ICCT Colleges Foundation, Inc.

Fundamentals of Accountancy, Business and Management

BPACTG01

CHAPTER 3 – ACTIVITY / ASSIGNMENT

Answer the following questions/statements in not less than 5 sentences.

1. Who are the users of accounting information?

- External users
Investors
Creditors
Customers
Suppliers
Employees
Government organizations
- Internal users
Management
Managers of operations

2. Define partnership.

- A partnership is a formal arrangement by two or more

parties to manage and operate a business and share its
profits. There are several types of partnership arrangements.
In particular, in a partnership business, all partners share
liabilities and profits equally, while in others, partners may
have limited liability. There also is the so-called "silent
partner," in which one party is not involved in the day-to-day
operations of the business.

3. Define cooperative.

- A cooperative is a legal entity owned and democratically controlled by its

members. Members often have a close association with the enterprise as
producers or consumers of its products or services, or as its employees. The
legal entities have a range of social characteristics. and also involving mutual
assistance in working toward a common goal , every member has clearly
defined tasks in a cooperative enterprise .