multiple choices

1. Which of the following statements refers to promoters? a. They are the persons who agreed to take and pay for original and unissued shares of a corporation formed or to be formed. b. They are persons who guaranteed on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind by another company. c. They are the persons who are acting alone or with another take initiative in founding and organizing the business or enterprise of the issuer and receive consideration therefor. d. They are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof.

2. Which of the following statements refers to incorporators? a. They are the persons who agreed to take and pay for original and unissued shares of a corporation formed or to be formed. b. They are the persons who guaranteed on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind by another company. c. They are the persons who are acting alone or with another take initiative in founding and organizing the business or enterprise of the issuer and receive consideration therefor. d. They are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof.

3. Which of the following statements refers to subscribers? a. They are the persons who agreed to take and pay for original and unissued shares of a corporation formed or to be formed. b. They are the persons who guaranteed on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind by another company. c. They are the persons who are acting alone or with another take initiative in founding and organizing the business or enterprise of the issuer and receive consideration therefor. d. They are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof.

4. Which of the following statements refers to underwriters? a. They are the persons who agreed to take and pay for original and unissued shares of a corporation formed or to be formed. b. They are the persons who guaranteed on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind by another company. c. They are the persons who are acting alone or with another take initiative in founding and organizing the business or enterprise of the issuer and receive consideration therefor. d. They are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof.

5. It refers to the basic class of ordinary shares usually without extraordinary rights and privileges, and the owners thereof are entitled to pro-rata share in the profits of the corporation and in its assets upon dissolution and likewise in the management of its affairs. a. Preferred shares b. Common shares c. Redeemable shares d. Treasury shares 6. It is a type of share of stocks that is issued with some privileges in the distribution of dividends and net assets of the corporation. a. Preferred shares b. Common shares c. Redeemable shares d. Treasury shares 7. These are shares that may be purchased by the corporation from the holders of such shares upon the expiration of a fixed period, regardless of the existence of unrestricted retained earnings in the books of the corporation. a. Preferred shares b. Common shares c. Redeemable shares d. Treasury shares 8. These are shares of stock which have been issued and fully paid for but subsequently reacquired by the issuing corporation through purchase, redemption, donation, or some other lawful means. a. Preferred shares b. Common shares c. Redeemable shares d. Treasury shares 9. Under the Corporation Code, what is the requirement for the issuance of preferred shares? a. Preferred shares of stock may be issued only with a stated par value. b. Preferred shares of stock may be issued either with par or stated value. c. Preferred shares of stock may be issued only with a stated value. d. Preferred shares of stock may be issued only with discounted value. 10. This refers to a stock issued for less than their par or issued value or in any other form other than cash valued in excess of its fair value. a. Escrow stock b. Over-issued stock c. Watered stock d. Fractional share 11. This refers to a stock issued in excess of the authorized capital stock. a. Escrow stock b. Over-issued stock c. Watered stock d. Fractional share 12. This refers to a stock deposited with a third person to be delivered to a stockholder or his assign after complying with certain conditions usually payment of full subscription price. a. Escrow Stock b. Over-Issued Stock c. Watered Stock d. Fractional Share 13. If founder's share classified as such in the Articles of Incorporation is given exclusive right to vote and be voted in the election of the board of directors, what is the maximum period or limit of that right? a. Ten (10) years from the approval of SEC b. Five (5) years from the approval of SEC c. Three (3) years from the approval of SEC d. Two (2) years from the approval of SEC 14. When no-par value common shares are issued, what is the minimum issue price? a. P1.00 b. P10.00 c. P5.00 d. P2.00 15. It refers to the arbitrary amount assigned to the share and is expressed in the certificate covering the share. a. Par value b. Market value c. Issued value d. Stated value 16. In the absence of any characteristic as to the shares, the shares are assumed to be what kind? a. Cumulative and non-participating b. Non-cumulative and non-participating c. Cumulative and participating d. Non-cumulative and participating 17. Which of the following is NOT an entitlement to holders of nonvoting shares? a. Dissolution of the corporation b. Amendment of the articles of incorporation c. Increase or decrease of authorized capital stock d. Approval of management contract 18. Which of the following refers to a convertible share? a. A share with a value of less than one full share b. A share listed in the stock exchange traded without the necessity of complying with the formalities under the law on the transfer of shares but only a computerized book entry is required to effect the transfer c. A share issued to promoters or those in some way interested in the company, for incorporating the company, or for services rendered in launching or promoting the welfare of the company d. A share that is changeable by the stockholder from one class to another at a certain price and within a specified period 19. Which of the following refers to a fractional share? a. A share with a value of less than one full share b. A share listed in the stock exchange traded without the necessity of complying with the formalities under the law on the transfer of shares but only a computerized book entry is required to effect the transfer c. A share issued to promoters or those in some way interested in the company, for incorporating the company, or for services rendered in launching or promoting the welfare of the company d. A share that is changeable by the stockholder from one class to another at a certain price and within a specified period 20. Which of the following refers to a promotion share? a. A share with a value of less than one full share b. A share listed in the stock exchange traded without the necessity of complying with the formalities under the law on the transfer of shares but only a computerized book entry is required to effect the transfer c. A share issued to promoters or those in some way interested in the company, for incorporating the company, or for services rendered in launching or promoting the welfare of the company d. A share that is changeable by the stockholder from one class to another at a certain price and within a specified period 21. Which of the following refers to a scripless share? a. A share with a value of less than one full share b. A share listed in the stock exchange traded without the necessity of complying with the formalities under the law on the transfer of shares but only a computerized book entry is required to effect the transfer c. A share issued to promoters or those in some way interested in the company, for incorporating the company, or for services rendered in launching or promoting the welfare of the company d. A share that is changeable by the stockholder from one class to another at a certain price and within a specified period 22. In this type of contract, no enforcement even at the suit of either party (void and unenforceable) will proper, as a result of the ultra vires act done. a. Executed contract b. Executory contract c. Part executed and part executory d. Executory contract apparently authorized but ultra vires 23. In this type of contract, the principle of estoppel should be applied, as a result of the ultra vires act done. a. Executed contract b. Executory contract c. Part executed and part executory d. Executory contract apparently authorized but ultra vires 24. In this type of contract, the principle of "no unjust enrichment at the expense of another" should be applied, as a result of the ultra vires act done. a. Executed contract b. Executory contract c. Part executed and part executory d. Executory contract apparently authorized but ultra vires 25. In this type of contract, the courts will not set aside or interfere with such contracts, as a result of the ultra vires act done. a. Executed contract b. Executory contract c. Part executed and part executory d. Executory contract apparently authorized but ultra vires