DMC COLLEGE FOUNDATION, INC.

Sta. Filomena, Dipolog City

1st Semester 2018- 2019

SCHOOL OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT LAW 2

FINAL EXAMINATION – Special Class HURLY ALAMPAY, CPA

NAME: ______________________________________ SCORE: ____________________

COURSE/YEAR: _______________________________ DATE: _____________________

Direction: Write the letter of your best answer on the space provided before each number. Erasures are not allowed and
considered wrong.

1. The owners of shares in stock corporation are called

a. Incorporators b. Promoters c. Members d. Stockholders e. none
2. Persons who have agreed to take and pay for original, unissued shares of a corporation formed or to be formed
a. Promoters b. Subscribers c. Incorporators d. Corporators
3. Which of the following must be contained in a Corporation’s Articles of Incorporation?
a. Name of stockholders c. Name of temporary treasurer
b. Provision for issuance of par/no par shares d. Quorum voting requirement
4. The required minimum authorized capital stock for stock corporation is:
a. Not less than P5,000 c. 25% must be subscribed and 25% must be paid
b. At least 25% must be paid, not less than P5,000 d. None
5. Which of the following statement is correct regarding corporate officers of a stock corporations?
a. An officer may not be simultaneously serve as a director.
b. Corporate secretary may or may not be a stockholder of the same corporation.
c. Stockholders always have the right to elect a corporation officers.
d. An officer of a corporation is required to own at least one share of the corporation’s stock.
6. Can issue no par value shares
a. Banks b. Trust companies c. Both a and b d. none
7. The holders of non-voting shares shall be entitled to vote on the following matters, except:
a. adoption and amendments of by-laws. c. election and removal of directors.
b. merger or consolidation d. dissolution of the corporation
8. Person who composed the corporation whether as stockholders and members are called
a. Incorporators b. Promoters c. Corporators d. Subscribers e. None
9. A class of stock, which, after the stipulated dividend has been paid on the common stock as well as on the preferred
stock any surplus is to be paid upon all without distinction is
a. Preferred stock as to asset c. Convertible stock
b. Cumulative preferred stock d. Participating preferred stock

Test II. Enumeration and discussion.

A) Incorporator’s qualification (5 points).
B) Qualifications of corporate directors. (3 points)
C) The SEC may reject the article of incorporation or disapproved any amendments thereto if (4 points)
D) Reason as provided in Sec. 22 of Corporation code with regards to dissolution and suspension of certificate.
(5 points)
E) Define Corporation. (2 points)
F) Give at least 6 distinctions between corporation and partnership. (5 points)
G) Discuss the concept of Corporate Opportunity. (5 points)
H) Differentiate incorporation test, control test, and domicile test. (5 points)
I) Distinguish corporation by estoppel from de facto corporation. (2 points)

Goodluck..!!!!