CORPORATION ( TRUE OR FALSE)

1. A corporation is not a real or natural person but the law assume it as a person, so that it can perform practically
business functions.
2. The Securities and Exchange Commission is prohibited by law to register a corporation to engage solely in the
practice of public accounting.
3. CPAs are in violation to R.A.9298 known as Philippine Accountancy Act of 2004 if they formed a corporation
for the practice of accounting profession.
4. A corporation is taxed at 30% income tax rate.
5. A person of minor age can be a shareholder but can never be an incorporator in a corporation.
6. CPAs are prohibited from being a shareholder of any share in a corporation.
7. A corporation is formed by at least five (5) but not more than fifteen (15) members.
8. A corporation is like an artificial person. It can transact business under its own name, hold or disposed property
but it can never be sued to court.
9. Authority of the corporation to operate has to be granted by the state.
10. A corporation can be formed by mere agreement among shareholders.
11. There is no law prohibiting corporation to acquire or buy shares of stock from another corporation.
12. A corporation can be an incorporator of another corporation.
13. Shareholders are not liable to corporate obligations in excess of their legal capital.
14. The legal capital of a corporation represents the paid in capital or the amount invested by the shareholders.
15. A corporation may exist for more than 50 years by amending the Articles of Incorporation.
16. Death of a shareholder will dissolve the corporation.
17. A corporation may reach up to hundreds and thousands of shareholders.
18. A corporation acquires its own juridical personality by the time Securities and Exchange Commission issues the
Certificate of Incorporation.
19. If a corporation failed to operate within two years from the date of incorporation, its corporate powers ceased
and the corporation is deemed dissolved.
20. If by incident, a non-share, non-profit corporation generates profit; such profit should be spent to continue
attaining the objectives of its creation.
21. Shares cannot be transferred without the consent of the other shareholders.
22. An incorporator of a corporation must own or be a subscriber to at least one (1) share capital of that
corporation.
23. As a requirement for incorporation, only natural persons can execute and signed the Articles of Incorporation.
24. A share certificate can be issued to those subscribers who partially paid their subscriptions.
25. The Board of Directors shall exercise the corporate powers of a corporation.
26. The most powerful and influential person in a corporation is the Chairman of the Board of Directors.
27. As a requirement for corporate formation, 25% of the authorized share capital must be subscribed and 25% of
the subscription must be fully paid in actual cash or property.
28. A stock corporation is a public corporation organized for profit.
29. When there is one class of stock issued by a corporation it is always understood to be preference shares.
30. Ordinary and Preference shareholders have the same rights and both enjoy the same privileges especially in
distribution of dividends.
31. The legal share capital of a corporation is divided into units called shares`
32. Preference shareholders are assured