GUIDE QUESTIONS FOR CHAPTER 5 – CORPORATION (Definition, Nature &

Formation)

1. Define corporation. What are the essential attributes of a corporation?

2.Identify five advantages of a corporation. Identify four disadvantages of a corporation.

3. Differentiate a stock from a non-stock corporation.

4. Identify the components of a corporation and briefly describe each.

5. Identify the kinds of corporation as to nationality and purpose.

6. Differentiate a public from a private corporation.

7. What are the steps involved in the creation of a corporation?

8. What is an articles of incorporation? State seven (7) important provisions included

in this instrument.

9. What are some of the rights of a shareholder?

10. What is the purpose of having independent directors in the board?

11. Distinguish par value stock from no-par value stock.

12. What is the amount of share capital to be subscribed and paid for purposes of
incorporation? Illustrate.

13. Explain the compositions and functions of the basic corporate organizational
structure.

14.What is a share certificate?

15.When can a share certificate be issued to subscribers?

16.What is the legal capital of a corporation?

17. What is a “trust fund” doctrine?

18. Differentiate artificial from natural persons.