Under the Revised Corporation Code, which business may be incorporated as a one person corporation?

Under the Revised Corporation Code, which business may be incorporated as a one person corporation?

• A. Restaurant business
• B. Banks
• C. Preneed company
• D. Insurance company

Answer: (A)

The key idea here is that a one person corporation (OPC) is available for ordinary business ventures that don’t require a special franchise or a highly regulated industry. A restaurant fits this, because it’s a straightforward commercial activity that a single stockholder can own and operate under the OPC framework. In contrast, banks, preneed companies, and insurance companies are heavily regulated financial or service industries. They require specific licenses, regulators (like the central bank or insurance commission), and often broader ownership or capitalization rules, which generally prevent them from being formed as a one person corporation. So the restaurant business is the appropriate example of what can be organized as an OPC.

The key idea here is that a one person corporation (OPC) is available for ordinary business ventures that don’t require a special franchise or a highly regulated industry. A restaurant fits this, because it’s a straightforward commercial activity that a single stockholder can own and operate under the OPC framework. In contrast, banks, preneed companies, and insurance companies are heavily regulated financial or service industries. They require specific licenses, regulators (like the central bank or insurance commission), and often broader ownership or capitalization rules, which generally prevent them from being formed as a one person corporation. So the restaurant business is the appropriate example of what can be organized as an OPC.