Law on Corporation: SHADE the letter of your answer on the answer sheet provided.

ITEMS 51-100.
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
11. Contracts between a corporation and third persons must be made by or under the authority of its:
a. Board of Directors c. Stockholders
b. President and CEO d. General manager
12. Which of the following does not form part of the three-fold duty of directors?
a. Duty of diligence c. Duty of Loyalty
b. Duty of dependence d. Duty of Obedience
13. The voting proportion required enabling a corporation to invest its funds in any other corporation or
business or for any purposes other than its primary purpose:
a. 2/3 vote of the board of directors and ratified by majority of the outstanding capital stock.
b. Majority vote of the board of directors and ratified by majority of the stockholders.
c. 2/3 vote of the board of directors and ratified by 2/3 of the stockholder.
d. Majority of the board of directors and ratified by 2/3 vote of the outstanding capital stock.
14. These do not form part of the outstanding capital stock:
a. Bonus shares c. Founders’ shares
b. Treasury Shares d. Redeemable Shares
15. Three of the following corporations are not authorized to issue no-par-value shares of stock. Which one is
the exemption?
a. Educational Institution c. Insurance Companies
 b. Trust Companies d. Public Utilities
16. Cash dividend as distinguished from stock dividends.
a. It increases legal capital
b. Does not involve any disbursement
c. It is declared on by the Board of Directors
d. It is still part of the corporate asset
17. The difference between corporation and partnerships is that corporations:
a. The liability extends up to private properties.
b. There is no dissolution in case of death, withdrawal or resignation of an owner
c. The interest and ownership is transferable only if the other owners consent
d. It is created by the mere consent of the owners
18. In which of the following case will the doctrine of the separate corporate personality apply?
a. When used as a cloak to cover fraud, illegality or it results injustice.
b. To defeat public convenience, justify wrong, defend crime.
c. Where two corporations are made to appear as one and used as a device to defeat the ends of law or as
a shield to confuse legitimate issues.
d. Where two corporations have interlocking directors.
19. When a corporation is used to defeat public convenience, justify wrong, protect fraud, or defend crime or
made as a shield to confuse the legitimate issues or where a corporation is a mere alter ego or business
conduit of a person, this doctrine applies
a. Doctrine of business opportunity
b. Trust fund doctrine
c. De facto doctrine
d. Doctrine of piercing the veil of corporate fiction
20. In no case shall the total yearly compensation of the directors, exceed:
a. 10% of the net income before income tax during the succeeding year.
b. 10% of the net income before income tax during the preceding year.
c. 10% of the net income after income tax during the preceding year.
d. 10% of the net income before income tax during the current year.
21. 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
22. 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
23. 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
24. 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.
25. 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.
26. 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.
27. 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.
28. 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 c. Majority of all present
b. 2/3 vote of all present d. Majority vote of the board
29. 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.
30. 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.
31. “The majority vote of its board of directors and by the vote or written assent of the stockholders
representing at least two-thirds of the subscribed capital stock of the corporation” is prescribed under the
Corporation Law for this purpose
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
32. All except one are instances when the right to vote by proxy are explicitly provided for:
a. Election of the board of directors or trustees. c. Pledged or mortgaged share
b. Voting in case in joint ownership of the d. Voting in a board meeting
stock.
33. Choose the situation which illustrates best the minimum requirement of the law to corporate formation:
Authorized Capital Subscribed Capital Paid-in Capital
a. P1,000,000 P250,000 P50,000
b. P1,000,000 P250,000 P250,000
c. P500,000 P125,500 P31,250
d. P600,000 P150,000 P50,000
34. For purposes of interlocking directors, the stockholdings shall be considered substantial if:
a. Exceeding 10% of the authorized capital c. Exceeding 20% of the authorized capital
stock stock
b. Exceeding 10% of the outstanding capital d. Exceeding 20% of the outstanding capital
stock stock
35. The corporation shall be deemed dissolved and its corporate powers ceases, if from the date of its
incorporation, it does not formally organize and commence the transaction of its business or the
construction of its works within
a. 4 years c. 2 years
b. 3 years d. 5 years
36. Which of the following qualifications is necessary in order that one may be a director of a corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must be a stockholder or director of a competitor corporation.
c. He must not been an officer of the government
d. He must own at least one share of stock of the corporation.
