Corporation vs Partnership Liability Quiz
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Questions and Answers

What is the governing body in a nonstock corporation?

  • Board of Directors
  • Board of Trustees (correct)
  • General Assembly
  • Cooperative Committee

    • What is the minimum authorized capital stock requirement for stock corporations incorporated under the Revised Corporation Code (RCC)?

  • There is no minimum authorized capital stock requirement, except as otherwise specifically provided by special laws. (correct)
  • The minimum authorized capital stock is P25,000, with at least 25% subscribed and 25% of the subscription paid upon incorporation.
  • At least 25% of the authorized capital stock must be subscribed and 25% of the total subscription must be paid upon incorporation, with a minimum paid-up capital of P5,000.
  • The minimum authorized capital stock is P100,000, with at least 50% subscribed and 50% of the subscription paid upon incorporation.

    • What is the difference between authorized capital stock and subscribed capital stock?

  • Authorized capital stock is the amount of capital a corporation is required to have, while subscribed capital stock is the amount that has been committed by investors.
  • Authorized capital stock is the total number of shares a corporation is allowed to issue, while subscribed capital stock is the number of shares that have been purchased by shareholders.
  • Authorized capital stock is the total amount of capital a corporation is allowed to raise, while subscribed capital stock is the amount that has been raised through share sales.
  • Authorized capital stock is the amount fixed in the articles of incorporation to be subscribed and paid by the stockholders, while subscribed capital stock is the portion of the authorized capital stock that is covered by subscription agreements. (correct)

    • What is the difference between paid-up capital and outstanding capital stock?

    <p>Paid-up capital is the total amount of capital that has been paid by shareholders, while outstanding capital stock is the total number of shares that have been issued and are currently held by shareholders, excluding treasury shares.</p> Signup and view all the answers

    Which of the following is not a type of capital stock mentioned in the text?

    <p>Cooperative capital stock</p> Signup and view all the answers

    When does a corporation commence to have juridical personality?

    <p>On the issuance of its certificate of incorporation</p> Signup and view all the answers

    What is the purpose of the Board of Trustees in a nonstock corporation?

    <p>To exercise the powers of the corporation.</p> Signup and view all the answers

    What type of corporation has capital stock divided into shares?

    <p>Stock Corporation</p> Signup and view all the answers

    Which type of corporation does not allow any part of its income to be distributed as dividends?

    <p>Non-stock Corporation</p> Signup and view all the answers

    In which type of corporation are stockholders or members not liable for the corporation's obligations?

    <p>Stock Corporation</p> Signup and view all the answers

    What is the main difference between a domestic and a foreign corporation?

    <p>Place of incorporation</p> Signup and view all the answers

    What is the primary distinction between a public corporation and a non-stock corporation?

    <p>Purpose of existence</p> Signup and view all the answers

    What power allows a corporation to revive its corporate existence?

    <p>Power to amend the articles of incorporation</p> Signup and view all the answers

    Which power enables a corporation to sell or dispose of all or substantially all of its corporate assets?

    <p>Power to extend or shorten corporate term</p> Signup and view all the answers

    What power allows a corporation to invest its funds in another corporation or business?

    <p>Power to invest corporate funds in another corporation, business, or for any other purpose</p> Signup and view all the answers

    What power permits a corporation to declare dividends?

    <p>Power to amend the articles of incorporation</p> Signup and view all the answers

    Which power allows a corporation to increase its capital stock?

    <p>Power to extend or shorten corporate term</p> Signup and view all the answers

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