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Questions and Answers
What is the primary requirement for architects and engineers to legally operate in construction in the Philippines?
What is the primary requirement for architects and engineers to legally operate in construction in the Philippines?
Which business organization allows an architect to enjoy profits without sharing with partners?
Which business organization allows an architect to enjoy profits without sharing with partners?
What is a major disadvantage of operating as a sole proprietorship in the architecture business?
What is a major disadvantage of operating as a sole proprietorship in the architecture business?
Which of the following forms of business organization has the highest regulation requirements?
Which of the following forms of business organization has the highest regulation requirements?
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Under the Contractor's License Law (RA 4566), what must an architect secure to engage in construction contracting?
Under the Contractor's License Law (RA 4566), what must an architect secure to engage in construction contracting?
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What is a key benefit of operating a construction business under a partnership structure?
What is a key benefit of operating a construction business under a partnership structure?
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What must be indicated in a fixed-term employment contract?
What must be indicated in a fixed-term employment contract?
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Which of the following is NOT a typical reason for issuing a warning memo to an employee?
Which of the following is NOT a typical reason for issuing a warning memo to an employee?
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What is required annually for maintaining a contractor's license in the Philippines?
What is required annually for maintaining a contractor's license in the Philippines?
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What legal aspect governs the licensing of contractors in the construction industry in the Philippines?
What legal aspect governs the licensing of contractors in the construction industry in the Philippines?
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In seasonal employment, what happens to employees during the off-season?
In seasonal employment, what happens to employees during the off-season?
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What should be signed by employees upon receiving their pay?
What should be signed by employees upon receiving their pay?
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Which statement about fixed-term employment is true?
Which statement about fixed-term employment is true?
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What benefit is not typically associated with seasonal employment?
What benefit is not typically associated with seasonal employment?
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What is a quit claim typically associated with?
What is a quit claim typically associated with?
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What is a common mutual characteristic of fixed-term employment relationships?
What is a common mutual characteristic of fixed-term employment relationships?
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What is a characteristic of probationary employment?
What is a characteristic of probationary employment?
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Which of the following describes project employment?
Which of the following describes project employment?
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What is NOT one of the four aspects of the Four-Fold Test of Employment?
What is NOT one of the four aspects of the Four-Fold Test of Employment?
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Which type of employment is characterized by a specific duration linked to a particular project?
Which type of employment is characterized by a specific duration linked to a particular project?
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What is the main factor that determines regular employment?
What is the main factor that determines regular employment?
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Which type of employment is temporary and typically defines a fixed duration?
Which type of employment is temporary and typically defines a fixed duration?
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Which of the following benefits is not included in the list of benefits for workers?
Which of the following benefits is not included in the list of benefits for workers?
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What is a key requirement for obtaining a Mayor’s Business Permit?
What is a key requirement for obtaining a Mayor’s Business Permit?
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Which method of compensation is based on the overall project construction cost?
Which method of compensation is based on the overall project construction cost?
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What is a primary disadvantage of a partnership?
What is a primary disadvantage of a partnership?
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What is required for a corporation in terms of personnel?
What is required for a corporation in terms of personnel?
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What type of business structure is a sole proprietorship?
What type of business structure is a sole proprietorship?
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What does SEC registration indicate?
What does SEC registration indicate?
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Under what circumstances does Article 17 of the Civil Code of the Philippines state potential disputes may arise?
Under what circumstances does Article 17 of the Civil Code of the Philippines state potential disputes may arise?
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What is one key feature of a one-person corporation?
What is one key feature of a one-person corporation?
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What consequence arises from the non-remittance of benefits?
What consequence arises from the non-remittance of benefits?
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What does a Professional Fee Plus Expenses compensation method indicate?
What does a Professional Fee Plus Expenses compensation method indicate?
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Which of these training seminars is related to construction safety?
Which of these training seminars is related to construction safety?
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What is the primary purpose of requiring a PCAB license for contractors?
What is the primary purpose of requiring a PCAB license for contractors?
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Which of the following fees is the lowest for business registration in a barangay?
Which of the following fees is the lowest for business registration in a barangay?
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What document is issued for registration at the Bureau of Internal Revenue for sole proprietorships?
What document is issued for registration at the Bureau of Internal Revenue for sole proprietorships?
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What is a contractor defined as in the provided content?
What is a contractor defined as in the provided content?
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Which fee applies to businesses with a national scope of operation?
Which fee applies to businesses with a national scope of operation?
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Which form is used for the authority to print receipts?
Which form is used for the authority to print receipts?
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What type of construction does the act not apply to?
What type of construction does the act not apply to?
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Which government office is involved in the business registration process?
Which government office is involved in the business registration process?
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Study Notes
Business Organization
- Three general forms of business organization: Sole Proprietorship, Partnership, and Corporation.
- Sole Proprietorship: Easy to register, requires minimum capital, lower costs, but the owner shoulders all risks and liabilities.
- Partnership: Easier to form than a corporation, more efficient management, shared risks, but potential disputes and delays in decision-making.
- Corporation: Requires minimum of 5 people, has own juridical personality, lowest risk in liability, but more complex registration process and higher costs.
Licenses and Permits
- Architects and Engineers need a Philippine Contractors Accreditation Board (PCAB) license to operate a construction business according to Republic Act 4566 (The Contractor’s License Law).
- PCAB Licenses ensures the safety of the public and only qualified contractors undertake construction in the Philippines.
- Sole Proprietorships, Partnerships, and Corporations all require registration with the Department of Trade and Industry (DTI) and Bureau of Internal Revenue (BIR).
- Municipalities/ Cities require a Mayor's Business Permit, with different fees based on location and business scope.
Contractor's License Law (R.A. 4566)
- The Contractors License Law aims to ensure the safety of the public by regulating construction businesses in the Philippines.
- The law dictates that no contractor can operate without a PCAB License.
- The law does not apply to construction, alteration, improvement, or repair of personal property.
- Licensed Architects can perform professional services (design, planning) but may not engage in construction contracting without a PCAB license.
Methods of Compensation
- Five methods of compensation for architects and engineers:
- Percentage Based on Project Construction Cost
- Multiple of direct personnel expenses
- Professional fee plus expenses
- Per diem, honorarium, plus reimbursable expenses
- Lump sum or fixed fee
Workers' Rights and Employment Types
- Four-fold test of employment:
- Power to hire
- Payment of wages and salary
- Power to dismiss
- Power of control
- Five types of employment: Regular, Project, Seasonal, Fixed-Term, and Probationary
- Regular employment requires a consistent connection between an employee's activities and the business's usual trade.
- Project employment is for a specific project, ending when the project is completed.
- Seasonal employment is for a defined season, with potential layoff during the off-season and re-employment during the season.
- Fixed-Term employment requires a written agreement specifying the duration of employment.
- Probationary employment allows an employee to prove his suitability for regular employment during a defined period.
Benefits for Workers
- Workers are generally entitled to benefits like: Social Security System (SSS), PhilHealth, PAG-IBIG, 13th month pay, and bonuses.
- Other documentation required: contract, payrolls/ payslips, memorandums, and quit claims.
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Description
This quiz covers the three main forms of business organization: Sole Proprietorship, Partnership, and Corporation. It also discusses the importance of licenses and permits for architects and engineers in the Philippines, emphasizing the role of the Philippine Contractors Accreditation Board (PCAB). Test your understanding of these business concepts and regulations.
