such as money or property, but a
business trust holds the rights to an individual’s stake or interest in a business. As a
result, a business trust can be the legal entity that technically owns a business.