Examination 1.

3
Organization and Management

I. Write SP if the answer is an advantage or disadvantage of Sole Proprietorship, P for

Partnership and C for Corporation.

________1. Joint and Individual Liability

________2. Separate Legal personality
________3. Easy and Inexpensive
________4. Lack of Continuity
________5. Shared Profits
________6. Ease of transfer of ownership
________7. Difficulty in raising capital
________8. Disagreement among partners
________9. Shared Financial Commitment
________10. Decision making
________11. Tax benefits
________12. Complementary skills
________13. More costly
________14. Credibility
________15. Continuity

II. Identify the following.

___________1. A single person holds the entire operation as his personal property, managing it on a
day-to-day basis.
___________2. It is a single business with two or more people sharing its ownership.
___________3. A type of business that keeps the dealings, assets, and bank accounts separate from
his/her personal assets.
___________4. A shape or size of organization structure that have many tiers between the common
worker and the owner of the company.
___________5. A shape or size of organization structure wherein there are very few levels between
the common worker and the owner.
____________6. Structure organization that has only direct, vertical relationships between different
levels in the firm/
____________7. It is a set up wherein each department of the organization is grouped according to
its function or purpose.
____________8. This is typically used in larger companies or organizations with several branches or
outlets that operate in a wide geographic area.
____________9. Typically used in large multinational companies and allows for the benefits of
functional and divisional structures to exist in one organization.
____________10. It is intended to provide expertise, advice and support the line positions.

III. Enumerate the following.

1.
2.
3.
4. Nature and Role of the Firm
5.
6.
7.
8.
9. Types of Organization Structure
10.
11.
12. Two broader organization structure
13.
14. Nature of Organization
15.