BIONG, RISALYN L.

BSA-5A
ONE-PERSON CORPORATION
1. Compare and contrast one-person corporation with the traditional types of
business organizations.
An OPC has a separate juridical personality from its individual owner. The value of this is
that a juridical person is only liable to the extent of its assets while a single proprietor is
directly liable as the businessman and the private person are one and the same human
individual. OPC is suitable for one business owner but does have a hefty tax rate. A
partnership company is easy to start but come with unlimited liability.

2. What is the role of nominee and alternate nominee in an OPC?

The nominee and alternate nominee are the ones who needs to replace a single
stockholder incase of the stockholder’s death or incapacity. The nominee will take over
the management of the OPC until the end of the inability of the stockholder or until the
new shareholder is determined.

3. What are the benefits of registering as a one-person corporation?

One of the key benefits of an OPC is that the owner is financially liable for all debts and
losses while the shareholder’s liability in an OPC is limited to the extent of the
shareholder’s assets.

4. How does succession work in an OPC?

Succession works in an OPC when a single stockholder is designated to appoint a new
nominee incase of death or incapacity.

5. The single stockholder in a one-person corporation should not be appointed in

what position/s?
They should not be appointed as President and Corporate Secretary.