Corporation law test bank

How do we determine the nationality of a corporation?

NATIONALITY

1. Place of Incorporation Test – place of incorporation
2. Domiciliary Test – principal place of business
3. Control Test – nationality of the controlling stockholders or members of the corporation

Is a corporation a legal entity?

A corporation, sometimes called a C corp, is a legal entity that's separate from its owners.
Corporations can make a profit, be taxed, and can be held legally liable.
Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures..

What corporate company means?

A corporation is a business entity that is owned by its shareholder(s), who elect a board of directors to oversee the organization's activities.
The corporation is liable for the actions and finances of the business – the shareholders are not..

What is the domiciliary test of a corporation?

Domiciliary test – Determined by the principal place of business of the corporation. 3.
Control test – Determined by the nationality of the controlling stockholders or members..

What is the war time test for corporations?

What does the war-time test imply? Although the corporation is organized under the Philippine law but if the controlling stockholders are enemies, then corporate veil will be pierced and the nationality of the corporation will be based on citizenship of majority stockholders in times of war..

Who owns the assets of a corporation?

While an argument can be made that corporations can't truly be owned, it is widely agreed upon that the shareholders of the corporation are owners, but not legal owners.
Legal ownership means having the ability to make actual business decisions or use the company's assets..