TH2016

Name: Date:

SEATWORK (20 POINTS)

Instructions:
1. Read and analyze the case below and respond appropriately.
2. You may open your handout for reference.
3. Write your responses in the space provided.
Case: Martha Soriano, a Baguio City-based retailer and caterer, noted the severe shortage of hotel
accommodations in the city, especially during the annual Panagbenga Flower Festival. She invited some
foreign friends, Arthur Hewitt, an American retiree, and Rose Ann Grundt, a German hotelier, to join and
invest in her new business venture - the Mayflower Hotel. Based on the business plan prepared, the total
capitalization needed for the 50-room standard hotel is Php20 million. Martha is only capable of raising
half of the total investment needed. What advice would you give Ms. Soriano as she forms a partnership
with two (2) foreign partners?
Here's a paraphrased version:

I recommend that Ms. Soriano secures more than half of the total required investment. According to
Philippine laws, any partnership or association must adhere to the rule that at least 60% of its capital is
owned and controlled by Filipino citizens. Ms. Soriano should draft a proposal outlining her business or
Investment Priorities Plan to present to the board. Additionally, she needs to demonstrate her capability to
operate efficiently and contribute to national development and the economy. It's important for her to inform
her foreign friends, whom she has invited to invest in her business, that if a foreign investment in the
Philippines doesn't fall under the incentives provided in the Omnibus Investment Code, they can determine
the allowable extent of foreign equity in the enterprise by referring to the Negative Lists and fulfilling the
requirements set by the Securities and Exchange Commission.

4. Your output will be evaluated using the following rubric:

CRITERIA PERFORMANCE INDICATORS POINTS SCORE
Content The response is insightful with complete supporting details. 15
 Organization The response is organized and easy to understand. 5
TOTAL 20

10 Seatwork 1 *Property of STI

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