Blog.Pinoy-Business.com » Glossary

Consumer loan

Pinoy Entrepreneur — Mon, 09 Aug 2010 22:04:20 +0000

A loan made by the lender to a person which is payable in installment for which a finance charge is or may be imposed. This term includes credit transactions pursuant to an open-end-credit plan other than a seller credit card. (R.A. 7394, also known as the “Consumer Act of the Philippines,” Art. 4)

Doing business

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:55:07 +0000

“Doing business” includes soliciting orders, service contracts, opening offices, whether called “liaison” offices or branches; appointing representatives or distributors domiciled in the Philippines or who in any calendar year stay in the country for a period or periods totalling one hundred eighty (180) days or more; participating in the management, supervision or control of any domestic business, firm, entity or corporation in the Philippines; and any other act or acts that imply a continuity of commercial dealings or arrangements, and contemplate to that extent the performance of acts or works, or the exercise of some of the functions normally incident to, and in progressive prosecution of, commercial gain or of the purpose and object of the business organization. The phrase “doing business” shall not be deemed to include mere investment as a shareholder by a foreign entity in domestic corporations duly registered to do business, and/or the exercise of rights as such investor; nor having a nominee director or officer to represent its interests in such corporation; nor appointing a representative or distributor domiciled in the Philippines which transacts business in its own name and for its own account. (Sec. 3, Foreign Investments Act of 1991)

Business name, firm name or style

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:53:35 +0000

Any name or designation other than the true name of a person, partnership, corporation or association which is used or signed in connection with is/its business or in 1) any written or printed receipt, including receipt for tax on business; 2) any written or printed contract not verified by a notary public; 3) any written or printed evidence of any agreement or business transaction; and 4) any sign or billboard kept conspicuously exhibited in plain view in or the place of the business, announcing a firm name or business name or style. (R.A. 7394, also known as the “Consumer Act of the Philippines,” Art. 4)

Bill of exchange

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:52:43 +0000

A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to order or to bearer. (Sec. 126, Negotiable Instruments Law) A check is a bill of exchange.

Banks

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:52:01 +0000

Entities engaged in the lending of funds obtained in the form of deposits. Banks shall be classified into:

(a) Universal banks;

(b) Commercial banks;

(c) Thrift banks, composed of: (i) Savings and mortgage banks, (ii) Stock savings and loan associations, and (iii) Private development banks, as defined in Republic Act No. 7906 (“Thrift Banks Act”); (d) Rural banks, as defined in Republic Act No. 7353 (“Rural Banks Act”);

(e) Cooperative banks, as defined in Republic Act No. 6938 (“Cooperative Code”);

(f) Islamic banks as defined in Republic Act No. 6848, otherwise known as the “Charter of Al Amanah Islamic Investment Bank of the Philippines”; and

(g) Other classifications of banks as determined by the Monetary Board of the Bangko Sentral ng Pilipinas.

(R.A. 8791, also known as “The General Banking Law of 2000,” Sec. 3)

Debt bondage

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:51:16 +0000

Refers to the pledging by the debtor of his/her personal services or labor or those of a person under his/her control as security or payment for a debt, when the length and nature of services is not clearly defined or when the value of the services as reasonably assessed is not applied toward the liquidation of the debt. (R.A. 9208, also known as the “Anti-Trafficking in Persons Act of 2003,” Sec. 3[g])

Earnest money

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:49:30 +0000

A part of the purchase price and given only where there is already a sale, wherein the buyer is bound to pay the balance. (Limson vs. CA, G.R. No. 135929, 20 April 2001)

Equitable mortgage

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:48:01 +0000

The movement from one position to another involving the issuance of an appointment with diminution in duties, responsibilities, status or rank which may or may not involve reduction in salary. On the other hand, Section 10 of the same rule defines a reassignment as the movement of an employee from one organizational unit to another in the same department or agency which does not involve a reduction in rank, status, or salary and does not require the issuance of an appointment. A demotion, therefore, involves the issuance of an appointment. (Fernando vs. Sto. Tomas, G.R. No. 112309, 28 July 1994; Section 11, Rule VII of the Omnibus Rules Implementing Book V of Executive Order No. 292)

Demotion

Pinoy Entrepreneur — Mon, 09 Aug 2010 21:47:10 +0000

Closing out sale

Pinoy Entrepreneur — Mon, 09 Aug 2010 15:52:14 +0000

A consumer sale wherein the seller uses the announcement to create the impression that he is willing to give large discounts or merchandise in order to reduce, dispose or close out his inventory and business. (R.A. 7394, also known as the “Consumer Act of the Philippines,” Art. 4)