LAW Corporation Title I LAW Corporation Title I PDF

lOMoARcPSD|37976011 LAW Corporation Title I LAW Corporation Title I LAW Corporation Title I LAW Corporation Title I Constitutional Law 2 (Polytechnic University of the Philippines) Scan to open on Studocu...

lOMoARcPSD|37976011 LAW Corporation Title I LAW Corporation Title I LAW Corporation Title I LAW Corporation Title I Constitutional Law 2 (Polytechnic University of the Philippines) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 TITLE I GENERAL PROVISIONS MULTIPLE CHOICE Part 1 1. The factors for the application of the doctrine of piercing the corporate veil are the following, except: a. Stock ownership by one or common ownership of both corporations b. Identity of directors and officers c. The manner of keeping corporate books and records d. Identity of the stockholders 2. I. Any application of the doctrine of piercing the corporate veil should be done with caution. II. A corporation its powers through its board of directors and/or its duly authorized officers and agents. a. Only I is true b. Only Il is true c. Both are true d. Both are false 3. The continuation of a corporation's legal status despite changes in ownership or management. a. Succession b. Inheritance c. Dissolution d. Liquidation 4. I. Property acquired by a corporation is the property of stockholders or members. Il. A corporation exercises said powers through its board of directors and/or its duly authorized officers and agents. a. Only I is true b. Only Il is true c. Both are true d. Both are false Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 5. 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. a. Non-stock corporation b. Stock corporation c. Corporation aggregate d. Corporation by prescription 6. Is one where no part of its income is distributable as dividends to its members, trustees, or officers. a. Non-stock corporation b. Stock corporation c. Corporation aggregate d. Corporation by prescription 7. One which has exercised corporate powers for an indefinite period without interference on the part of the government. a. Foreign corporation b. Domestic corporation c. Corporation by prescription d. Corporation by estoppel 8. A corporation incorporated under the laws of the Philippines. a. Foreign corporation b. Domestic corporation c. Corporation by prescription d. Corporation by estoppel 9. 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 in its own country or State. a. Foreign corporation b. Domestic corporation c. Corporation by prescription d. Corporation by estoppel 10. A corporation consisting of more than one member. Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 a. Open corporation b. Close corporation c. Corporation aggregate d. Corporation sole 11. A corporation consisting of only one member for the purpose of administering and managing, as trustee, the affairs, property and temporalities of any religious denomination, sect or church. a. Open corporation b. Close corporation c. Corporation aggregate d. Corporation sole 12. A corporation organized for religious purposes. a. Ecclesiastical corporation b. Close corporation c. Corporation aggregate d. Lay corporation 13. A corporation organized for charitable purposes. a. Ecclesiastical corporation b. Eleemosynary corporation c. Civil corporation d. Lay corporation 14. It is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incidental to its existence. a. Corporation sole b. Corporation c. Partnership d. Sole proprietorship 15. I. A corporation is a juridical entity vested with a legal personality separate and distinct from those acting for and in its behalf and, in general, from the people comprising it. II. Not every stockholder or officer can bind the corporation considering the existence of a corporate entity separate from those who compose it. Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 a. Only I is true b. Only Il is true c. Both are true d. Both are false 16. I. Well-settled is the principle that the corporate mask may be removed or the corporate veil pierced when the corporation is just an alter ego of a 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 or members who compose it. a. Only I is true b. Only Il is true c. Both are true d. Both are false 17. The following are the characteristics of a corporation, except: a. It is an artificial being b. Created by meeting of the minds c. It has the right of succession d. It has the powers, attributes and properties expressly authorized by law or incident to its existence 18. It refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary 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 per cent of its capital stock. a. Private corporation b. Closed corporation c. Government-owned or controlled corporation d. Local government units 19. Two requisites must concur before one may be classified as a stock corporation, namely: I. That it has capital stock divided into shares II. That it is authorized to distribute dividends and allotments of surplus and profits to its members. Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 a. Only I is true b. Only Il is true c. Both are true d. Both are false 20. I. The provisions governing stock corporation, when pertinent, shall be applicable to non-stock corporations. Il. A non-stock corporation must have shareholders. a. Only I is true b. Only Il is true c. Both are true d. Both are false 21. I. Non-stock corporations can distribute 10% of their income to their members. Il. Non-stock corporations are organized for charitable, religious educational, professional, cultural, recreational, fraternal, literary' scientific, social, civil service, or similar purposes. a. Only I is true b. Only Il is true c. Both are true d. Both are false 22. A private corporation which have accepted from the State the grant of franchise or contract involving the performance of public duties but which are organized for profit. a. Government-owned or controlled corporation b. Quasi-public corporation c. De jure corporation d. De facto corporation 23. A corporation created in strict or substantial conformity with the mandatory statutory requirements for incorporation and the right of which to exist as a corporation cannot be successfully attacked or questioned by any party even in a direct proceeding for that purpose by the State. a. Government-owned or controlled corporation b. Quasi-public corporation c. De jure corporation d. De facto corporation 24. Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 25. MULTIPLE CHOICE PART2 1. 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. a. Only I is true b. Only Il is true c. Both are true d. Both are false 2. I. One of the rights of a stockholder is the right to participate in the control and management of the corporation that is exercised through his vote. Il. 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. a. Only I is true b. Only Il is true c. Both are true d. Both are false 3. A class of stock entitling the holder to vote on corporate matters, to receive dividends after other claims and dividends have been paid (especially to preferred shareholders), and to share in assets upon liquidation. a. Common stock b. Preferred stock c. Treasury stock d. Watered Stock 4. Is one which entitles the holder thereof to certain preferences over the holders of common stock. a. Common stock b. Preferred stock c. Treasury stock d. Watered stock Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 5. They may be purchased or taken up by the corporation upon the expiration of a fixed period, regardless of the existence of Unrestricted retained earnings in the books of the corporation, and upon such other terms and conditions as may be stated in the articles of incorporation, which terms and conditions must also be stated in the certificate of stock representing said shares. a. Par value stock b. No par value stock c. Redeemable stock d. Class A stock 6. Shares with a value fixed in the articles of incorporation and the certificate of stock. a. Par value stock b. No par value stock c. Redeemable stock d. Class A stock 7. The following are limitations on no par value shares, except: a. It can be issued for a consideration of at least P3.00. b. It is deemed fully paid and non-assessable. c. The entire consideration for its issuance constitutes capital so that no part of it should be distributed as dividends. d. It cannot be issued as preferred shares. 8. 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 the approval of the SEC. Il. Preferences granted to preferred stockholders gives them a lien upon the property of the corporation nor make them creditors of the corporation. a. Only I is true b. Only Il is true c. Both are true d. Both are false 9. I. The law provides that shares classified and issued as preferred or redeemable shares may be deprived of voting right. Il. Each member shall be entitled to one vote unless so limited, broadened, or denied in the articles of incorporation or bylaws. a. Only I is true b. Only Il is true Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 c. Both are true d. Both are false 10. Is one which has no preference and entitle the shareholder to a pro rata division of the profits, if any. a. Preferred stock b. Common stock c. Voting share d. Non-voting share 11. Shares without a right to vote. a. Preferred stock b. Common stock c. Voting share d. Non-voting share 12. I. It acquires a judicial personality either by special law or a general law. Il. The general law under which a private corporation may be formed or organized is the Revised Corporation Code. a. Only I is true b. Only Il is true c. Both are true d. Both are false 13. The stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof. a. Corporators b. Board of directors c. Board of trustees d. Incorporators 14. Is the governing body in a stock corporation. a. Corporators b. Board of directors c. Board of trustees d. Incorporators 15. Is the governing body in a non-stock corporation. a. Corporators b. Board of directors c. Board of trustees Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 d. Incorporators 16. Is a person who brings about or cause to bring about the organization of a corporation a. Corporators b. Promoter c. Underwriter d. Incorporators 17. Each share shall be equal in all respects to every other share except otherwise provided in the articles of incorporation and stated certificate of stock. a. Doctrine of indivisibility of shares b. Doctrine of divisibility of shares c. Doctrine of equality of shares d. Doctrine of corporate opportunity 18. I. There shall always be a class or series of shares which have complete voting rights. Il. The right to vote is inherent in and incidental to the ownership of corporate stocks. a. Only I is true b. Only Il is true c. Both are true d. Both are false 19. I. It is settled that unissued stocks may not be voted or considered in determining whether a quorum is present in a stockholders' meeting. Il. Only stock actually issued and outstanding may be voted. a. Only I is true b. Only Il is true c. Both are true d. Both are false 20. Shares classified in the articles of incorporation which may be given certain rights and privileges (e.g. dividend payments) not enjoyed by the owners of other stocks. a. Over-issued stock b. Redeemable share c. Convertible share d. Founders' share 21. Are shares usually preferred, 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. Downloaded by gabrielo manunulat ([email protected])  lOMoARcPSD|37976011 a. Over-issued stock b. Redeemable share c. Convertible share d. Founders' share 22. 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. a. Trust fund doctrine b. Doctrine of indivisibility c. Doctrine of corporate opportunity d. None of the above 23. Are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption, donation or through some other lawful means. a. Treasury stock b. Redeemable share c. Convertible share d. Founders' share 24. Stocks issued for a consideration less than the par or issued price thereof or in any other form other than cash valued in excess of its fair value. a. Preferred stock b. Watered stock c. Optional share d. Founders' share 25. I. Redeemable shares, once redeemed are retired unless reissuance is expressly allowed in the articles of incorporation. Il. The Corporation Code allows redemption of shares only if there are unrestricted retained earnings on the books of the corporation. a. Only I is true b. Only Il is true c. Both are true d. Both are false Downloaded by gabrielo manunulat ([email protected])