CLASSWORK - QUIZ: Forming Your Ideal Business Organization

1. The best definition of a sole proprietorship form of business organization is:

A. The business only employs one person
B. The business is owned by one person
C. The firm has a single customer
D. There is a single firm in the industry.

2. One of the claimed advantages of a sole proprietorship business is that:

A. Owners have limited liability
B. Shares can be sold to raise capital
C. Decisions and responsibilities can be shared
D. The owner has independence

3. One of the disadvantages of a sole trader business is that:

A. Capital is limited to the owner’s savings and bank loans
B. Decisions take too long to make
C. As they are government-owned there is no profit motive
D. The owners may disagree.

4. The best definition of a partnership form of business organization is:

A. Only two persons will contribute to the business
B. Two persons or more will contribute to the business
C. Partnership of customer and business owner
D. None of the above

5. One of the advantages of a partnership form of business organization is that:

A. All partners always have limited liability
B. Shares can be sold on the Stock Exchange
C. The business survives the death of the partners
D. The business has access to more capital than a sole trader.

6. One of the disadvantages of a partnership form of business organization is that:

A. Capital is limited to the owner’s savings and bank loans
B. Decisions take too long to make
C. As they are government-owned there is no profit motive
D. The partners may disagree.

7. It is an artificial being created by the operation of law, having right of succession and the
powers, attributes and properties expressly authorized by law or incident to its existence is
called_________.
A. Cooperative
B. Corporation
C. Partnership
D. Sole Proprietorship

8. The following are rights of a Corporation, EXCEPT:

A. It can acquire property in its own name
B. It is required by the Corporation Code that 25% of the subscribed capital must be paid up
to the Stockholders.
C. It is authorized to issue a certain number of stocks
D. It can acquire property in the name of the owner
9. A business organization that has not less than five but not more than 15 members is called
_____________________.
A. Cooperative
B. Corporation
C. Partnership
D. Sole Proprietorship

10. Co-operative is defined by the following, except:

A. Association of persons
B. With a common bond of interest
C. They are owned by shareholders
D. Making equitable contributions to the capital required

11. Which of the following statements about co-operative business organizations is true?
A. All co-operatives are only concerned with retailing.
B. Profits are shared equally amongst members.
C. They are owned by shareholders.
D. Workers have no say in decision-making.

12. The concept of a corporation with a single stockholder was introduced by _____.
A. RA 11232
B. RA 5455
C. RA 5186
D. RA 7718

13. The Revised Corporation Code of the Philippines took effect on ______.
A. Feb. 20, 2019
B. Feb. 23, 2019
C. Feb. 20, 2018
D. Feb. 23, 2018

14. Salient features of an OPC under Section 129 - Reportorial Requirements is an annual
financial statement audited by an independent certified public accountant: Provided, that if the
total assets or total liabilities of the corporation are _______, the financial statements shall be
certified under oath by the corporation’s treasurer and president.
A. less than P500,000.00
B. less than P600,000.00
C. less than P400,000.00
D. less than P300,000.00

15. It is referred to as a limited liability company or corporation, with a single stockholder:

provided, that only a natural person, trust or an estate may form it.
A. Sole Proprietorship
B. Corporation
C. One-Person Corporation
D. Cooperative
16. One of the salient features of RA 11232 under Sec. 10 is the number and qualifications of
incorporators. It is wherein any person, partnership, association or corporation, singly or
jointly with others, but not more than ______ in number, may organize a corporation for any
lawful purpose or purposes.
A. 10
B. 12
C. 15
D. 20

17. It shall contain all actions, decisions, and resolutions taken by the One-Person Corporation
under Section 127 of the Salient features of an OPC.
A. Minute book
B. Resolution book
C. Record book
D. Registry book

18. One of the salient features of an OPC under _________ is the conversion from an ordinary
corporation to an OPC.
A. Section 131
B. Section 129
C. Section 130
D. Section 128

19. Under Section 128 of the salient features of an OPC is the Records in Lieu of Meetings which
states that, when action is needed on any matter, it shall be sufficient to prepare a
___________ and recorded in the minutes book.
A. written resolution, signed and dated by the secretary
B. written resolution, signed and dated by the single stockholder
C. written resolution, signed and dated by the auditor
D. None of the above.

20. Under Section 124 of the salient features of an OPC, in case of death or permanent incapacity
of the single stockholder, the ______ shall act as director and manage the affairs of the OPC
until the legal heirs of the single stockholder have been lawfully determined, and the heirs
have designated one of them or have agreed that the estate shall be the single stockholder of
the OPC.
A. Auditor
B. Secretary
C. Nominee
D. Alternate nominee

21. Under Section 122 of the salient features of an OPC, the single stockholder may appoint
himself as _______ of the corporation, subject to submission of a performance bond to be
approved by the SEC, renewable every two (2) years.
A. Corporate secretary
B. Auditor
C. Treasurer
D. Either A or B

22. Which of the following is incorrect regarding the salient features of an OPC?
A. Section 117 - No Minimum Capital Stock
B. Section 119 - There is a need to file By-Laws
C. Section 120 - Display of Corporate Name
D. Section 121 - Single Stockholder as Director, President.
 23. For one-person corporation, the tax is ______ plus % age/vat.
A.10%
B.20%
C.30%
D.40%

24. _________ is the optional standard deduction for Sole proprietorship.

A.10%
B.20%
C.30%
D.40%

25. What are the considerations for the choice of business model?
A. Short-medium term targets
B. Tax considerations
C. Capital-financing requirements
D. All of the above

Answer Key
1. B (Slide: 6)
2. D (Slide: 7)
3. A (Slide: 8)
4. B (Slide: 9)
5. D (Slide: 10)
6. D (Slide: 11)
7. B (Slide: 13)
8. D (Slide: 14)
9. B (Slide:14)
10. C (Slide: 17)
11. B (Slide: 18)
12. A (Slide: 22)
13. A (Slide: 22)
14. B (Slide: 33)
15. C (Slide: 23)
16. C (Slide: 25)
17. A (Slide: 32)
18. A (Slide: 36)
19. B (Slide: 32)
20. C (Slide: 31)
21. C (Slide: 29)
22. B (Slide: 27)
23. C (Slide: 38)
24. D (Slide: 38)
25. D (Slide: 39)