CORPORATION

Question 1

The minimum amount upon which no-par, no stated value share capital are to be subscribed or issued

Answer 1

P5.00

Question 2

A value that may be assigned to no-par stock by the board of directors of a corporation

Answer 2

Stated Value

Question 3

A subscriber who fails to pay his subscription balance

Answer 3

Delinquent Subscriber

Question 4

A stock certificate is issued to the subscriber upon full payment of his subscription

Answer 4

FALSE

Question 5

The cost of organizing a corporation should be

Answer 5

Expensed in the year of Corporation

Question 6

The asset recognized upon incorporation of a partnership which represents the excess of the value of the share capital issued by the corporation over the fair value of the net assets of the partnership transferred to the new corporation

Answer 6

GOODWILL

Question 7

The maximum number of years life of a corporation

Answer 7

50 years

Question 8

A corporation organized under Philippine laws

Answer 8

Domestic Corporation

Question 9

It is legal to issue share capital at par or at more than par but not less than par

Answer 9

TRUE

Question 10

Preference shares that have no claim on any prior year dividends that may have passed

Answer 10

Non-cumulative Preference shares

Question 11

Class of share capital which entitles the holder to an equal or pro-rata division of profits without any preference or advantage over any class of stock

Answer 11

Ordinary Share Capital

Question 12

An artificial being created by operation of law formed by five or more persons

Answer 12

Corporation

Question 13

A share capital issued to a shareholder

Answer 13

Outstanding Share Capital

Question 14

The maximum number of shares of stock that the government gives a corporation permission to issue is the

Answer 14

Authorized Shares

Question 15

Share capital subscription in a corporation are payable only in cash

Answer 15

FALSE

Question 16

A nominal value stated on the face of the stock certificate and in the articles of corporation

Answer 16

Par Value

Question 17

The account charged for all expenses relating to deliquent subscription

Answer 17

Receivable from Highest Bidder

Question 18

When there is no bidder for deliquent subscription, the subscribed share will be

Answer 18

Issue in the name of the corporation

Question 19

All incorporators are shareholders but not all shareholders are incorporators

Answer 19

TRUE

Question 20

Cost incurred in connection with the incorporation. They include cost of printing stock certifications and filling fees

Answer 20

Pre-operating costs/ Organization costs

Question 21

The minimum percentage of the subscription in share capital that has to be paid by the incorporators

Answer 21

25%

Question 22

The document evidencing share capital ownership in a corporation

Answer 22

Stock Certificate

Question 23

Not typically a characteristic of preference shares

Answer 23

Preference as to voting rights

Question 24

Convertible preference shares allow the issuing corporation to redeem the shares

Answer 24

FALSE

Question 25

The account credited for the excess of the subscription or issue price over the stated value of ordinary share capital

Answer 25

Paid-in capital in excess of stated value

Question 26

It represents residual ownership equity

Answer 26

Ordinary Share Capital

Question 27

The process of formalizing the organization of a corporation

Answer 27

Incorporation

Question 28

The minimum percentage of authorized share capital that has to be subscribed by incorporators

Answer 28

25%

Question 29

Class of share capital which enables the holder to enjoy preferences as to receipt as to receipt of dividends

Answer 29

Preference Share Capital

Question 30

The persons who originally formed th corporation

Answer 30

Incorporators