2. If given a chance to form a corporation, what would you prefer from the classes of corporation below? choose one and explain?

HERE ARE THE CLASSES OF CORPORATION TO CHOOSE FROM: (CHOOSE ONLY ONE THEN EXPLAIN)

1.As to whether shares of stock are issued or not.

a. Stock corporation - One that has capital stock divided into shares and is authorized to distribute dividends or allotments of the surplus profits on the basis of shares held. (Sec. 3) A stock corporation is a type of for-profit company. Each of its shareholders receives part ownership of the corporation through their shares of stock.

b. Non-stock corporation - One no part of the income of which is distributable as dividends to its members, trustees or officers. (Sec. 87) A Non-Stock Corporation is basically a corporation that does not issue shares of stock. It can be formed as either a for-profit or non-profit corporation.

2.As to the state or country under whose laws it was created

a. Domestic corporation - One incorporated under Philippines laws. A domestic corporation is a company that conducts its affairs in its home country.

b. Foreign corporation - One formed, organized and existing under any laws other than those of the Philippines and whose laws allow Filipino citizens and corporations to do business in its own country. (Sec. 123) Aforeign corporationis a company incorporated outside the state in which it is doing business.