Law on Partnership Quiz: Business Law in the Philippines

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Questions and Answers

What is the primary difference between a sole proprietorship and a partnership?

The number of owners (correct)

The legal requirements for registration

The tax implications

The type of business structure

What is the primary advantage of registering a partnership?

Limited liability for partners

Legal recognition and protection (correct)

Tax benefits

Increased business capital

What is the legal requirement for registering a partnership in the Philippines?

Registration with the Philippine Statistics Authority (PSA)

Registration with the Department of Trade and Industry (DTI)

Registration with the Securities and Exchange Commission (SEC) (correct)

Registration with the Bureau of Internal Revenue (BIR)

What type of business structure is characterized by a single owner who has unlimited liability?

Sole proprietorship Signup and view all the answers

According to the data from Trading Economics, what percentage of firms in the Philippines have a legal status of sole proprietorship?

40% Signup and view all the answers

Where are sole proprietorships registered in the Philippines?

Department of Trade and Industry (DTI) and Local Government Office Signup and view all the answers

What is a characteristic of sole proprietorship businesses in some countries?

They are lightly regulated Signup and view all the answers

Who receives the profits in a sole proprietorship?

The sole proprietor Signup and view all the answers

What is regulated under the Philippine Pharmacy Act?

Drug stores owned by sole proprietors Signup and view all the answers

Who founded Mercury Drug?

Mariano Que Signup and view all the answers

What was the original price of the sulfathiazole bottle that Mariano Que wanted to buy?

P100 Signup and view all the answers

What is the main difference between a general partner and a limited partner in a partnership?

The general partner has unlimited personal liability, while the limited partner has limited liability Signup and view all the answers

What is the main advantage of a partnership in terms of start-up?

It is relatively easy to start, with minimal documentary requirements Signup and view all the answers

What is the purpose of filing Articles of Partnership?

To provide for the partners' specific obligations, responsibilities, and roles Signup and view all the answers

What type of partnership is commonly used for profession-related firms?

Limited Liability Partnership Signup and view all the answers

Which of the following is a characteristic of a limited liability partnership?

Limited liability for partners Signup and view all the answers

What is the main advantage of a partnership in terms of decision making?

It allows for shared decision making and specialization Signup and view all the answers

Study Notes

Business Organizations

In the Philippines, sole proprietorships are registered with the Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), and the locality's Local Government Office.
Sole proprietorships have relatively few regulations, but some ventures like drug stores or pharmaceutical establishments are regulated under the Philippine Pharmacy Act.

Sole Proprietorship Advantages

The owner gets to keep the entire earnings of the business.
There are few regulations in some countries.

Partnership Types

General Partnership: the general partner has unlimited personal liability, while the limited partners' liabilities are only limited to the amount of their initial financial investment.
Limited Liability Partnership: functions like a general partnership, but the liabilities of the partners are limited, often applicable to profession-related partnerships.

Partnership Advantages

Ease of Start-up: putting up a partnership is relatively easy, with minimal documentary requirements.
Shared Decision Making and Specialization: partners can share decision-making responsibilities and bring their specialized skills to the business.

Mercury Drug History

Founded in 1945 by Mariano Que, who recognized the need for affordable medicines after the war.
Started with a bottle of sulfathiazole, a "wonder drug" that was scarce and expensive at the time.

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Description

Test your knowledge of business laws and partnerships in the Philippines, including Republic Act No. 10918 and sole proprietorship. Learn about the legal aspects of business and partnerships in the country.