PARTNERSHIP AND CORPORATION

ATTY. GILBERT H. PILAR

NAME: ____________________________________________

I. Identification.

1. It is an artificial being created by operation of law, having the right of succession and the
powers, attributes and properties expressly authorized by law or incident to its
existence.
2. A class of corporation which have capital stock divided into shares and are authorized to
distribute to the holders of such shares dividends or allotments of the surplus profits on
the basis of the shares held.
3. A class of corporation which no part of their income is distributable as dividends to its
members, trustees or officers.
4. The person who composes a corporation, whether as stockholders or as members.
5. The stockholder or member mentioned in the articles of incorporation as originally
forming and composing the corporation.
6. The corporators in a stock corporation.
7. The corporators in a non-stock corporation.
8. The total shares of stock issued under binding subscription agreements to subscribers or
stockholders, whether or not fully or partially paid, except treasury shares.
9. Shares of stock which has preference in the distribution of assets of the corporation in
case of liquidation and in the distribution of dividends.
10. Shares of stock which have been issued and fully paid for, but subsequently reacquired.

II. True or False.

1. A corporation shall exist for a period exceeding fifty (50) years from the date of
incorporation.
2. A corporation cannot be dissolved prior to its corporate life.
3. The corporate term as originally stated in the Articles of Incorporation may be extended
for periods not exceeding fifty (50) years in any single instance.
4. The corporate term may only be extended by amendment of the Articles of
Incorporation.
5. Preferred shares of stock may be issued without a stated par value.
6. Shares of capital stock issued without a par value shall be deemed fully paid.
7. All incorporators must be residents of the Philippines.
8. Any natural persons not less than five (5) but not more than fifteen (15) may form a
private corporation.
9. At least twenty-five percent (25%) of the authorized capital stock must be paid-up.
10. Paid-up capital shall be in no case less than five thousand pesos (Php 5,000).
III. Enumeration.

1. Attributes of a Corporation
a.
b.
c.
d.
2. Classes of Corporation
a.
b.
3. Give at least (5) contents of an Articles of Incorporation
a.
b.
c.
d.
e.
4. Give at least three (3) distinction between a corporation and a partnership
a.
b.
c.
5. Give at least three (3) advantages of forming a corporation
a.
b.
c.
6. Give at least three (3) disadvantages of forming a corporation
a.
b.
c.
7. Qualifications of an incorporator
a.
b.
c.
d.
8. Classification of Shares of Stock
a.
b.
9. Ways of reacquiring Shares of Stocks
a.
b.
c.
d.
IV. Essay.