SL 2

Question 1

What is a Business

Answer 1

-is an economic unit that engages in buying and selling of goods or services to earn a profit.

Question 2

-is an economic unit that engages in buying and selling of goods or services to earn a profit.

Answer 2

Business

Question 3

What are the 4 types of business

Answer 3

Service business
Merchandising business
Manufacturing business
Finance or investment

Question 4

What is a Service business

Answer 4

– this engages in the rendering of one’s service for a fee. Examples are hospitals, repair
shop, barbershop, schools, movie houses, hotels

Question 5

What is a Merchandising business

Answer 5

this engages in buying goods or merchandise and selling at a price higher than the purchase cost.

Question 6

What is a Manufacturing business

Answer 6

this engages in buying raw materials and converting this into finished products and then sold. Usually, any kind of factory or mill is an indication of a manufacturing business.

Question 7

What is a Finance or investment

Answer 7

engages in lending of money and collecting the same with an interest. Examples are banks, pawnshops, real estate, insurance companies, lending companies, and others.

Question 8

What are the 3 forms of Business Ownership

Answer 8

Sole Proprietorship
Partnership
Corporation

Question 9

What is Sole Proprietorship

Answer 9

-form of business ownership that is organized and managed by one person.

Question 10

What is Partnership

Answer 10

-form of business ownership of two or more persons to carry on as co-owners of a business for profit.

“By the contract of partnership, two or more persons bind themselves to contribute money, property
or industry to a common fund to divide profits among themselves” (Article 1767, New Civil Code)