Define Partnership and Corporation
A partnership involves two or more persons who come into an agreement to form a business
and earn profits to divide among themselves. Each person contributes money, property, or
skill/expertise to a common fund. Aside from dividing the profits, the losses are also
distributed depending on the partnership agreement.
Meanwhile, as defined in Title 1 Section 2 of the Revised Corporation Code of the Philippines,
a corporation is an artificial being created by operation of law, having the right of succession
and powers, attributes and properties expressly authorized by law or incident to its existence.
Corporations have unlimited liability, which means that the corporation’s obligations are not
paid beyond the stockholder’s contributions or investments.
Enumerate the characteristics of partnership and the attributes of corporation;
Characteristics of Partnership:
• Consensual – a partnership is consensual because it is perfected by the consent of two
or more persons.
• Nominate – a partnership is nominate because it has a special name called
“partnership.”
• Bilateral – a partnership is bilateral because two or more persons who entered into an
agreement are bound by their obligations that are dependent on each other.
• Onerous – a partnership is onerous because each person involved desires to gain benefit
through contributing something.
