CORPORATION

2. I.Corporation is the juridical entity infested with illegal personality, separate and distinct from those
acting for it, and it is behalf, and in general from the people comprising it

II. not every stockholder or officer can find a corporation, considering the existence of a corporate
entity, separate from those who compose it. B. ONLY II IS TRUE

3. I. Well selected is the principle that corporate mask may be removed or the corporate veil pierced
when the corporation is just an altar ego of the person or of another corporation.

II. It is a basic principle in corporation law that a corporation has a personality which is the same as the
officers and members who compose it. ONLY I IS TRUE

4. The following are characteristics of a corporation, except: CREATED BY MEETING OF THE MINDS.

5. It refers to an agency organize as a stock or nonstop corporation vested mean functions relating to
the public needs weather, governmental, or preprietary in nature, and owned by the government,
directly or through its instrumentalities, either wholly or, where, applicable as in the case of stock
corporations to the extent of at least 51 percent of its capital stock. GOVERNMENT OWNED OR
CONTROLLED CORPORATION.

6. Two requisites must concur before one may be classified as a stock corporation, namely:

I. That it has capital stock divided into share.

II. That it is authorized to distribute dividends and allotment of surplus and profits to its members. ONLY
I IS TRUE

7. The factors for the application of the doctrine of piercing the corporate veil are the following, except:
IDENTITY OF THE STOCKHOLDERS

8. I. Any application of the doctrine of piercing the corporate to veil should be done with caution.

II. A corporation exercises its powers through its board of directors and/or it’s duly authorized officers
and agents. BOTH ARE TRUE

9. The continuation of the corporation’s legal statuss despite changes in ownership and management.
SUCCESSION

10. I. Property acquired by a corporation is the property of stockholders remembers.II. A corporation

exercises said powers through its Board of Directors and/or it’s duly authorized officers and agents.
ONLY II IS TRUE

11. Corporations which have the capital stock divided into shares and are authorized to distribute to the
holders of such shares Dividends or allotment of the surplus profits on the basis of the shares held.
STOCK CORPORATION
12. Is one where no part of its income is distributable as divert dividends to its members, trustees or
officers. STOCK CORPORATION

13. I. The provisions governing stock corporation, when pertinent, shall be applicable to non-stock
corporations. ONLY I IS TRUE

14. I. Non-stock corporations can distribute 10% of their income to their members.

II. Non stock corporations are organized for charitable, religious, educational, professional, cultural,
recreational, flaternal, literary, scientific, social, civil service or similar purposes. ONLY II IS TRUE

15. A private corporation which have accepted from the state the grant of franchise our contract
involving the performance of public duties but which are organized for profit. QUASI PUBLIC
CORPORATION

16. A corporation created in Strict conformity with the mandatory statutory requirements for
incorporation and the right to which to exist as a corporation cannot be successfully attacked or
question by any party even in a direct proceeding for that purpose by the state. DE JURE CORPORATION

17. The incorporation of any corporation claiming in good faith to be a corporation and its right to
exercise corporate powers shall not be inquired into collaterally and any private suit to which such
corporation may be a party. DE FACTO CORPORATION

18. All persons who assumed to act as a corporation knowing it to be without authority to do so shall be
liable as general partners for all debts, liabilities and damages incurred or arising as a result thereof.
CORPORATION BY ESTOPPEL

19. One which has exercised corporate powers for an indefinite period without interference on the part
of the government. CORPORATION BY PRESCRIPTION

20. A corporation incorporated under the laws of the philippines.

DOMESTIC CORPORATION

21. A corporation is formed, organized or existing under any laws other than those of the philippines
and whose laws allow filipino citizens and corporations to do business and its own country or state.
FOREIGN CORPORATION

22. A corporation consisting of more than one member. CORPORATION AGGREGATE

23. A corporation consisting for only one member for the purpose of administering and managing, as
trustee, the affairs, property and the temporalities of any religious denomination, sect or church.
CORPORATE SOLE

24. A corporation organized for religious purposes. ECCLESIASTICAL CORPORATION

25. A corporation organized for charitable purposes. ELEEMOSYNARY CORPORATION

26. I. Corporation acquires juridical personality either by special law or a general.
II. The general law under which private corporation may be formed or organized is the revised
corporation code. BOTH ARE TRUE

27. The stockholders or members mentioned in the articles of incorporation as originally forming and
composing the corporation and who are signatories thereof. INCORPORATORS

28. Is the governing body in a stock corporation. BOARD OF DIRECTORS

29. Is the governing body in a non-stock corporation. BOARD OF TRUSTEES

30. Is a person who brings about or cause to bring about the formation and organization of a
corporation. PROMOTER

31. Each share shall be equal in all respects to every other share except as otherwise provided in the
articles of incorporation and stated in the certificate of stock. DOCTRINE OF EQUALITY OF SHARES

