Div1

Question 1

What are the attributes of a corporation?:The attributes of a corporation are that it is an artificial being

Answer 1

created by operation of law

Question 2

Explain the attribute that the corporation is an artificial being.:The attribute of a corporation being an artificial being means that it is considered a juridical person with a legal personality separate from its members

Answer 2

enabling it to own properties

Question 3

What is a corporation according to its definition?:A corporation is an artificial being created by operation of law

Answer 3

having the right of succession

Question 4

Explain the attribute that a corporation is created by operation of law.:A corporation is not formed by mere agreement but by a law that grants it legal existence

Answer 4

which can be a general law like the RCC for private corporations or a special law for government-owned corporations.

Question 5

Explain the attribute that a corporation has the right of succession.:The right of succession of a corporation means that it can exist continuously

Answer 5

either perpetually or by extending its corporate life if a fixed term is specified in its articles of incorporation.

Question 6

Explain the attribute of the right of succession in a corporation.:The right of succession in a corporation means it has the power to exist continuously

Answer 6

either with perpetual existence or by extending its corporate life if a fixed term is specified in its articles of incorporation.

Question 7

What does it mean for a corporation to have the powers

Answer 7

attributes

Question 8

Distinguish a corporation from a sole proprietorship in terms of juridical personality.:A sole proprietorship does not possess a separate juridical personality from the owner

Answer 8

while a corporation has a legal personality distinct from its owners.

Question 9

How is a partnership different from a corporation in terms of composition?:A partnership requires at least two partners

Answer 9

while a corporation can be composed of one person.

Question 10

What is the liability difference between stockholders in a corporation and general partners in a partnership?:The liability of stockholders who are not directors

Answer 10

officers

Question 11

What is the definition of a partnership according to Article 1767 of the Civil Code of the Philippines?:An agreement whereby two or more persons bind themselves to contribute money

Answer 11

property

Question 12

According to the Civil Code of the Philippines

Answer 12

how is liability determined for partners in a partnership and general partners in a corporation?:Partners in a partnership are liable up to their subscription to the capital stock of the corporation

Question 13

How does the management differ between a corporation and a partnership?:The business of a corporation is generally conducted by the Board of Directors

Answer 13

whereas a partnership is managed by the Managing Partner designated in the Articles of Partnership or by one of the general partners in the absence of designation.

Question 14

What are the differences in the transfer of shares or rights between a stockholder in a corporation and a partner in a partnership?:A stockholder may sell fully paid shares without consent

Answer 14

while a partner cannot assign interest to a third party without partner consent due to the trust-based nature of partnerships.

Question 15

What classes of corporations exist based on the existence of shares of stock?:Corporations can be classified as Stock Corporation

Answer 15

which has a capital stock divided into shares