Answer in essay form with min. of two hundred words each question.

1. . Five similarities between partnership and a corporation.

2. At least 5 advantages of a business corporation.

3. At least 5 disadvantages of a business corporation.

REFERENCE:

PRIVATE CORPORATIONS 212 Sec. 2 Sec. 3 Advantages of a business corporation. (7) The advantages are the following: busin (1) The corporation has a legal capacity to act as a legal unit; (2) It has continuity of existence because of its non- sepai dependence on the lives of those who compose it; (3) Its credit is strengthened by such continuity of existence; (4) It's management is centralized in the board of directors; (5) Its creation, organization, management and dissolution are standardized as they are governed under one general incorporation law; (6) It makes feasible gigantic financial enterprises since it enables many individuals to invest their separate funds in the enterprise; Cla (7) The shareholders have limited liability; (8) They are not general agents of the business; and (9) The shares of stocks can be transferred without the sto consent of the other stockholders. m Disadvantages of a business corporation. They are as follows: (1) The corporation is relatively complicated in formation and management; (2) It entails relatively high cost of formation and operation; (3) Its credit is weakened by the limited liability of the stockholders; (4) There is ordinarily lack of personal element in view of the transferability of shares; (5) There is a greater degree of governmental control and supervision than in any other forms of business organization; (6) The stockholders' voting rights have become theoretical particularly in large corporations because of the use of proxies (Sec. 58.) and widespread ownership;up may be dissolved at any time by the will of any or all of the partners, while a corporation 122.); and can only be dissolved with the consent of the State (see Secs. 117- (13) Laws which govern. - A partnership is governed by the Code. Civil Code, while a corporation is governed by the Corporation Similarities between a partnership and a corporation. The similarities are as follows: (1) Like a partnership, a corporation has a juridical per- sonality separate and distinct from that of the individuals composing it; (2) Like a partnership, a corporation can act only through agents; (3) Like a partnership, a corporation (except a corporation sole) is an organization composed of an aggregate of individuals; (4) Like a partnership, a corporation distributes its profits to those who contribute capital (although an industrial partner also shares in partnership profits); (5) Like a partnership, a corporation can be organized only where there is a law authorizing its organization; and (6) A partnership, no matter how created or organized,' is taxable as a corporation, subject to income tax. (Sec. 24[a], NIRC.) "Except general professional partnerships or "partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business." (Sec. 20fa], NIRC.)