Formative Assessment 1 - Types of Business Enterprise and Forms

Ellis, Claudine, and Jolina own and operate the Coffee Project inside UST. They have equally exerted time, money, and effort to open that cafeteria. What kind of business ownership do they have?

• Service Entity

• Corporation

• Partnership

• Merchandising Entity

Michael, Kurt, and Luke wanted to register their newly established company in SEC. What kind of business ownership do they have?

• Service Entity

• Corporation

• Partnership

• Merchandising Entity

TRUE OR FALSE. There are so many technically trained people who could manage the corporation.

• TRUE

• FALSE

TRUE OR FALSE. Gathering a large number of capital investments from hundreds of thousands of investors is so difficult in a corporate setting.

• TRUE

• FALSE

TRUE OR FALSE. In corporation, the transferability of the ownership of the shares from one stockholder to another investor is hard to settle and non-negotiable.

• TRUE

• FALSE

TRUE OR FALSE. From the point of view of an accountant, a partnership is NOT considered separate and distinct from its partners.

• TRUE

• FALSE

TRUE OR FALSE. From the legal viewpoint, the partners are personally liable for the unsettled debts in case of a partnership bankruptcy.

• TRUE

• FALSE

It provides various forms of services, not tangible products, to its customers or clients.

• Merchandising Enterprise

• Manufacturing Enterprise

• Service Enterprise

This business enterprise is also known as a fabricator.

• Corporation

• Merchandising Enterprise

• Manufacturing Enterprise

• Processor

This business enterprise is also known as the “buy and sell” structure.

• Corporation

• Merchandising Enterprise

• Manufacturing Enterprise

• Processor