37. Which of the following qualifications is necessary in order that one may be elected secretary of the
corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must be a director of the corporation.
c. He must be a stockholder of the corporation.
d. He must be a treasurer of any other corporation.
38. Which of the following qualifications is necessary in order that one may be elected president of the
corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must not be a stockholder or director of a competitor corporation.
c. He must not be a president of any other corporation.
d. He must be a director of the corporation.
39. A private corporation commences to have juridical personality from the date:
a. The officers of the corporation are elected by the stockholders.
b. The incorporators sign the articles of incorporation.
c. The articles of incorporation and by-laws are presented to the SEC.
d. The SEC issues a certificate of incorporation under its official seal.
40. The articles of incorporation were prepared, signed and filed with the Securities and Exchange Commission.
After some time, the corresponding certificate of incorporation was issued. One of the directors of the
corporation, however, discovered that of the authorized capital stock subscribed, only 24% was paid to
Treasurer. What is the status of the corporation?
a. Corporation by estoppel c. De jure corporation
b. Open corporation d. De facto corporation
41. One of the following does not require stockholders’ approval
a. Merger or consolidation
b. Change of corporate name
c. Investment of corporate funds for a purpose outside of the main purpose of the corporation.
d. Declaration of cash dividend.
42. Any director of a corporation may be removed from office by a vote of the stockholders holding or
representing:
a. Majority of the stockholders present c. 2/3 of the outstanding capital stock
b. ¾ of the outstanding capital stock d. Majority of the outstanding capital stock
43. The corporation has a 15 member board. Three of the members of the Board have sold their shares while
three others are abroad. To have a quorum, this number is required:
a. Seven c. Six
b. Five D. Eight
44. The following except one are the qualifications of incorporators:
a. Majority of whom must be Filipinos.
b. Majority of whom are residents of the Philippines
c. All are of legal age
d. Natural persons not less than 5 but not more than 15
45. After a corporation is dissolved, it shall nevertheless be continued to enable if to liquidate its affairs or a
period of:
a. 1 year c. 5 years
b. 2 years d. 3 years
46. A corporation acquires juridical personality
A. Upon the filing of the articles of incorporation
B. Upon the filing of the by-laws
C. Upon the issuance of the certificate of incorporation
D. Within 30 days from receipt of notice of the issuance of the certificate of incorporation
48. A delinquent stockholder is not entitled to the following rights, except the right:
A. To be voted
B. To vote or be represented in the meetings of stockholders
C. To dividends
D. He is not entitled to all the rights of a stockholder
49. Which of these conditions comply with the minimum requirements of laws to corporate formation?
Capital Subscribed Capital Paid-up Capital
A. P 64,000 16.000 4,000
B. 100,000 25,000 12,500
C. 200,000 10,000 10,000
D. 200,000 50,000 10,000
50. Which of the following conditions will allow corporate formation and SEC registration?
Authorized Capital Subscribed Capital Paid-up Capital
A. P 90,000 12.500 3,125
B. 100,000 20,000 5,000
C. 100,000 25,000 5,000
D. 60,000 15,000 6,000
51. The authorized capital stock of a proposed corporation is P1,000,000 divided into 10,000 shares with a par
value of P100 each. The minimum amount of subscription that must be paid up is?
A. P62,500 or 625 shares; B. P50,000 or 500 shares
C. P75,000 or 750 shares; D. P87,500 or 875 shares
52. Which of the following will qualify as incorporator in a corporation?
[A] a minor; [C] partnership;
[B] a corporation; [D] foreigner.
53. The Corporation Code requires that:
[A]At least a majority of the directors are residents of the Philippines;
[B]All of the directors or trustees are residents of the Philippines;
[C] All of the directors or trustees are citizens of the Philippines;
[D] Majority of the directors are citizens of the Philippines.
54. The voting proportion required to enable a corporation to invest its fund in any other corporation or
business or for any purpose other than its primary purpose –
[A] 2/3 vote of the board of directors and ratified by majority of the outstanding capital stock;
[B] Majority vote of the BOD and ratified by majority of the outstanding capital stock;
[C]Majority vote of the BOD and ratified by 2/3 of the outstanding capital stock;
[D] Majority vote of the BOD and ratified by 2/3 of the stockholders.
