1. Which of the following is NOT an advantage of forming a corporation?

a. It has a strong juridical personality.

b. It has a legal capacity to act and contract as adistinct unit in its own name.

c. Its management is centralized, and there is ease in

transferability of shares.

d. It is subject to greater degree of governmental

supervision.

2. Are the stockholders, directors, or officers personally liable for the liabilities of the corporation after the

assets of the corporation are exhausted?

a. Yes, because they are considered to be general

partners

b. No, under all instances

c. Yes, under all instances

d. No as a general rule, unless exceptional cases warrant

the piercing of the veil of corporation entity

3. It is a corporation which has a capital stock divided into shares and are authorized to distribute to the

holders of such shares dividends or allotments or the surplus profits based on the shares held.

a. Non-stock corporation

b. Close corporation

c. Open corporation

d. Stock corporation

4. Which of the following best describes a lay corporation?

I. It is a religious organization governed by board. II. It is organized for a purpose other than a religion.

a. Statement I

b. Statement II

c. Both statements

d. None of the statements

5. HONDA Philippines is fully owned by Japanese nationals. Its main office is located in Tokyo, Japan, but

it was incorporated under the provisions of the Corporation Code of the Philippines. It engages its

business in the Philippines. What is the classification of the corporation under the Corporation Code?

a. Resident corporation

b. Foreign corporation

c. Non-resident corporation

d. Domestic corporation

6. Which of the following DOES NOT have juridical personality as a corporation?

a. Corporation by prescription

b. De facto corporation

c. Ostensible corporation

d. De jure corporation

7. Which of the following corporations has 75% of outstanding capital stock as Filipino ownership

percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

8. Which of the following corporations has 40% of voting stock and 60% of outstanding capital stock as

Filipino ownership percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

9. This refers to a corporation as a legal or juridical person with a personality separate and apart from its

individual stockholders.

a. Concession Theory

b. Theory of Corporate Enterprise

c. Doctrine of Corporate Entity

d. Grandfather Rule

10. Which of the following is NOT an attribute of a corporation?

a. It is an artificial being.

b. It is created by entering into a contract, whether

oral or written.

c. It enjoys the right of succession.

d. It has the powers, attributes, and properties expressly

authorized by law or incident to its existence.

11. Which of the following is NOT an attribute of a corporation?

a. It is an artificial being.

b. It is created by entering into a contract, whether

oral or written.

c. It enjoys the right of succession.

d. It has the powers, attributes, and properties expressly

authorized by law or incident to its existence.

12. As an artificial being, which of the following constitutional rights is NOT available to a corporation?

a. Right to due process of law

b. Right to equal protection of the law

c. Right against unreasonable searches and seizures

d. Right against self-incrimination

13. Which of the following statements is CORRECT?

I. A corporation is not entitled to moral damages due

to it not being a natural person.

II. A corporation can be held liable for a crime through

penal sanction.

a. Statement I

b. Statement II

c. Both statements

d. None of the statements

14. It is a corporation established for business or profit.

a. Eleemosynary corporation

b. Civil corporation

c. Ecclesiastical corporation

d. Lay corporation

15. It is a corporation created in strict compliance with all the legal requirements and whose right to exist asa corporation cannot be successfully attacked in a direct proceeding for that purpose by the State.

a. De jure corporation

b. De facto corporation

c. Corporation by estoppel

d. Corporation by prescription

16. One of the distinctions between a partnership and a corporation is that a partnership:

a. Is managed by a board of directors

b. Is characterized by the principles of delectuspersonae

c. Has the right of succession

d. May be dissolved only with the consent of the state

hich of the following is NOT an advantage of a corporation?

a. Centralized management

b. Strong juridical personality

c. Double taxation

d. Limited liability to investors

17. Which of the following corporations has 60% of outstanding capital stock as Filipino ownership

percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

18. Which of the following corporations has 70% of voting capital stock as Filipino ownership percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

19. Which of the following corporations has 75% of outstanding capital stock as Filipino ownership

percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

20. Which of the following corporations has 40% of voting stock and 60% of outstanding capital stock as

Filipino ownership percentage?

a. Rural banks

b. Educational corporations

c. Corporations engaged in the pawnshop business

d. Corporations under the Flag Law

21. This refers to a corporation as a legal or juridical person with a personality separate and apart from its

individual stockholders.

a. Concession Theory

b. Theory of Corporate Enterprise

c. Doctrine of Corporate Entity

d. Grandfather Rule

22. Which of the following is NOT an advantage of a corporation?

a. Centralized management

b. Strong juridical personality

c. Double taxation

d. Limited liability to investors

23. Which of the following is NOT a disadvantage of forming a corporation?

a. There is high cost and formation and operations.

b. Stockholders have little voice in the conduct of the

business.

c. Its credit is weakened by the limited liability feature.

d. It makes feasible gigantic financial undertakings due to

numerous investors.

24. Which of the following legal principles best describes the strong juridical personality of a corporation?

a. Limited liability rule

b. Separate entity theory

c. Business judgment rule

d. Right of succession or continuity of existence

25. Are stockholders, directors, or officers personally liable for the liabilities of the corporation after the assets

of the corporation are exhausted?

a. Yes, under all instances

b. Yes, because they are considered to be general

partners

c. No, under all instances

d. No as a general rule, unless exceptional cases warrant

the piercing of the veil of corporate fiction

26. It refers to a group of persons that assumes to act as a corporation knowing it to be without authority to

do so and enters into a transaction with a third person on the strength of such appearance.

a. De jure corporation

b. Open corporation

c. Corporation by estoppel

d. Corporation by prescription

27. It is a corporation established for or devoted to charitable purposes or those supported by charity.

a. Eleemosynary corporation

b. Civil corporation

c. Ecclesiastical corporation

d. Lay corporation

28. It is a corporation composed entirely of spiritual persons and is established for the furtherance of religion.

a. Eleemosynary corporation

b. Civil corporation

c. Ecclesiastical corporation

d. Lay corporation