10 Questions
In a joint venture, partners share only in profits but not in losses.
False
Corporations are not allowed to enter into partnerships.
False
The relationship of joint venture partners is primarily governed by the law on corporations.
False
A sole proprietorship has a separate legal personality from its owner.
False
Control and management of the business is not considered a factor in deciding the type of business organization.
False
Owners' liability for business debts and obligations is not a factor to consider when deciding on a business organization.
False
Partners are not personally responsible for the debts and obligations of a partnership.
False
Corporations can be either stock or non-stock entities.
True
Shareholders of a corporation are only responsible for the debts up to their capital contribution.
True
Joint ventures involve two or more entities uniting to form a new corporation.
False
Test your knowledge on the nature and forms of business organizations including sole proprietorship and partnership. Learn about the characteristics, legal implications, and registration procedures for different types of business structures.
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