Question 1

 Which of the following is NOT a purpose as to why the Securities and Exchange Commission (SEC)
makes available the General Information Sheet (GIS) to interested parties?
Response: Complying with legal obligations
Feedback: INCORRECT. This is under the SEC circulars and issuances.
Score: 0 out of 1 No

Question 2
 What is the purpose of requiring a license on the part of a foreign corporation doing business in the
Philippines?
Response: Subject foreign corporation doing business in the Philippines to the jurisdiction of
Philippine courts
Feedback: CORRECT! It is not to prevent the foreign corporation from performing single or isolated
acts, but to bar it from acquiring a domicile for the purpose of business without taking steps necessary
to render it amenable to suit in the local courts.
Score: 1 out of 1 Yes

Question 3
 Which of the following is a ground for involuntary dissolution of a corporation?
Response: By amending the articles of incorporation to shorten the corporate term
Feedback: INCORRECT. This is a ground for voluntary dissolution of a corporation.
Score: 0 out of 1 No

Question 4
 Which of the following is considered as “doing business transactions” for foreign corporations?
Response: Establishing more offices
Feedback: CORRECT! This can be done through subsidiaries, branches, representatives, or regional
headquarters.
Score: 1 out of 1 Yes

Question 5
 Which of the following cooperative principles shows the principle of “voluntary and open
membership”?
Response: Impartiality
Feedback: CORRECT! This principle states that cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept the responsibilities of membership, without
gender, social, racial, cultural, political, or religious discrimination.
Score: 1 out of 1 Yes

Question 6
 Which of these is NOT a mode of entry for foreign corporations?
Response: Joint venture
Feedback: CORRECT! This is not a mode of entry for foreign corporations. A joint venture is an
organization formed for some temporary purpose. [Aurbach, et. al. v. Sanitary Wares Manufacturing
Corporation, [180 SCRA 130 (1989)]
Score: 1 out of 1 Yes

Question 7
 Which of the following determines the state of incorporation, regardless of the nationality of the
stockholders?
Response: Incorporation test
Feedback: CORRECT! Incorporation test determines the state of incorporation, regardless of the
nationality of the stockholders.
Score: 1 out of 1 Yes

Question 8
 When will a merger or consolidation of cooperatives be valid?
Response: Approval by three-fourths (¾) vote of all the members with voting rights
Feedback: CORRECT! The affirmative vote of members representing at least three-fourths (3/4) of all
members with voting rights, present and constituting a quorum of each of the constituent cooperatives
at separate general/representative assembly meetings shall be necessary for the approval of the Plan of
Merger or Consolidation, or amendments thereto, if any.
Score: 1 out of 1 Yes

Question 9
 Which of the following DOES NOT cover education and training funds?
Response: Vote registration
Feedback: CORRECT! This is part of community development funds.
Score: 1 out of 1 Yes

Question 10
 This type cooperative that promotes and undertakes savings and lending services among its members.
Response: Credit cooperative
Feedback: CORRECT! Its main purpose is to raise capital for the benefit of its members.
Score: 1 out of 1