QUIZ IN ENTREPRENEURSHIP

LESSON 4: Entrepreneurial Ventures in the Philippines

Name:_______________________________________________________ Date:________________
Year & Strand:_______________________________________________ Score:_______________

I. True or False. Write TRUE if the statement is correct, and write FALSE if the statement is incorrect.

________1. You must consider good work ethic, personal satisfaction, and assurance of continuous
employment in choosing a franchise
________2. Intellectual Property Code of the Philippines or R.A. 8292 is the law that governs the
registration of patents, trademarks and copyright, and the enforcement of intellectual property
rights in the Philippines.
________3. The fourth step in purchasing a franchise is signing the franchise agreement.
________4. The General Partner assumes full or shared responsibility for operating a business.
________5. Common Stock is the stock owned by individuals or firms who may vote on corporate
matters but whose claims on profit and assets are subordinate to the claims of others.

II. Multiple Choice. Write the letter of the correct answer before each number in capital letter.

1. Franchisors should know where franchised businesses should be opened, which locations are
good for a Franchisee and which are not, which may be determined generally by location, most
important with food franchises or other aspects, like purchase power of the certain areas, etc.
a. Market Studies c. Research and Development
b. Effective Field Service d. Procurement Programs
2. Below are the advantages of Creating a New Business except:
a. Opportunity to orient the business toward your own personal goals.
b. Complete flexibility in selecting your target market.
c. Freedom in choosing the concept of the business.
d. Take time and energy to create an image, build patronage, work the bugs out of new
systems and procedures, and reach break-even of sales.
3. The reason, “The business has established relationships with banks and trade creditors” is one of
the reasons why you must acquire this certain entrepreneurial option?
a. Partnership c. Buy-out
b. Franchising d. Corporation
4. It is the most widespread form of business ownership?
a. Partnership c. Corporation
b. Sole proprietorship d. Cooperative

5. What is the 6th step in setting up a franchise system?

a. Prepare operating manuals
b. Plan an advertising strategy and a franchisee-training program
c. Put together a team for opening new franchise units
d. Develop Franchise Document
6. It is an agreement whereby an independent person is given exclusive rights to sell a specified good
or service.
a. Franchising Contract c. Franchise
b. Memorandum of Agreement d. Contract
7. Franchisor will provide a listing of authorized suppliers for equipment, goods, materials and
services.
a. Procurement Programs c. Opening Assistance
b. Market Studies d. Wisdom of Franchisor
8. Which of the following government agencies should a sole proprietorship business must apply
for a business name and get registered?
a. Bureau of Internal Revenue (BIR) c. Securities and Exchange Commission
(SEC)
b. Department of Trade and Industry (DTI) d. Cooperative Development Authority
(CDA)
9. In the Hierarchy of Corporate Structure, who are responsible for appointing the officers in the
corporation?
a. Stockholder c. CEO
b. Board of directors d. Inside Directors
10. It includes the laws on obligations and contracts. It also governs special contracts such as
contract of agency and partnership.
a. The Corporation Code of the Philippines (B.P. 68)
b. Civil Law of the Philippines (R.A. No. 386)
c. Labor Code of the Philippines (Presidential Decree No. 442)
d. Securities Regulation Code of the Philippines (R.A. No. 8799)
11. Sensible and complete specifications, standards and operating procedures, effectively
communicated to Franchisees and readily understandable.
a. System Standards c. Wisdom of Franchisor
b. Operational Manual d. Research and Development
12. The shares of ownership of a corporation.
a. Stock c. Partnership
b. Franchise d. Proprietorship

13. Which of the following government agencies should a partnership business must apply to get a
certificate of registration?
a. Bureau of Internal Revenue (BIR) c. Securities and Exchange Commission (SEC)
b. Department of Trade and Industry (DTI) d. Cooperative Development Authority (CDA)
14. Which of the following is the requirement if you have a foreigner partner?
a. FIA Form 105 c. Endorsement of Clearance
b. Joint Affidavit d. Articles of Partnership
15. Along with the BIR Certificate of Registration, you also need to secure the following, EXCEPT
a. Certificate of Registration of Books of Account
b. Point of Sale (POS)
c. Machine or Authority to Print Receipt/Invoices (Manual Receipts)
d. DST 200 Form
16. A corporation that is taxed as though it were a partnership (income is taxed only as the personal
income of stockholders).
a. LLC c. Not-for-profit corporation
b. C-Corporation d. S-Corporation
17. An Act to promote entrepreneurship in the Philippines by strengthening development and
assistance programs.
a. Barangay Micro Business Enterprises (BMBEs) Act of 2002 (R.A. No. 9178)
b. The Magna Carta for Micro, Small and Medium Enterprises (MSMEs), (R.A. 9501)
c. Consumer Act of the Philippines (R.A. No. 7394)
d. The Local Government Code of the Philippines (R.A. No. 7160)
18. In starting a Sole Proprietorship business in the Philippines, the following are the requirements
except?
a. Valid government-issued IDs
b. Tax Identification Number registration from the BIR
 c. Capital contribution
d. Minimum capital requirement deposited in a local bank
19. It offers you freedom to make all the decisions about your company.
a. Creating a new business c. Buying an existing Business
b. Franchising d. Agreement
20. It allows a franchisee to own and operate a specific number of franchises in a particular
geographic area and provides the franchisee the right to sell to others.
a. Area Franchise Agreement c. Master Franchise Agreement
b. Individual Franchise Agreement d. Geographic Franchise Agreement
21. It is the person who contributes capital to a business but has no management responsibility or
liability for losses beyond the amount he or she invested in the partnership.
a. Limited Partner c. Franchisee
b. General Partner d. Franchisor
22. A corporation whose stock is owned by relatively few people and is not sold to the general
public.
a. Domestic Corporation c. Alien Corporation
b. Open Corporation d. Closed Corporation
23. An artificial person created by law with most of the legal rights of a real person, including the
rights to start and operate a business, to buy or sell property, to borrow money, to sue or be
sued, and to enter into binding contracts.
a. Corporations c. Partner
b. Stockholder d. Sole Proprietor
24. It is a type of franchising in which the franchisor grants the franchisee the right to retail the
product but use the franchisor’s name, trademark, logo, or other identifying marks.
a. Business Format Franchising c. Manufacturer - Retailer Franchise
b. Wholesalers - Retailer Franchise d. Manufacturer - Wholesaler Franchise
25. Which of the following is not one of the advantages of Corporation?
a. Limited liability c. Easy Availability of Capital
b. Perpetual Existence d. Easier dissolution

BONUS. A contract (submitted as articles of incorporation) between the corporation and the state in
which the state recognizes the formation of the artificial person that is the corporation.
a. Incorporation
b. Stock
c. Agreement
d. Corporate Charter