Finance Consulting to

Partnering in a Business
Venture

Short business case analyses

presented to the
Accountancy Department

In partial fulfillment
of the course requirements
in ACCTBA2

Magtibay, Princess Edreine

ACCTBA2
October 24, 2018
 The major disadvantages of starting a partnership is first the unlimited liability that both partners

can have, this may cause burden on their personal finances and assets. In a partnership both partners

will have control on the business so it may be stressful and it may affect the business if both partners don’t

see eye-to-eye on decision making. There may always be a conflict of interest and emotions may be

involved in the partnership. Also, each partner is ‘jointly and severally’ liable for the partnership’s debts.

For the documents needed in a partnership, in order to establish it they need to form a contract based on

the Civil Code of the Philippines, Article 1767 the Articles of Co-Partnership. It is an agreement that

structures an understanding among colleagues with respect to work and capital, and offer in benefit,

misfortune, and risk. Such a report goes about as a rulebook for restricted associations by sketching out

every one of the conditions under which parties go into an organization. It incorporates the name of the

association, the reason and main place of business, the viable date of the agreement, the names, locations

of the accomplices, and classes of the accomplices, the ventures each accomplice will make in the

business, the rights and obligations of every one of the accomplices, the assignment and appropriation of

benefits and misfortunes, the conditions under which the accomplices may pull back cash or different

resources, the way of keeping the books of records and the strategy for basic leadership.

Since Anthony made an extra venture of a PC then he would not need to contribute as much money

as John. Since the equitable estimation of the PC is P70,000, Anthony can incorporate that in the

P500,000 each accomplice must put resources into the organization. Anthony will just need to put

P430,000 in real money in addition to the PC, while John should put the full P500,00 in real money. Taking

everything into account, Anthony will be remunerated by not contributing as much money as John.

At the point when Anthony is petitioning for his government form, he ought not report the PC since it is

viewed as office gear which isn't assess deductible. In the event that he documents it, he will hazard an

IRS review. Rather he can record his money venture of P430,000 for his government form.