Chapter 2

Question 1

Factors to be considered before it could materialize in establishing a business

Answer 1

Feasibility study
Capital
Location
Human resources

Question 2

Forms of business organization

Answer 2

Sole proprietorship
Partnership
Corporation

Question 3

In this form of business the owner is in command of his whole business and stand to lose as much as he put in and even more to extent of all his personal holdings

Answer 3

Sole proprietorship

Question 4

Two or more person bind themselves to contribute money property or industry to a common fund with the intention of dividing the profits among themselves

Answer 4

Partnership

Question 5

Two or more person may also form a partnership for the exercise of profession

Answer 5

Article 1767 civil code of philippines

Question 6

Partnership has a juridical personality separate and distinct from each of the partners even the case of failure to comply with the requirements

Answer 6

articles 1768

Question 7

It is required to operate under a prime name in order to manifest its juridical personality

Answer 7

Article 1815 ccp

Question 8

With their separate property partners except i limited partnership are personally liable of the prorata for the debts of the partnership

Answer 8

Article 1813 ccp

Question 9

Forms of partnership

Answer 9

General partnership
Limited partnership
Limited liability partnership

Question 10

Types of partners

Answer 10

General partners
Limited partners
Silent partners

Question 11

It is a basic form of partnership in which all other partner manage the business and are personally liable for it debts

Answer 11

General partnership

Question 12

In this form of partnership certain limited partners relinquish their ability to manage the business in exchange for limited liability for the partnership debts

Answer 12

Limited partnership

Question 13

All partners how have some degree of limited liability

Answer 13

Limited liability partnership

Question 14

They have an obligation of strict liability to third parties injured by the partnership

Answer 14

General partners

Question 15

The liability of ________is limited to their investment in the partnership

Answer 15

Limited partners

Question 16

Partners who are usually provide the capital to the business

Answer 16

Silent partners

Question 17

Partnership is ________ in character

Answer 17

Fiduciary

Question 18

In partnership a person has a right to choose the person he or she want to become his or her partner taking into considerations such sterling qualities as honesty integrity and more importantly are trust and confidence

Answer 18

Delectus personae

Question 19

Define as an artificial being created by operation of law having the right of succession and powers

Answer 19

Corporation