55. One of the following is a ground for the suspension or revocation of the certificate of incorporation by the
SEC.
[A]If the corporation fails to commence and start to operate and the failure is due to cause beyond its
control;
[B] If the corporation has commenced its business transaction and afterwards ceased operations
continuously for a period of at least 5 years;
[C] If the corporation has commenced its operations and subsequently becomes continuously inoperative
for two years;
[D] None of the above.
56. Subscriber Zai Zai has a total 1,000 delinquent shares at P10 par value, to be sold at public auction sale.
Total amount recoverable includes: total amount of the delinquent shares P10,000 and total expenses of the sale
P5,000. Who will be declared the highest bidder among the following bidders in the public sale?
[A] M, who is willing to pay the P15,000 at 920 shares;
[B] A, who is willing to pay the P15,000 at 950 shares;
[C] N, who is willing to pay the P15,000 at 970 shares;
[D] G, who is willing to pay the P15,000 at 900 shares.
57. The by-laws of a corporation may provide that the stockholders or trustees meeting may be outside of the
Philippines.
The by-laws may be filed with the SEC either before or after incorporation.
[A] Both statements are false. [C] First is false, second is true
[B] Both are true. [D] First is true, second is false.
58. One of the following does not require stockholders’ approval:
[A] Change of corporate name;
[B] Merger or consolidation;
[C] Declaration of cash dividend;
[D] Investment of corporate funds outside main purpose of the corporation.
59. In a corporation, two or more positions may be held concurrently by the same person, except that no person
shall act as –
[A] president and chairman of the board; [C]secretary and treasurer;
[B] president and secretary; [D]treasurer and director.
60. One of the characteristics of treasury shares is that –
[A] They may be reissued or sold again;
{B] They have status of outstanding shares;
[C] They may participate in the meeting of corporation as voting shares;
[D] They are entitled to dividends.
61. 1st statement: After dissolution but within the three-year period of liquidation a corporation’s term may
still be extended by amendment of its articles of incorporation.
nd
2 statement: The dissolution of a corporation shall take place because it has been in continuous non-operation
for five years.
[A] Both statements are false. [C] Both are true.
[B] First is false, second is true. [D] First is true, second is false.
62. 1st statement: The by-laws may provide that the holders of a majority of the outstanding capital stock may
elect all the members of the board of directors.
63. 2nd statement: That it may also provide that no officer of the corporation shall be required to be a
stockholder.
[A] Both statements are true. [C] Both are false.
[B] First is true, second is false. [D] First is false, second is true.
64. Which of the following is not a requisite for a close corporation?
[A] The number of stockholders shall not exceed twenty.
[B] That no close corporation is a stockholder thereof owning at least 2/3 of the voting stocks.
[C] There is a restriction in the transfer of shares.
[D] There is no public offering of shares.
65. Majority of the following must residents of the Philippines, except:
[A] Members of the board of directors. [C] Members of the board of trustees.
[B] Incorporators. [D] Officers.
66. 1 statement: Stockholders’ meeting must be in the city or municipality where the principal office is
st

located while members’ meeting of non-stock corporation may be outside thereof.

2nd statement: The secretary of the corporation must generally be a citizen and resident of the Philippines.
[A] Both are true. [C] Both are false.
[B] First is true, second is false. [D] First is false, second is true.
st
67. 1 statement: The doctrine of corporate opportunity rests on the unfairness of an officer or director of a
corporation taking advantage of an opportunity for his own personal benefit adverse to the corporation.
2nd statement: The by-laws must be filed with the SEC for the corporation to acquire juridical personality.
[A] Both statements are false. [C] Both statements are true.
[B] First is true, second is false. [D] First is false, second is true.
68. In three of the following instances, shares with or without voting rights can be voted, except:
[A] Increase or decrease of capital stock. [D] Merger or consolidation with other
[B] Dissolution of the corporation. corporation.
[C] Election of directors or trustees.
69. One of the following does not have voting rights:
[A] Preferred shares [C] Redeemable shares
[B] Treasury shares [D] Common shares.
70. The power to deny pre-emptive rights to stockholders is:
[A]Incidental power [C] Express power
[B] Implied power [D] Discretionary power
71. Statement 1: A majority of the directors or trustees of all corporations organized in the Philippines must be
citizens of the Philippines.
