TYPES OF BUSINESS

ORGANIZATION
 Hospitality Management is eminent in
the proliferation of different
establishments.
The capital or the amount of the
Introduction investment
The Location
Man power is also a great factor
The persons whom you are going to
work with.
Sole
Proprietorship

The owner is in command of

his own business.
 Two or more person may also form
a partnership for the exercise of
profession (Article 1767, Civil Code
of the Philippines)
Partnership has a juridical
personality separate and distinct
from that of each of the partners,
even n the case of failure to
Partnership comply with the requirements of
Art 1772 (Article 1768)
Nature Of Partnership
Partnership is fiduciary in character. It means that
all partners must have trust and confidence in one
another.

Delectus Personae
In partnership, a person has right to choose the
person or persons he wants to become his
partner/s.
 1. Valid and voluntary contact to become
partners
2. Contributions of money, property or industry
to common fund
3. It must be an association for profit, with the
intention of dividing the profits among
Essential themselves
Elements Of 4. The partners must be mutual agents of each
Partnership other
5. Lawful purpose
6. Articles of partnership must not be kept secret
7. Juridical personality, separate and distinct
from the individual personality of each partner
 Art 1772
Every contract of partnership, having a capital of
Php 3,000 or more in money or property, shall
appear in public instrument, which must be
recorded in the office SEC.
Failure to comply with the requirements of the
preceding paragraph shall not affect the liability of
the partnership and the members thereof to third
persons.
 Attributes of
Corporation
1. It is an artificial being.
2. It is created by
operation of law.
Corporation is
Corporation an artificial 3. It has the power of
being created succession.
by operation 4. It has the power,
of law; attributes and
properties expressly
authorized by law or
incident thereto.
Advantages & Disadvantages
of Corporation
Distinctions between Corporation and Sole
Proprietorship
In corporation the control belongs to the board of
directors. There is also a limited liability on the part
of shareholders.
Distinctions between Corporation and
Partnership as to Legal Capacity
Corporation has a strong legal personality, enabling
it to continue despite the death, insolvency or
withdrawal of any of its stockholders or members.
Nationality Of Corporation
Place Of Incorporation Test
is the principle of doctrine not the test of
nationality of corporation in the Philippines.
Control Test
Adheres that the nationality of the corporation
is determined by nationality of the majority of
the stockholders on whom the controls is
vested.
Classifications of Corporation in Relation to
the State
Public corporations
Example: Municipality for government functions
Private corporations
Example: ABS CBN Corporation, Jollibee Food
Corporation, San Miguel Corporation
Quasi public corporation
Example: School district, Water district, PLDT
Classifications of Corporation as the
place of Incorporation
Domestic Corporation
Is one incorporated under Philippine
laws.
Foreign Corporation
Is licensed by SEC to do business in the
Philippines.
 Ecclesiastical
•De Jute Corporation Corporation
•De facto Corporation Lay Corporation
Other Kinds •Corporation sole Corporation
Of •Close Corporation
Aggregate
Corporation Corporation by
•Open Corporation
Estoppel
•Eleemosynary
Multi National
Corporation
Corporation
Powers of Corporation
can either be Expressed or Implied.

Different Corporation Doctrines

-Doctrine of piercing the veil of corporate
existence
-Doctrine of business opportunity
-Trust & Doctrine
-Trust Fund Theory
Distinctions between Corporators and
Incorporators
Corporators
These are the total numbers of persons who
compose the corporation after its formation
which include the incorporators
Incorporators
These are the original founder or organizers of
the corporation