UIZ ON POWERS OF A CORPORATION PT 1. It is a corporation formed, organized, or existing under any law other than those of the Philippines and whose law allows Filipino citizens and corporation to do business in its own country or state. a. Domestic corporation b. Resident corporation c. Foreign corporation d. Illegal corporation 2. In determining the nationality of a corporation in the Philippines, whether domestic or foreign, what is the test applied by the Corporation Code? a. Incorporation test b. Residency test c. Control test d. Domiciliary test 3. How can a foreign corporation be allowed to transact or to do business in the Philippines? a. By securing a license for that purpose from the Securities and Exchange Commission (SEC) and a certificate of authority from appropriate government agency b. By submitting by-laws to SEC c. By registering with Department of Trade and Industry (DTI) d. BY asking for permission from the Bureau of Internal Revenue (BIR) 4. What is the purpose of requiring license on part of foreign corporation doing business in the Philippines? a. To subject foreign corporation doing business in the Philippine to the jurisdiction of Philippine courts b. To subject foreign corporation doing business in the Philippines to harsher rules that are required of domestic corporation c. To commit inequity or injustice against this foreign corporation d. To discriminate against this foreign corporation 5. Which of the following can be considered a resident agent of a foreign corporation doing business in the Philippines? I. An individual who must be of good moral character and of sound financial standing, residing in the Philippines II. A domestic corporation lawfully transacting business in the Philippines designated in a written power of attorney to do business in the Philippines a. Statement I b. Statement II c. Both statements d. None of the statements 6. What is the status of contract entered into by a foreign corporation doing business in the Philippines without the necessary license? a. Null and void b. Unenforceable c. Rescissible d. Voidable but remaining to be valid and enforceable until annulled 7. May a foreign corporation file a case on a contract it entered into despite doing business in the Philippines without the necessary license? I. No, because it has no license as required by the Corporation Code II. Yes, by virtue of doctrine of estoppel after acquiring a license a. Statement I b. Statement II c. Both statements d. None of the statements 8. Which of the following isNOTan accom panying document in applying for a license? a. Sworn statement of the president b. Certificate of authority from the appropriate government authority c. Written power of attorney for resident agent designation d. Amended by-laws 9. Which of the following is NOT considered as "doing business transactions" for foreign corporations? a. Soliciting orders b. Appointing representatives c. Establishing more offices d. Participating in management 10. It refers to a mode of entry of a foreign corporation whereby a domestic corporation will be organized in the Philippines through the SEC. a. Subsidiary b. Branches c. Representative d. Regional headquarters 11. It carries out the business activities of the head office and derives income from the host country. a. Subsidiary b. Branches c. Representative d. Regional headquarters 12. This deals directly, with the clients of the parent company but does not derive income from the host country and is fully subsidized by its head office. a. Subsidiary b. Branches c. Representative d. Regional headquarters 13. What is the requirement before a stock transfer agent or one engaged principally in the business of registering transfer of stocks in behalf of a stock corporation to operate in the Philippines? a. There must be a license renewable annually from SEC and payment of registration fees b. The agent must be a corporation c. The agent must be a sole proprietor d. The agent must be a partnership 14. This refers to the originator, maker, obligor, or creator of the security. a. Issuer b. Broker c. Dealer d. Underwriter 15. This is a person who engages in the business of buying and selling securities for the account of others. a. Issuer b. Broker c. Dealer d. Underwriter 16. This is any person who buys and sells securities for his/her own account in the ordinary course of business. a. Issuer b. Broker c. Dealer d. Underwriter 17. This is a person who guarantees on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind by another company. a. Issuer b. Broker 18. Which of the following is TRUE on disclosures? c. Dealer d. Underwriter I. Disclosures end when registration of securities has been revoked. II. Disclosures do not end even if securities have been revoked. a. Statement I b. Statement II c. Both statements d. None of the statements 19. It refers to the transferrable option to buy a specified number of shares at a stated price. a. Put b. Call c. Straddle d. Give 20. It is a transferable option or offer to deliver a given number of shares of stock at a stated price at any given time during a stated period. a. Put b. Call c. Straddle d. Give