Statement 2: Any two or more positions may be held concurrently by the same person, except that no one shall
act as president and secretary or as secretary and treasurer at the same time.
[A] Both statements are false [C] Only first statement is false
[B] Only second statement is true [D] Both are true
72. This is the equitable right of the stockholders to subscribe to all issues of shares in proportion to their
shareholdings to maintain their equity participation in the corporation:
[A] Right of firm in close corporation [C] Pre-emptive right
[B]Right to dividends date entity [D] Appraisal right of dissenting stockholder
73. A subscribed to 1,000 shares of stock of X Corporation. She paid 25% of the said subscription. During the
stockholders meeting, can A vote all her subscribed shares?
[A] No, because the subscription has not yet been fully paid.
[B] No, because A’s shares have become delinquent which cannot be voted.
[C]No as to the unpaid percentage of subscription.
[D]Yes, because unpaid shares not delinquent can be voted.
74. A, B, C, D, E, and F, Filipino citizens, X, Y, Z, American citizens, and R and S Japanese citizen agreed
from a domestic corporation with an authorized capital stock of P1,000,000.00 divided into one hundred
thousand (100,000) shares with a par value of P10.00 per share. B subscribed for 2,000 shares and he paid
P12,000.00. X subscribed for 5,000 shares and he issued a promissory note in the amount of P30,000.00. F
joined the group but he did not subscribed for any number shares. Can the aforementioned persons validly
from a domestic corporation?
[A] Yes, provided majority of them are resident of the Philippines.
[B] Yes, because majority of them are Filipino citizens
[C] Yes, provided they will subscribed for at least 25% of the authorized capital stock.
[D]No, because foreigners cannot be incorporators of a domestic corporation.
75. Using the data in number 9, can B demand for a certificate of stick of 1,200 shares-
 [A]No, because certificate of stock shall be issued only after payment of the full amount of the
subscription.
[B]No, because the 800 shares subscribed by him are already delinquent.
[C]Yes, because he can surrender the 800 shares to the corporation and limit his subscription to 1,200
shares only;
[D]Yes, because he has paid P12,000.
76. A,B,C,D,E,F, and G are duly elected directors of Zap Corporation whose Articles of Incorporation provide
for 7 Board of Directors. A year after, directors A, B, C, D, and E met to fill two vacancies in the board brought
about by the valid removal of F for disloyalty to the corporation and the death of G. In the said meeting, the
remaining directors voted for X to replace F, and Y to replace G. Both X and Y are owners of at least one share
of stock of the corporation. The election of X and Y by the remaining directors is:
(A) Valid for both X and Y.
(B) Not valid for both.
(C) valid with respect to X; not valid with respect to Y.
(D) Not valid for X; valid for Y.
77. In the meeting of the board of directors of Canyon corporation, a construction company, held on March 31,
2010, directors A, B, C, D, and E were present among the 9 directors. The meeting had for its agenda the
appointment of a new treasurer and the approval of a contract for the purchase of cement worth 50,000 from
supplier. When the voting took place, directors A, B, C, and D voted for the election of Y as the new treasurer;
and the directors A, B, and C voted for the approval of the contract with supplier.
(A) Both acts are valid.
(B) Both acts are not valid.
(C) The election of Y is valid; The approval of contract is not valid.
(D) The election of Y is not valid; the approval of contract is valid.
78. The right of a stockholder to demand payment of the fair value of his shares when he dissents from certain
corporate acts.
(A) Pre-emptive right. (C) Redemption right.
(B) Appraisal right. (D) Appreciation right.
79. A non-voting stock may vote in the following, except:
(A) approval of compensation of the board. (C) increase of capital stock.
(B) merger or consolidation. (D) sale of all company assets.
80. One of the following acts may be performed by the executive committee of a corporation. Which is it?
(A) Declaration of stock dividends.
(B) Filling of vacancies in the board.
(C) Amendment of by-laws.
(D) Approval of contracts in the ordinary course of business.
81. Which of the following by-laws is valid?
(A) By-law providing that one need not be the owner of a share of stock to become a director.
(B) By-law that provides that one must be the owner of at least one share of stock to become a director.
(C) By-law that provides that one can continue to be a director throughout his term although he has
disposed all his shares in the corporation.
