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Exercise 2 ACCTG 111B

This document discusses the history and corporate structure of Virginia Foods, Inc., a major Philippine food manufacturer. It notes that Virginia Foods was spun off in 1982 from another company to focus on canned and frozen processed meats. As a corporation formed under Philippine law, Virginia Foods is considered an artificial, perpetual entity that can own property and engage in transactions. While this structure protects shareholders from liability, it also limits their control over company policies and the ability to sell the business independently. The conclusion emphasizes how a business's legal structure can impact its development and the tradeoffs that must be considered.

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32 views2 pages

Exercise 2 ACCTG 111B

This document discusses the history and corporate structure of Virginia Foods, Inc., a major Philippine food manufacturer. It notes that Virginia Foods was spun off in 1982 from another company to focus on canned and frozen processed meats. As a corporation formed under Philippine law, Virginia Foods is considered an artificial, perpetual entity that can own property and engage in transactions. While this structure protects shareholders from liability, it also limits their control over company policies and the ability to sell the business independently. The conclusion emphasizes how a business's legal structure can impact its development and the tradeoffs that must be considered.

Uploaded by

Ppsychedelictable youtube
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Kareen Joy P.

Belicario ACCTG 111B (9:30-10:30 MWF)


Exercise #2 February 13, 2023
Kareen Joy P. Belicario ACCTG 111B (9:30-10:30 MWF)
Exercise #2 February 13, 2023

Virginia Foods, INC.


In November 1982, the production and marketing of processed meats divisions were spun off to
form a new corporation, VFI FOOD, INC., later named VIRGINIA FOOD, INC. With its
superior canned and frozen processed meat products, Virginia Food Inc., has impacted the lives
of many Filipinos for more than 50 years. The business has developed into one of the
Philippines' most competitive and intriguing local food manufacturers today.

At the core of Virginia Foods Inc. is a century-old brand that resonates with generations of
Filipino consumers. It is with this passion that the company continues its operations. Thanks to
governing laws in the Philippines, companies like Virginia Foods Inc. exist and will continue to
operate for life as it is stated on RA 11232 or the Revised Corporation Code of the Philippines.
As its name implies, this law requires all corporations to continue operations indefinitely until
they voluntarily liquidate or are involuntarily dissolved by a court order. With that being said,
Virginia Foods Inc. is also considered an artificial being created by the operation of law. This
means that it can own property, engage in transactions, and commit acts expressly permitted by
law or incidental to its existence. This corporate structure provides specific benefits and
privileges to the corporation such as limited liability and the separation of ownership and
management from the day-to-day operations of the business. This allows businesses to operate
more efficiently and productively. However, there are some disadvantages as well. For instance,
a shareholder's control over the business is often limited because they do not own the business
itself. They merely own a share of it which entitles them to a share of the profits and losses of the
company but does not give them any say over the company's policies or practices. Lastly,
shareholders cannot decide for themselves whether to continue operating or sell their business to
another entity. These are just some of the limitations faced by the shareholders of a corporation.
On the other hand, shareholders benefit from sharing in the company's success and enjoying the
perks of being a businessman without the need to bear the full burden of running the business
themselves. They are protected from personal liability and may exercise influence over the
direction of the company through the board of directors.

In conclusion, the legal structure of a business plays an important role in its development and
growth. Different structures have different advantages and disadvantages and each structure must
be carefully studied before making a decision. All these factors must be considered when starting
a business to ensure that it is set up properly and gives owners the maximum protection from risk
and liability while at the same time providing business owners with flexibility and autonomy to
pursue their own.

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