The Business Partnersby AyaTwo brothers are planning to establish a café restaurant. Bien is fond of coffeewhile Bryan is fond of pastries. Both have contributed part of their savings but uponthe assessment of the values, they need more capital. The amount needed is Php500,000.00, and they decided to divide it equally.Bien plans to get a policy loan of Php 100,000.00 from his life insurance andapply from a microfinance for the remaining. The requirement for both policy loanand microfinance is an application form and agreement form. The effect on the policyloan is that it will reduce the amount of Bien’s life insurance with the principal andinterest. On the other hand, the microfinance has 3.5% interest rate per monthpayable for 5 years.Bryan has a 5-year real estate property costing Php 350,000.00 at par. Heplans to take a loan of Php 500,000.00 from a bank, giving the title of his land ascollateral. The bank has an interest rate of 9% per annum, payable for 10 years.Questions:1. Is Bien’s loan application a wise decision? Why or why not?2. Is Bryan’s loan application a wise decision? Why or why not?3. What can you suggest or advice the brothers about their loan plans? Explainyour answer.

A partner who takes interest on the loan isQuestion 18Answera.Active Partnerb.Sleepingc.Nominald.Quasi

A, B, and C are partners in A & Company. A is the managing partner. X is indebted to the partnership for the amount of Php24,000. X is also indebted to B in the amount of Php12,000. Both debts are due and demandable. B was able to collect the amount of Php12,000 from X. While drinking on a Friday night, B told A that he was able to collect from X. The following day, A demanded B to give the amount he collected from X for the benefit of the partnership.Can A demand B to give to the partnership what he collected?Group of answer choicesYes. B should give Php12,000 to the partnership. Under the law, B should prioritize the partnership over his personal interest.Yes. B, as an ordinary partner, is required under the law to report to the partnership whatever benefit he received.No. B is not a managing partner, so he is not required to give what he received in favor of the partnership.No. B acted in good faith and even reported to A that he was able to collect from X.Both a and bBoth c and d

P and Q were partners in a firm sharing profits in 3:1 ratio. Their respective fixed capitals were10,00,000 and 6,00,000. The partnership deed provided interest on capital @ 12% p.a. Thepartnership deed further provided that interest on capital will be allowed fully even if it will resultinto a loss to the firm. The net profit of the firm for the year ended 31st March, 2018 was 1,50,000.Pass necessary Journal Entries in the books of the firm allowing interest on capital and divisionof profit/loss among the partners.

Noy and Mar enter into a partnership agreement in which Noy is to have 60% interest in capital and profits.  Noy contributes the following:Cost Fair ValueLand P  500,000 ?Building 5,000,000 60% of costEquipment 1,000,000 75% of costThere is a P1,000,000 mortgage on the building which the partners agree to assume.  Mar contributes cash of P2,500,000 and the partners agreed that this should be his capital credit.  Land should be recorded in the amount of?

Joel and Anika completely share in the management of their business. Both of them have unlimited liability for the debts of the business. Which form of ownership does their business have?Multiple Choicelimited partnershipS corporationsole proprietorshipgeneral partnership