REVISED CORPORATION LAW

1.) Rules of action adopted by a corporation for its internal regulation: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter

2.) Includes the Philippine Constitution, the Revised Corporation Code and the Rules and Regulations of the Securities and Exchange Commission: *

A.) Primary franchise

B.) Secondary franchise

C.) Articles of Incorporation

D.) By-laws

E.) Charter

3.) Entitles the holder to pro rata division of the profits without any preference over other stockholders: A) Escrow stock B) Common stock C) Treasury share D) Cumulative preferred share E) Watered stock *

A.) Escrow stock

B.) Common stock

C.) Treasury share

D.) Watered stock

E.) Cumulative preferred share

4.) Share subject to an agreement by virtue of which the share is deposited with a third person subject to a suspensive period/condition: *

A.) Escrow stock

B.) Common stock

C.) Treasury share

D.) Watered stock

E.) Cumulative preferred share

5.) Entitles the holder payment of current dividends and dividends in arrears: *

A.) Escrow stock

B.) Common stock

C.) Treasury share

D.) Watered stock

E.) Cumulative preferred share

6.) Share lawfully issued and fully paid for and later reacquired by the corporation: *

A.) Escrow stock

B.) Common stock

C.) Treasury share

D.) Watered stock

E.) Cumulative preferred share

7.) Not issued in its equivalent either in cash, property, share, stock dividend, or services: *

A.) Escrow stock

B.) Common stock

C.) Treasury share

D.) Watered stock

E.) Cumulative preferred share

8.) Explain: "A corporation is created by operation of law." Is there an exception to this?