Legal structures for new business ventures
Which structure can issue shares to raise funds more easily?
A) Sole proprietorship
B) Partnership
C) Corporation
D) Cooperative
C) Corporation
Rationale: Corporations can sell stock to raise capital.
What registration is required for a sole proprietorship in the Philippines?
A) SEC registration
B) CDA registration
C) No registration needed
D) DTI registration
D) DTI registration
Rationale: Sole proprietorships register with the Department of Trade and Industry.
. What does Intellectual Property (IP) refer to?
A) Physical assets like medical equipment
B) Creations of the mind with commercial value
C) Government policies for healthcare
D) Personal information of patients
B) Creations of the mind with commercial value
Rationale: IP refers to inventions, written content, designs, and other intangible creations that can be commercially valuable.
Which type of IPR protects the aesthetic design of a product?
A) Patent
B) Utility Model
C) Industrial Design
D) Trade Secret
C) Industrial Design
Rationale: Industrial design protects the visual or ornamental aspects of a product.
1. What is the main focus during the Execution stage of a business?
A) Planning future expansions
B) Monitoring daily operations
C) Closing the business
D) Implementing the business idea into a functioning service
D) Implementing the business idea into a functioning service
Rationale: Execution is when the plan is put into action and the business starts operating.
In which structure do all partners need to agree on major decisions?
A) Partnership
B) Sole proprietorship
C) Corporation
D) Cooperative
A) Partnership
Rationale: Partnerships require shared decision-making among partners.
What is a key advantage of operating as a cooperative in healthcare?
a. Maximum profit generation
b. Simplified regulatory requirements
c. Community-based focus and social benefits
d. Reduced tax obligations
c. Community-based focus and social benefits
What is the main purpose of Intellectual Property Rights (IPR)?
A) To make inventions public
B) To provide legal protection to creators
C) To share profits equally
D) To regulate healthcare policies
B) To provide legal protection to creators
Rationale: IPR gives creators exclusive rights to use, sell, or license their creations.
What is a utility model?
A) Protection for a minor improvement to an existing product
B) A trademark for a utility company
C) A patent that lasts 20 years
D) A copyright on software
A) Protection for a minor improvement to an existing product
Rationale: Utility models cover less complex inventions or modifications, valid for 7 years.
Which of the following is an important step during Execution?
A) Hiring staff
B) Launching marketing campaigns
C) Securing licenses and permits
D) All of the above
D) All of the above
Rationale: Execution involves setting up all necessary components like licenses, staff, marketing, and facilities.
Which business structure provides limited liability protection?
A) Sole proprietorship
B) Corporation
C) Partnership
D) None of the above
B) Corporation
Rationale: Corporations are separate legal entities, protecting personal assets of owners.
What legal structure is appropriate when two nurses want to start a wound care clinic together?
A) Sole proprietorship
B) Corporation
C) Partnership
D) Cooperative
C) Partnership
Rationale: Partnerships allow multiple owners to share capital and responsibilities.
How long does a patent protect an invention?
A) 5 years
B) 7 years
C) 10 years
D) 20 years
D) 20 years
Rationale: Patents grant exclusive rights for 20 years from the filing date.
. How long can an industrial design be protected?
A) 5 years, renewable up to 15 years
B) 7 years, non-renewable
C) 20 years
D) Indefinitely
A) 5 years, renewable up to 15 years
Rationale: Industrial design protection lasts 5 years initially, renewable up to 15 years.
During Operations, which activity is NOT typically included?
A) Clinical care
B) Scheduling appointments
C) Developing a new product line
D) Inventory management
C) Developing a new product line
Rationale: Developing new products is more related to expansion or innovation, not daily operations.
What type of liability does a sole proprietorship have?
A) Limited liability
B) Unlimited liability
C) No liability
D) Shared liability
B) Unlimited liability
Rationale: The owner is personally responsible for all business debts and lawsuits.
. What is a key disadvantage of operating a sole proprietorship?
A) Limited ability to raise funds
B) High registration cost
C) Complex compliance
D) Shared control
A) Limited ability to raise funds
Rationale: Sole proprietors often rely on personal funds or loans.
Which of the following is an example of a trademark?
A) A new surgical instrument design
B) A clinic’s logo and name
C) A nurse’s training video
D) A secret herbal formula
B) A clinic’s logo and name
Rationale: Trademarks protect brand names, logos, and slogans.
What must be true for a trade secret to be protected?
A) It must be registered with IPOPHL
B) It must be publicly known
C) It must be patented
D) It must provide economic benefit and be kept confidential
D) It must provide economic benefit and be kept confidential
Rationale: Trade secrets depend on secrecy and economic advantage, not registration.
What is a key characteristic of Operations?
A) Focus on daily activities to deliver services
B) Planning to enter new markets
C) Securing investment for growth
D) Creating new business plans
A) Focus on daily activities to deliver services
Rationale: Operations involve running day-to-day tasks effectively.
1. Which business structure pays personal income tax on business profits?
A) Sole Proprietorship
C) Corporation
B) Partnership
D) Cooperative
A) Sole Proprietorship
Rationale: Sole proprietors report business income on their personal tax returns and pay personal income tax.
A nurse who wants full control and decision-making authority should choose:
A) Partnership B) Corporation
C) Cooperative D) Sole proprietorship
D) Sole proprietorship
Rationale: Sole proprietors have full control over decisions.
. What does copyright protect?
A) Original creative works like books and videos
B) New machines and devices
C) Visual appearance of products
D) Business formulas and secrets
: A) Original creative works like books and videos
Rationale: Copyright applies to literary, artistic, or academic works.
Which government agency in the Philippines handles IP registration?
A) Department of Health (DOH)
B) Intellectual Property Office of the Philippines (IPOPHL)
C) Securities and Exchange Commission (SEC)
D) Department of Trade and Industry (DTI)
B) Intellectual Property Office of the Philippines (IPOPHL)
Rationale: IPOPHL is the official agency for IP registration and enforcement.
Which of the following best describes Expansion?
A) Starting the business for the first time
B) Managing daily clinic appointments
C) Growing the business by adding new services or locations
D) Closing down an existing service
C) Growing the business by adding new services or locations
Rationale: Expansion involves scaling or improving the business after it is stable.