Karla Mae Plantar BSA 5

1. The corporate term of a stock corporation is that which is stated in its Articles of Incorporation.
It may be extended or shortened by an amendment of the Articles when approved by majority
of its Board of Directors and
a. Approved and ratified by at least 2/3 of all stockholders.
b. Approved by at least 2/3 of the stockholders representing the outstanding capital stock.
c. Ratified by at least 2/3 of all stockholders
d. Ratified by at least 2/3 of the stockholders representing the outstanding capital stock.
2. A, B, C, D and E distributed calling cards identifying themselves as directors of Summit
Corporation, to several individuals during a business conference. In reality, however, no such
corporation is registered with the Securities and Exchange Commission. X, who received a calling
card granted credit amounting to P50,000.00 to “Summit Corporation” believing that such a
corporation really existed. When the supposed corporation was unable to pay, X brought a court
action against it. At that time, “Summit Corporation” had assets of P30,000.00.
a. “Summit Corporation” is liable only up to P30,000.00, its remaining assets, since it is
different from A, B, C, D and E who are not liable in their individual capacities.
b. X can go after the separate assets of A, B, C, D and E after exhausting the assets of
“Summit Corporation”
c. A, B, C, D and E can move for the dismissal of the court action because “Summit
Corporation” has no personality of its own.
d. X cannot allege the lack of juridical personality on the part of “Summit Corporation”
because he is stopped from doing so.
3. Corporation X has a statement of capital stock in its articles of incorporation but it was stated in
the same articles that dividends are not supposed to be declared, that is, there is no distribution
of retained earnings. Corporation X is:
a. Stock corporation
b. Corporation by estoppel
c. Non-stock Corporation
d. Corporation by prescription
4. What is the voting proportion required for the voluntary dissolution of the corporation?
a. Majority votes of the board of directors and 2/3 votes of the outstanding capital stock.
b. Majority votes of the board of directors and majority vote of the outstanding capital
stock.
c. Majority vote of the board of directors and 2/3 vote of the stockholders.
d. Majority vote of the board of directors and majority vote of the stockholders.
5. If a corporation wishes to change its corporate term, it may amend its articles of incorporation
at least:
a. 3 years prior to the expiration
b. 4 years prior to the expiration
c. 5 years prior to the expiration
d. Anytime.
6. I. If the term has already expired, the corporation may ask the SEC to revive their corporate
existence.
II. Perpetual corporate existence is allowed.
a. True, False
b. False, True
c. True, True
d. False, False
7. A corporation, the sole purpose of which is to invest its capital in a specific property and
afterwards consume that property or extract its value at a profit is called:
a. Quasi Corporation
b. Open Corporation
c. Wasting Asset Corporation
d. Eleemosynary Corporation
8. Involuntary dissolution of the corporation is caused by:
a. An expiration of the period for which it was lawfully formed.
b. Judicial decree of forfeiture or by order of the SEC
c. Legislative enactment
d. All of the above.
9. A close corporation:
a. Shall not list shares in any stock exchange nor offer its shares to the public
b. All of its issued shares exclusive of treasury shares shall be held of record by not more
than 20 shareholders.
c. All shares are subject to one or more restrictions on transfer of shares
d. All of the above
e. None of the above
10. A written instrument signed by the proper officers of the corporation, stating or acknowledging
that the person named therein is the holder of a designated number of shares of its stock:
a. Certificate of Stock
b. Articles of Incorporation
c. Share of Stock
d. Dividend