(D) By-law that provides a greater number of directors than that stated in the Articles.
82. The articles of incorporation of ABC Corporation provide for the issuance of 100,000 shares without par
value and an issued price per share of 10.00. At the time of incorporation, the subscription and paid-up should
not be less than:
[A] 250,000 and 62,500 respectively [C] 250,000 and 250,000 respectively
[B] 1,000,000 and 250,000 respectively [D] 250,000 and 125,000 respectively.
83. In three of the following instances, shares with or without voting rights can be voted except:
[A] Increase or decrease of capital stock. [D) Merger of consolidation with other
[B] Dissolution of the corporation corporation.
[C] Election of directors or trustees
84. The executive committee cannot act on this matter except:
[A] Filling of vacancy in the board of directors
[B] Cash dividend declaration
[C] Board resolution on depository bank of the corporation
[D] Stock dividend declaration
85. At the annual meeting of ABC Corporation for the election of five directors, A, B, C, D, E, F and G were
nominated. A, B, C, D and E received the highest number of votes and proclaimed elected. F received ten votes
less than E. Subsequently, E sold his shares to F. Who between A and F has the right to attend as director in the
board meeting? The transfer of shares having been registered with the corporation.
[A] E is the director because his term is one year until his successor is elected and qualified.
[B] F is the director for he has acquired all the shares of E.
[C] Either of them shall be director.
[D] Neither of them shall be director.
86. Three of the following are not authorized to issue no-par shares. Which one of the exception?
[A] Industrial companies C] Insurance companies
[B] Trust companies [D] Public utilities
87. The corporation has a nine-member board. Two of the members have sold their shares while two others
are abroad. To have a quorum the number required is:
[A] Seven [C] Five
[B] Three [D] Four
88. Which of the following corporate acts requires the approval of the majority of the outstanding capital stock
or of the members?
[A] To invest corporate funds in another corporation or business
[B] To adopt, amend or repeal by-laws
[C] To dissolve the corporation
[D] To amend the articles of incorporation.
89. A distribution by a corporation of shares held by it in another corporation is:
[A] Stock dividend [C] Sale of capital assets
[B] Sale of treasury stock [D] Property dividend
90. They are issued to those who helped in incorporating the corporation or for services rendered in launching
the welfare of the same.
[A] Preferred stock [C] Stock in escrow
[B] Founders shares [D] Promotion stock
91. A director of a corporation may be removed from the office by a vote of the stockholders holding
representing:
[A] Majority of the outstanding capital stock [C] 2/3 of the outstanding capital stock
[B] 2/3 of the stockholder [D] Majority of the stockholder
92. This is the equitable right of the stockholders to subscribe to all issues of shares in proportion to their
shareholdings to maintain their equity participation in the corporation:
[A] Right of firm in close corporation [C] Pre-emptive right
[B] Right to dividends date entity [D] Appraisal right of dissenting stockholder
93. In the matter of management of the corporation, this is supreme:
[A] Majority of the shareholders [C] 2/3 of the stockholders
[B] Board of Directors [D] Officers of Corporation
94. This is the written acknowledgement of the interest of the stockholder in the corporation.
[A] Proxy [C] Share of stock
[B] Voting trust agreement [D] Certificate of stock
95. These are the persons who sign the articles of incorporation and therefore must be subscribers of share:
[A] Incorporators [C] Directors
[B] Stockholders [D] Corporate officers
96. The minimum requirement for incorporation:
Authorized Capital Stock Subscribed Capital Paid-up Capital
[A] P100,000.00 P20,000.00 P5,000.00
[B] P100,000.00 P20,000.00 P6,250.00
[C] P100,000.00 P25,000.00 P5,000.00
[D] P100,000.00 P25,000.00 P6,250.00
97. They provide and regulate the internal matters of the corporation:
[A] Articles of incorporation [C] By-laws of the corporation
[B] Certificate of incorporation [D] Certificate of filing of by-laws
98. This is a public instrument giving authority to vote for stockholder
[A] Proxy [C] Voting trust agreement
[B] Stock certificate [D] Voting trust certificate
99. A gratuitous reissue of treasury shares will result in:
[A] Capital surplus [C] Stock dividend
[B] Watered stock [D] Property dividend
100. Shade Letter B.