If ART Inc. has an authorized capital stock of P160,000, what is its minimum subscribed capital stock?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

In corporate law, the term "subscribed capital" refers to the portion of the authorized capital stock that stockholders have agreed to purchase and pay for. For a corporation, the minimum amount of subscribed capital stock is often dictated by relevant laws and regulations governing corporations in the jurisdiction where the corporation is established.

Typically, a corporation must have a minimum subscribed capital stock requirement, which is often a percentage of its authorized capital stock. However, many jurisdictions do not set rigid minimums beyond ensuring that some portion of the authorized capital is subscribed. If a corporation has an authorized capital stock of P160,000, there may be no specific legal requirement for the subscribed capital to be at least a particular amount in some jurisdictions.

Since the question indicates that none of the provided amounts (P20,000, P30,000, or P25,000) is explicitly specified in the governing law as a minimum subscribed capital, the correct conclusion is that the answer is "None." This allows the corporation the flexibility to determine its level of subscription based on business considerations rather than being locked into a minimum figure. This approach supports the notion that corporate operations can be tailored to better fit the needs and circumstances of the company and its shareholders.

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