1. Choose one attribute of a corporation: a. it is a person b. it can exercise inherent powers c. it is created by special law d. it may be goverment owned e. none of the above all of the above 2. A corporation is different from a partnership in the following ways, except a. a corporation is created by law while a b. both are governed by the same set of laws partnership is created by consent C. a corporation can only exercise powers d. a corporation can act through a third that are granted by law while a partnership person board while a partnership cannot can act freely do this e. none of the above all of the above A 3. These are those stockholders that initially form the corporation: a. incorporators b. stockholders C. directors d. corporators none of the above f. all of the above A 4. They are persons who exercise corporate powers: a. incorporators and directors b. stockholders and management committee c. directors and stockholders corporators and the President e. President and Treasurer all of the above 5. Can all stockholders in a corporation be foreigners? a. yes b. yes, as long as the corporation is not engaged in a nationalized business c. no, if the corporation will operate in the d. yes, as long as the corporation is engaged Philippines in the disposition, development and utilization of natural resources e. no, especially when the corporation is a f. yes, especially when the corporation is a media outlet media outlet 6. This is the maximum capital of the corporation as approved by the Securities and Exchange Commission: a. authorized capital stocks b. subscribed capital stocks . paid-up capital stocks d. common stocks e. cumulative preferred stocks convertible preferred stocks 7. This is defined as the maximum fund that the corporation intends to use in its operations a. authorized capital stock b. subscribed capital stock c. paid-up capital d. capital stock e. cumulative preferred stocks convertible preferred stocks 8. This is part of the authorized capital stock or the whole of it which has been subscribed and paid: a. authorized capital stock b. subscribed capital stock c. paid-up capital d. capital stock e. cumulative preferred stocks f. convertible preferred stocks 9. This is part of the authorized capital or the whole of it over which there have been contracts of subscription: a. authorized capital stock b. subscribed capital stock C. paid-up capital d. capital stock . watered down stock treasury stock 10. This is an act done by a corporation that is not indicated in its purpose: a. illegal act b. ultra vires act c. piercing the veil of corporate entity d. an act of estoppel CS Scanned with CamScannera. a limited partner may contribute money or b. a general partner may either be a capitalist property, but not services or industrial partner c. a partner may not be a general and limited d. a general partner may contribute money, partner at the same time property or services e. a dormant partner may contribute property f. a silent partner can contribute services 27. One who is not actually a partner but may become liable as such to third person is called: a. a nominal partner b. a secret partner c. a silent partner d. a dormant partner e. an agent f. a sub-agent 28. One who has no active part in the management of the business of the partnership is called: a. a nominal partner b. a secret partner c. a silent partner d. a dormant partner e. a deceased partner f. a partner who is not the managing partner TRUE or FALSE. 1. After three years in operation, Angelica, a partner of Bea and Bella, decides to transfer all her shares in the partnership to Kim. Angelica's transfer to Kim dissolves the partnership. 2. A partner's right in specific partnership property may be the subject of a writ of attachment in a case filed against the partner for his personal obligations. 3. A partnership will automatically be dissolved if a limited partner is civilly interdicted. 4. A corporation can withhold from its Secretary his salary if that Secretary has unpaid subscription in his shares of stock. CS ed with CamScannera. upon the execution of the partnership agreement by the partners b. on the date when all the capitalist partners have delivered their contributions to the c. on the date of the recording of the partnership agreement with the SEC d. on the date when the partnership agreement is acknowledged before a notary public e. on the date that a new partner is f. none of the above introduced to a dissolved partnership 19. Who/which of the following may not be partner in a partnership? a. partnership b. corporation incorporated under the laws of Canada c. person under guardianship d. corporation incorporated under the laws of the Philippines e. all of the above f. none of the above 20. The following may be contributed by a partner to a partnership, except a. winnings in the lottery b. political connections c. intellectual industry d. untitled piece of land e. deposits in a joint account all of the above 21. Florals and Blossoms is a partnership engaged in the flower shop