BUSINESS ORGANIZATIONS

Question 1

TRUE OR FALSE

Corporations and partnerships (organized for business) are also merchants from the time they are registered with the Securities and Exchange Commission.

Answer 1

FALSE

Question 2

TRUE OR FALSE

One of the qualification of being a merchant is to be at least 21 years old.

Answer 2

FALSE, at least 18 years old

Question 3

TRUE OR FALSE

One of the qualification of being a merchant is to habitually involve themselves in commerce.

Answer 3

TRUE

Question 4

TRUE OR FALSE

In partnership two or more persons bind themselves to contribute money, property, or industry to a common fund with intention of dividing the profits among themselves.

Answer 4

TRUE

Question 5

TRUE OR FALSE

Registration with the Securities and Exchange Commission (SEC) is necessary where the capital of the partnership is P3, 000.00 or more.

Answer 5

TRUE

Question 6

TRUE OR FALSE

Registration with the SEC is not necessary for a partnership to acquire juridical personality

Answer 6

TRUE, Even an unregistered partnership has a personality separate and distinct from its partners

Question 7

TRUE OR FALSE

From Joint account in concept an arrangement whereby merchants may interest themselves in the transaction of other merchants.

Answer 7

TRUE

Question 8

TRUE OR FALSE

This is commonly called an accidental partnership; and there is no indication to the public that there is an existing arrangement because only the ostensible partner is conducting the business.

Answer 8

TRUE, JOINT ACCOUNT

Question 9

TRUE OR FALSE

A joint account has juridical personality while a partnership has a personality separate and distinct from the partners.

Answer 9

FALSE

Question 10

TRUE OR FALSE

As to business name Commercial name is common to all participants that can be adopted in joint accounts

Answer 10

FALSE

Question 11

TRUE OR FALSE

A joint account has no juridical personality while a partnership has a personality separate and distinct from the partners.

Answer 11

TRUE

Question 12

TRUE OR FALSE

As to management, the general partners are all managers in the partnership.

Answer 12

TRUE

Question 13

A person personally conducts business under his name or a business name called proprietor himself. It has no personality separate and distinct from the proprietor.

Answer 13

INDIVIDUALS AND SOLE PROPRIETORSHIP

Question 14

any name that is different from the true name of an individual which is used or signed in connection with her/his business on any written or printed documents, taxes, and withdrawal or delivery receipts, billboard or exhibit announcing her/his business.

Answer 14

BUSINESS NAME

Question 15

What type of names are prohibited to be a business name?

Answer 15

1) The name in itself is illegal, offensive, scandalous, or improper
2) Names identical or resemble a BN already registered with the DTI, SEC, Cooperative Development Authority, Intellectual Property office, Food and Drug Administration, DOLE or any other government office.
3) Names composed of purely generic or geographic words;
4) Names which by law or regulation cannot be appropriated;
5) Names, or terms to designate or suggestf any class of goods, articles, merchandise, or service;
6) The names or abbreviation of names used by the government in its governmental functions;
7) The names or abbreviation of names of any nation, inter-governmental or international organization; and
8) Names which are deceptive, misleading or which misrepresent the nature of the business (DTI Amended Department Order No. 10-01)).

Question 16

as to individuals, Corporations and partnerships, they are those who having capacity to engage in commerce habitually devote themselves to it (Art. 1, Code of Commerce, SEC)

Answer 16

MERCHANTS

Question 17

QUALIFICATIONS OF MERCHANTS

Answer 17

1) at least 18 years;
2) must have free disposition of his property;
3) must habitually involve themselves in commerce.

Question 18

two or more persons bind themselves to contribute money, property, or industry to a common fund with intention of dividing the profits among themselves

Answer 18

PARTNERSHIP

Question 19

An arrangement whereby merchants may interest themselves in the transaction of other merchants, contributing thereto the amount of capital they may agree upon, and participating in the favorable and unfavorable results thereof in the proportion they may determine (Art. 239, Code of Commerce).

Answer 19

JOINT ACCOUNT (CUENTAS EN PARTICIPACION)

Question 20

It is a legal relation whereby one person, called the trustor, conveys a property to another for the benefit of a person called the beneficiary. The person in whom confidence is reposed as regards the property is called the trustee

Answer 20

BUSINESS TRUST

Question 21

An association of persons or companies jointly undertaking some commercial enterprise; generally all contribute assets and share risks. It requires a community interest in the performance of the subject, a right to direct and govern the policy connected therewith, and duty, which may be altered by agreement to share both in profit and losses (Kilosbayan, Inc. v. Guingona, 232 SCRA 110 [1994])

Answer 21

JOINT VENTURE

Question 22

It is an autonomous and duly registered association of persons with a common bond of interest, who have voluntarily together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles (Art. 3, R.A. No. 9520).

Answer 22

COOPERATIVES

Question 23

It is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.

Answer 23

CORPORATION

Question 24

TRUE OR FALSE

A joint venture is actually a form of partnership and should thus be governed by the laws of partnership (Aurbach case 1989]).

Answer 24

TRUE

Question 25

Corporations cannot enter into joint venture agreements

Answer 25

FALSE