18 Questions
What is the main advantage of a Sole Proprietorship?
Limited government requirements
How many individuals can form a Partnership?
Maximum of 5 individuals
What is a disadvantage of a Partnership?
Potential for disagreements among partners
Which form of business organization is suited for small businesses?
Sole Proprietorship
What type of partner contributes capital in cash or property?
Capitalist Partner
Why might management in a Sole Proprietorship be dependent on the capacity of the owner?
Limited source of capital
What type of partner contributes industry, labor, skill, talent, and capital to the partnership?
General Partner
Which partner's liability to third persons is limited only to the extent of their capital contribution to the partnership?
Limited Partner
Who is considered a silent partner?
Dormant Partner
What type of partner manages actively the business of the partnership?
Managing Partner
Which partner is known to the public as a partner of the business but has a concealed connection with the partnership?
Ostensible Partner
What type of entity is owned by its shareholders with a board of directors overseeing its activities?
Corporation
What is a disadvantage of a Limited Liability Corporation?
Abuse of power by officers
Which type of business activity involves providing services rather than products to customers?
Service Business
What does merchandising involve?
Buying goods and selling them without changing their form
Which of the following is an example of a service business?
Sari-sari stores
What characterizes manufacturing as a type of business activity?
Converting raw materials into finished goods
In the context of business activities, what is the primary difference between retailing and wholesaling?
Quantity of goods sold
Learn about different forms of business organizations, such as sole proprietorship, and understand their advantages and disadvantages. Explore the activities of business organizations and how they differ from each other.
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