Professional Documents
Culture Documents
BL- Partnership
Instruction: Each item is equivalent to 2 points. Read the questions carefully. Write
TRUE if the statement is correct and FALSE if the statement is incorrect. Write your
answers on a separate sheet. No erasures allowed.
1.) The partnership suffered damages in a particular undertaking thru the fault of a
partner. However, through the efforts of the partner at fault in other activities,
the partnership realized unusual profits. He can compensate the damages
suffered by the partnership through his fault with the unusual profits earned by
the partnership through his industry.
FALSE
3.) Unless there is a stipulation to the contrary, the partners shall contribute equal
shares to the capital of the partnership.
TRUE
4.) Two or more persons could not form a partnership for the exercise of a
profession because it is considered as joint venture.
FALSE
5.) The receipt by a person of his share of the profits of a business does not in itself
establish partnership.
FALSE
6.) The sharing of the gross returns is prima facie evidence that one is a partner in
a partnership.
FALSE
7.) The partner who has been appointed manager in the articles of partnership may
exercise all acts of administration despite the opposition of his partners and his
power is irrevocable without just or lawful cause.
TRUE
9.) An industrial partner is entitled to any share in firm capital on dissolution, but
is limited to his share in profits as compensation for his services.
TRUE
10.) A partnership must have a lawful object or purpose, and must be established
for the common benefit or interest of the partners.
TRUE
12.) Persons who are prohibited from giving each other any donation or
advantage can enter into universal partnership.
FALSE
13.) A partnership begins from the time the partnership contract is registered
with the SEC.
FALSE
14.) A capitalist partner cannot engage in any business for himself absolutely.
FALSE
15.) The designation of losses and profits may be entrusted to a third person.
TRUE
16.) A partner’s right in specific partnership property maybe attached and may
be executed by his personal creditors.
FALSE
17.) The designation of losses and profits may be entrusted to one of the partners.
FALSE
19.) A concept which state that a partnership has a juridical personality separate
and distinct from each of the partners is called mutual agency. FALSE
Assessment 3
Limited Partnership
Instruction: Each item is equivalent to 3 points. Read the questions carefully. Write
TRUE if the statement is correct and FALSE if the statement is incorrect. Write your
answers on a separate sheet. No erasures allowed.
1.) A partnership begins from the time the partnership contract is registered with the
SEC.
FALSE
2.) A, the general partners may continue the business of a limited partnership with the
partnership property on the death, retirement, civil interdiction or insolvency of
another general partner.
TRUE/FALSE (NOT SURE)
3.) A person maybe a general partner and a limited partner in the same partnership at
the same time.
TRUE
7.) The dissolution of the partnership does not of itself discharge the existing liability
of any partner.
TRUE
8.) The contribution of a limited partner may be cash or property of a partner
TRUE
9.) A stipulation which excludes one or more partners from any share in profit or
losses is void
TRUE
11.) Only general partners shall have at any reasonable hour have access to and
may inspect and copy the books and records of the partnership.
FALSE
13.) When the manner of management has not been agreed upon, all the
general partners shall be considered agents of the partnership.
TRUE
14.) When the manner of management has not been agreed upon, all the
partners may manage the partnership including the limited partner.
FALSE
15.) The surname of a limited partner shall not appear in the partnerships name
absolutely.
TRUE
18.) The creditors of each partner shall be preferred to those of the partnership
as regards the partnership property.
TRUE
19.) If a limited partner contributes his services to the capital of the firm, he
shall become liable as a general partner
TRUE
20.) If the word “LIMITED” is not added to the firms name, all of the partners,
with respect to the third person shall be considered as general partners.
TRUE
21.) A capitalist partner cannot engage in business for himself unless the
partnership expressly permits him to do so.
FALSE
22.) The designation of losses and profits may be entrusted to a third person.
TRUE
23.) A partner’s right in specific partnership property maybe attached and may
be executed by his personal creditors.
FALSE
24.) The designation of losses and profits may be entrusted to one of the
partners.
FALSE
CORPORATIONS – PAA
Corporation Law
Assessment 1
1.) The corporate power of the corporation shall be exercised by the stockholders.
FALSE
2.) Directors can attend and vote by proxy at a board meeting.
FALSE
3.) In the absence of any provision in the by-laws fixing their compensation, the
directors shall not receive any compensation, as such director except for
reasonable per diems.
TRUE
4.) There is interlocking directorate when one, some or all of the directors in a
corporation are also directors of another corporation.
TRUE
5.) All persons who assume to act as a corporation knowing it to be without authority
to do so shall be liable as general partners for all debts, liabilities and damages
incurred or arising as a result thereof.
TRUE
6.) By the doctrine of piercing the veil of a corporate entity or looking at the
substance rather than the form, is meant that the law will regard the corporation as
mere association of persons and not legal entity separate and distinct from the
stock holders.
TRUE
7.) Treasury Shares shall have no voting right as long as they remain in the treasury.
TRUE
8.) The records of the business transactions of the corporation and the minutes of any
meeting shall be open to the inspection of any director, trustee, stockholder or
member of the corporation at reasonable hours on business days.
TRUE
9.) Stockholders and members may vote in person or by proxy in all meetings of
stockholders or members.
TRUE
10.) No proxy shall be valid effective for a period longer than five years at any
one time.
TRUE
11.) Subscribers for stock shall be liable to the corporation for interest from the
date of subscription, but only if so required in the by laws.
TRUE
12.) Majority of incorporators must be citizens of the Philippines.
FALSE (Under RA 11232, at least 2-15 can register and the majority
residency in the Philippines is no longer required, per implementing rule SEC
MC No. 7 series of 2019)
13.) Dividends are declared by the stockholders.
FALSE
14.) The president of the corporation may or may not be a director.
FALSE
15.) Persons convicted by final judgment of an offense punishable by
imprisonment of more than six years, or a violation of the corporation code,
committed within five years prior to the date of their election or appointment are
not qualified as directors or officers of any corporation.
TRUE
16.) Any stockholder of a close corporation may, for any reason, withdraw
from the corporation and compel it to purchase his shares at their fair market
value which is not less than their par issued value, provided that the corporation
has sufficient assets to cover its debts and liabilities exclusive of their capital
stock.
TRUE
17.) A corporation cannot be held liable for personal indebtedness of a
stockholder even if he is the president.
TRUE
18.) No par shares may not be issued without being fully paid.
TRUE
19.) After the declaration of stock dividends, the stockholders receive no
greater proportional interest in the asset of the corporation that they had before.
TRUE (Stock dividends do not result in asset changes to the balance
sheet but rather affect only the equity side )
20.) Holders of subscribed shares not fully paid which are not delinquent shall
have all the rights of the stockholder.
TRUE
Corporation Law
Assessment 2
21.) There is interlocking directorate when one, some or all of the directors in a
corporation are also directors of another corporation.
TRUE
22.) Any stockholder of a close corporation may, for any reason, withdraw
from the corporation and compel it to purchase his shares at their fair market
value which is not less than their par issued value, provided that the corporation
has sufficient assets to cover its debts and liabilities exclusive of their capital
stock.
TRUE
23.) After the corporation has dissolved, it shall nevertheless continue as a
body corporate for three years to enable it to liquidate its affairs.
TRUE
24.) No Foreign Corporation shall be permitted to transact business in the
Philippines until after it shall have obtained license for that purpose from SEC.
TRUE
25.) Foreign Corporation transacting business in the Philippines without
license may not sue but may be sued in our courts.
FALSE
26.) After the declaration of stock dividends, the stockholders receive no
greater proportional interest in the asset of the corporation that they had before.
TRUE
27.) The board of Directors may at any time declare due and payable to the
corporation unpaid subscription to its capital stock.
TRUE
28.) Holders of subscribed shares not fully paid which are not delinquent shall
have all the rights of a stockholder.
TRUE
29.) No delinquent stock shall be voted for or be entitled to vote or to represent
at any stockholder’s meeting.
TRUE
30.) The records of the business transactions of the corporation and the minutes
of any meeting shall be open to the inspection of any director, trustee, stockholder
or member of the corporation at reasonable hours on business days.
TRUE
31.) Stock issued by the a corporation in excess of the amount prescribed or
limited by its Articles of Incorporation are void even in the hands of a bona fide
purchaser for value.
TRUE
32.) Stockholders or members meetings shall be held in the city or
municipality where the principal office of the corporation is located, and if
practicable, in the principal office of the corporation.
