FABM 1 S.Y 2021-2022

Which of the following is a business that does not have a limited liability?

• sole proprietorship

• corporation

• partnership

• both a and c

Although a separate legal entity, the transaction of this type of business must still be separated from the personal activities of the owners because of accounting purposes.

• sole proprietorship

• corporation

• partnership

• both a and c

Which of the following statements best describes the sole proprietorship type of business organization?

• It has a legal distinction between the business as an economic unit and the owner.

• The owner is personally liable for business debts.

• It must have at least two owners.

• It has an indefinite life.

Which of the following statements best describes the partnership type of business organization?

• It is a common form of organization for service-type business.

• It is a separate legal entity.

• It has limited liability.

• All of the above.

An electronic repair shop is an example of what type of business according to activities?

• manufacturing business

• electrical business

• trading business

• service business

Which of the following statements does NOT describe a corporation?

• A corporation is subject to greater government regulation.

• Changes in ownership does not terminate the corporation.

• Shareholders are owners of a stock corporation.

• Owners have unlimited liability.

What do call those partner/s who contributed his or her skills, talents, and services to the partnership?

• capitalist partner

• managing partner

• industrial partner

• skilled partner

This form of business organization is composed of shareholdings.

• joint ownership

• sole proprietorship

• corporation

• partnership

Which of the following is not a characteristic of a cooperative?

• names of directors who shall manage the cooperative must be included in the articles of cooperation

• members can become a part of the cooperative by purchasing shares

• it can be either incorporated or unincorporated

• organized by at least five members

Which of the following is not contained in the articles of incorporation?

• location of the branches of the business

• names of board of directors

• purpose of the corporation

• terms of existence