QUIZ#2 Forms and Economic Roles of Business Organizations

Module 4
I. DIRECTIONS: Write the letter of the correct answer in ¼ sheet of paper.
1. Companies that may be classified with more than one type of business.
A. Sole Proprietor
B. Merchandising Business
C. Hybrid Business
D. Corporation
2. An organization of people where good and services are exchanged from one another or
for money.
A. Merchandising Business
B. Hybrid Business
C. Corporation
D. Business
3. A business which provides intangible products. Service type firms offer professional
skills, expertise, advice, and other similar products.
A. Service Business
B. Merchandising Business
C. Hybrid Business
D. Manufacturing Business
4. Also known as the “buying and selling” business.
A. Service Business
B. Merchandising Business
C. Hybrid Business
D. Manufacturing Business
5. What business that is owned and managed by only one person.
A. Business
B. Corporation
C. Sole Proprietor
D. Merchandising Business
6. A business where you will buy products to create a new one
 A. Hybrid Business
B. Corporation
C. Manufacturing Business
D. Merchandising Business
7. A business owned and operated by a group of individuals for their mutual benefit.
A. Partnership
B. Cooperative
C. Merchandising Business
D. Corporation
8. It is an advantage of Sole Proprietor, EXCEPT ONE.
A. The business is easy to dissolve, if desired.
B. May be at a disadvantage in raising funds and are often limited to using funds
from personal savings or consumer loans.
C. Easiest and least expensive form of ownership
D. Profit from the business flow-through directly to the owner’s personal tax return.
9. What type of Partnership where it divides responsibility for management and liability as
well as the shares of profit or loss according to their internal agreement.
A. Corporation.
B. Limited Partnership and Partnership with limited liability.
C. Joint Venture
D. General Partnership.
10. Example of Corporation, Except one:
A. Smart Communications
B. Avida Land Corporation
C. Flower shop
D. SM Development Corporation

II. DIRECTIONS: Write YEY if the statement is true and BOO if not.
1. Manufacturing Business is known as “buy and sell” business.
2. Cooperative is a business owned by a group of individuals and operated for their common
good.
 3. Sari-sari store, flower shop, vulcanizing shop, car wash, etc. are examples of SOLE
PROPRIETORSHIP.
4. One of the disadvantages of Partnership is Profits must be shared with others.
5. Types of Partnerships are General Partnership, Limited Partnership and Partnership with
limited liability, and Joint Venture.
6. Corporations may suffer from slow cash flow since a member’s incentive to contribute
depends on how much they use the cooperative’s services and products.
7. Partnership is the easiest and least expensive form of ownership.
8. Sole proprietorship is easy to dissolve, if desired.
9. Lack of membership and participation may cause risk of losing members is a
disadvantage of Cooperative.
10. Business is an organization or economic system where goods and services are exchanged
for one another or for money.

III. DIRECTIONS: Choose one form of business and point out the strength and weakness of it.
10 pts.