Lesson 1: Nature and Classification of Business Organizations

What is a sole proprietorship?

• A business owned by its members for mutual benefit.

• A legal entity separate from its owners.

• A business owned by two or more individuals.

• A business owned and managed by one person.

Which type of partnership includes both general and limited partners?

• Limited Liability Partnership

• Limited Partnership

• General Partnership

• Sole Proprietorship

What is a characteristic of a corporation?

• It is managed by one person.

• Shareholders have limited liability.

• It is owned by its members.

• Owners have unlimited liability.

Which organization is regulated by the Cooperative Development Authority?

• Sole Proprietorship

• Cooperative

• Partnership

• Corporation

Which of the following is an example of a hybrid business?

• Apple

• Small retail stores

• Jollibee Foods Corporation

• Credit cooperatives

What is one significance of business in society?

• It reduces employment.

• It decreases GDP.

• It contributes to infrastructure development.

• It limits community engagement.

Which document is required for the formation of a corporation in the Philippines?

• Business License

• Cooperative Development Act

• Articles of Incorporation

• Articles of Partnership

What is a distinguishing feature of a cooperative?

• It is managed by a board of directors.

• It is owned by shareholders.

• It is a legal entity separate from its owners.

• It is owned and operated by its members.

What is a key advantage of a sole proprietorship?

• Limited liability for the owner.

• Shared decision-making among partners.

• Ease of formation and full control by the owner.

• Ability to raise capital through stock issuance.

Which of the following is a primary characteristic of a partnership?

• It is owned by shareholders.

• It is managed by a single individual.

• It involves two or more individuals sharing profits and losses.

• It is a separate legal entity from its owners.