TRUE OR FALSE

1. A corporation is not in fact and in reality a person, but the law treats it as though it were a person by process of fiction, or regarding it as an artificial person distinct and separate from its individual stockholders.

2. Shareholders are not owners of corporate property which are owned by the corporation.

3. Stockholders as a rule are not directly, individually and/or personally, liable for the indebtedness of the corporation.

4. A corporate debt or credit is not the debt nor credit of the stockholder nor is the stockholder's debt or credit.

5. The interest of stockholders in corporate property is purely inchoate and will not entitle them to intervene in litigation involving corporate property.

6. A stock corporation is one where the ownership of the interest or equity is represented in the form of shares of stock.

7. A foreign corporation is one which is organized and existing under and by virtue of the laws of a country other than the Philippines.

8. Corporation by estoppel is founded on the principles of equity and is designed to prevent injustice and unfairness.

9. Educational corporations are organized as non-stock and non-profit corporations.

10. A stockholder is liable for the obligations of the corporation only to the extent of the amount of his subscription.

11. Due to financial muscle, a corporation is in a better position to attract able and competent executives than a sole proprietorship or a partnership.

12. A certificate of stock is a personal property that can be pledged and/or mortgage.

13. The birthday of the corporation is the date when the Securities and Exchange Commission issues the Articles of Incorporation.

14. Non-user of Corporate Franchise for a period of five (5) years from the date of incorporation provides a ground for the filing of a petition for dissolution of the said corporation.

15. Continuous non-operation for a period of five (5) years is a ground for the suspension or revocation of its corporate franchise and its certificate of incorporation.