Question 41

1pts

An auditing firm composed of Certified Public Accountants may validly form:

I. a partnership

II. a corporation

Group of answer choices

The statement is false with respect to partnership; true with respect to corporation.

The statement is true with respect to partnership; false with respect to corporation.

The statement is true with respect to both business organizations.

The statement is false with respect to both business organizations.

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Question 42

1pts

A non-voting stock may vote in the following corporate acts, except in case of:

Group of answer choices

increase or decrease in capital stock.

approval of the compensation of directors.

merger or consolidation.

sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of corporate property.

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Question 43

1pts

A corporation created in strict or substantial conformity with the statutory requirements for incorporation and whose right to exist as a corporation cannot be successfully attacked even in a direct proceeding for that purpose by the State is known as: (Phil CPA, 91-2)

Group of answer choices

Corporation by estoppel

De facto corporation

Quasi-corporation

De jure corporation

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Question 44

1pts

Three of the following enumerations are not authorized to issue no par value shares of stock. Which is the exception?

Group of answer choices

Trust companies

Industrial companies

Insurance companies

Public utilities

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Question 45

1pts

Statement 1. A corporation shall have perpetual existence unless its articles of incorporation provides otherwise.

Statement 2. Corporations with certificates of incorporation issued prior to the effectivity of the Revised Corporation Code, and which continue to exist shall have perpetual existence, unless the corporation, upon a vote of its stockholders representing two-thirds of its outstanding capital stock, notifies the Commission that it elects to retain its specific corporate term pursuant to its articles of incorporation.

Group of answer choices

1st statement is false and 2nd statement is true

Both statement are false

Both statements are true

1st statement is true and 2nd statement is false

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Question 46

1pts

The articles of incorporation of Miro Corporation, a construction company, classify its shares into voting common stock and non-voting preferred stock, and provide for 11 directors. Its by-laws on the other hand, give the board of directors the authority to approve transactions not exceeding P2,000,000.00. Any transactions in excess of the said amount have to be ratified by the stockholders. In which of the following cases may the preferred stock vote?

Group of answer choices

Increase in the number of directors from 11 to 15.

Purchase of cement worth P2,500,000.00 from United Cement Corporation.

Declaration of stock dividends from the unissued common stock.

Approval of a loan amounting to P3,000,000.00 from BDO Bank.

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Question 47

1pts

The board of directors are allowed to fill up the following vacancies?

I. The vacancy in the board was the result of the removal by the stockholders or members

II. The vacancy in the board was due to expiration of term

III. The vacancy in the board was due to an increase in the number of directors

IV. Vacancy of corporate secretary

Group of answer choices

III and IV

II and III

IV only

I and II

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Question 48

1pts

After the election of the directors, trustees and officers of the corporation, within what period the secretary, or any other officer of the corporation shall submit the report of election of directors, trustees and officers to the Securities and Exchange Commission (SEC)?

Group of answer choices

Sixty days (60) days

Fifteen (15) days

Forty-five (45) days

Thirty (30) days

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Question 49

1pts

Which of the following is not correct about director?

Group of answer choices

A juridical person like partnership is allowed to be a director

The number of directors of Stock Corporation is not less than five but not more than fifteen.

A person is disqualified to become a director if he is convicted by final judgment of an offense punishable by imprisonment for a period exceeding six (6) years.

A director must be an owner of at least one share of stock.

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Question 50

1pts

1st Statement: A majority of the directors or trustees of all corporations organized in the Phil. must be citizens of the Phil.

2nd Statement: Any two (2) or more positions may be held concurrently by the same person, except that no one shall act as president and secretary or as secretary and treasurer at the same time. (Phil CPA, 97-2)

Group of answer choices

Both statements are true

Only 1st statement is true

Both statements are not true

Only 2nd statement is true