What type of corporation may have only one stockholder and a sole director?

Study for the Revised Corporation Code test. Prepare with comprehensive multiple-choice questions and detailed explanations. Boost your knowledge and confidence for your exam day!

A one-person corporation is designed specifically to allow for a corporate structure with a single stockholder and a sole director. This type of corporation provides the benefits of limited liability to an individual while maintaining the simplicity of management that comes with having only one person involved. The Revised Corporation Code recognizes the one-person corporation as a distinct entity, allowing individuals to enjoy the advantages of a corporation, such as separate legal personality and limited liability, without the need for multiple stockholders or a board of directors comprising several members.

In contrast, other types of corporations either require multiple stockholders or have different structural and governance requirements that do not accommodate a single individual in these roles. For example, a close corporation may have a limited number of stockholders, but it still necessitates at least two. Similarly, a partnership corporation would involve multiple partners rather than a single stockholder, and a non-stock corporation does not have stockholders at all. Thus, the one-person corporation stands out as the correct answer due to its specific provision for single ownership and governance.

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