32. I. There shall always be a class or series of shares which have complete voting rights.
II. The right to vote is inherent in and incidental to the ownership of corporate stocks. BOTH ARE TRUE

33. I. It is settled that an issued stocks may not be voted or considered in determining whether a
quorom is present in stockholders' meeting.
II. Only stock actually issued and outstanding maybe voted. BOTH ARE TRUE

34. I. In non-stock corporations, the voting rights does not attach to membership.

II. Members vote as persons, in accordance with the law and the by laws of the corporation. ONLY II IS
TRUE

35. I. One of the rights of a stockholders is the right to participate in the control and management of the
corporation that is exercised through his vote.
II. The right to vote is a right inherent in and incidental to the ownership of corporate stock but as such
is not a property right. ONLY I IS TRUE

36. A class of stock entitling the holder to vote on corporate matters, to receive dividends after other
claims and dividends have been paid (specially to preferred shareholders), and share in assets upon
liquidation. COMMON STOCK

37. Is one which entitles the holder thereof to certain preferences over the holders of common stock.
PREFFERED STOCK

38. They may be purchased or taken up by the corporation upon the expiration of a fixed period,
regardless of the existence of restricted retained earnings in the books of the corporation, and upon
such other terms and conditions must also be stated in the certificate of stock representing said shares.
REDEEMABLE STOCK

39. Shares with a value fixed in the articles of incorporation in the certificate of stock. PAR VALUE STOCK
40. The following are limitations on no-par value shares, except: IT CAN BE ISSUED FOR A
CONSIDERATION OF AT LEAST P1.00.

41. Shirts classified in the articles of incorporation which may be given certain rights and privileges(e.g.
dividend payments) not enjoyed by the owners of the stocks. FOUNDER’S SHARE

42. Are shares usually preffered, which by their terms are redeemable at a fixed date, or at the option of
either issuing corporation, or the stockholder, or both at a certain redemption price. REDEEMABLE
STOCK

43. Subscriptions to the capital stock stock of a corporation constitute a fund to which the creditors have
a right to look for the satisfaction of their claims. TRUST FUND DOCTRINE

44. Are shares of stock which have been issued and fully paid for, but subsequently reacquired by the
issuing corporation by purchase, redemption, the nation or through some other lawful means.
TREASURY SHARE

45. Stocks issued for a consideration less than the par or issued price
thereof or in anhy other form other than cash valued in excess of its fair
value. WATERED STOCK

46. I, redeemable shares, once redeemed are retired unless reissuance is

expressly allowed in the articles of incorporation.
II. The Revised Corporation Code allows redemption of shares only if
there are unrestricted retained earning on the books of the corporation. ONLY I IS TRUE

47. I. The exclusive right to vote and be voted for in the election of directors must be for a limited period
not to exceed 5 years subject to approval of the SEC.
II. Preferences granted to preferred stockholders gives them a lien upon the proterty of the corporation
nor make them creditors of the corporation. BOTH ARE FALSE

48. I. The law provides that shares classified and issued as preferred or redeemable share may be
deprives of voting right.
II. Each member shall be entitled to one vote unless so limited. Broadened, or denied in the articles of
incorporation or by laws. BOTH ARE TRUE

49. Is one which has no preference and entitle the sharefolder to a pro rata division of the profits, if any.
COMMON STOCK

50. Shares without a right vote. NON VOTING SHARE

51. The rule is that the valuation of the shares of a stockholder who exercises his appraisal rights is
determined as of the day prior to the data on which the vote was taken. This is true. REGARDLESS OF
ANY DEPRECIATION OR APPRECIATION IN THE SHARE’S FAIR VALUE
52. Which of the following corporate acts requires the approval of the majority of the outstanding
capital stock of the members of the private corporation. TO INVEST CORPORATE FUNDS IN ANOTHER
CORPORATION ON BUSINESS

53. The stockholders or members may delegate to the board of directors or trustees the power to
amend or repeal the by-laws or adopt new by- laws by. 2/3 BOTH

54. If par value shares are now treasury share, the following rules are applicable. THEY ARE NOT PART
OF SUBSCRIBED STOCK AND NOT CONSIDERED AS OUTSTANDING SHARES

55. Under the Revised Corporation Code of the Philippines, which of the following is true? Domestic
corporation has expressed power to give the nations in age of any political party or candidate, or for
purposes of partisan political activity

56. Which of the following may be organized as a close corporation? NONE OF THE ABOVE

57. Which right is removed from a delinquent subscriber/stockholders? RIGHT TO VOTE

58. In which of the following cases is appraisal right not available? EXPIRATION OF CORPORATE TERM

59. It refers to the natural right of stockholders to subscribe to all issues or disposition of shares of any
class in proportion to their present shareholdings in order to preserve their ownership interests in the
corporation PRE-EMPTIVE RIGHT

