REVISED CORPORATION LAW

1.) A corporation may be liable for promotional contracts:

A.) If it subsequently materializes

B.) There is express ratification of the contract

C.) There are benefits reaped from such contracts

D.) All of the above

E.) None of the above, since it is the promoter who is liable for such contracts as there is no corporation to speak of yet

2.) What length of time is covered for inoperation to be a ground for suspension or revocation of the certificate of incorporation? *

A.) Continuous period of 2 years

B.) Accumulated period of 5 years

C.) Continuous period of 5 years

D.) Accumulated period of 2 years

3.) When may extension of corporate term be validly made? *

A.) Within the period of 5 years before the expiry date

B.) Within 5 years from the date of incorporation

C.) Earlier than 5 years if there is a justifiable reason as determined by the SEC

D.) Within 3 years prior to its original or expiry dates

4.) One which has exercised corporate powers for an indefinite period without interference on the part of the sovereign power and which by fiction of law is given the status of a corporation: *

A.) Foreign corporation

B.) Non-stock corporation

C.) Corporation aggregate

D.) Corporation by prescription

E.) Eleemosynary corporation

5.) Consists of more than one member or corporator: *

A.) Foreign corporation

B.) Non-stock corporation

C.) Corporation aggregate

D.) Corporation by prescription

E.) Eleemosynary corporation

6.) Corporation which has no capital stock: *

A.) Foreign corporation

B.) Non-stock corporation

C.) Corporation aggregate

D.) Corporation by prescription

E.) Eleemosynary corporation

7.) Established for charitable purposes: *

A.) Foreign corporation

B.) Non-stock corporation

C.) Corporation aggregate

D.) Corporation by prescription

E.) Eleemosynary corporation

8.) Formed, organized or existing under any law other than those of the Philippines: *

A.) Foreign corporation

B.) Non-stock corporation

C.) Corporation aggregate

D.) Corporation by prescription

E.) Eleemosynary corporation

9.) Non-voting shares may still vote in the following except one: *

A.) Amendment of Articles of Incorporation

B.) Adoption and amendment of by-laws

C.) Sale or disposition of all or substantially all of corporate property

D.) Incurring, creating or increasing bonded indebtedness

E.) Ratification of defective contracts

10.) The following are grounds for piercing the veil of corporate fiction except for one: *

A.) Where a corporation is organized by a solvent debtor

B.) Where corporate fiction is used to justify a wrong, to protect fraud, or to defend a crime

C.) Where the corporation serves as a mere alter ego of another person

D.) Where the corporation is controlled by aliens

11.) A quo warranto suit against a de facto corporation is filed by: *

A.) The Ombudsman

B.) The Securities and Exchange Commission

C.) The Office of the President

D.) The Solicitor General

12.) May ordinarily be conveyed/mortgaged: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter

13.) Certificate of Incorporation issued by SEC: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter

14.) Defines the legal environment within which the corporation exists: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter

15.) Document prepared by the persons establishing a corporation and filed with the SEC: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter