Code Of investment Flashcards
(21 cards)
When was the Corporation Code of the Philippines enacted?
a. May 1, 1975
b. May 1, 1980
c. May 1, 1985
d. May 1, 1990
B
What is the primary purpose of the Corporation Code of the Philippines?
a. To regulate labor practices
b. To govern corporate governance and operations
c. To oversee taxation policies
d. To manage foreign trade
B
What legislative body enacted the Corporation Code of the Philippines?
a. Congress of the Philippines
b. Senate of the Philippines
c. Batasang Pambansa
d. House of Representatives
C
Which type of corporation has capital stock divided into shares?
a. Non-stock corporation
b. Stock corporation
c. Sole proprietorship
d. Cooperative
B
What is required for the formation of a stock corporation?
a. At least three incorporators
b. At least seven incorporators
c. At least ten incorporators
d. At least five incorporators
D
Where must the Articles of Incorporation be filed?
a. Department of Trade and Industry (DTI)
b. Bureau of Internal Revenue (BIR)
c. Securities and Exchange Commission (SEC)
d. Local Government Unit (LGU)
C
What document outlines the internal governance structure of a corporation?
a. Articles of Incorporation
b. By-laws
c. Corporate Charter
d. Memorandum of Agreement
B
Who manages the affairs of a stock corporation?
a. Shareholders
b. Board of Directors
c. President and Treasurer only
d. SEC
B
What is one right granted to stockholders under the Corporation Code?
a. Right to receive dividends
b. Right to dissolve the corporation unilaterally
c. Right to appoint officers directly
d. Right to bypass corporate governance rules
A
What type of shares may have special privileges such as priority in dividends?
a. Common shares
b. Preferred shares
c. Treasury shares
d. Founders’ shares
B
What is required for meetings to be valid under the Corporation Code?
a. Attendance by all members
b. Approval from SEC
c. A quorum
d. Presence of legal counsel
C
Which body elects directors or trustees in corporations?
a. The Board itself
b. Stockholders or members
c. SEC
d. Officers
B
What happens during corporate merger or consolidation?
a. The merging corporations remain separate entities
b. The resulting corporation assumes all assets and liabilities
c. The merging corporations are dissolved without successor entities
d. No regulatory approval is required
B
How can voluntary dissolution be initiated?
a. By filing directly with SEC without stockholder approval
b. By a vote of stockholders or members followed by filing with SEC
c. By decision of officers only
d. By court order
B
Who appoints officers such as the president and treasurer in corporations?
a: Stockholders directly
b: Board of Directors/Trustees
c: SEC
d: Members
B
What is one key power granted to corporations under the Corporation Code?
a: Power to create laws
b: Power to override constitutional mandates
c: Power to levy taxes
d: Power to enter into contracts
D
Which type of corporation is typically formed for charitable purposes?
a: Stock corporation
b: Non-stock corporation
c: Cooperative
d: Partnership
B
What does limited liability mean for stockholders?
a: They are personally liable for corporate debts
b: Their personal assets are protected from corporate liabilities
c: They have no rights in corporate governance
d: They can be sued individually for corporate actions
B.
What does the term “treasury shares” refer to?
a: Shares issued by government-owned corporations
b: Shares reacquired by the corporation itself
c: Shares held by incorporators at formation
d: Shares with no voting rights
B
What is one impact of the Corporation Code on Philippine businesses?
a: It discouraged foreign investments
b: It promoted transparency and accountability in governance
c: It eliminated small businesses from competition
d: It abolished corporate taxation
B
Identify the law that serves as the primary legal framework for corporations in the Philippines.
The Corporation Code of the Philippines (Batas Pambansa Blg 68)
