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Entrepreneurship > Lesson 2: Forms of business ownership > Flashcards

Lesson 2: Forms of business ownership Flashcards

1
Q

4 forms of business

A

-Sole Proprietorship

  • Partnership
  • Corporation
  • 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

Unique advantages of a Sole Proprietorship

A
  • Ease and Cost Formation
  • Secrecy
    -Distribution and Use of Profits
  • Control of the Business
  • Government Regulations
    -Taxation
  • Closing the Business
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4
Q

is
spared from various
government rules
which cover
partnerships and
corporations.

A

Government Regulations for Sole Proprietorship

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5
Q

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

A

Sole proprietorship

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6
Q

Disadvantages of Sole
Proprietorship

A

-Possibility that the owner lacks ability and experience;

-Difficulty in raising additional capital;

  • Limited life of the firm; and
  • Unlimited liability of the proprietor.
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7
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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8
Q

Two or more persons may for a _______ for the
exercise of a profession.

A

Partnership

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9
Q

Partnership are also called

A

General Professional Partnership

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10
Q

The owners of a partnership are called

A

Partners

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11
Q

example of partnership

A

-Law Firms

-Certified Public Accountants

-Medical Clinics

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12
Q

Easier to form than a corporation.

A

Partnership

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13
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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14
Q

may be composed of TWO
PARTNERS only or dozens of partners.

A

Partnership

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15
Q

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

A

Partnership

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16
Q

can be formed by either an
oral contract /agreement or by a written
contract/agreement.

A

Partnership

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17
Q

A written contract agreement is not
required in ____.

A

Partnership

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18
Q

Essential Requisites of a Partnership

A

-Contract Partnership which may be oral or written

-Two or more persons who have the legal capacity to
enter into contract of partnership

-Valuable contribution to a common fund which may
consist of money, property or industry

-An intention to divide the profits between or among
the partners; and

-Lawful purpose (s)

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19
Q

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.
20
Q

Advantages of partnership

A
  • Ease of formation
  • Allows pooling of financial
    resources
  • Allows pooling of skills, expertise,
    and experience of partners
  • Less government control,
    supervision and intervention.
21
Q

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

A

Corporation

22
Q

How many person are in a corporation?

A

5 or more ( including incorporators)

23
Q

Incorporators are called

A

Shareholders or Stockholders

24
Q

Evidence of Investment are

A

Stock Certificates

25
Q

are
the written evidence
representing ownership in a
corporation.

A

Stock Certificates

26
Q

Characteristics of a corporation

A
  • Separate Legal Existence
  • Created by operation of law
  • Transferable Units of ownership
    Continuity of existence
  • Centralized management by the BOD
27
Q

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

A

corporation

28
Q

It requires authority given by the government

A

Corporation

29
Q

Ownership of a corporation is divided into
transferrable units

A

Shares of stocks

30
Q

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

A

Limited Liability

31
Q

How many years can a corporation live

A

50 years (can extend another 50 years as well)

32
Q

is another type of business
entity. Although people often describe a ____as being
distinct from a _____, the ______ business
structure is, in reality, a type of corporation.

A

Cooperative

33
Q

are owned by its
members or the people who use the services
of the _______. Some ______ are
employee-owned.

A

Cooperative

34
Q

focus of the co-op

A

building and maintaining community

35
Q

how to be a member of coop

A

make a financial contribution

36
Q

true of false:The opinions and votes of
each member in a co-op are treated equally.

A

true

37
Q

true of false: Any profits the cooperative earns are either re-invested in
the company, similar to a nonprofit corporation, or
distributed among its member-owners, as with a for-profit
corporation.

A

true

38
Q

in what sectors can cooperative be found? (give at least 5)

A

Agriculture

Financial services:

Education:

Healthcare

Housing:

Groceries:

Utilities

Worker:

Purchasing:

39
Q

As a juridical entity, a ________ is
similar to a corporation.

A

cooperative

40
Q

Corporations are registered and supervised by

A

the Securities and
Exchange Commission (SEC),

41
Q

Cooperatives are registered and supervised by

A

the Cooperative
Development Authority (CDA).

42
Q

why are co-ops supervised by the CDA?

A

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

43
Q

how many people to organize a co-op

A

Fifteen (15) or more

44
Q

A prospective member of a
primary cooperative must have completed a

A

Pre-membership education seminar (PMES)

45
Q

Corporations which seek to register must file
its

A

articles of incorporation

46
Q

while cooperatives
file its

A

Articles of cooperation (which must be
signed by each of the organizers and
acknowledged before a notary public.)

Entrepreneurship (4 decks)

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