TRUE
33.) A corporation has no legal capacity to release a subscriber to its capital
stock from the liability to pay for his shares.
TRUE
34.) A director is removed from office by a vote of stockholders holding at
least 2/3 of the outstanding capital stock. The vacancy occasioned by such
removal can be filled by the votes of at least a majority of the remaining directors,
if still constituting a quorum.
TRUE
35.) No part of the income of a non-stock corporation may be distributed as
dividends.
TRUE
36.) A non-stock corporation may have more than fifteen trustees.
TRUE
37.) Trustees of a Non- stock corporation shall have a term of 3 years.
TRUE
38.) All of the issued stocks, exclusive of treasury stocks, of a close
corporation shall be held of record by not more than 20 stockholders.
TRUE
39.) The Articles of Incorporation of a close corporation may provide that the
business of the corporation shall be managed by the stockholders rather than by
the board of Directors.
TRUE
40.) The pre-emptive right of the stockholders in a close corporation shall
extend to all stocks to be issued, including re issuance of treasury shares, unless
the articles of incorporation provides otherwise.
TRUE
41.) Subscribers for stock shall be liable to the corporation for interest from the
date of subscription, but only if so required in the by laws.
TRUE
42.) The liability of the stockholders for the payment of the corporate debts is
limited to the value of their shares.
TRUE
43.) Shares without par value may not be issued for a consideration less than P
5 per share.
TRUE
44.) Majority of incorporators must be citizens of the Philippines.
FALSE (explained above)
45.) Dividends are declared by the stockholders.
FALSE
Corporation Law
Assessment 3
COOPERATIVE
Assessment
Question 1
Which of the following does not necessarily characterize a cooperative?
A. Autonomy
B. Common bond of interest
C. Voluntary involvement
D. Absence of capital
Question 2
A cooperative whose members are natural persons is called
A. Primary
B. Natural
C. Parent
D. De jure
Question 3
Which of the following is not a qualification for membership to a primary
cooperative?
A. Natural born resident citizen
B. Of legal age
C. Common bond of interest
D. Actually residing or working in the intended area of operation.
Question 4
A single-purpose cooperative may transform into a multi-purpose cooperative only
after at least how many years of operations?
A. 2
B. 3
C. 4
D. 5
Question 5
Multi-purpose cooperatives must have a minimum paid-up capital of
A. P15,000
B. P50,000
C. P100,000
D. P250,000
Question 6
Duly registered cooperatives shall have what extent of liability?
A. Unlimited
B. Limited
C. None at all
D. To the extent fixed by its by-laws
Question 7
Cooperatives have maximum legal life of 50 years. This period may be extended for
periods not exceeding 50 years in any single instance by an amendment of the
articles of cooperation. However, no extension can be made earlier than ______
prior to the original or subsequent expiry date unless there are justifiable reasons for
an earlier extension.
A. 3 years
B. 5 years
C. 7 years
D. 10 years
Question 8
The preferred share capital of a cooperative shall not exceed what percent of its total
authorized share capital?
A. 5%
B. 10%
C. 20%
D. 25%
Question 9
No member shall own more than what percent of the subscribed share capital of a
cooperative?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
When does a cooperative acquire juridical personality?
A. From the formation of all its members
B. From the transfer of funds to the cooperatives
C. From the issuance of certificate of registration by the CDA
D. From the assumption of offices by its directors
Question 11
Which type of cooperative has the primary purpose of procuring and distributing
commodities to its members and non-members?
A. Credit
B. Consumers
C. Service
D. Producers
Question 12
This type of cooperative undertakes joint production whether agricultural or
industrial.
A. Producers
B. Multi-purpose
C. Consumers
D. Marketing
Question 13
This type of cooperative is organized for the primary purpose of engaging in savings
and credit services and other financial services.
A. Cooperative bank
B. Financial service cooperative
C. Lending cooperative
D. Commercial cooperative
Question 14
A laboratory cooperative is one organized by
A. Scientists
B. People of scientific background
C. Minors
D. Researchers
Question 15
What type of cooperative member has no right to vote or be voted upon and shall
only be entitled to any such rights and privileges as the bylaws may provide?
A. Regular member
B. Associate member
C. Loyal member
D. Disloyal member