MIRCOECONOMICS

Midterm Examination

I. MODIFIED TRUE OR FALSE (2points each)

Instruction: Instruction: Write TRUE if the statement is valid and FALSE if otherwise. If the statement is FALSE,
underline the word(s) that make it wrong.

1. A partnership is limted to two owners, called partners.

2. Business produces and purchase the good and services that we need and want.
3. Business creates jobs in the course of producing goods and services.
4. A firm is a business for profit and service.
5. People invest their own money in a business venture for leisure.
6. Abraham Maslows Hierarchy of Needs defines the six needs of an individual.
7. Agriculture is growing, harvesting and processing products like crops, poultry & livestock and footwear.
8. The government does not prescribe a minimum capital for single proprietors.
9. No one can succeed a partner in a partnership.
10. The policy making body of a corporation is the board of trustees.
11. A open corporation is one whose ownership is closed to general public.
12. A close corporation is one owned by no more than 20 persons.
13. Cooperatives has open and compulsory membership.
14. The maximum corporate life of a corporation is 50 years.
15. A partnership is dissolved when the reason for its formation is completed.

II. FILL IN THE BLANKS

Instruction: Fill in the correct word/s in each blank to complete the selection.

PART I.

1. Business produces and sells goods and services that we __________ and __________.
2. A _________ is a formal or informal association of oligopolistic whose purpose is to control the supply of their
product.
3. A firm is in business for ___________.
4. __________ is a theory that defines the five needs of an individual and sets them in a ladder-like order.
5. Civil code of the Philippines defines partnership as a contract where two or more persons bind themselves to
contribute _________, _________, or __________ to a common fund with the intention of dividing the profits
among themselves.
6. Under Single proprietorship, the firms’ trade name is registered with __________ while partnership and
corporation are registered with __________.
7. The law requires a partnership with a limited partner to include the abbreviation __________ at the end of its
partnership name.
8. A business is a/an _________, __________, __________, and __________.
9. Partners with limited liability are called _________, while partners with unlimited liability are called ___________.

III. ESSAY(1opoints)

Instruction: Explain what is asked.

1. Differentiate close corporation, open corporation a d government corporation.

2. What contributions does business make to the economy?
3. Why do people go into Business?