M SANVICENTE, Maria Arysse Cyril C.

10926461

First off, what kind of business enterprise would I see my future self investing in? Quite frankly, although the first few years of running this may turn out to have more losses than gains, Id pick a clothing business the kind of boutique thats much alike to Artwork or David & Goliath, which focuses more on designing prints for shirts. Since production would start small like any other business and capital investment in this field doesnt necessarily require large values (in my view), I think that Partnership would be the best type of organization for this sort of business. I dont know much (yet) regarding running my own dealing, but concerning the number of people involved, I personally think a few are only needed in order for it to work making this kind of partnership lean more on to the Limited type. Just a few capital investors or general partners who will contribute according to what or how much he agreed to and a person or two acting as industrial partners are enough to contribute his services or labor (since its just a small business, after all), like being in charge of the process of transferring of the design on to the shirt itself. As the limited partners of our business, they then are not permitted to engage in any business for himself, without the partnerships permission. And if the limited partners choose to go against the agreement made, any of us capitalist partners have the ability to either kick him out of the partnership or avail of the profit hes gotten and/or received from the other business hes ventured into. As to its duration, however, since no time is needed to be specified nor is it fashioned only for a specific assignment, it will then be formed at will. The termination will be completely up to us, only doing so when we think losses are completely unrecoverable or for any other negative reason that cannot be

anymore remedied. Also, to be on the safe side, complying with all the necessary legal requirements in forming the partnership should be done and more likely is existent to not only the partners, but also to third persons. With those, a de jure and real or ordinary partnership is created. And obvious enough, it would be an open type of partnership as to publicity and as to purpose, would be a commercial or trading partnership. An official firm name may not have been talked about yet, but it is to be made sure that the name be not consisting of names of deceased people and terms which could delude other people to thinking that it is the same as another business name. For that to be possible and made sure of, though, checking of available or permitted possible partnership names through the website of the Securities and Exchange Commission or SEC is most necessary. As to the nature of every partners liability, it should be pro rata or jointly divided and secondary or subsidiary, which means that only after the assets have been distributed will everyone be personally liable. Industrial partners, however, are exempt from liabilities or payment of losses, since loss of his efforts from contributing services and/or labor is already enough expense on his part. Everything that Ive written is of my own opinion, and I do think that a partnership may not be the best choice for this kind of business for somebody else, but if I were to be asked, this would be best to pick since this type of business doesnt need much people to be able to operate. Small amount of capital is only needed and when sales start to grow, will investments and the capital itself rise. What Ive put in here is based on what weve discussed about partnerships for the past half of the term thats passed, and although it may be incomplete, Ive still tried my best to give the most appropriate choices and decisions albeit some may not be the best choice for others.