Select A if the first statement only is correct; B if the second statement only is correct; C if both statements are correct; or D if both statements are incorrect.

1.1st - The Articles of Incorporation shall include time, place and manner of calling and conducting regular or special meetings of the directors or trustees. 2nd - The 25% subscribed and 25% paid-up rule is still applicable when corporation increases its capital stock.

2.1st - Treasury shares are shares reacquired because they are not fully paid and become delinquent. 2nd - Preference shares are convertible to ordinary shares.

3.1st - Ordinary shares carry all the rights including the right to receive part of the profit before other classes of shares. 2nd - When forming a business organization, the order of difficulty and expense, from most to least, is partnership, corporation and sole proprietorship.

4.1st - A corporation whose stock can be purchased by anyone and is traded in stock markets is known as an open corporation. 2nd - Unlimited liability is the primary disadvantage of both sole proprietorship and a partnership that a corporation overcomes.

5.1st - In a corporator, an incorporator and a director are both shareholders but a shareholder is not always an incorporator or director. 2nd - The members of the board in a stock corporation is called directors whereas in a non-stock corporation is called trustees.

6.1st - Ayala Corporation, Distelleria Limtuaco & Co., Inc. and Tanduay Distillery Inc. have been operating in the Philippines for more than 100 years and the oldest of them is Ayala Corporation which was established in 1852. 2nd - San Miguel Corporation is the fourth oldest corporation in the Philippines and it was established in 1890.

7.1st - Both Coca-Cola Beverages Philippines and Jollibee Foods Corporation are domestic corporations. 2nd - Red Ribbon Bakeshop and Goldilocks Bakeshop are subsidiaries of Jollibee Foods Corporation.

8.1st - According to Philippines' Top 10 Largest Companies by asset value in 2020, Metropolitan Bank and Trust Corporation is ranked higher than Ayala Corporation. 2nd - According to Philippines' Top 10 Largest Companies by asset value in 2020, San Miguel Corporation is ranked lower than SM Investments.

9.1st - Bank of Commerce is a subsidiary of SM Corporation while Bank of the Philippine Islands is a subsidiary of Ayala Corporation. 2nd - Philippine Airlines is a subsidiary of LT Group while Cebu Pacific is a subsidiary of JG Summit.

10.1st -Ginebra San Miguel is a subsidiary of LT Group while Tanduay Distillery Inc. is a subsidiary of SM Corporation. 2nd - JG Summit is a subsidiary of Robinsons Bank.

11.1st - The rights of a shareholder include the right to receive dividends when declared. 2nd -The Revised Corporation Code of the Philippines, known as RA 11232, was signed into law by President Rodrigo Roa Duterte.

12.1st - All shareholders are incorporators of a corporation. 2nd - The corporate secretary and treasurers of a corporation are required to have residency in the Philippines.

13.1st - Jollibee Food Corporation is a subsidiary of Red Ribbon Bakeshop, Inc. 2nd - I. The board of directors is the supreme authority in matters of management of the regular and business affairs of the corporation.

14.1st -All incorporators (if they continue to be shareholders) are corporators of a corporation. 2nd -Shareholders, like limited partners, have limited liability.

15.1st - Ordinary Shares may be issued with par or no-par value shares. 2nd -Preference Shares may be issued with par or no-par value shares.