M0S0 Course Refresher Flashcards
What are the three types of organizations?
Sole Proprietorship, Partnership, Corporation.
What are the requirements before starting a business?
DTI Certificate of Registration
Barangay Business Clearance
Mayor’s Permit
BIR Registration Document
What is the difference between a sole proprietorship and a corporation regarding registration documents?
Sole Proprietorship requires DTI registration, while Corporation requires SEC (Securities and Exchange Commission) registration.
Name the two types of shareholders and their characteristics.
Common Shareholders(Major Shareholders) - own 50%, include CEO/Management, and are led by the Chairman.
Preferred Shareholders(Minor Shareholders) - have priority during liquidation and own below 50%.
What is the order of dividend distribution in a corporation?
Debt/Loan
Preferred Shareholder
Common Shareholder
Prepaid Earnings (Investment).
What are the two types of management structures?
Board of Directors (BOD) for publicly listed companies
Board of Trustees (BOT) for private companies.
What is a notable feature of a one-man corporation?
A one-man corporation can be established with investors (stockholders).
What is the primary function of a Preferred Shareholder in terms of dividends?
Preferred Shareholders accept dividends before Common Shareholders.
Sole Proprietorship can have multiple owners.
False.
All types of businesses require registration with the SEC (Securities and Exchange Commission).
False.
Preferred Shareholders always receive higher dividends compared to Common Shareholders.
False.
Mayor’s Permit is not a prerequisite for starting a business.
False.
Common Shareholders typically have a greater say in the management of a corporation compared to Preferred Shareholders.
True.
Board of Trustees (BOT) is commonly associated with publicly listed companies.
False.
Debt/Loan repayment is the first priority in profit distribution in a corporation.
True.
