The document discusses different forms of business organization: sole proprietorship, partnership, corporation, and cooperative. It provides statements to determine whether each one is true or false. A sole proprietorship is owned and managed by one person and ends upon the owner's death. A partnership shares profits among partners based on agreement but partners are liable for each other's actions. A corporation is more complicated to set up but can raise funds through stock sales and exist longer than 50 years. Cooperatives achieve members' social and economic needs through resource sharing and require member participation.
10. 8. The members of
cooperatives have active
and direct participation in
the business.
11. 9. The life of a corporation
or cooperatives may
exceed 50 years
12. 10. The most common
form of business
organization is the
corporation.
13. 1. Sole proprietorship is owned by two person.
NO
? Owned by one (1) person
? The one who manage the business
is called the ¡°owner¡±
? Keep all the profits.
? The owner makes all the decisions.
14. 2. In partnership profits are divided among
partners based on their agreed sharing.
YES
? Owned by two or more persons.
? The owner is called a partner
? The details of the arrangement are
outlined in the articles of partnership.
? Profits are divided among the partners.
15. 3. Corporation is easy to set-up.
NO
? Complicated to set up.
? Formed at least 5 person
? Owners are called stockholders or
shareholders
? Board of Directors and operating
management manages the business
16. 4. Cooperatives is a duly registered association of
persons with a common bond of interest to achieve
their social, economic and cultural needs.
YES
? Promotes the concept of sharing resources
? Owners are called members
? Board of Directors and operating
management manages the business
? Formed by 15 or more person.
17. 5. The life of the business in sole
proprietorship is limited to the life of the owner
YES
? The business and the owner are
inseparable
18. 6. A partner cannot be held liable for the acts
of the other partners.
NO
? partner can be held liable for the acts
of the other partners
19. 7. A corporation can easily raise additional
funds.
YES
? by selling shares of
stocks to the public.
? Proof of ownership is
evidenced by a stock
certificate.
20. 8. The members of cooperatives have active
and direct participation in the business.
YES
? members are expected to patronize
their products and services.
? Requires continuous education
programs for members.
21. 9. The life of a corporation or cooperatives
may exceed 50 years
NO
? As stated in the Articles of
Incorporation / cooperation, not to
exceed 50 years.
22. 10. The most common form of business
organization is the corporation.
NO
? Sole proprietorship is the most
common and simplest form of business
organization.
24. Fill out the table
Statement Sole Proprietorship Partnership Corporation Cooperatives
Number of owners
Who manage the business
Termination of the business
Advantages
Disadvantages