1.

The rules of action adopted by the corporation for its internal regulations and for the
government of its officers and stockholders or members

 Articles of Incorporation
 Bylaws
 Stock Certificate
 Policies and Procedures

2. The president of a corporation may at the same time be –

 Treasurer
 Corporate Secretary
 Chairman of the Board of Directors
 President cannot held other position in the corporation

3. The following statements are presented to you:

 All ultra vires acts are illegal acts.

 All illegal acts are ultra vires acts.
Both statements are true
Both statements are false
I is true; II is false
I is false; II is true

4. One of the following acts may be performed by the executive committee of a corporation.
Which is it?

 Declaration of stock dividends

 Filing of vacancies in the board of directors
 Amendment or repeal of the by-laws
 Approval of contracts in the ordinary course of business

5. What is a Proxy?

 The formal authority given by the holder of stock, who has a right to vote it, to another
person to exercise the voting rights of the former.
  An agreement wherein a stockholder transfers his share to another person for purposes
of vesting voting or other rights to the latter.
 An agent authorized to represent a person
 All of the above.

6. What may be the composition of the executive committee of a corporation?

 Directors
 Stockholders who are neither officers nor directors
 Officers who are neither stockholders nor directors
 A combination of director, stockholder, and officer

7. The Articles of Incorporation differ from the by-laws in that the AOI is

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

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

8. The following are classifications of corporate powers, except –

 Implied
 Express
 Incidental
 Natural

9. The subscribed capital stock of the corporation is a trust fund for the payment of debts of the
corporation which the creditors have the right to look up to satisfy their credits, and which the
corporation may not dissipate

 Corporate Fund Doctrine

 Trust Fund Doctrine
 Doctrine of Corporate Opportunity
 Doctrine of Apparent Authority

10. The formal authority given by a stockholder to another person to exercise the voting rights
of the former.
 Special power of authority
 Voting Trust Agreement
 Proxy
 Voting Trust Certificate