1) The following are the corporate acts when stocks classified without voting or non-voting stocks or stocks with limited voting rights are not allowed to participate, except:

a. granting compensation to directors;

b. merger and consolidation of corporation;

c. ratification of disloyalty of director or contract with self-dealing contract between corporations with interlocking directors;

d. approval of management contract.

2) The following are the possible effects of watered stocks, except:

a. The total assets of the corporation are overstated;

b. The total stockholders' equity of the corporation is overstated.

c. The total liability of the corporation is understated;

d. The total contributed capital of the corporation is understated.

3) Spin-off refers to the transfer of division, portion or operating segment of 1 pc a corporation to a new corporation that will arise by the process which may constitute it into a subsidiary of the original corporation. Will the workers transferred to the new corporation still form part of the labor union of the original corporation?

a. Yes because it amounts to merger or consolidation,

b. No if the spin-off was done for valid business cause and in good faith;

c. No under all circumstances;

d. Yes because it will always amount to circumvention of labor right to association.