business which is operated by friends, Nadine and Kathryn. The flower shop is located on a lot which Nadine and Kathryn leased from Liza, and will be paid at 10% of the yearly gross revenues of the business. Janella was hired as an accountant and she receives 5% of the yearly net profits as bonus. Janella has control over the partnership books. Who are the partners in the business? a. Nadine and Kathryn b. Nadine, Kathryn and Liza C. Nadine, Kathryn and Janella d. Nadine, Kathryn, Liza and Janella, since all of them share in the profits 22. A partnership in which all the partners contribute all the properties which actually belong to them to a common fund is called: a. limited partnership b. universal partnership c. general partnership d, universal partnership of profits e. partnership of gains f. general professional partnership 23. The following are disqualified to form a universal partnership, except? a. Brother and sister b. Husband and wife c. Man and woman living together without the d. those guilty of adultery or concubinage benefit of marriage e. all of the above f. none of the above 24. Which of the following partnerships is/are valid? a. A universal partnership of all present b. A universal partnership of all present property between a public officer and a property between a man and woman living private individual together as husband and wife without the benefit of marriage c. a universal partnership of profits between d. a partnership between husband and wife a public official and a third person for the exercise of a profession e. both (a) and (b) both (c) and (d) 25. Julia and Gerald formed a partnership. Two years after, they got married. The marriage between Julia and Gerald dissolves the partnership they earlier formed if it were: a. a universal partnership b. a particular partnership c. either (a) or (b) d. neither (a) nor (b) because their marriage has no bearing on the partnership they earlier formed e. a general professional partnership f. any kind of partnership 26. Which of the following statements is/are false? scanned with CamScannere. all of the above f. none of the above 11. The following are qualifications of a director, except: a. he must be a Filipino citizen he must not have been convicted by final judgement for a crime punishable by at east 6 years of imprisonment c. he must have at least one share registered d. he must be eighteen years of age in his name in the books of the corporation e. all of the above none of the above 12. This rule means that the courts will not interfere with the decisions made by the governing board as regards the internal affairs of the corporation, unless such acts are so unconscionable and oppressive: a. doctrine of corporate opportunity b. ultra-vires act c. piercing the veil of corporate entity d. business judgement rule e. doctrine of corporate independence f. separate and distinct personality of a corporation 13. An interlocking director is defined as: a. those whose interests in two or more b. those whose interests in two or more companies are all less than 10% companies are all substantial c. those whose interests in one company is d. those whose interests in one company is substantial and in another company, substantial. insubstantial e. those who are directors of both f. those who are directors in one corporation corporations and a and corporate officer in the other corporation 14. Bea appoints Julia as her agent to sell her products in Olongapo City. Can Julia appoint a sub-agent? a. no, the law prohibits appointment by Julia yes, Bea gave her permission to appoint a of a sub-agent sub-agent c. yes, if Bea has not prohibited Julia from d. yes, what the law does not prohibit, it doing so allows e. no, under the principle of delectus f. no, unless the sub-agent is also known to personare Bea 15. Three years ago, Gerald and Joshua, brothers, inherited a five-floor commercial building and the lot on which it was constructed, from Zanjoe, their father, who died without a will. For the past three years, the brothers have divided between the two of them the profit on the rental of the property. Are Joshua and Gerald partners? a. Yes, because they share in the profit from b. No, they are co-owners by operation of law the rental of the property No, because each one is sole proprietor of d. No, because there is no contract of one-half of the whole property partnership duly executed by them e. Yes, they became partners upon the death f. Yes, because they contributed 1/2 each of of Zanjoe the whole property they inherited 16. A partnership is: a. a contract b. a business organization c. both (a) and (b) d. neither (a) nor (b) e. absolutely (a), and sometimes (b) f. absolutely (b), and sometimes (a) 17. A partnership is a consensual, principal and bilateral/multilateral contract. It is also the following, except a. a preparatory contract b. a nominate contract c. an aleatory contract d. an onerous contract e. both (a) and (d) f. both (b) and (c) 18. When does a partnership begin to exist? CS Scanned with CamScanner