Philippine Christian University

Dasmarinas City Cavite

Business Law and Regulations

Quiz # 1 Finals

June 2020

Name:

Course, Year and Section:

Encircle the Letter of the Correct Answer

1. A Corporation which is formed, organized and existing under any law other
than those of the Philippines.

a. Domestic Corporation c. Corporation Aggregate

b. Foreign Corporation d. Quasi Corporation

2. Organized for the purpose other than Religious

a. Lay Corporation c. Corporation Sole

b. Ecclesiastical Corporation d. Eleemosynary Corporation

3. One Created in strict or substantial conformity with the Statutory requirement

for Corporation

a. De Jure Corporation c. Civil Corporation

b. Multinational Corporation d. Domestic Corporation

4. Are those stockholders mentioned in the articles of Corporation as originally

forming and composing the corporation and who are signatories thereof?

a. Corporator c. Stockholders

b. Incorporators d. Members
5. It is an act of procuring the finances and the making of all preparations
necessary to launch the corporations.

a. Promoters Contract c. Promotion

b. Activities of Promoter d. Incorporation

6. It represents the interest or right that the holder of stock or stockholder has in
the Corporation

a. Share of Stock c. Cumulative Preferred Stock

b. Stock Certificate d. Participating Preferred Stock

7. Refers to a fund set up by the Corporation where Cash is gradually set aside in
order to accumulate the amount necessary to meet the redemption price of
redeemable shares of specified shares in the future.

a. Sinking Fund c. Founder’s Shares

b. Recallable Shares d. Promoters Share

8. One who assumes an obligation to an ostensible corporation as such, cannot

resist performance thereof on the ground that there is in fact no Corporation.

a. De Jure Corporation c. Corporation by Estoppel

b. Corporation Aggregate d. De Facto Corporation.

9. This shares do not revert to the unissued shares of the Corporation but are
regarded as property acquired by the Corporation at a price to be fixed by the
Board of Directors.

a. Reedemable Shares c. Shares of Stock

b. Treasury Shares d. Common Shares

10. It is in effect the issuance of shares subject to suspensive condition.

a. Issuance of Stock c. Shares in Escrow

b. Common and Preferred Shares d. Treasury Shares

Briefly Answer the Following.

1. What is a Corporation? (3 Points)

A corporation is a legal form of business that is separate from its owners. In other words, it’s a
business that is a separate legal entity from its shareholders. The basic corporate structure
consists of the shareholders, board of directors, and officers. The shareholders are the
investors and people who actually own the company. They purchased the stock and legally
own the assets of the business. Since there are often thousands or millions of shareholders,
they can’t run the business on a day-to-day basis.

2. Give 2 Distinction of a Partnership from a Corporation (2 Points Each)

a. A partnership is formed with at least two individuals who want to do business together
and share the ownership, profits, and liabilities of the business.

A corporation is owned by shareholders and can be formed for profit or for non-profit. If
the business is for profit, the profits are reinvested in the business and then divided
among shareholders as dividends.

b. A corporation continues until dissolved by law while a partnership has a specified

duration or may dissolve due to the death of a partner.

3. What is an Articles of Incorporation? (3 Points)

Articles of incorporation are a set of formal documents filed with a government body to legally
document the creation of a corporation. Articles of incorporation generally contain pertinent
information, such as the firm’s name, street address, agent for service of process, and the
amount and type of stock to be issued. Articles of incorporation are also referred to as the
"corporate charter," "articles of association," or "certificate of incorporation."

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