Geres, Cyril Erose D.

October 7 , 2019
ABM-12Walton
MY BUDGET

Sources of funds:
• From my Family
• Daily allowance
• Church

Expenses:

• Food
• Supplies expense (e.g. papers, ball pen, etc.)
• School bills (e.g. class fund, photocopies)
• Prepaid expense (e.g. load)

Savings:
• When I have money left I immediately put it into my savings.
Investment:
• I have no investment so far.

Day 2 3 4 5 6 7
1Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Allowance: Allowance: Allowance: Allowance Allowance: No Allowance
100 pesos 100 pesos 100 pesos : 80 pesos 80 pesos allowance from
No Church:
Expenses: Expenses: Expenses: Expenses: Expenses: expenses 100 pesos
-Food -Food -Food -Food -Food
40pesos 40pesos 40pesos 40pesos 40pesos No
-Savings -Savings -Savings -Savings -Savings expenses
40pesos 35pesos 40pesos 30pesos 50pesos Savings:
-Savings -Load -School -School -School 100 pesos
for load 25pesos supplies supplies supplies
20pesos 20pesos 30pesos 10pesos

Questions:

1.Where will you put the excess funds? Will you allot some of the excess to purchase
some “wants” such as gadgets, comic books, or movie tickets?
Answer: I put all my excess funds into my personal savings at home usually. If I have
enough excess funds from my savings I bought personal needs, but not for my wants.

2. If the sources are not enough to cover for your expenditures, where do you get
additional financing?

Answer: I get my additional funds/money from our Church when I serve, they gave
me an allowance which is 100 pesos for Monday. Also from our relatives, when they
visit in our house, they give me money. And I usually put it directly in my savings, and
if it covers my expenditures I bought it right away.
 ADVANTAGE AND
DISADVANTAGE

Geres, Cyril Erose D.

ABM 12- Walton
 ADVANTAGE OF SOLE PROPRIETORSHIP

• Sole Proprietorship have functional and tax advantage compared to

other business entries.
• Another functional advantage of a sole proprietorship is that the
owner maintain 100% control and ownership of the business. By the
definition, a sole proprietorship can have only one owner, and that
owner is entitled to the profits and control of the business.
• Sole Proprietorship also have tax advantages over other business
entities. Under Virginia income tax law, sole proprietorship do not
require separate tax filings. Instead, an owner reports the net income
or net loss from the business on his personal income tax form.

DISADVANTAGE OF SOLE PROPRIETORSHIP

• Sole Proprietorship also have liability and functional disadvantage

compared to other business entities
• This biggest disadvantage of a sole proprietorship is the potential
expense to liability. In a sole proprietorship, the owner is personally
liable for any debts or obligation of business.
• While the limitation on ownership can be a functional advantage for
an owner, it can also be a disadvantage. If an owner of a sole
proprietorship wishes to include another owner, he must dissolve the
sole proprietorship and form a new business entity such as general
partnership. There is one exception to this otherwise firm rule. An
owner can be co-sole proprietorship with his spouse.
 ADVANTAGE OF PARTNERSHIP

• Your business is easy to establish and start-up costs are low.

• More capital is available for the business.
• There is opportunity or income splitting, an advantage of particular
importance due to resultant tax savings.
• There is limited external regulation.
• It is easy to change your legal structure later if circumstances
change.

DISADVANTAGE OF PARTNERSHIP

• The liability of the partners for the debts of the business is

unlimited.
• Each partner’s is jointly and severally liable for the partnership’s
debts, that is, each partner is liable for their share of the partnership
debts as well as being liable for all the debts.
• There is a risk of disagreements and friction among partners and
management.
• Each partner is an agent of the partnership and is liable for actions
by other partners.
• If partners join or leave, you will probably have to value all the
partnership assets and this can be costly.
 ADVANTAGE OF CORPORATION

• Limited liability. The shareholders of a corporation are only liable up

to the amount of their investments. The corporate entity shields them
from any further liability, so their personal assets are protected.
• Source of capital. A publicly-held corporation in particular can raise
substantial amounts by selling shares or issuing bonds.
• Ownership transfers. It is not especially difficult for a shareholder to
sell shares in a corporation, though this is more difficult when the
entity is privately-held.
• Perpetual life. There is no limit to the life corporation, since
ownership of it can pass through many generations of investors.
• Pass through. If the corporation is structured as an S corporation,
profits and losses are passed through to the shareholders, so that the
corporation does not pay income taxers.

DISADVANTAGE OF CORPORATION

• Double taxation. Depending on the type corporation, it may pay

taxes on it’s income, after which shareholders pay taxes on any
dividends received, so income can be taxed twice.
• Excessive tax fillings. Depending on the kind of corporation, the
various types of income and other taxes must be paid can require a
substantial amount of paperwork. The exception to this scenario is the
S corporation, as noted earlier.
• Independent management. If there are many investor’s having no
clear majority interest, the management team of a corporation can
operate the business without any real oversight from the owners.