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- A business firm whose shares are held by a single person may be a sole proprietorship, but it cannot a corporation. True FalseBriefly explain the liability of:(a) A director of a private limited liability company.(b) A partner of a partnership.(c) A sole trader.(d) A private limited company.1. Discuss the nature and classes of corporation. 2. What are the powers of corporation? 3. Explain the qualifications of Board of Directors. 4. How can you remove a Corporate Officer? 5. Enumerate the powers and fiduciary duties of the Board of Directors or Corporate Officers.
- P&G PHI M LIFE An AIA Group Company MERALCO SAN MIGUEL CORPORATION Assessment Wite true if the statement is correct and write false if not Al crporaters are subsribers but subsuribers need not be an incorporator 2. The Corporate Treasurer of a corporation must be a director. Death of shareholder will not dissalve the corporation 4 A corporation can come into existence by mere agreement of the parties as in the case of partnerships S Acorporation is created by agreement of the sharehalders. The paid-up capital of a Plippine corporation must not be less than Php S00.00. 7Any Individual shareholden in a corporation may personally be held lable for all debts Inuered by the corporation L Al incerporators are corporators of a corporation. S A corporatlen has continulty of existence which permits the business to continue epardiess of changes in ownership or the death of shareholders 10 Acorportatien or a partnership can be a Incorporator but not a corporator. 11. Corparate Secretary must be a…What is the nature of liability of limited partners as to limited partnership debts or obligations? A. They are liable up to the extent of their capital contribution only B. They are liable pro-rata up to the extent of their separate assets after the partnership assets are exhausted C. They are liable pro-rata up to the extent of their capital contribution only D. They are liable equally up to the extent of their separate assets after the partnership assets are exhaustedDiscuss the legal responsibilities and liabilities of directors and officers in a corporation. What fiduciary duties do they owe to the company and its shareholders? What are the potential legal consequences for breaching these duties?
- State the difference between a closed corporation and an open corporation.TRUE OR FALSE A Sole Proprietorship has the advantage of least government regulations.James and John are directors of ‘Cakes & Frozen Novelties Company Limited.’ Peter, Paul andDavid are shareholders. The company has been in operation for four years. The company has notmade any profits since its inception but James and John decided to declare dividends from thecompany’s capital reserves. The company has 10 million shares that were not distributed. Jameswent ahead and sold the shares to his wife, who is not currently a member of the company.Peter enquired as to whether or not the company can just purchase the shares issued, as there aremany different types of shares available. Paul noted that this is possible but pointed out thatRedeemable shares have particular features and certain procedures must be followed in order toredeem. He also stated three ways in which the company must finance these redeemable shares.James asked about the effect of the redeemable shares. John was puzzled and asked how acompany can redeem its share capital, especially when there is a…
- What are the legal obligations and responsibilities of business owners and directors, including fiduciary duties, corporate governance, and compliance with company laws?When a new corporation is formed to acquire two or more other corporations through an exchange of voting stock; the acquired corporations then cease to exist as separate legal entities, it's a Statutory Merger. True FalseCompanies A and B differ only in their capital structure. A is financed 30% debt and 70% equity: B is financed 10% debt and 90% equity. The debt of both companies is risk-free. a. Rosencrantz owns 1% of the common stock of A. What other investment package would produce identical cash flow for Rosencrantz? b. Guildenstern owns 2% of common stock of B. What other investment package would produce identical cash flows for Guildenstern?