University Week Series:

Corporation Accounting Asynchronous Activity 1: 10.11.2022

A.
A, B, C, D and E decided to form Alphabet Inc., a corporation dealing with the manufacture and
sale of school supplies, with an authorized capital stock of P1M. The five equally subscribed to
25% of the authorized capital stock of P50,000.00 each. Even before they could pay the 25% of
their total subscription, however, they entered into a contract with Manila College to deliver
desks worth P2M. For lack of funds, however, they failed to fulfill the contract with Manila
College. Determine the liability of A, B, C, D and E and Alphabet, Inc., vis-à-vis Manila College.

B.
What is a one-man corporation? Do such corporation enjoy the attributes of a corporation? What
should be done to assure this?

C.
Distinguished Capital from Legal Capital.

D.
A, stockholder of X Corporation, assigns his shares of stock to B for a valuable consideration. The
certificate of stock was thereupon delivered to B. A few days later, A died. The heirs of A, in A
deed of Extra-judicial Partition, adjudicated his shares of stock to his son C.
In the meantime, X Corporation declared cash dividend and sent corresponding notice to A’s
address. A, being the registered owner of the shares of stock in the books of the corporation.
C received the notice and by virtue of the aforestated deed of partition claimed payment of the
dividend. B likewise claimed payment asserting ownership of the shares by virtue of the
assignment made by A.
Who has the better right? Explain briefly.

-Goodluck-