L1; The Nature and Forms of Business Organizations

Question 1

an organization or entrepreneurial entity engaging in commercial, industrial, or professional activity.

Answer 1

Business

Question 2

Businesses can be?

Answer 2

for-profit or non-profit enterprises

Question 3

business dedicated to a charity goal or a social cause.

Answer 3

non-profit enterprises

Question 4

is a system of moral principles

Answer 4

Ethics

Question 5

it governs how people make decisions and lead their lives.

Answer 5

Ethics

Question 6

the study of proper company rules and procedures on potentially contentious matters such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities is referred to as?

Answer 6

business ethics.

Question 7

what are the potentially contentious matters

(enumerate)

Answer 7

• corporate governance,
• insider trading,
• bribery,
• discrimination,
• corporate social responsibility, and
• fiduciary responsibilities

Question 8

is a type of self-regulation of a business that aims to contribute to societal goals in the best interests of the environment and society as a whole.

Answer 8

Social Responsibility

Question 9

what is the aim of Social Responsibility

Answer 9

aims to
- contribute to societal goals in the best interests of the environment and society as a whole.

Question 10

FORMS OF BUSINESS ORGANIZATIONS

(enumerate)

Answer 10

1. SOLE PROPRIETORSHIP
2. PARTNERSHIP
3. CORPORATION
4. COOPERATIVE

Question 11

one person; the simplest, and the most common form of business organization own a form of business.

Answer 11

SOLE PROPRIETORSHIP

Question 12

this form of business is not separate from the owner.

Answer 12

SOLE PROPRIETORSHIP

Question 13

The business and the owner are inseparable.

Answer 13

SOLE PROPRIETORSHIP

Question 14

what do you call the owner in a sole proprietorship?

Answer 14

proprietor/proprietress.

Question 15

a form of business owned by two or more persons.

Answer 15

PARTNERSHIP

Question 16

The details of the arrangement between the partners are outlined in a written document called

Answer 16

articles of partnership

Question 17

what happens to the profit in a partnership?

Answer 17

Profits are divided among partners based on their agreed sharing.

Question 18

The owner of a partnership is called a?

Answer 18

partner

Question 19

an enterprise chartered by law with most of the legal rights of a person including to conduct a business, own and sell property, borrow money, sue, and be sued.

Answer 19

CORPORATION

Question 20

Corporations are chartered by law with most of the legal rights of a person which includes?

(enumerate)

Answer 20

• to conduct a business,
• own and sell property,
• borrow money,
• sue, and
• be sued.

Question 21

is a business organization that has a separate legal personality from its owners.

Answer 21

CORPORATION

Question 22

What represents ownership in a (stock) corporation?

Answer 22

Shares of stock represent ownership in a stock corporation.

Question 23

is a duly registered association of persons with a common bond of, voluntarily joining to achieve their social, economic, and cultural needs.

Answer 23

COOPERATIVE

Question 24

How many people manage a cooperative?

Answer 24

There are 15 persons or more managing it.

Question 25

The owners of a cooperative are called?

Answer 25

members who contribute equitably to the capital of the cooperative.

Question 26

To know the nature of a business, one has to determine what?

Answer 26

one has to determine what kind of business it is and what is the main product or service it delivers.

Question 27

TYPES OF BUSINESSES

(enumerate)

Answer 27

1. Service Business
2. Merchandising Business
3. Manufacturing Business
4. Hybrid Business

Question 28

services are also called?

Answer 28

intangible products

Question 29

give examples of professional skills

Answer 29

law firms, accounting firms, schools

Question 30

give examples of technical skills

Answer 30

repairs shops, salons

Question 31

it provides services also called intangible products. These products may be in the form of professional skills or technical skills.

Answer 31

Service Business

Question 32

In the service type of business, products may be in the form of?

Answer 32

professional skills or technical skills.

Question 33

it is also known as a “buy and sell” business

Answer 33

Merchandising Business

Question 34

Products are not changed.

Answer 34

Merchandising Business

Question 35

it buys raw materials, combines them with labor, and transforms them into finished goods.

(raw materials + labor = finished goods)

Answer 35

Manufacturing Business

Question 36

They gain profit by placing an additional cost on materials, labor, and factory overhead.

Answer 36

Manufacturing Business

Question 37

most businesses today are of this type.

Answer 37

Hybrid Business

Question 38

They combine being a manufacturer of a good and sell it either on a wholesale or retail basis or a service provider that manufacturers its needed products for the provision of its service.

Answer 38

Hybrid Business

Question 39

Examples of this are restaurants, salons, computer shops, and other related businesses.

Answer 39

Hybrid Business

Question 40

TWO PERSPECTIVES OF BUSINESS

(enumerate)

Answer 40

1. Individual perspective
2. Social perspective

Question 41

businesses exist to provide income, the satisfaction of needs and wants that provide prestige and power to the person, specifically to gain profit for the continuous exchange of goods and services for money.

Answer 41

Individual perspective

Question 42

efficient production of goods and services is meant to sustain the society and environment through the economics of production, and consumption of goods and services because men and society cannot exist without the basic necessity of life.

Answer 42

Social perspective