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    Dominguez, Ronald S.: Activity 1

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    Ayala Corporation is a holding company in the Philippines that was founded in 1834 and incorporated in 1968. It operates in various industries including real estate, finance, telecoms, and infrastructure. Some key advantages of owning a corporation include continuity of existence even when owners change, limited liability protecting owners' personal assets, and the ability to raise greater capital through public ownership. However, corporations also face disadvantages such as heavier taxation, potential unequal power dynamics between stockholders, and higher costs of formation and ongoing operations due to their larger size and legal structures.

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    Dominguez, Ronald S.: Activity 1

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    Ronald Dominguez
    30 views3 pages
    Ayala Corporation is a holding company in the Philippines that was founded in 1834 and incorporated in 1968. It operates in various industries including real estate, finance, telecoms, and infrastructure. Some key advantages of owning a corporation include continuity of existence even when owners change, limited liability protecting owners' personal assets, and the ability to raise greater capital through public ownership. However, corporations also face disadvantages such as heavier taxation, potential unequal power dynamics between stockholders, and higher costs of formation and ongoing operations due to their larger size and legal structures.

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    Ayala Corporation is a holding company in the Philippines that was founded in 1834 and incorporated in 1968. It operates in various industries including real estate, finance, telecoms, and infrastructure. Some key advantages of owning a corporation include continuity of existence even when owners change, limited liability protecting owners' personal assets, and the ability to raise greater capital through public ownership. However, corporations also face disadvantages such as heavier taxation, potential unequal power dynamics between stockholders, and higher costs of formation and ongoing operations due to their larger size and legal structures.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views3 pages

    Dominguez, Ronald S.: Activity 1

    Uploaded by

    Ronald Dominguez
    Ayala Corporation is a holding company in the Philippines that was founded in 1834 and incorporated in 1968. It operates in various industries including real estate, finance, telecoms, and infrastructure. Some key advantages of owning a corporation include continuity of existence even when owners change, limited liability protecting owners' personal assets, and the ability to raise greater capital through public ownership. However, corporations also face disadvantages such as heavier taxation, potential unequal power dynamics between stockholders, and higher costs of formation and ongoing operations due to their larger size and legal structures.

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    Dominguez, Ronald S.

    February 24, 2021

    Business Ethics and Social Responsibility

    ACTIVITY 1

    Ayala Corporation (CORPORATION)

    Ayala Corp. is a holding company in the Ayala Group of Companies and is active

    in the fields of real estate and hotels, finance and insurance, telecoms, water systems,

    electronics, industrial technology, automotive, power generation, transport infrastructure,

    international real estate, healthcare, education, and technology. It was founded in 1834

    by Domingo Roxas and Antonio de Ayala. Ayala Corp. was then incorporated in 1968 and

    was listed in 1976 on the Philippine Stock Exchange. Now, it is being handled by the

    Zobel family, Jaime Augusto Zobel and Fernando Zobel specifically, a Filipino-Spanish

    family.

    What are the advantages of owning a corporation business?

    • Continuity of existence – This means that corporations possess the quality of

    continuing its operations when its owners pass away. Corporations has a legal life

    of its own, separate from its owners. Theoretically, it can exist forever if ownerships

    are being transferred.

    • Limited liability – This quality of a corporation protects its owners and

    shareholders from being personally held accounted from their company’s debts
    and financial losses. This means that the company is a different entity from its

    owners, protecting the investors’, stockholders’, owners’ personal assets from the

    risks of losses.

    • Greater ability to acquire a bigger capital – As mentioned earlier, corporations

    have stockholders, meaning that the source of capital is greater. Corporations can

    also have investors where their financial contributions will open a lot more of

    improvements and opportunities for the company.

    • Flexibility - Corporate ownership is based on a percentage of stock ownership

    that provides far more stability in terms of transfer of ownership and long-term

    perpetuation of the company than other forms of organization, where ownership is

    often easy to buy and sell.

    What are the disadvantages of owning a corporation business?

    • Heavier taxation – Because corporations are usually big companies, this also

    means that they are responsible for a bigger tax. This can even be doubled

    depending on the corporation type. There are instances where it must pay tax

    based on its income after the shareholders pay taxes on the dividends they have

    received.

    • Unequal distribution of power – Power or the force of opinion can sometimes

    depend based on how much stocks you have in the company. This results in

    stockholders with lower stocks being inferior to those who have bigger stocks on

    the company.
    • High cost of formation and operation – As I have said, corporations are usually

    big. This means that formation and operation will be expensive. Just from forming

    the company, things like legal files, physical structures, etc. will require a high

    budget. Operations and maintenance inside the company will also require a huge

    financial budget.

    • Complicated formation and management – Corporations are different from sole

    proprietorship when it comes to legal files. It requires a lot of filings and

    registrations from the government. This also means that the government has a

    higher control over corporation businesses.

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