Question

A corporation can be created in many ways. Which answer is NOT a valid method of creating a corporation?

a.By signing a binding Partnership Agreement

b.By incorporating under the Corporations Act 2001

c.By incorporations under the Associations Incorporation Reform Act 2012 (Vic)

d.By an Act of Parliament

Answer 1

The correct answer is Option 'a': By Signing a Binding Partnership Agreement.

Signing a Binding Partnership Agreement is NOT a valid method of creating a corporation because Partnership does not constitute as "CORPORATION". Signing of a binding partnership agreements leads to a formation or establishment of Partnership firms, which cannot be termed as CORPORATIONS. There are many points on which corporations and partnership differs.

All the other options can be used to create a corporation, but since partnership firm cannot be termed as corporation, Signing of a binding partnership agreement is not one of the method to create a Corporation form of business.