1. Which is the operative act that will give juridical personality upon a corporation?

A. The filing of the articles of incorporation.

B. The filing of the by-laws.
C. The issuance of the certificate of incorporation.
D. The execution by the incorporators of the articles of incorporation, which serves as the contract among themselves.

2. To call a meeting for the purpose of removing a director of a corporation the required votes of the stockholders is:
A. majority of the stockholders present
B. ¾ of the outstanding capital stock
C. 2/3 of the outstanding capital stock
D. majority of the outstanding capital stock

3. Not a valid qualification of directors in a stock corporation as stated in the by-laws:

A. A director must be holder of at least P10,000 paid up shares as security for his action
B. A stipulation that at least 2/3 of the directors must be residents of the Philippines
C. A stipulation that all the shares he owns at the time he was elected as director may be disposed
off by him without forfeiting his directorship
D. That 5 shares of the capital stock must be registered in the name of such director

4. Which of the following statements relating to treasury shares is false?

A. They are not considered outstanding shares
B. They carry the right to vote
C. They may be disposed at any time
D. They are not entitled to dividends

5. In order to amend the corporate by-laws, what vote is required to happen? 

a.) 2/3 votes of the Board of Directors and 2/3 votes of the outstanding capital stockanding capital stock b) Majority votes of the Board of Directors
and 2/3 votes of the outstanding capital stock c) 2/3 votes of the Board of Directors and majority vote
b.) Majority votes of the Board of Directors and majority votes of the outstanding capital stock

c.) 2/3 votes of the Board of Directors and majority votes of the outstanding capital stock

d.) Majority votes of the Board of Directors and 2/3 votes of the outstanding capital stock

6. A Corporation may be dissolved voluntarily or involuntarily based on several causes. Which of the following is a cause for the automatic dissolution of
a corporation?

a.) Failure to file the required report to the Securities and Exchange Commission
b.) Failure to continue the business for at least five (5) years
c.) Failure to formally organize and commence business within two years from the issuance of the certificate of incorporation
d.) Failure to file its corporate by-laws with the Securities and Exchange Commission within thirty days from the issuance of the Certificate of
incorporation

7. The articles of incorporation differ from the by-laws in that the articles of incorporation are:

a. The rules of action adopted by a corporation for its internal government

b. Adopted before or after incorporation
c. A condition precedent in the acquisition by a corporation of a juridical personality
d. Approved by the stockholders if adopted after incorporation

8. A delinquent stockholder is not entitled to the following rights, except

a. To be voted
b. To vote or be represented in the meetings of stockholders
c. To dividends
d. He is not entitled to all the rights of a stockholder

9. Every corporation incorporated under the Corporation Code has the power and capacity
a. To adopt and use a corporate seal
b. To protect debts due to the corporation
c. To protect or aid employees
d. To increase the business of the corporation

10. All of the following, except one are qualifications of a director or trustee. Which is it?
a. He must be the owner of at least 1 share of stock which shall stand in his name on the books of the corporation
b. Majority of the directors or trustees must be residents of the Philippines
c. The number must not be less than 5 not more than 15
d. In case of a non-stock corporation, a trustee is not required to be a member of the corporation

11. S1: The removal of a director must take place in a regular meeting of the corporation or in a special meeting called for the purpose.
S2: The election must be made through the raising of hands if requested by any voting stockholder or member. If there is no such request, voting may
be made through other means like secret ballot.
a. True; True b. True; False c. False; False d. False; True

12. These are powers which are necessary to carry into effect powers which are expressly granted, and which must therefore be presumed to have
been the intention in the grant of the franchise.
a. Express powers c. Implied powers
b. Incidental powers d. Inherent powers

13. Which of the following subscriptions does not comply with the subscription and paid-up capital requirements at the time of incorporation?
Authorized Subscribed Paid-up
a. P1,000,000.00 P250,000.00 P62,500.00
b. 300,000.00 75,000.00 50,000.00
c. 100,000.00 100,000.00 100,000.00
d. 50,000.00 12,500.00 3,125.00

14. A corporation may acquire its own shares for a legitimate purpose provided it has unrestricted retained earnings. In which of the following
acquisitions is the requirement of unrestricted retained earnings not imposed?
a. When the acquisition is made to eliminate fractional shares
b. When delinquent shares are acquired in a delinquency sale
c. When redeemable shares are repurchased in accordance with the terms provided in the articles of incorporation
d. When shares are acquired from stockholders who exercise their appraisal right

15. Which of the following rights is the subscriber of shares not fully paid who is not delinquent not entitled to?
a. Right to dividends
b. Right to vote in stockholders’ meetings
c. Right to a stock certificate
d. Right to inspection of corporate books and records

16. Fatima Corporation has a statement of capital stock in its articles of incorporation but it was stated in the same articles that dividends are not
supposed to be declared , that is , there is no distribution of retained earnings. Fatima Corporation is:
a. Stock corporation c. Corporation by prescription
b. Non-stock corporation d. Corporation by estoppels

17. How many number of votes of the board of directors are required to change the name of a corporation?
a. 2/3 of all members of the board
b. 2/3 vote of all present
c. Majority vote of all present constituting a quorum
d. Majority vote of the board

18. In the matter of managing the business of the corporation, the exercise of corporate power and handling of corporate properties this is supreme:
a. 2/3 approval of the stockholders of the corporation
b. Majority vote of the OCS of the corporation
c. Majority vote of the Board of Directors
d. The President of the corporation.

19. Which of the following is not required to be included in the Articles of Incorporation?
a. Duties of the president.
b. Name of the corporation.
c. Period of existence
d. Location of the principal office.

20. Delinquent stocks are

a. Entitled to vote in stockholders’ meeting
b. Entitled to inspect the books of the corporation
c. Entitled to dividends
d. None of the above