Business Law (Corporation) Quiz 2

O LA N O , Roxa ne May M. BusL aw Quiz 2 B SA 2-1 Quiz Corpor ation 1. A corpor ation is an articial being created by operation of law, having the right of succession and the powers, attributes, and proper ties expressly authorized by law or incidental to its existence. Explain what is the meaning of having the right of succession? Under the Revised Corporation Code of the Philippines (Republic Act No. 11232), corpor ations are granted perpetual existence by default, meaning they will continue to operate unless dissolved through legal means. This perpetual existence is supported by the right of succession, which ensures the corporations continuity even if shareholders sell their shares or pass awa y. This principle makes corporations stable and long-lasting entities, as they are protected by law fr om abrupt dissolution. Instead, they can only be dissolved through the proper legal processes, pr oviding security and sustainability for the business. 2. X and Y wanted to ventur e into business and wanted to put up a corporation. The problem is that ther e are only two of them as their other partners in business would not join them in putting up a corpor