1.

All of this corporation’s issued stock of all classes exclusive of treasury shares be held of record
by not more than twenty persons.
a. Close corporation c. Public corporation
b. Stock corporation d. Non-stock corporation
2. Any profit which it may earn shall be used for the furtherance of the purpose of which the
corporation was organized as such profit is not distributable to its members
a. Non-stock corporation c. Stock corporation
b. Close corporation d. Public corporation
3. To establish pension, retirement and other plans for the benefits of its directors, trustees,
officers and employees is an example of:
a. Express power c. Implied power
b. Incidental power d. Discretionary power
4. A corporate doctrine, which holds the stockholders, is not personally liable for corporate
debts.
a. Wasting asset doctrine c. Piercing the veil of corporate fiction
b. Right of succession d. Trust fund doctrine
5. The power to invest funds in another corporation or business or for any other purpose as a
corporate power is classified as an
a. Express power c. implied power
b. Incidental power d. Discretionary power
6. The distribution by a corporation of shares held by it in another corporation is
a. Stock dividend c. Sale of treasury stock
b. Sale of capital assets d. Property dividend*
7. The voting requirement to increase or decrease capital stock.
a. Two –thirds vote of the board of directors with the consent of majority of outstanding
capital stock.*
b. Majority vote of the board of directors with the consent of majority of outstanding capital
stock.
c. Majority vote of the board of directors with the consented by the stockholders
representing two-thirds of the outstanding capital stock.
d. Majority vote of the board of directors and three-fourths vote of the outstanding capital
stock.
8. The right of the corporation to exist as a judicial person during its terms as stated in its Articles
of Incorporation despite the death of any of its stockholders is:
a. Right of existence c. Right of succession
b. Right of redemption d. pre-emptive right
9. The power to increase the business and sponsoring athletic contest for employees to keep them
in good health or maintaining a hospital for the employees is an example of
a. Express power c. Implied power
b. Incidental power d. Discretionary power
10. The power to deny pre-emptive rights as a corporate power is classified as:
a. Incidental power c. Implied power
b. Express power d. Discretionary power