Partnership

Question 1

Types of Practice:

Answer 1

Single Proprietorship or Private practice

Partnership

Corporation

Associate

Employment

Question 2

most common form, simplest and least expensive to establish

Answer 2

Single Private practice

Question 3

a high risk, high-debt option

should be entered with full knowledge of the business operations commitment that is required

Answer 3

Solo/private practice

Question 4

Advantage of Private practice:

Answer 4

Relative freedom from Government control

Unlimited ability to experiment with different approaches on how to deliver the best patient care possible

Relative ease of set-up and lower start-up costs

Question 5

Disadvantages of private practice:

Answer 5

full burden of failure must be carried by the solo practitioner

responsible for the multitudinous details of business management

His aide must be trained to do the details of work when practitioner is out of office

Question 6

an association of two or more individuals who agree to operate a business together for profit

Answer 6

Partnership

Question 7

code that provides for a definition of partnership

by the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund

with the intention of dividing the profits among themselves

Answer 7

Philippine Civil code - Article 1767

Question 8

it may also be necessary under government law to file a certificate regarding formation of the partnership at the ________

Answer 8

Securities and Exchange commission

Question 9

a contract between partners in a partnership which sets out the terms and conditions of the relationship between the partners

Answer 9

Partnership Agreement

Question 10

Partners who have unlimited liability for all of the firm’s business obligations and who control its operations

Answer 10

General Partners

Question 11

a partnership in which all partners share in the management and profits

Each partner can act on behalf of the firm

has unlimited liability for all its business obligations

Answer 11

General Partnership

Question 12

partnership where they help to finance the business but do not participate in the firm’s operations

Answer 12

Limited Partners

Question 13

a partnership with one or more general partners, who have unlimited liability, and one or more limited partners, whose liability is limited to the amount of their investment in the company

Answer 13

Limited Partnership

Question 14

in limited partnership, the limited partner has ______ for partnership debts

Answer 14

NO PERSONAL LIABILITY

Question 15

Advantages of Partnership:

Answer 15

Sharing the cost of assets, management and ownership responsibilities, and extending business hours

Relative freedom from government regulation

Question 16

required and each partner is taxed as an individual upon his share of the partnership’s profits

Answer 16

Partnership Return

Question 17

disadvantages of partnership:

Answer 17

hazard of facing professional financial or personality conflict

disagreements

personal differences

Question 18

an artificial entity created pursuant to government law from which its powers are derived

Answer 18

Corporation

Question 19

most complex form of business

most expensive to organize

Answer 19

Corporation

Question 20

A corporation is, in law, ____ and _____ from its stockholders, officers, and directors

Answer 20

separate and distinct

Question 21

the legal process used to form a corporate entity or company

Answer 21

Incorporation

Question 22

The liability of the owners towards the creditors is _______

Answer 22

limited to their investment in the company

Question 23

The corporation is considered to be a ________

Answer 23

legal person with perpetual existence

Question 24

a corporate structure can lessen ______

Answer 24

taxes and liability

Question 25

a special form of associate practice

assist beginning practitioners in the establishment of their practices

Answer 25

Semi-internship associate

Question 26

2 types of partnership:

Answer 26

Equal status OD

Associateship - where a senior & junior optometrists are present

Question 27

Employment practice are most often referred to as ______

as all of the equipment, staff training, etc. has been taken care of in advance

Answer 27

TURN-KEY

Question 28

each optometrist serves his own patients, with the group merely organized for efficiency and controlled practice

Answer 28

Independent Group practice

Question 29

– all patients are considered as patients of the group per se.

Answer 29

Integrated Group practice