Corporation MCQ (11-20) 11. Which of the following documents may be submitted before or after incorporation? a.

Verification certificate as to the name of the corporation b. By-laws c. Certificate of bank deposit as to the paid-up capital d. Articles of Incorporation 16. Director may be given compensation through any of the following ways, except by: a. The vote of the stockholders representing at least a majority of the outstanding capital stock b. A provision in the by-laws c. The vote of the Board of Directors if the compensation is a reasonable diem d. The vote of the Board of Directors if the compensation is other than per diems

12. A stock corporation, in general, is taxed in the same manner as a. General professional partnership b. Non-general professional partnership c. Sole proprietorship d. Cooperative

17. Under this theory, the nationality of a corporation is that of the country under whose laws it was formed a. Control test b. Incorporation test c. Domiciliary test d. Grandfather rule

13. Which shares may be issued with or without par value? a. Common shares b. Preferred shares c. Both common and preferred shares d. Neither common nor preferred shares

18. The subscriber of unpaid shares which are not delinquent shall be entitled to the following rights, except the right to: a. Vote b. Inspect corporate books c. A stock certificate d. Dividends 19. Immediately after their election, the directors must formally organize by election the following officers, except: a. President b. Vice-President c. Treasurer d. Corporate Secretary

14. Who may vote the shares without the need of any written proxy? a. The pledgee of shares of stock b. The mortgagee of shares of stock c. The executor of an estate which owns the shares of stock d. The stockholder who transferred his shares in a voting trust agreement.

15. In which of the following corporate acts is the appraisal right not available? a. Merger or consolidation b. Extension or shortening of corporate existence c. Sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of its corporate stock d. Investment of funds for the accomplishment of the primary purpose of the corporation

20. Which of the following is not a characteristic of a corporation? a. Perpetual life b. Transferability of ownership interests c. Unlimited liability on the part of the stockholders d. Ability to attract large amount of capital

Page 1 of 2

Corporation MCQ (11-20) 11. ANSWER: B

12. ANSWER: B

13. ANSWER: A

14. ANSWER: C

15. ANSWER: D

16. ANSWER: A

17. ANSWER: B

18. ANSWER: C

19. ANSWER: B

20. ANSWER: C

Page 2 of 2