St.

John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

CHAPTER IV

MANAGEMENT ASPECTS

Management is the act or manner of managing, handling,

direction or control. Effective management and leadership involve

creative problem solving, motivating employees and making sure

the company accomplishes objectives and goals management

functions are planning, organizing, stopping, coordinating and

.controlling

This chapters takes about the entire organizational

arrangement of the business . It suggest a clear and precise

identification of duties and responsibilities, flow of authority and

manpower level requirements. This contains the organizational

structure and the qualifications of the people involved in the

formation of the business organization. It must be set up aimed at

optimum effectiveness to attain this management must be able to

plan all activities for the company to become dynamic and

competitive business over and done with human resources,

.financial capability and new technologies

Form of business Organization

The type of business will be a Partnership: in which

partners pool money, skills and other resources and share profit

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

and loss in accordance with the terms of the partnership

.agreement

Partnership-two or more people bind themselves to

contribute money, property or industry to a common fund, with the

intension of dividing the profit among themselves. (Civil code of the

Philippines, Article 1767, Partnership and Corporation Accounting

by will Ballada, p.2)

Advantages of Partnership

A partnership offers certain advantages over a sole

:proprietorship and corporations. They are as follows

Partnership is easy to establish and stand-up cost are low to .1

.organize since it is subject to less legal requirement

Partnership provides a closer relationship between management .2

.and workers which result to creative and productive business

Presence of more owners offers a closer supervision and .3

.concerned on the business itself

The unlimited liability makes it reliable from the point of view of .4

.the creditors

The combination of there personal credit offers a great .5

.opportunity for a possible additional capital

Advantages over Proprietorship

It offers relative freedom and flexibility of action in decision .1

.making

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

2. It combines special skills, expertise and experience of the

partners.

3. It brings greater financial capability to the business.

Advantages over Corporations

1. Easier and less expensive to organize

2. More personal and informal

(Partnership and corporation Accounting by Win Ballada p.4

2014 issue, 18 edition)

Partnership Name

The proposed name of the business would be JOPAM

Company. The name of the business comes from the surname of

proponents in a partnership. J from De Jose, O from

Oliquino, P from Pullos, A from Ariola, and M from

Malano.

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Figure 4.1 Partnership Name

Figure 4.2 Business Name

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Partnership Goal

Mission- Jopam Partnership is committed in consistently giving

and maintaining customers satisfaction by providing excellent high

quality and great tasting products at an affordable price and fast

customer service. In addition to it, strive to behave ethically and

continually operate with societys interests in mind.

Vision- To build and uphold our reputation as the most trusted

Sisig sandwich manufacturer and seller in the country.

Sources of Capital

To start up the business, all partners must contribute

capital. Funds may came from bank loans if necessary and the

profits will be equally distributed.

Pre-Operating Period

The pre-operating Period of the proposal business before the

normal operation must secure the following:

1. General Project Planning

includes the research and planning to identify the

objectives of the proposed business.

2. Acquisition of capital Requirement. Determines the

necessary for the normal operation of the proposed business

3. Organizing the Business

Includes the establishment and preparation for the

normal operation of the proposed business

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

4. Acquisition of Permit and Licenses

The proposed business must be registered to

securities and exchange commission (SEC) to the local

municipality and to the BIR.

Table 4.1 Capitalization

CAPITAL SOURCE OF
PARTNERS POSITION
CONTRIBUTION CAPITAL

Ariola, Jeny-lyn R. P110,000.00 Capitalist Personal Savings

De Jose, John Harvey P110,000.00 Capitalist Personal Savings

Accountant-
Malano, Maricon O. P110,000.00 Personal Savings
Capitalist

Oliquino, Daniela P110,000.00 Industrial-Capitalist Personal Savings

Pullos, May Ann P110,000.00 Managing-Capitalist Personal Savings

The Procedure for Organizing a Partnership

1. Register the business name with the Security and Exchange

Commission

2. Have the Partnership agreement ( Article of Partnership to be

notarized and then register with the sec).

3. Obtain a tax identification Number (TIN) for the partnership

from the BIR,

4. Obtain the Municipal licenses from the local government and

pay taxes and fees.

5. Obtain the VAT Number.

6. Register books of accounts and Business forms to be used

with the BIR.

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Government Requirement

A. Municipal Permit Requirement

1. Application for Registration

2. Barangay Business Clearance.

3. Registration copies of article of the partnership.

4. The Department permit.

5. Sanitary Permit

Community Tax Certificate

B. Bureau of internal Revenue Requirement

1. Registration of Business name

*Tax Identification name

*Community tax Certification

2. Security tax account number of business permit

C. Security and Exchange Commission Requirement

1. Name Verification Slip

2. Article of Partnership

3. SEC Registration Certificate

Table 4.2 Business Permits and Licenses

NATIONAL GOVERNMENT FEES AMOUNT

SEC Registration Fee P300.00

Filing Fee 300.00

BFAD Registration Fee 1,600.00

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

BIR Registration Fee 500.00

LOCAL FEES

Community Tax Certification 75.00

Business Tax 950.00

Business Plate 200.00

Garbage Fee 5,000.00

Barangay Clearance 50.00

Mayors Permit Fee 2,000.00

Business Plate Sticker 40.00

Fire Inspection Fee 90.00

Health and Sanitary Fee 300.00

CENRO Fee 50.00

TOTAL P11,455.00

Organizational Structure

Organizational Structure is a method of representing

relationship with in an organization. It is a structure of

interrogated groups of an organization. The main concerns is to

ensure the effective communications and coordination.

