Quiz on Forms of Business Organization

What is a sole-proprietorship?

• A business owned by two or more persons

• A business owned by one individual

• A business organized as a separate legal entity

• A business that is a cooperative

Which of the following is a characteristic of a partnership?

• Owned by a single individual

• Registered with the Bureau of Trade Regulation

• Pooling resources by two or more persons

• Requires at least fifteen members

What is the maximum number of partners in a general partnership?

• 10

• 25

• 15

• 20

Which document outlines the arrangement between partners in a partnership?

• By-laws

• Articles of Partnership

• Articles of Incorporation

• Business Plan

What defines a corporation according to the Corporation Code of the Philippines?

• A business that is not registered

• An artificial being created by law

• A business owned by one person

• A group of individuals with a common interest

How many incorporators are required to form a corporation?

• Five to fifteen

• One to three

• Twenty to thirty

• Ten to twenty

What is a cooperative?

• A group of people with a common bond of interest

• A partnership with unlimited liability

• A business owned by a single individual

• A business that is a corporation

Which of the following is NOT a type of cooperative?

• Sole proprietorship

• Consumer cooperative

• Credit cooperative

• Marketing cooperative

What is a key advantage of a sole-proprietorship?

• Shared profits

• Transferable ownership

• Easy to establish and manage

• Limited liability

Which of the following is a disadvantage of a corporation?

• Simple to establish

• Easy to manage

• Double taxation

• Unlimited liability