Podcast Beta
Questions and Answers
What type of business provides intangible products?
What is a key characteristic of a business?
What is a business entity engaged in?
What is an example of a service business?
Signup and view all the answers
What is a requirement for a business entity?
Signup and view all the answers
What is the purpose of a business entity?
Signup and view all the answers
What is a characteristic of a business entity?
Signup and view all the answers
What is a business entity?
Signup and view all the answers
What is the primary purpose of a business?
Signup and view all the answers
What type of business buys and sells merchandise?
Signup and view all the answers
What is a requirement for businesses to comply with the Bureau of Internal Revenue?
Signup and view all the answers
What type of business is owned by shareholders?
Signup and view all the answers
What is the consequence of failure to comply with BIR requirements?
Signup and view all the answers
What is the importance of keeping tax and accounting records?
Signup and view all the answers
What type of business provides intangible products for a fee?
Signup and view all the answers
What is the first step in registering a business?
Signup and view all the answers
Which of the following individuals is not considered engaged in business?
Signup and view all the answers
Where should a sole proprietorship register its business name?
Signup and view all the answers
What is required for a business to operate in a city or municipality?
Signup and view all the answers
Who is considered engaged in business?
Signup and view all the answers
What is not a legal requirement for a business?
Signup and view all the answers
Where does a partnership or corporation register?
Signup and view all the answers
What is required for a business to operate legally?
Signup and view all the answers
Who is not required to secure business permits and licenses?
Signup and view all the answers
Study Notes
Business Entity
- A business entity is an organization that uses economic resources to provide goods or services to customers in exchange for money or other goods and services.
- It is a person or organization engaged in the regular conduct of commercial, industrial, or professional activities, whether for profit or not, to fulfill a purpose, goal, mission, or cause.
Key Characteristics of a Business
- Person or organization
- Regular conduct
- Commercial, industrial, or professional activities
- Conducted in the Philippines
- Lawful transactions
- Whether for profit or not
- To fulfill a purpose, goal, mission, or cause
Types of Business
- Service Business: provides intangible products (products with no physical form) for a fee, examples include business services, such as accounting, advisory, taxation, legal, and auditing firms.
- Merchandising Business: buys and sells merchandise
- Manufacturing Business: buys materials and converts them into a new product
- Mix/Hybrid Business: combines two or more types of business
Forms of Business
- Sole Proprietorship: owned and controlled by only one person
- Partnership: owned by partners who agree to undertake business to make a profit
- Corporation: a legal entity owned by shareholders
Legal Requirements
- Business Name and Entity Registration: depending on the form of the business, registration with the Department of Trade and Industry (for sole proprietorships) or the Securities and Exchange Commission (for partnerships or corporations) is required.
- Secure Business Permits and Licenses: depending on the nature of its activities, the business must secure permits and licenses from the city or municipality where it conducts its business, including:
- Business Permit from the Mayor's Office
- Fire Safety Inspection Certificate from the Bureau of Fire Protection
- Barangay Clearance and Community Tax Certificate from the barangay where the business is operating
- Employer Registration (if applicable)
BIR Requirements
- Business registration
- Issuance of receipts and invoices
- Keeping of tax and accounting records
- Withholding of taxes on certain payments
- Filing and payment of taxes
Not Considered Engaged in Business
- Government agencies and instrumentalities
- Pure compensation employment (local or abroad, private or government)
- Directorship in a corporation
- Gratuitous transfer of properties by succession or donation
- Isolated or casual transactions by persons not engaged in trade or business
Considered Engaged in Business
- Freelancers, agents, and consultants
- Broadcast media talents and artists
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Learn about different business entities, forms, and their requirements. Understand the concept of a business entity and its purpose in providing goods and services.
