R corp 1

What is a corporation?

• A legal entity created by law

• A government agency

• A type of partnership

• A sole proprietorship

Who are the owners of a corporation called?

• Shareholders

• Partners

• Members

• Directors

What is a stock corporation organized for?

• Government functions

• Charitable activities

• Non-profit purposes

• Profit

What is the primary difference between stock and non-stock corporations?

• Stock corporations issue shares

• Non-stock corporations can sue

• Non-stock corporations are larger

• Stock corporations are non-profit

What determines the nationality of a corporation in the Philippines?

• The type of business it conducts

• The citizenship of its majority shareholders

• The number of employees

• The location of its headquarters

What does the control test assess?

• The financial stability of the corporation

• The majority ownership of shares

• The legal compliance of the corporation

• The number of employees

What is the purpose of the grandfather rule?

• To limit the number of shareholders

• To increase corporate profits

• To trace the nationality of shareholders

• To simplify corporate taxes

What does a corporation's juridical personality mean?

• It has no legal rights

• It can only operate in one country

• It is treated as a legal person

• It can be taxed as an individual

What is the doctrine of separate juridical personality?

• Shareholders are liable for corporate debts

• The corporation can sue or be sued independently

• The corporation cannot own property

• The corporation must disclose its shareholders

Who is generally liable for a corporation's debts?

• The shareholders

• The corporation itself

• The directors

• The employees