Legal Forms of Business

Comprehensive vocabulary flashcards covering the legal forms of business, including sole proprietorships, partnerships, partners' classifications, corporations, corporate classifications, and corporate components.

Sole proprietorship

A business owned by a single person, who assumes all the risk and derives all the profits.

Partnership

A voluntary association of two or more persons to carry on a business; a contract between two or more persons binding themselves to contribute money, property, or industry to a common fund with the intention of dividing the profits and losses among themselves.

General partnership

A partnership wherein all the partners are general partners who are liable for partnership debts.

Limited partnership

A partnership having one or more general partners and one or more limited partners who are not bound by the obligations of the partnership.

Partnership at a fixed term

A partnership formed for a certain period of time.

Partnership at will

A partnership formed without a definite period of existence and which can be terminated at any time by any of the partners.

General partner

A partner who is liable for partnership debt to the extent of their separate property after the partnership assets are exhausted.

Limited partner

A partner whose liability for partnership debt is limited to their capital contribution.

General-limited partner

A partner who has all the rights, powers, and restrictions of a general partner, but whose liability among the partners themselves is limited to their capital contribution.

Capitalist partner

A partner who contributes money or property to the capital.

Industrial partner

A partner who contributes their work, labor, or industry to a common fund.

Ostensible partner

A partner whose connection to the partnership is active and made known to the public.

Secret partner

A partner whose connection to the partnership is not made known to the public.

Dormant partner

A partner who does not participate in the management of the affairs of the partnership.

Silent partner

A partner who has no voice or say in the management of the affairs of the partnership.

Nominal partner

A person who, though not actually a partner, is made liable for the debts of the partnership to third parties by reason of their acts or omissions.

Corporation

An artificial being created by operation of law having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence.

Stock Corporation

A corporation whose capital is divided into shares for purposes of voting and the distribution of dividends.

Non-stock Corporation

A corporation where no part of the income is distributed as dividends to its members.

Public Corporation

A corporation organized for the purpose of carrying out the functions and purposes of the state.

Private Corporation

A corporation established for business, profit, charitable, or professional purposes.

Domestic Corporation

A corporation organized under Philippine laws.

Foreign Corporation

A corporation organized under laws of a country other than the Philippines.

Close corporation

A corporation with ownership limited to selected persons or members of a family.

Open corporation

A corporation open to any person who wishes to invest or become a stockholder.

Corporators

All persons composing the corporation, whether they are stockholders or members.

Incorporators

Corporators who are specifically mentioned in the articles of incorporation.

Stockholders

Natural or juridical persons owning at least one share of stock in a corporation.

Members

Corporators in a non-stock corporation.