TYPES OF BUSINESS ORGANIZATIONS Flashcards
Basic types of business organizations
- Sole proprietorship
- Partnership
- Joint account
- Business trust
- Joint venture
- Cooperative
- Corporation
It is an arrangement whereby merchants may interest themselves in the transaction of other merchants, contributing thereto the amount of capital they may agree upon, and participating in the favorable and unfavorable results thereof in the proportion they may determine.
Joint account
It is an autonomous and duly registered association of persons with a common bond of interest, who have voluntarily together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services, and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles
Cooperative
It is any name that is different from the true name of an individual which is used or signed in connection with her/his business on any written or printed documents, taxes, and withdrawal or delivery receipts, billboard, or exhibit announcing her/his business.
business name
TRUE OR FALSE. A joint account has no commercial name common to all participants in joint accounts.
TRUE
It is an association of persons or companies jointly undertaking some commercial enterprise; generally, all contribute assets and share risks. It requires a community interest in the performance of the subject, a right to direct and govern the policy connected therewith, and duty, which may be altered by agreement to share both in profit and losses
joint venture
TRUE OR FALSE. Corporations cannot enter into joint venture agreements
FALSE, CORPORATIONS CAN ENTER INTO JOINT VENTURE
It is commonly called an accidental partnership, and there is no indication to the public that there is an existing arrangement because only the ostensible partner is conducting the business.
joint account
A person personally conducts business under his name or a business name called proprietor himself. It has no personality separate and distinct from the proprietor.
Sole proprietor
TRUE OR FALSE. A proprietor is not required to register his business name other than his true name with the Bureau of Trade Regulation and Consumer Protection of the Department of Trade and Industry
FALSE
TRUE OR FALSE. Only the ostensible partner – the person carrying on the joint business – can be sued and is liable to persons transacting with the former.
TRUE
TRUE OR FALSE. A joint venture is actually a form of partnership and should thus be governed by the laws of partnership
TRUE
TRUE OR FALSE. A joint account has a juridical personality.
FALSE
It is as to individuals, Corporations, and partnerships, they are those who have the capacity to engage in commerce habitually devote themselves to it (Art. 1, Code of Commerce, SEC)
Merchants
It is a legal relationship whereby one person, called the trustor, conveys property to another for the benefit of a person called the beneficiary. The person in whom confidence is reposed as regards the property is called the trustee
Business trusts