Composition of Organizational structure

General Manager

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Accountant

Service Crew (2)

Production Worker (2)

Figure 4.3 Organizational Structure

The Following are the composition of the Organizational

structure of the proposed study.

General Manager

Accountant

Service Crew (2)

Production Worker (2)

Job Description and Specification

Job Title: General Manager

Job Description: Manager is the one who covers the overall

responsibility and authority of the entire business. The function

basically is to make major plans and policies of the business, as

well as controlling, handling of funds and maintaining cost within

budgeted figures.

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Duties and Responsibilities

Monitors sales activities and expenses

Check the materials used and received

Responsible in controlling the overall on going product.

Maintains quality service by establishing and enforcing

organizational standards.

Create a high performing work environment that is

beneficial to the business, its culture and its customers

Establishes and implement policies, strategies, goals,

objectives, and procedures.

Job Title: Accountant

Job Description: Analyze financial information and prepare

financial reports to determine or maintain record of assets,

liabilities, profit and loss, tax liability, or per financial activities

within an organization.

Duties and Responsibilities

Prepare monthly sales report

Meeting and interviewing clients
Auditing Financial information
Compiling and presenting reports, budgets, business

plans, commentaries and Financial statements.

Provide advice and assistance and early warning of

such problems as cost over-runs, excessive charges and

potential penalties.
Job Title: Production worker

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Job Description: Assigned in a specific task in the production

process.

Qualifications:

Male or female

High school graduate

At least 19 years old

Have the ability to work efficiently and follow

instructions.

Must be physical fit and can perform assigned tasks

Must be hardworking and willing to learn

Have a moral character

Duties and Responsibilities

keep the production areas clean and organizes

Responsible in the target output, cleanliness, and

sanitations of the production.

Responsible in producing quality products according to

standard operating procedures (SOP).

Responsible in the materials inventory.

Serves as the laborers of production.

Job Title: Service Crew

Qualifications:

Male or female

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

At least high school graduate

Must have a working experience in the related field

Honest and have a moral character

Good communication skills and have a pleasing

personality

Physically fit and willing to work

Duties and Responsibilities

Maintain efficient and effective customer service at all

times

Maintain Cleanliness in the counter area

Handles cash, change and operate the cash register

Record all relevant transactions accurately during their

shifts

Internal Control Management

High Quality Service. A great product is the key to

business success and without it, nothing else works for very

long. Chosen applicants will be oriented and trained to

become outstanding employees providing high quality

services fit to serve customers with high quality products.

Internal Environment. The business and management

policies of the organization will be oriented first and foremost

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

to the employees. Confidentiality should be kept by the

recent and past employees. Other laws and ethical principles

to be adhered should be printed out and posted as a constant

reminder to the employees.

Information and Communication. Internal and External

activities concerning the organization, accounting reports

and feedbacks from the customers should be discussed at the

meetings regularly.

Compliance with Accounting Principles and

Systems. The structured Financial Position of the

organization should be accurate and updated and most

importantly, conform to PFRS and IFRS.

Monitoring. The establishment will be examined regularly

along with the materials needed in the production. Daily

activities will be observed through CCTV's installed. The

guard will not only monitor the attendance of the employees

but also check the items coming in and out.

Management Policies

Absences: An employee who is absent from work without any

approved application of leave of absences or without notifying

his/her immediate superior and/or any authorized personnel of the

business an hour before the shift schedule shall be considered

absent without leave (AWOL).

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Emergency Condition: In any emergency condition like

fortuitous events or other emergency cases, the management will

issue a memorandum to take effect such immediately.

Suspension and Termination: Any major valuation of the

policies, rules and regulation will be liable for disciplinary action

whether suspension or termination.

Time keeping: All Employees are required to time in and out on

the time card or bio, provided by the firm as soon as the arrive and

leaves.

Benefits of Employees

13th Month pay: The employees are entitled with cash payment

aside from regular salaries, usually it will be given every first week

of December.

Incentives: Must be given to all employees in recognition of their

good performance and being profitable to the business.

Overtime or Premium Pay: It refers to the additional monetary

compensation for work performed with in eight (8) hours on non-

working days (such as rest day and special days) as required by the

law.

Vacation and Sick leave: The management will provide 15 days

vacation and sick leave to all employees.

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 St. John Colleges
Chipeco Avenue, Calamba City, Laguna
Bachelor of Science in Accountancy

Social Security System (SSS): All employees will be registered

as members of SSS which provided sickness maternity, disability

retirement and Death benefits and financial assistance.

Pag-ibig: A member may withdraw his saving upon membership

maturity, disability and permanent departure from the country.

Philhealth: The medical and Hospitalization expenses of the

employees will be shoulder by PhilHealth insurance corp. in case of

any temporary or permanent disability that resulted from any

accident.

Holidays: an additional compensation equivalent to 100% of the

employees regular salary should be given to employees who

worked or regular holidays.

Maternity Leave: Under Article 133(a) of the labor code, " Every

employer shall grant to any pregnant woman employees who has

rendered an aggregate service of at least six months for the last

twelve month, maternity leave of at least two weeks prior to the

expected date of delivery and another four weeks after normal

delivery or abortion, with full pay based on her regular or average

weekly wages". Maternity leave is an additional leave given to a

female employee who has given birth or has suffered miscarriage.

Paternity leave is granted to male employees to assist their legal

spouses.

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