EXERCISES

EXERCISE 1-1
Instructions: For each of the business listed below indicate the type of the firm for which
each belongs. Write “X” on the line provided

BUSINESS SERVICE MERCHANDISING MANUFACTURING

1. car assembler X
2. newsstand X
3. paper mills X
4. laundry shop X
5. pharmaceutical X
6. dental clinic X
7. barber shop X
8. gift shop X
9. real estate broker X
10. bookstore X
11. battery maker X
12. movie houses X
13. driving school X
14. hardware X
15. furniture maker X
16. law offices X
17. department store X

18. accounting firm X

19. boutique X
20. groceries X
21. supermarkets X
22. textiles X
 23. shoe maker X
24. sari-sari store X
25. laundry shop X
EXERCISE 1- 2
INSTRUCTION - After the statement given below, make a “check” on the line Provided.
Indicate the type of organization being referred to:

SOLE PARTNERSHIP CORPORATION

1. Easy to form ✓

2. Life is continuous ✓

3. More expensive to ✓
organize.
4. Better credit standing. ✓

5. Unlimited liability. ✓ ✓

6. Few legal restrictions. ✓

7. It is subject to more ✓
taxes.
8. Owner has more ✓
freedom
9. Owned by the ✓
government.
10.Centralized ✓
management.
11.Unlimited life ✓

12.Easy to dissolve ✓

13.Better credit standing ✓

than sole proprietorship
14.Subject to ✓
governmental controls.
15.Large scale business ✓
undertakings.
16.Limited liability ✓

17.Divided authority ✓ ✓
 18.Difficult of raising ✓
capital
19.Restricted transfer of ✓
capital
20.Greater source of ✓
capital than sole