1.
A class of stock entitling the holder
thereof to certain preferences over the
holders of common stock is called
_____
treasury stock
watered stock
common stocks
preferred stock/
2. an agency organized as a stock or non
stock corporation, vested with
functions relating to public needs, and
owned by the government either
wholly, or where applicable as in the
case of stock corporations, to the
extent of at least 51% of its capital
stock is called _____
government-owned or controlled
corporation/
3. a corporation which has exercised
corporate powers for an indefinite
period without interference on the
part of the government is called
______
corporation by estoppel
foreign corporation
corporation by prescription/
domestic corporation
4. this doctrine states that each share
shall be equal in all respects to every
other except as otherwise provided in
the articles of incorporation and
stated in the certificate of stock
doctrine of equality of shares/
trust fund doctrine
5. This document gives juridical
personality to a corporation and
places it under the jurisdiction of the
securities and exchange commission.
By-laws
certificate of incorporation/
articles of incorporation
general information sheet
6. this doctrine states that subscriptions
to the capital stock of a corporation
constitute a fund to which the
creditors have a right to look for the
satisfaction of their claims
doctrine of indivisibility of shares
doctrine of divisibility of shares
trust fund doctrine
doctrine of equality of shares
7. A corporation consisting of only one
member for the purpose of
administering and managing, as
trustee, the affairs and property of
any religious denomination, sect or
church is called _____
Open corporation
Close corporation
Corporation sole
Corporation aggregate
8. The stockholders or members
mentioned in the articles of
incorporation as originally forming
and composing the corporation who
are signatories thereof are called
_____
Corporators
Incorporators
Board of directors
Board of trustees
9. It is an artificial being created by the
operation of law, having the right of
succession and the powers, attributes,
 and properties expressly authorized
by law or incidental to its existence.
Partnership
Corporation/
Sole proprietorship
10. A corporation consisting of more than
one member isa called _____
Corporation sole
Corporation aggregate/
Close corporation
Open corporation
11. A class of stock entitling the holder to
vote on corporate matters, to receive
dividends after other claims and
dividends have been paid, and to
share in assets upon liquidation is
called
Common stock
Treasury stock
Preferred stock
Watered stock
12. This defines the charter of the
corporation and the contractual
relationships between the State and
the corporation, the stockholders and
the State, and between the corporation
and its stockholders.
Articles of incorporation
General information sheet
Certificate of incorporation
By-laws
13. Republic Act. No. 11232 or the
Revised Corporation Code took effect
on
February 23, 2019
January 23, 2019
14. A corporation incorporated under the
laws of the Philippines is called
Foreign corporation
Domestic corporation
Corporation by estoppel
Corporation by prescription
15. Corporations where no part of its
income is distributable as dividends to
its members, trusteed or officers are
called
Corporation aggregate
Non-stock corporations/
Stock corporations
Corporation by prescription
16. The following corporations may apply
for revival of corporate existence,
EXCEPT:
 An expired corporation which has
completed the liquidation of its assets.
 An expired corporation whose
certificate of Registration has been
revoked for non-filing of reports
 An expired corporation whose
certificate of registration has been
suspended.
17. It refers to the continuation of a
corporation’s legal status despite
changes in ownership or management.
Succession/
Liquidation
Inheritance
Dissolution
18. A corporation organized for
charitable purposes is called
Lay corporation
 Eleemosynary corporation /
Government-owned or controlled
corporation
Ecclesiastical corporation
19. You and your bestfriend incorporated
a corporation which serves food to the
public. Which of the following
corporate names can you use for your
newly registered corporation?
Jalibee Corporation
KFC Corporation
MacDonald Corporation
Grab Busog Corporation
20. Corporations which have capital stock
divided into shares and are authorized
to distribute to the holders of such
shares dividends or allotments of the
surplus profits on the basis of the
shares held are called
Stock corporations
Corporation by prescription
Non-stock corporations
Corporation aggregate
21. The following matters must be
contained in an Article of
Incorporation, EXCEPT:
 The number of corporators, which
shall not be more than 15
 The term for which the corporation is
to exist, if the corporation has not
elected perpetual existence.
 The names, nationalities, and
residence addresses of the
incorporators. /
 The place where the principal office
of the corporation is to be located.
22. The following matters must be
contained in an Article of
Incorporation, EXCEPT:
 The names, nationalities and
residence addresses of persons who
shall act as directors or trustees until
the first regular directors/trustees are
duly elected
 The names, nationalities, and
residence addresses of the
incorporators. /
 The name of the corporation
 The specific purpose or purposes for
which the corporation is being
formed.
23. Which of the following is NOT a step
in incorporating a corporation?
 Execution of the articles of
incorporation by the incorporators
 Filing of the articles of incorporation
with the SEC together with the
treasurer’s affidavit.
 Election of board of directors or
board of trustees and officers./
24. It pertains to the portion of the
authorized capital stock which has
been subscribed and paid.
Outstanding capital stock
Authorized capital stock
Paid-up capital stock/
None of the above
25. A corporation organized for religious
purpose is called
Ecclesiastical corporation
Lay corporation
Eleemosynary corporation
Government-owned or controlled
corporation
26. A class of stock which may be
purchased by the corporation upon
the expiration of a fixed period,
regardless of the existence of
unrestricted retained earnings in the
books of the corporation, is called
Class A stock
Redeemable stock/
No par value stock
Par value stock
27. It pertains to the maximum amount
fixed in the articles of incorporation
that may be subscribed and paid by
the stockholders of the corporation.
