Taxation Test Bank

CHAPTER ONE

(Feasibility Study)

Almero, Jefferson

De Castro, Renan

Estrella, Justine Paul

Amoranto, Christian Lowee

Del Rosario, Aarone James

Mission

• To give a unique and memorable dining entertainment, by consistently providing the guests with perfect service, by liveliness of feeling, relaxation and graciousness.

Vision

•  To be remarkable, now and for generation.

Goals and Objectives

• To have a unique recipe for that is affordable.
• To have a continuous growing profit.
• To maintain safe and clean environment.
• To hire skilled workers and good performers for entertainment.
• To be prepared for changes and new trend.

Location

• The owners choose to locate the business in Bypass Road Sta. Clara, Sta. Maria Bulacan, because it would be a perfect site to open up a resto bar. This is because it is accessible to people. Besides this location is surrounded by many establishments like Walter mart, 7eleven and other convenient store. This is a also a good area for the stores who will to try and experience what is inside this resto bar.

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Brief Description

• This kind of business is in demand nowadays but like the other beginner in hospitality industry the owners strive to make an effort to pursue their passion in this kind of business. Imagine the beauty inside and outside the Blaze bar and Resto bar. The entrance of the blaze bar & restaurant will create the first impression of the business. It will be created in an inviting manner so that it will capture the essence of the place. As the customer enter the place they are welcomed by a magnificent setting .It has inspired designed of antique cut stones and the luxuries of modernity. The place has two floors. On the first floor it will be designed according to the natural flow of the business layout. It has full range of bar drinks including a wide selection of sprints, whisky, brandy and liquors, soft drinks and beer. An experience bartender will be performing the duty of mixing drinks. When the night comes, the business will provide a band to perform to entertain the guests and offering the Blaze dance floor wherein the customers are free to loose and enjoy dancing.  The upper part of the Blaze has a simple and relaxing ambiance wherein the guest who just wants to relax can still enjoy the place and can also see what is happening on the first floor. The menu offers a wide variety of mouth watering starters. All the products will be fresh and the dishes have the warmth of homemade food so that the guests will surely enjoy to hanging out to the place.

CHAPTER 3

PROPONENT

When starting up a business, or to accommodate continued growth, a business person need to decide if it is better to use a corporation, or use some other legal structure such as a partnership,  limited partnership, or entirely different structure. In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity. Once created, the corporation has perpetual existence separate from the owners, the directors and officers of the corporation. Every corporation must have at least one shareholder, a director and officer.  The shareholders are the owners.  The directors are the persons charged with the management and administration of the business and affairs of the corporation.  The officers would normally be the president, the secretary and such other officers as the directors may decide upon.  If there is only one shareholder, then that person is generally the sole director and only officer of the corporation.  It is no longer necessary that there be a president and a secretary.  A corporation can also take special deductions. For federal income tax purposes, corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.

There may be many advantages to using a corporation to carry on business depending on your circumstances.

Generally, a corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation.

 Shareholders only risk their equity in the corporation.

Corporations may be able raise additional funds by selling shares in the corporation.

Corporations may deduct the cost of benefits it provides to employees and officers. Some corporations may be able to elect treatment as a corporation, which exempts them from federal income tax other than tax on certain capital gains and passive income.

These are some disadvantage in forming.

Forming a corporation requires more time and money than forming other business structures.                                                                                                                                                                                   Governmental agencies monitor corporations, which may result in added paperwork.

Corporate profits may be subject to higher overall taxes since the government taxes profits at the corporate level and again at the individual level, if such profits are distributed to the shareholders. Furthermore, a corporation may not deduce from its business income any dividends it pays to its shareholders.

Chapter 4

Capital Requirement

Capital requirement is the amount of capital that has to be hold as a required by its financial regulator. This is usually express as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets. These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent. Capital requirement govern the ratio of equity to debt, recorded on liabilities and equity side of a firm’s balance sheet. They should not be confused with the reserve requirement, which govern the assets side of the balance sheet – in particular. The proportion of its assets it must hold in cash or highly liquid assets. Please find below our capital requirement;