Aling Nena realized: in a partnership, there is and mutual agency (each partner can bind the business and the other partners). Part Two: The Corporation Frustrated, they decided to change structure. They invited three other farmers — each contributing ₱20,000 — to form a corporation : Lupisan Farmers’ Rice Mill, Inc. They filed articles of incorporation with the SEC, issued shares of stock, elected directors, and appointed Mang Baysa as general manager.
What type of business organization did Baysa and Nena first form? Answer: General partnership — formed by mere agreement, with mutual agency and unlimited liability.
“This is better,” Aling Nena said. “We only lose what we invested. My family’s future is safe.” partnership and corporation baysa lupisan answer key 2018
One day, the corporation took a bank loan for a new dryer. The loan defaulted. The bank went after the corporation’s assets only — not Mang Baysa’s house, not Aling Nena’s piggery.
What is the main disadvantage of a partnership shown in the story? Answer: A partner can bind the partnership without the other’s consent (mutual agency), and each partner is personally liable for all debts (unlimited liability). Aling Nena realized: in a partnership, there is
Why did they convert to a corporation? Answer: To limit liability, allow more investors, and ensure perpetual existence.
They called it . For three months, it worked well. They shared losses when the machine broke. They shared decision-making. But one day, Mang Baysa borrowed money from a supplier in the name of the business without telling Aling Nena. The supplier demanded payment from both personally. They filed articles of incorporation with the SEC,
The supplier replied, “In a partnership, each partner is personally liable for business debts. Your personal savings, your car — they can be taken to pay.”