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entrepreneurship > L2; Forms of Business Ownership > Flashcards

L2; Forms of Business Ownership Flashcards

1
Q

WHAT ARE THE 4 FORMS OF BUSINESS ORGANIZATION? (differentiate them briefly)

A
  1. Sole Proprietorship
  2. Partnership
  3. Corporation
  4. Cooperatives
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2
Q

It is a business owned and operated by single person.

A

SOLE /SINGLE PROPRIETORSHIP

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3
Q

enumerate the Unique advantages of a Sole Proprietorship

A
  1. Ease and Cost Formation
  2. Secrecy
  3. Distribution and Use of Profits
  4. Control of Business
  5. Government Regulations
  6. Taxation
  7. Closing the Business
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4
Q

The only requisites for the legal existence to commence are the following:
1. The owner’s resolution to start operating; and
2. Getting the required permit and license.

(which advantages of Sole Proprietorship is the statement under)

A
  1. Ease and Cost Formation (sole proprietorship)
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5
Q

is spared from various government rules which cover other forms of businesses

A

Sole proprietorship

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6
Q

The ______ income of this form of business is regarded as the ______________ income of the sole owner and is taxed accordingly.

A

The net income of the sole proprietorship is regarded as the personal income of the sole owner and is taxed accordingly.

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7
Q

In the case of what forms of businesses do the net income get taxed and will be subject to taxation again when the owners individually receive their share of profits?

A

partnership and corporations

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8
Q

Enumerate the Disadvantages of Sole Proprietorship

A
  1. Possibility that the owner lacks ability and experience;
  2. Difficulty in raising additional capital;
  3. Limited life of the firm; and
  4. Unlimited liability of the proprietor.
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9
Q

Is an association of two or more persons who have agreed to contribute money, property , or industry to a common fund with the intention of dividing the profits among themselves.

A

partnership

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10
Q

in a partnership, two or more persons have to agree to contribute what to the common fund?

A
  • money,
  • property , or
  • industry
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11
Q

Two or more persons may form a partnership for the?

A

exercise of a profession

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12
Q

Two or more persons may form a partnership for the exercise of a profession, what is that partnership called?

A

GENERAL PROFESSIONAL PARTNERSHIP

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13
Q

The owners of a partnership are called?

A

partners

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14
Q

Example of Partnership

A
  1. Law Firms
  2. Certified Public Accountants
  3. Medical Clinics
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15
Q

It may be a small firms selling goods or services at a single locations, or a larger enterprise selling goods or services at different locations.

A

Partnership

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16
Q

How many people are in a partnership?

A

2-12

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17
Q

It is contractual in nature because it is formed through a contract between or among people.

A

partnership

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18
Q

The partnership can be formed by either?

A

an oral contract /agreement OR by a written contract/agreement.

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19
Q

A written contract agreement is not required in a?

A

Partnership

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20
Q

A written contract agreement is not required in a partnership, all that is needed is that?

A

the partners agreed to form the partnership and are amendable to the terms of the agreement.

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21
Q

Enumerate the 5 essential requisites of the partnership form of organization

A

CTVAL

  1. Contract Partnership which may be oral or written
  2. Two or more persons who have the legal capacity to enter into contract of partnership
  3. Valuable contribution to a common fund which may consist of money, property or industry
  4. An intention to divide the profits between or among the partners; and
  5. Lawful purpose (s)
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22
Q

Enumerate the 7 characteristics of a Partnership

A
  1. Mutual agency
  2. Voluntary association
  3. Based on contract
  4. Limited life
  5. Unlimited liability
  6. Division of profit
  7. Co-ownership of contributed assets.
23
Q

Enumerate the Advantages of Partnership

A

EAAL

  1. Ease Formation
  2. Allows pooling of financial resources
  3. Allows pooling of skills, expertise, and experience of partners
  4. Less government control, supervision and intervention.
24
Q

Is an artificial body organized in accordance with the provision of law in which ownership is divided into shares of stocks.

A

corporation

25
Q

in a corporation, ownership is divided into?

A

shares of stocks.

26
Q

Incorporators are called what in a corporation?

A

SHAREHOLDERS or STOCKHOLDERS.

