15. The following are the limitations on powers of board of directors/trustees, except

Limitations imposed by the Constitution, Laws, articles of incorporation or by-laws

It cannot perform constituent or those acts which involve fundamental changes in the corporation or which requires approval of the stockholders or members

It cannot exercise powers not possessed by the corporation.

It cannot make decisions without approval of the stockholders on acts of administration.

16. If the interlocking director's interest in one corporation is substantial (more than 20% of outstanding capital stock) and his interest in the other corporation is merely nominal (20% or less of outstanding capital stock), then all the requisites for contracts with self-dealing directors must all be present to be perfectly valid. If either of the first two first requires are absent, the contract can by ratified by how many vote?A. Owners of at least majority of the outstanding capital stock.

Owners of at least 2/3 of the outstanding capital stock in the corporation where the interlocking director has nominal interest.

At least majority vote of the directors and at least 2/3 of the outstanding capital stock.

At least majority vote of the directors and at least majority vote of the outstanding capital stock

17. The following are examples of implied or necessary powers of a private corporation, except

A. To issue checks

To establish a local post office by a mining company

To operate power plant for cement factory company

To sell, supply or manage advertising materials for an advertising company

To operate an online casino for a company engaged in amusement center for various computer games

18. What is the required vote for the increase/decreasing of authorized capital stock?

Approval by at least majority vote of the board of directors and ratification by stockholders representing at least 2/3 of the outstanding capital stock.

Approval by stockholders representing at least 2/3 of the outstanding capital stock,

Approval by at least majority vote of the board of directors and ratification by stockholders representing at least majority of the outstanding capital stock.

Approval by at least majority vote of the board of directors.

19. Under Revised Corporation Code, what is the basis for computation to determine whether the sale involves all or substantially all of the corporation's properties and assets of the corporation?

It must be computed based on its net asset value, as shown in its latest financial statements.

It must be computed based on its total asset value, as shown in its latest financial statements.

It must be computed based on its liability value, as shown in its latest financial statements.

It must be computed based on its fair market value, an shown in its latest financial statements.

20. As a general rule and in compliance of trust fund doctrine, dividends can be declared only out of

Capital

Share premium

Net Income

Unrestricted retained earnings

21. What type of dividend declaration does not affect the total stockholders' equity of the corporation?

Cash dividends

Stock dividends

Property dividends

Scrip dividends

22. What is the required vote for the adoption of new pre-incorporation by-laws?

Approval by at least majority vote of the board of directors/trustees and ratification by stockholders representing at least 2/3 of the outstanding capital stock or at least 2/3 members.

Approval by stockholders representing at least 2/3 of the outstanding capital stock or at least 2/3 members.

Approval by at least majority vote of the board of directors/trustees and ratification by stockholders representing at least majority of the outstanding capital stock at least 2/3 members. D. Approval by all of the incorporators.

23. In case the by-laws is silent, how often shall the regular meeting of board of directors be held?

Annually

Monthly

Semi-annually

Quarterly