26.When the corporation functions for the benefit of a single person or is controlled by aliens, or formed to defraud creditors, what is the remedy of the stockholder or any injured persons?

a.File a Quo warranto c. Institute a derivative suit

b.Pierce the veil of corporate fiction d. File Revocation ofthe corporate license

____ 27. Is that portion of the authorized capital stock which has been both subscribed and paid.

a.Authorized capital stock c. Unissued capital

b.Paid-up capital d. Outstanding capital

____ 28. On January 6, 2019, Nets Corporation was established and started to offer its shares. On February 20, 2019 the SEC wrote a letter to the corporation saying that the articles of incorporation have materials misstatement and shall automatically cancel their license to operate a corporation. Which is correct?

a.The SEC is correct because the material misstatement made the articles of incorporation null and void

b.The SEC should give a reasonable time for Nets Corp. to amend their articles of incorporation

c.The Corporation can make valid transactions from January 6 to February 20, afterwards any contract entered in shall be questionable through quo warranto

d.The corporation can still exist regardless of the misstatement based from the prescription of the right of SEC due to their negligence in issuing the license to operate

____ 29. ABC Corporation operates several stores across Pangasinan. Due to a fraudulent case with the BIR it issued to stop operation for 2 year. On the 4th year, ABC Corporation won the petition in the Court of Tax Appeals and was given the authority by the court to continue its operations. On the 6th year it started again its operation, but SEC has already revoked the corporation's certificate of incorporation. Which is correct?

a.The SEC is correct because failure to operate for 5 years will cause the revocation of the corporation's certificate of incorporation

b.The SEC is correct because their fraudulent case with the BIR is a ground for revocation of corporation's certificate of incorporation and ABC needs to reapply such in SEC

c.The SEC is incorrect because the case was cleared by the Court of Tax Appeals

d.The SEC is incorrect because upon ABC winning its case there was a retroactive effect of 4 years

____ 30. I. It is the certificate of incorporation that gives juridical personality to a corporation and places it under the jurisdiction of the Securities and Exchange Commission.

II. A corporation commences its corporate existence and juridical personality and is deemed incorporated from the date the DTI issues certificate of incorporation under its official seal.

a.Only I is true. c. Both are true.

b.Only II is true. d. Both are false.