Revised Corporation Law

1.) S1: Corporations with special charters must comply with the two-fold test of economic viability and personal recommendation. S2: BP Blg. 68 allowed the creation of one-person corporations.

A.) Only S2 is correct.

B.) Only S1 is correct.

C.) Neither S1 and S2 are correct.

D.) Both S1 and S2 are correct.

2.) S1: A corporation can exercise powers even those outside of what the law may choose to grant it, either expressly or impliedly. S2: Generally, shareholders have little voice in conduct of corporate business.

A.) Both S1 and S2 are correct.

B.) Only S2 is correct.

C.) Neither S1 and S2 are correct.

D.) Only S1 is correct.

3.) S1: After incorporation, corporate shares are classified by the incorporators. S2: An open corporation is one which have accepted from the State the grant of franchise or contract involving the performance of public duties but which are organized for profit.

A.) Only S1 is correct.

B.) Only S2 is correct.

C.) Neither S1 and S2 are correct.

D.) Both S1 and S2 are correct.

4.) S1: The exclusive right to vote and be voted for in the election of directors, which is granted to founders shares, must be for a limited period not to exceed five (5) years from the date of incorporation. S2: Stock or interest shall be freely transferred even if it shall reduce the ownership of Filipino citizens to less than the required percentage of capital stock as provided by existing laws , for as long as the transfer is done after incorporation.

A.) Only S2 is correct.

B.) Only S1 is correct.

C.) Both S1 and S2 are correct.

D.) Neither S1 and S2 are correct.

5.) The following are the attributes of a corporation, EXCEPT:

A.) Created by law

B.) Artificial being

C.) Powers, attributes and properties expressly authorized by law or incident to its existence

D.) Right of succession

E.) None of these

6.) From the moment of its issuance, the incorporators may now act as a body politic/body corporate:

A.) corporate charter

B.) certificate of incorporation

C.) favourable recommendation of regulating agency

D.) articles of incorporation

E.) by laws

7.) Amount fixed in the articles of incorporation to be subscribed and paid in by the shareholders:

A.) Capital stock

B.) Capital

C.) Legal capital

D.) Authorized capital stock

E.) Outstanding capital stock

8.) The value of the actual property or estate of the corporation whether in money or property:

A.) Capital stock

B.) Capital

C.) Legal capital

D.) Authorized capital stock

E.) Outstanding capital stock

9.) The amount fixed in the articles of incorporation, to be subscribed and paid in or agreed to be paid in by the stockholders of a corporation, in money, property, services, or other means:

A.) Capital stock

B.) Capital

C.) Legal capital

D.) Authorized capital stock

E.) Outstanding capital stock

10.) The amount equal to the aggregate par value and/or issued value of the outstanding capital stock:

A.) Capital stock

B.) Capital

C.) Legal capital

D.) Authorized capital stock

E.) Outstanding capital stock

11.) The total amount of the capital stock issued to subscribers except treasury shares: *

A.) Capital stock

B.) Capital

C.) Legal capital

D.) Authorized capital stock

E.) Outstanding capital stock

12.) Corporation established for purposes other than profit/business; chiefly created for purposes such as for charity, scientific, literary, fraternal or similar purposes: *

A.) Corporation

B.) De facto corporation

C.) Non-stock corporation

D.) GOCC

E.) Close corporation

13.) Organized with a colorable compliance with the requirements of a valid law; existing in fact but not in law: *

A.) Corporation

B.) De facto corporation

C.) Non-stock corporation

D.) GOCC

E.) Close corporation

14.) An artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence: *

A.) Corporation

B.) De facto corporation

C.) Non-stock corporation

D.) GOCC

E.) Close corporation

15.) Corporation with a limitation as to the number of its stockholders. *

A.) Corporation

B.) De facto corporation

C.) Non-stock corporation

D.) GOCC

E.) Close corporation