27
Q

Evidence of investment in a corporation are called?

A

STOCK CERTIFICATES

28
Q

are the written evidence representing ownership in a corporation.

A

STOCK CERTIFICATES

29
Q

What are the Characteristics of a Corporation

A

ST 3Cs

  • Separate legal existence
  • Created by operation of law
  • Transferable units of ownership
  • Continuity of existence
  • Centralized management by the BOD- elected through stockholders meetings.
30
Q

The corporation is a legal or juridical entity separate and distinct from its owners.

(which Characteristics of a Corporation is the statement under)

A

Separate legal existence

31
Q

it requires authority given by the government

(which Characteristics of a Corporation is the statement under)

A

Created by operation of law

32
Q

Ownership of a corporation is divided into transferrable units called SHARES OF STOCKS as evidence of stock certificate

(which Characteristics of a Corporation is the statement under)

A

Transferable units of ownership

33
Q

liable only up to the extent of shares subscribe by them.

(which Characteristics of a Corporation is the statement under)

A

Limited Liability (corporation)

34
Q

Initially, the life of the corporation is? and extension of another?

A

Initially, the life of the corporation is 50 years, and extension of another 50 years.

35
Q

Although people often describe this as being distinct from a corporation, this business structure is, in reality, a type of corporation.

A

Cooperative

36
Q

What sets a cooperative apart from other types of corporations is?

A

who the owners of the company are.

37
Q

While other types of corporations are owned by shareholders or stockholders, co-ops are owned by?

A

its members or the people who use the services of the cooperative. Some cooperatives are employee-owned.

38
Q

To become a member of a cooperative, a person must?

A

To become a member of a cooperative, a person must make a financial contribution.

39
Q

The focus of co-ops is on?

A

building and maintaining community (most exist to meet the specific needs of their members. )

40
Q

The opinions and votes of each member in a co-op are treated?

A

equally

41
Q

Any profits the cooperative earns are?

A

either re-invested in the company, similar to a nonprofit corporation, or distributed among its member-owners, as with a for-profit corporation.

42
Q

IN WHAT SECTORS CAN COOPERATIVES BE FOUND?

A

You’re likely to find the co-op model in a variety of economic sectors, including:
1. Agriculture
2. Financial services
3. Education
4. Healthcare
5. Housing
6. Groceries
7. Utilities
8. Worker
9. Purchasing

43
Q

As a _______________________, a cooperative is similar to a corporation.

A

juridical entity

44
Q

Corporations are registered and supervised by?

A

Securities and Exchange Commission (SEC)

45
Q

Cooperatives are registered and supervised by and what is it pursuant to?

A

Cooperative Development Authority (CDA)

This is pursuant to the Philippine Cooperative Code of 2008 (Republic Act No. 9520).

46
Q

where are sole proprietorships registered?

A

Register a business name with The Department of Trade and Industry (DTI) to acquire a DTI Certificate of Registration

for local licenses:
Register with the Barangay Office where the business is going to be located to acquire a Barangay Certificate of Business Registration; Register with the Mayor’s Office to acquire a Mayor’s Permit; and. Register with the Bureau of Internal Revenue (BIR) to acquire a Certificate of Registration.

47
Q

what are the requirements(?) in organizing a primary cooperative.

A
  • Fifteen (15) or more natural persons,
  • are Filipino citizens,
  • of legal age,
  • having a common bond of interest and
  • are actually residing or working in the intended area of operation
48
Q

A prospective member of a primary cooperative must have?

A

completed a Pre-Membership Education Seminar (PMES).

49
Q

Cooperatives file its? Which must be signed by?

A

Cooperatives file its Articles of Cooperation, which must be signed by each of the organizers and acknowledged before a notary public.

50
Q

Corporations which seek to register must file its?

A

Articles of Incorporation

51
Q

Total amount earned in the business

A

Revenue

52
Q

Partnerships are required to be registered in?

A

Securities and Exchange Commission (SEC)

https://companyincorporation.com.ph/philippines-business-registration/partnership.php

53
Q

other term for SHAREHOLDERS or STOCKHOLDERS.

A

INCORPORATORS

entrepreneurship (4 decks)

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