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Prelim Exam Part 1
Prelim Exam Part 1
A corporation is formed by a number of persons who pool in their resources to enter a business
for profit.
Banks, which by their very nature, deal in large amounts of capital. Furthermore, loans are
given out for a long duration in some instances and only an entity with a long tenure could be
beneficial in such a case.
The delegation of management to a few who compose the board of directors, will allow flexible
management, expansion, as well as departmentalization. This method of administration to
specialization and division of labor which favor's bank's function.
The General Banking Act (Republic Act 8791) requires that all banks shall be established as
corporations. With the exception of building and loan associations, all banking institutions shall
be stock corporations, and shall be without exception issue par value stocks.
B. Prepare sample of simple bank balance sheet.
BANCO LIM’S CORPORATION
BALANCE SHEET