MIDTERM QUIZ NO. 01: Business Structures

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1. What is the simplest and least formal type of business structure?

• Partnership
• Limited Liability Corporation
• Corporation
• Sole Proprietorship

2. Which government registration is required for a Sole Proprietorship to protect the business name?

• Bureau of Internal Revenue Registration
• Certificate of Business Registration
• Business Permit / Mayor's Permit
• Department of Trade and Industry Registration

3. In a Partnership, what kind of liability do general partners have for the debts and obligations of the company?

• Limited Liability
• Partial Liability
• Unlimited Liability
• No Liability

How many shareholders are required to own a Corporation in the Philippines?

• 5
• 4
• 15
• 10

5. What is the legal concept that the Philippines does not adopt, but a Domestic Corporation serves as its closest local equivalent?

• Private Limited Corporation
• Partnership
• Limited Liability Company (LLC)
• Corporation

6. What is the minimum share capital required to open a Limited Liability Company (LLC) in the Philippines for foreign investors?

• P3,000
• P5,000
• P10,000
• P1,000

7. Which type of company is most popular and similar to the limited liability company in most countries?

• Corporation
• Limited Liability Corporation
• Sole Proprietorship
• Partnership

8. What is the main advantage of a Partnership in terms of attracting investors?

• Limited liability
• Utilization of collective assets
• Full control over business decisions
• No risk to personal assets