Exercise 1

BUSINESS ORGANIZATION 2
Second Semester
(A.Y. 2018-2019)

By: ATTY. JOHN FREDERICK E. DERIJE

1) What are the attributes of a corporation and discuss each briefly? (10%)

2) What is the Grandfather Rule? (5%)

3) Discuss the trust fund doctrine (5%)

4) X is a Filipino immigrant residing in Sacramento, California. Y is a Filipino residing

in Quezon City, Philippines. Z is a resident alien residing in Makati City. GGG
Corporation is a domestic corporation - 40% owned by foreigners and 60% owned
by Filipinos, with T as authorized representative. CCC Corporation is a foreign
corporation registered with the Philippine Securities and Exchange Commission.
KKK Corporation is a domestic corporation (100%) Filipino owned. S is a Filipino,
16 years of age, and the daughter of Y.

a. Who can be incorporators? (1%)

b. Who can be subscribers? (1%)
c. What are the differences between an incorporator and a subscriber, if there
are any? (3%)