FABM1 Chapter Test 4

What is a sole proprietorship?

• A type of partnership
• Business owned by a single individual
• A type of corporation
• Business owned by shareholders

Which regulatory authority oversees sole proprietorships in the Philippines?

• SEC
• BIR
• CDA
• DTI

What is the main advantage of a sole proprietorship?

• Limited liability
• More access to capital
• Complete control by the owner
• Less paperwork

What is a significant disadvantage of a sole proprietorship?

• Easy to establish
• Unlimited personal liability
• Limited access to management
• Separate legal entity

Which form of business is regulated by the Cooperative Development Authority (CDA)?

• Corporation
• Partnership
• Cooperative
• Sole Proprietorship

What defines a partnership in business?

• Business owned by shareholders
• Business owned by one person
• Business owned by two or more people
• Business operated by the government

Who regulates partnerships in the Philippines?

• DTI
• SEC
• CDA
• BIR

What is one key advantage of partnerships?

• Unlimited liability
• Easy to raise capital
• Full control by one individual
• No profit-sharing

What is a major disadvantage of partnerships?

• Profit-sharing among partners
• Easy to manage
• Single taxation
• Limited liability

How are profits distributed in a partnership?

• Only to the primary partner
• Evenly among all employees
• Among all partners based on agreement
• Only to shareholders