SUB: BUSINESS LAWS AND REGULATIONS/ RCC

11.Under the Revised Corporation Code, which of the following is not correct statement about incorporator of an ordinary corporation?

a.The incorporator could be any person, partnership, association or corporation

b.The number of incorporators is not less than one but not more than fifteen

c.Incorporators are not required to be resident of the Philippines.

d.incorporator of a stock corporation must own or be a subscriber to at least one (1) share of the capital stock

12. Which of these tests for determining the nationality of a corporation is applicable under our Corporation Code?

a.Both incorporation test as the general rule and control test as the exception

b.Incorporation test only

c.Business domicile test only

d.Control test only

13.On May 1, 2019, S subscribed to 1,000 shares of stock of Sigma Corporation at the par value of P10.00 per share. Pursuant to the policy of the corporation which requires a down payment of 60% of the subscription price, S paid P6,000.00 upon the execution of the subscription contract. The balance of the subscription must be paid after 30 days, which in the case of S, is May 31, 2019.

a.In case of delinquency, only 400 shares will be considered delinquent.

b.If S fails to pay the balance of his subscription on May 31, 2019, his shares will become delinquent on June 1, 2019.

c.Upon the execution of the subscription contract, S may demand the issuance to him of a stock certificate covering 600 shares.

d.S is already qualified to vote although he has not paid his subscription in full.

14.A profit or loss must be distributed based on capital contribution and not based on agreement between the partners under the following except:

a.If the designation of the profit and loss was entrusted to third person by agreement between the partners.

b.If the designation of the profit and loss was entrusted to one of the partners.

c.A stipulation which excludes one of the capitalist partners from any share in the profits.

d.A stipulation which excludes one of the industrial partners from any share in the profits.

15.The following statements pertain to the express powers of a corporation.Statement I, A corporation may establish pension, retirement, and other plans for the benefit of its directors, trustees, officers and employees. Statement II, A corporation may make donations for the benefit of a political party or candidate or for purposes of partisan political activity provided the donations are reasonable.

a.Both statements are false.

b.Both statements are true

c.Statement I is true; Statement II is false.

d.Statement I is false; Statement II is true.

16.Juan Dela Vega, CPA is a sole practitioner with an office address at 2044 CM Recto Ave Manila offering audit service to various clients. Juan Dela Vega decide to transform his sole proprietor business to a corporation setup pursuant to R.A. 11232 as one-person corporation to make it limited liability. Which of the following statement is correct?

a.Juan Dela Vega has the option to transform his sole proprietor to a One Person Corporation

b.Juan Dela Vega is allowed to transform his sole proprietor to a corporation setup.

c.Juan Dela Vega is allowed to transform his sole proprietor to a corporation setup because the incorporator under the new law could be any person.

d.Juan Dela Vega is not allowed to transform his sole proprietor to a corporation setup.

17. Is a by-law provision of "X" Corporation "rendering ineligible if elected, subject to removal, a director if he is also a director in a corporation whose business is in competition with antagonistic to said corporation" valid and legal?

a.Yes, under the principle of "vested interest"

b.Yes, provided it is approved by 2/3 of the outstanding capital stock.

18.Which of the following instance wherein non-voting shares is not allowed to vote?

a.Investment of corporate fund in another corporation not for primary purpose of the corporation.

b.Mortgaging substantially all of the corporate property.

c.Payment of Bonded indebtedness.

d.Decrease of Capital Stock

19.Statement 1, In a universal partnership of all present property, the property which belongs to each of the partners at the time of the constitution of the partnership, becomes the common property of all the partners, as well as all the profits which they may acquire therewith. Statement 2, As to its object, a partnership is either partnership at will or partnership with a fixed term or particular undertaking.

a.Both statements are false

b.First statement is false; second statement is true.

c.Both statements are true.

d.First statement is true; second statement is false.

20.What is the term of office of a director of a stock corporation?

a.Twelve (12) months

b.One (1) year

c.Three (3) years

d.Five (5) years