LAHTM Tourism and Hospitality as a Trade

What is the purpose of registering a sole proprietorship in the Philippines?

• To secure licenses and permits
  

• To establish a common fund
  

• To receive tax benefits

• To protect personal assets
  

According to the Civil Code, how many persons are required to form a partnership?

• One

• Two

• Three

• Four

In a general partnership, who has unlimited liability for the partnership's debts and obligations?

•  All partners

• Limited partners
  

• Majority partners
  

• Minority partners

What is the main advantage of a corporation?

• Limited liability for shareholders
  

• Ease of formation
  

• Shared decision-making
  

• Access to personal funds
  

What is the key difference between a public corporation and a private corporation?

• Public corporations offer shares of stock to the general public.

• Private corporations have limited liability for debts and obligations.
  

• Public corporations have unlimited liability for debts and obligations.

• Private corporations are easier to form than public corporations.
  

What is a limitation of a sole proprietorship?

• Limited access to capital
  

• Limited liability for debts
  

• Limited decision-making power

• Limited tax benefits

Who has the power to manage a partnership?

• Board of directors
  

• Shareholders
  

• Partners

• Employees
  

What is the advantage of a partnership?

•  Shared responsibility and decision-making
  

• Limited liability for partners

• Double taxation
  

• Formalities and regulations
  

How can a corporation raise capital?

• By issuing shares of stock to investors
  

• By obtaining loans from banks
  

• By selling products or services
  

• By partnering with other corporations
  

What is the main disadvantage of a corporation?

• Double taxation

• Unlimited liability

• Limited decision-making power

• Limited access to capital