Item 2 of 50 A corporation may acquire its own shares for a legitimate purpose provided it has unrestricted retained earnings. In ings not imposed? Select the correct response: When the acquisition is made to eliminate fractional shares. When shares are acquired from stockholders who exercise their appraisal right. When delinquent shares are acquired in a delinquency sale. When redeemable shares are repur ordance with the terms provided in the articles of incorporation Item 3 of 50 The right of a stockholder to demand payment of the fair value of nis shares when ne dissents from certain corporate acts is known as Select the correct response: appreciation right. O pre emptive right. appraisal right. right of redemption. Item 4 of 50 1 Poir R. O. Y, G. B, I, and V are duly elected directors for 2020 of Rainbow Corporation whose articles of incorporation provide for 7 directors. On August 1, 2020, directors R. O, Y, G, and B met to fill two vacancies in the board brought about by the valid removal of I for disloyalty to the corporation and the death of V. In the said meeting, the remaining directors voted for M to replace I, and P. a son of V. to replace his father. Both M and P are owners of at least one share of stoc of the corporation. The election of M and P by the remaining directors is Select the correct response: O Valid with respect to M, not valid with respect to P. Not valia for both M and P Valid for both M and P. Not valid with respect to M, valid with respect to P. Item 5 of 50 1 Poin following: In the meeting of the board of directors of Italia Company, a hardware company, held on August 15, 2020, directors I, T. A. L. and Y were present among the 9 directors (R. O, M. and E being absent). The meeting had for its agenda the 1. The appointment of a new treasurer I. The approval of the contract for the purchase of inventory worth Php 50,000 from French Construction Supplies, Co. When the voting took place, directors T. A. L. and I voted for the election of V as the new treasurer, and directors I, T. and A voted for the approval of the contract with French Construction Supplies, Co. Decide: Select the correct response: The election of V as the new treasurer is invalid, while the approval of the contract with French Construction Supplies, Co. is valid. The election of V as the new treasurer is valid, while the approval of the contract with French Construction Supplies, Co. is invalid. Both corporate acts are invalid. Both corporate acts are valid. Item 6 of 50 1 P How many shares are needed to elect 3 directors and assure each of them a seat in the board of directors assuming that the articles of incorporation provide for 11 directors and the corporation has 5,000 shares outstanding and entitled to vote? Select the correct response. 1,667 shares 1,251 shares 5,000 shares 1,364 shares Item 7 of 50 1 Point No-par shares may not be issued for a price lower than Select the correct response. Fair market value Issued price Market price Stock exchange quotation price Alpha Corporation's articles of incorporation provide for 7 directors and an authorized capital stock of Php 1.000,000 divided into 10,000 shares with a par value of Php 100 per share. In the election of directors for 2020, the following ran forThe portion. A. . G. D. P. D. G. AMI On The day At The AlACTION, The Corporation nan 7.000 manning AnArenot when An00 AnAreA MAN BARR pain In full, while 2.000 AnAreR. WATA PAIN TO TRA AXTART At 50% of TIA FaInpariplan price. All the shares were subscribed at par value and covered by a binding subscription agreement. The number of shares issued by the corporation is Select the correct response. 6,000 O AUUU O LUUU Item 9 of 50 1 Poi Which cause of vacancy in the Board of Directors may be filled by the Board of Directors if the remaining directors still constitute a quorum and by the stockholders if such quorum does not exist? Select the correct response: Increase in the number of directors. Resignation of a director O Removal of a director. Expiration of the term of some directors.A suit brought by a stockholder in the name and in behalf of the corporation to protect corporate rights or redress wrongs committed against the corporation. when the ones to be sued or held liable. corporate officers refuse to bring such actions of such officers are Select the correct response. Derivative suit Individual suit Representative suit Class suit Item 11 of 50 For the purpose of interlocking directorate, an int director's interest in a corporation is considered substantial if it is Select the correct response more than 259% more than 20% at least 25% at least 20% Alpha Corporation's articles of incorporation provide for 7 directors and an authorized capital stock of Php 1,000,000 divided into 10,000 shares with a par value of Php 100 per share. In the election of directors for 2020, the following ran for the position: A, B, C. D. E. F. G, and H. On the day of the election, the corporation had 7,000 outstanding shares of which 5,000 shares had been paid in full, while 2000 shares were paid to the extent of price. All the shares were subscribed at par value and covered by a binding subscription agreement. If you were a stockholder who owns 500 shares, how many votes are you entitled to cast in the election of directors? 09% of the subscription Select the correct response: 4.000 votes. 3.500 votes. O 7 votes. 500 votes. Item 13 of 50 1 P The articles of incorporation of Power Corporation provide for 15 directors. For the year 2019, only 5 meetings of the Board of Directors were convened because of the difficulty in mustering a quorum. In view thereof, some solutions for approval of the stockholders: transactions of the corporation which required board approval did not materialize resulting in lost profits. In preparation for the annual meeting of stockholders. the following were considered by the Board of Directors as possible I. Amending the by-laws reducing the quorum to 6 directors. Il. Providing a by-law for the creation of an executive committee consisting of 5 members of the Board of Directors to act on matters that may be delegated to it by the Board. Ill. Providing a by-law allowing directors to send representatives during the Board meeting provided that the representative is given a special power of attorney. V. Amending the articles of incorporation reducing the number of directors from 15 to 7 effective the expiration of the term of the incumbent directors. Which of the above-proposed solutions may you validly recommend for submission to the stockholders? Select the correct response O II or Ill lor IV O II or IV O l or III Catembung is a creditor of Salvador who is a stockholder of record of 1,000 shares of Macolora Corporation. Salvador sells the shares to Madolora Corporation. The transfer of the shares by Salvador to Bacalso is nita through a deed of absolute sale that has not yet ben recorded in the books of Select the correct response valid between Salvador and Balicanta. valid as against Madolora Corporation and Catembung. valid as to Salvador, Balicanta, Macolora Corporation, and Catembung. not valid as regards any of those mentioned until it has been recorded in the books of Macolora Corporation. Green Livelihood Projects, Inc. is a non-stock, non-profit corporation whose articles of incorporation provide for 9 trustees with staggered terms. The trustees first elected and their respective terms of office are: Alipio, Babaran, Jacob, Karag, and Lustre? Cardama, 3 years: Dulan, Escobar, Felicano, 2 years: Garcellano, Helchico, Inus. 1 year. After one year, Jacob, Karag, and Lustre were elected to replace Garcellano, Helchico, and Inus whose terms expired. What is the term of office of Select the correct response: O 1 year. O 2 years 3 years. O 5 years Item 16 of 50 A stock that is issued without consideration or below par value of the issued price is known as Select the correct response O delinquent stock. preferred stock. watered stock. redeemable stock