Outstanding capital stock
Authorized capital stock/
Paid-up capital stock
None of the above
28. The governing body in a non-stock
corporation is called
Incorporators
Board of trustees/
Board of directors
Corporators
29. Which among the following names can
be used to register a One Peson
corporation in SEC?
Abakada Ltd.
Abakada OPC/
Abakada Inc.
Abakada Corp.
30. A class of stock with a value fixed in
the articles of incorporation and the
certificate of stock is called
Class A stock
No par value stock
Redeemable value stock
Par value stock
31. A corporation formed, organized or
existing under any laws other than
those of the Philippines is called
Domestic corporation
Corporation by estoppel
Corporation by prescription
Foreign corporation/
32. The following are the characteristics
of a corporation, except:
Created by meeting of the minds
It has the right of succession
It is an artificial being
It has powers, attributes and properties
expressly authorized by law or incident
to its existence.
33. Which among the following steps in
the creation of a corporation are in
order?
 1. Formal Organization and
commencement of business
transactions
2. Promotion
3. Incorporation
 1. Promotion
2. Incorporation
3. Formal Organization and
commencement of business
 1. Incorporation
 2. Formal Organization and
commencement of business
3. Promotion
34. Those who compose a corporation,
whether as stockholders or as
members are called ____. They may or
 may not be signatories of the articles
of incorporation.
Incorporators
Board of directors
Board of trustees
Corporators/
35. The governing body in a stock
corporation is called _____
Corporators
Board of directors/
Board of trustees
Incorporators
36. true or false: a company may have
more than one business or trade
name. (TRUE)
37. True or false: the corporation code
allows redemption of shares only if
there are unrestricted retained
earnings on the books of the
corporation (FALSE)
38. True or false: the articles of
incorporation of a non-stock
corporation will be amended by the
vote or written assent of majority of
trustees and at least 2/3 of the
members. (TRUE)
39. True or false: corporation by estoppel
is founded on principles and equity
and is designed to prevent injustice
and unfairness (TRUE)
40. True or false: under section 21 of the
corporation code, if the corporation
does not formally organized and
commence its business within 1 year
from the date of incorporation, its
certificate of incorporation shall be
deemed revoked. (FALSE)
41. true or false: foreign corporation may
be made an incorporator of a
corporation, subject to the limitations
provided by the law. (FALSE)
42. true or false: a corporation may have
more than one stated purpose in its
article of incorporation (TRUE)
43. True or False: A corporation with a
single stock holder is considered a one
person corporation. (TRUE)
44. True or False: NON-STOCK
corporations can distribute 10% of
their income to their members.
(FALSE)
45. True or False: Properties acquired by
a corporation are also considered
properties of stockholder or members.
(FALSE)
46. True or False: The general law under
which private corporation may be
formed or organized refers to the
Revised Corporation Code. (TRUE)
47. True or False: Holders of founder’s
shares have the exclusive right to vote
and be voted for in the election of
directors for a limited period not to
exceed 5 years subject to the approval
of the SEC. (TRUE)
48. True or False: Under the Revised
Corporation Code, all corporations
shall only have a corporate term of 50
years. (FALSE)
49. True or False: A corporation
commences its corporate existence and
juridical personality from the date
DTI issues certificate of incorporation
under its official seal. (FALSE)

50. True or False: A corporation can
change its name by amending its BY-
LAWS (FALSE)
51. True or False: Under the Revised
Corporation Code, a corporation shall
have perpetual existence unless its
articles of incorporation provided
otherwise. (TRUE)
52. True or False: Each incorporator of a
NON-STOCK corporation must own
or be a subscriber to atleast 1 share of
the capital stock. (FALSE)
53. True or False: A general partnership
may organize a corporation for any
lawful purposes jointly with other
general partnerships, but not more
than 15 in number. (TRUE)
54. True or False: Insurance companies
may form a One Person Corporation.
(FALSE)
55. True or False: Each corporation must
have a name by which it is to sue and
be sued and do all legal acts. (TRUE)
56. True or False: Only a natural person,
trust or an estate may form a One
person corporation. (TRUE)
57. True or False: Each incorporator of a
stock corporation must own or be a
subscriber to at least 1 share of the
capital stock. (FALSE)
58. True or False: A corporation acquires
a juridical personality either by
special law or general law. (TRUE)
59. True or False: Any substantial
amendments in the contents of the
articles of incorporation must be
approved by the SEC (TRUE)
60. True or False: “Suspended” Domestic
corporation may validly be made an
incorporator of a corporation.
(FALSE)
61. True or False: Banks and quasi-
banks may form a one person
corporation (FALSE)
62. True or False: No corporate name
shall be allowed by the SEC if it is not
distinguishable from that already
reserved or registered for the use of
another corporation. (TRUE)
63. True or False: Redeemable shares,
once redeemed, are retired unless
reissuance is expressly allowed in the
articles of incorporation. (TRUE)
64. True or False: Except as otherwise
provided by a special law, stock
corporations shall not be required to
have a minimum capital stock.
(TRUE)
65. True or False: A corporation exercises
its power through its board of
directors/trustees and/or its duly
authorized officers and agents.
(TRUE)