60. Which is not a characteristic of a proxy? A CONTINUING PROXY WITHIN A PERION OF FIVE YEARS IN
NOT VALID

61. Equitable PCI Bank and BDO Unibank entered into business combination which will result to BDO
Unibank absorbing all the net assets of Equitable PCI Bank. What type of business combination is
present in this case? MERGER

62. Under the Revised Corporation Code, what is the suffix to be attached in the of a one person
corporation? OPC

63. Under the Revised Corporation Code, which business may be incorporated as one person
corporation? RESTAURANT BUSINESS
64. Under the Revised Corporation Code, what is the existence of a private corporation? IT MAY EXIST IN
PERPETUITY UNLESS A FIXED TERM IN SPECIFIED IN THE ARTICLES OF INCORPORATION

65. It refers to a type of corporation which is owned by stockholders not 20 and its articles of
incorporation normally contains a right of refusal as restriction for transfer of shares. CLOSE
CORPORATION

66. Under the Revised Corporation Code, what is the period for submission of corporate by-laws?
WITHIN 90 DAYS FROM THE ISSUANCE OF THE SECURITIES AND EXCHANGE COMMISSION OF THE
CERTIFICATE OF INCORPORATION

67. The rule is that, no stock dividend shall be issued without the approval of reprenting at least 2/3 of
the outstanding capital stock at a regular or special meeting called for the purpose. As to other forms of
dividends A MERE MAJORITY OF THE QUOROM OF THE BOARD OF DIRECTORS APPLIES

68. The following are ways of enforcing payment of unpaid subscription. Which is the exception?
DENYING DELIQUENT STOCK CASH DIVIDEND

69. I. The law provides that shares classified and issued as preferred or redeemable shares may be
deprived of voting right. BOTH ARE TRUE

70. Subscriptions to the capital stock of a corporation comstitute a find to which the creditors have a
right to look for the satisfaction of their claims. TRUST FUND DOOCTRINE

71. I. One of the rights if a stockholders the right to participate in the control and management of the
corporation of the corporation that is exercised through his vote
II. THE RIGHT TO VOTE IS A RIGHT INHERENT IN AND INCIDENTAL TO THE OWNERSHIP OF CORPORATE
STOCK, BUT AS SUCH AS NOT A PROPERTY RIGHT ONLY 1 IS TRUE

72. A corporation consisting if more than one member. CORPORATE AGGREGATE

73. The following arer the instances of appraisal right, except: IN CASE OF INVESTING OF CORPORATE
FUNDS IN ANOTHER CORPORATION OR BUSINESS

74. The following are characteristics if a close corporation, expect: PRE-EMPTIVE RIGHT DOES NOT
EXTEND TO ALL STOCK ISSUANCES

75. The distribution of corporate capital happens in only three instances, except: AMENDMENT OF THE
BY LAWS TO REDUCE THE AUUTHORIZED CAPITAL STOCK

COOPERATIVE

16. The minimum paid-up capital of a cooperative shall be 25% of the total subscription but not less
than: 2,000
17. A cooperative formed and organized under the cooperative code acquires juridical personality from
the: DATE THE CDA ISSUES THE CERTIFICATE OF REEGISTRATION

18. The articles of cooperative and by-laws of the cooperative may be amended by__ vote of all the
members with voting rights.2/3

19. Constructs executed between private persons and cooperatives prior to the registration of the
cooperative Shall be___between the parties and upon a registration of the cooperative. VALID

20. Any merger or consolidation of cooperatives shall be effective upon: THE ISSUANCE OF THE
CERTIFICATE OF MERGER AND CONSOLIDATION BY THE CDA

21. The kinds of membership in a cooperative are: REGULAR AND ASSOCIATE

22. It is the highest policy making of the cooperative. GENERAL ASSEMBLY

23. What is the delegable power of the GA? TO APPROVE CONTRACTS ENTERED INTO BY THE
COOPERATIVE

24. It is where the direction in management of the affairs of the cooperative should be vested. BOARD
OF DIRECTORS

25. Who elects the board of directors of a cooperative? GENERAL ASSEMBLY

26. What is the term of the members of the Board of Directors of a cooperative? 2

27. No additional compensation other than per diems shall be paid to a Director of a cooperative during
the existence of any cooperative. FIRST 5 YEARS

28. Upon dissolution of a cooperative, what happens to the capital donated to said, cooperative? IT
SHALL BE SUBJECT TO ESCHEAT

29. What capital is raised by the cooperative to strengthens its capital structure? REVOLVING CAPITAL

30. A duly registered Cooperative shall have the following powers and capacities, except: TO JOIN
FEDERATIONS SOR UNIONS