WorksheetsMIDTERM QUIZ NO. 01: Business Structures
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
Name:
4 lines
2.
Year and Section:
4 lines
3.
1. What is the simplest and least formal type of business structure?
a)
Partnership
b)
Limited Liability Corporation
c)
Corporation
d)
Sole Proprietorship
4.
2. Which government registration is required for a Sole Proprietorship to protect the business name?
a)
Bureau of Internal Revenue Registration
b)
Certificate of Business Registration
c)
Business Permit / Mayor's Permit
d)
Department of Trade and Industry Registration
5.
3. In a Partnership, what kind of liability do general partners have for the debts and obligations of the company?
a)
Limited Liability
b)
Partial Liability
c)
Unlimited Liability
d)
No Liability
6.
How many shareholders are required to own a Corporation in the Philippines?
a)
5
b)
4
c)
15
d)
10
7.
5. What is the legal concept that the Philippines does not adopt, but a Domestic Corporation serves as its closest local equivalent?
a)
Private Limited Corporation
b)
Partnership
c)
Limited Liability Company (LLC)
d)
Corporation
8.
6. What is the minimum share capital required to open a Limited Liability Company (LLC) in the Philippines for foreign investors?
a)
P3,000
b)
P5,000
c)
P10,000
d)
P1,000
9.
7. Which type of company is most popular and similar to the limited liability company in most countries?
a)
Corporation
b)
Limited Liability Corporation
c)
Sole Proprietorship
d)
Partnership
10.
8. What is the main advantage of a Partnership in terms of attracting investors?
a)
Limited liability
b)
Utilization of collective assets
c)
Full control over business decisions
d)
No risk to personal assets
11.
9. What is the main disadvantage of a Sole Proprietorship in terms of attracting investors or capital?
a)
Closely linked to personal assets
b)
No risk to personal assets
c)
Full control over business decisions
d)
Limited liability
12.
10. What is the main reason for registering with the Bureau of Internal Revenue (BIR) for a business?
a)
Enjoy a Better Reputation among Customers and Investors
b)
Skip Fines—and Possible Jail Time
c)
Access to Essential Financial Services
d)
Contribute to the Country through your Taxes
13.
11. What is the main reason for choosing a Corporation for opening a business in the Philippines?
a)
Fast incorporation procedure and minimum requirements in terms of shareholding structure
b)
Can be used for various purposes – from trading to investment holding, but also as subsidiaries of foreign companies
c)
Suitable for small and medium-sized businesses - benefit from several tax advantages
d)
The country has a very attractive legislation on foreign direct investments as the Philippines is one of the most developed economies in Southeast Asia
14.
12. What is the main characteristic of a Non-Stock Corporation?
a)
Issues shares of stock to its members
b)
Exists for charitable, educational, cultural, or other equivalent purposes
c)
Has unlimited liability for the debts and obligations of the company
d)
Requires a minimum of 5 shareholders
15.
13. What is the main requirement for a Limited Liability Company (LLC) to be registered with the Securities and Exchange Commission (SEC) in the Philippines?
a)
Obtain a Barangay Clearance
b)
Minimum share capital of 3,000 PHP
c)
Minimum number of 3 shareholders
d)
Reservation of the company name with SEC
16.
14. True or False: DTI Business registration is not a license to operate; a license to operate is given by the Mayor of the city/municipality where the business will operate.
a)
True
b)
False
17.
15-16. A group of businessmen is planning to form a Corporation. They are composed of 1 foreign shareholder and the rest are Filipinos, reaching up a total of the maximum shareholders allowed for this type of business structure.
The corporation registered a capital amounting to PHP 13M, and the 1 foreign shareholder takes up the maximum ownership percentage. How much is the foreign investor's share in the capital?
a)
PHP 5,000,000
b)
PHP 5,200,000
c)
PHP 3,900,000
d)
PHP 4,550,000
18.
17-18. How much is the total capital share (combined) for all the remaining shareholders of the Corporation?
a)
PHP 7,800,000
b)
PHP 8,000,000
c)
PHP 9,100,000
d)
PHP 8,450,000
19.
19-20. From the remaining capital share, excluding the foreign shareholder's capital (maximum ownership), how much is the capital share of each of the Filipino shareholders if divided equally?
a)
PHP 571,428.571
b)
PHP 650,000,000
c)
PHP 603,571.429
d)
PHP 557,142.857
100 %
