Primrose Vien G.

Ferolino TTH 7:30-9:00 pm

RFBT 2 ACTIVITY NO. 3

MULTIPLE CHOICE

1. 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. Cooperative
b. Sole Proprietorship
c. Partnership
d. Corporation
2. Under this theory, the nationality of a corporation is that of the country under whose laws it
was formed.
a. Incorporation test
b. Control Test
c. Domiciliary test
d. Grandfather rule
3. The subscriber of unpaid shares which are not delinquent shall be entitled to the following
rights, except the right to:
a. inspects corporate books
b. a stock certificate
c. vote
d. dividends
4. A corporation created in strict compliance with all the legal requirements and whose right to
exist as a corporation cannot be successfully attacked in a direct proceeding for that purpose by
the State is a:
a. de jure corporation
b. de facto corporation
c. corporation by estoppel
d. corporation by prescription
5. Under this doctrine, the separate personality of a corporation may be disregarded if it is used
for fraudulent or illegal purpose or to escape faithful compliance of an obligation.
a. Trust Fund Doctrine
b. Doctrine of piercing the veil of corporate entity
c. Doctrine of corporate opportunity
d. Doctrine of limited capacity
6. A stock that is issued without consideration or below par value or the issued price is known as:
a. watered stock
b. delinquent stock
c. redeemable stock
d. preferred stock
7. In which of the following corporations will those composing the corporation be liable as
general partners?
a. De facto corporation
b. De jure corporation
c. Corporation by estoppel
d. Corporation by prescription
8. A subscriber of the capital stock of a corporation still to be formed must be:
a. an incorporator.
b. a signatory to the articles of incorporation.
c. a member of the incoming board of directors.
d. none of the foregoing.
9. Who may or may not be a director of a corporation?
a. Treasurer
b. Corporation Secretary
c. Both a and b
d. Neither a nor b
10. What may be the composition of the executive committee of a corporation?
a. Directors
b. Stockholders who are neither officers nor directors
c. Officers who are neither stockholders nor directors
d. A combination of a, b and c
11. Which of the following provisions in the articles of incorporation cannot be amended?
a. Name of corporation
b. Number and name of incorporators
c. Term of existence
d. Primary purpose
12. No-par shares may not be issued for a price lower than:
a. stock exchange quotation price
b. issued price
c. market price
d. fair market value
13. Shares that may be issued at a price higher than P5.00 per share are:
a. par value shares
b. no-par value shares
c. both a and b
d. neither a nor b
14. Shares that may be issued at a price lower than P5.00 per share are:
a. par value shares
b. no-par value shares
c. both a and b
d. neither a nor b
15. For the purpose of interlocking directorate, an interlocking director’s interest in a corporation
is considered substantial if it is:
a. at least 20%
b. more than 20%
c. at least 25%
d. more than 25%