Classes of Corporations Flashcards

Study Notes

Types of Corporations

Stock Corporation: Capital divided into shares; profits are distributed as dividends to shareholders.
Non-stock Corporation: Profits are not distributed as dividends; typically serves a non-profit purpose.
Public Corporation: Created to fulfill governmental functions and purposes; operates for the public good.
Private Corporation: Established for commercial and private benefits; profits are distributed among owners.
Ecclesiastical Corporation: Formed for spiritual purposes; often related to specific religious organizations.
Lay Corporation: Established for non-religious purposes; can be further distinguished as eleemosynary (charitable) or civil (business-oriented).
Close Corporation: Shares are held privately, often by family members; not offered to the public.
Open Corporation: Shares are publicly traded and listed on stock exchanges, like the Philippine Stock Exchange.
Domestic Corporation: Incorporated under local laws in the Philippines; operates within national jurisdiction.
Foreign Corporation: Formed under the laws of another country; may need to register to operate domestically.
Holding Corporation: Primarily invests in and manages other corporations rather than conducting its own operational business.
Subsidiary Corporation: Majority-owned by a parent or holding corporation, dependent on the umbrella company for oversight.
De Jure Corporation: Legally recognized with a formal structure and compliance with regulations.
De Facto Corporation: Exists in practice but does not have formal legal recognition; often due to non-compliance with regulations.
One-person Corporation: Owned by a single individual, allowing for simpler governance and management structures.

Description

This quiz covers various classes of corporations, including stock corporations, non-stock corporations, and public corporations. Each card provides a definition to help you understand the distinctions between these types of organizations. Test your knowledge and enhance your understanding of corporate structures!