1.

Board of Directors upon approval of stockholders representing not less than two-thirds of all stock then
outstanding and entitled to vote:
a. For declaration of stock dividends.
b. For adoption of any by-law or by-laws
c. To incur, create, or to increase bonded indebtedness.
d. To amend the articles of incorporation
2. Vote of the stockholders representing a majority of all the subscribed capital stock of the corporation, whether
paid or unpaid:
a. For declaration of stock dividends
b. For adoption of any by-law or by-laws
c. To invest its corporate funds in any corporation, or for any purpose other than the main purpose for
which it was organized.
d. To amend the articles of incorporation
3. If shares of stock are sold to a buyer, the delivery as a mode of transferring ownership may be affected by:
a. traditional longa-manu c. Traditio brevi-manu
b. quasi-traditio d. Symbolical delivery
4. The following are the legal effects of merger or consolidation. Except one:
a. All actions pending by or against the constituents’ corporations shall now be litigated by the consolidated
corporation.
b. The consolidated corporation shall enjoy the rights, powers,, privileges and immunities and shall be
subject to the same duties and obligation of corporations established under the Corporation Law.
c. The liabilities and obligations and claims against the constituents corporations may not be assumed by
the consolidated corporations because of the theory of separate legal entity
d. All properties, interests, claims and the like pertaining to the constituents corporations shall now pertain
to the surviving corporation.
5. Which of the following is the disadvantage of forming a corporation?
a. The free and ready transferability of ownership.
b. The shareholders are not liable to the liabilities of the business.
c. Because of the power of succession, the existence of the entity is not affected by personal vicissitudes of
the individual shareholders.
d. The subservience of minority stockholders to the wishes of the majority subject only to equitable
restraint.
6. This group of persons may not form a corporation or be incorporators in a corporation in the Philippines.
a. 12 Chinese who are resident of Manila
b. 10 resident aliens and 4 aliens residing in Singapore
c. 15 Filipinos who are residents of Dubai, UAE
d. 7 residing Filipinos in the Philippines and 2 Americans residents of Hawaii.
7. The vote required in amending the Articles of Incorporation of a stock corporation.
a. Amendment by a majority vote of the Board of Directors plus a vote or written assent of the stockholders
representing at least 2/3 of the outstanding capital stock.
b. Amendment by a vote of 2/3 of the stockholders
c. Amendment by a majority of the Board of Directors
d. Amendment by a 2/3 vote of the Board of Directors and majority of the outstanding capital stock.
8. How many numbers of votes of the board of directors are required to change the name of a corporation?
a. 2/3 vote of all members of the board
b. 2/3 vote of all present
c. Majority of all present
d. Majority vote of the board
9. The number of the Board of Trustees in a non-stock corporation.
a. Shall not be less than five but not more than eleven
b. May be more than fifteen upon its organization
c. May be less than five upon its organization
d. Shall not be less than five but not more than fifteen.
10. As regards treasury stocks, which is not correct?
a. They have no voting rights as long as they remain in the treasury.
b. They may be distributed as property dividend if there are retained earnings from
operations.
c. They are not entitled to the dividends.
d. They are considered as part of earned or surplus profits and therefore distributable as
stock dividends.