Whic of the Following Statements Best Describes Continuity of Interst
COVERAGE: Republic Act No. 11232: Revised Corporation Code of the Philippines Direction:
Read and select the best answer for the following questions.
1. It is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties
expressly authorized by law or incident to its existence.
a. Corporation
b. Cooperative
c. Partnership
d. Joint Venture
2. The following are the attributes of a private corporation, except
a. It is an artificial being.
b. It is created by operation of law.
c. It acquires juridical personality from the moment the SEC issues its certificate of registration.
d. It requires not more than fifteen (15) incorporators or founders under RA 11232.
e. Its owners are generally liable only up to the extent of their capital contribution.
f. Its owners are generally allowed to transfer their interests even without the consent of the other owners. g. It enjoys the
right of succession.
h. It may exist in perpetuity under RA 11232 unless a fixed term is stated in the articles of incorporation.
i. It has no powers, attributes and properties except those powers, attributes, and properties expressly authorized by law
or incident to its existence.
j. Its power to do business and manage its affairs is vested in the board of directors or board of trustees.
k. It can only be legally dissolved with the consent of the state.
It has no personality separate and distinct from its owners .
3. This theory which is recognized by Corporation Code states that a corporation is not in fact and in reality a person, but the law
treats it as though it were a person by process of fiction, or by regarding it as an artificial person distinct and separate from its
individual stockholders. It owes its existence to law and the extent of its existence, powers and liberties is fixed by its charter.
a. Concession theory or fiat theory or government paternity theory or franchise theory
b. Symbol theory
c. Genessonchaft theory
d. Realist or inherence theory
e. Contract theory
f. Theory of enterprise entity
4. How may a corporation be created under Philippine setting?
a. In case of private corporation, by operation of general corporation
law particularly the Corporation Code of the Philippines (BP 68).
b. In case of public corporation, by law or enactment of special law.
c. Either A or B .
d. By mere consent of the contracting parties
5. As an artificial being, which of the following constitutional rights is not available to a corporation?
a. Right to due process of law
b. Right to equal protection of the law.
c. Right against unreasonable searches and seizures
d. Right against self-incrimination
6. Which of the following statements concerning the implications of being an artificial being of a corporation is correct ?
a. As a general rule, a corporation is not entitled to moral damages because, not being a natural person, it cannot experience
physical suffering or sentiments like wounded feelings, serious anxiety, mental anguish and moral shock except when a
corporation has a reputation that is debased, resulting in its humiliation in the business realm particularly in the case of
libel or defamation.
b. As a general rule, a corporation cannot be held liable for a crime because of impossibility of imposing the penal sanction
of imprisonment and because a crime committed in the name of corporation is actually committed by the individuals
who act for and in behalf of such corporation. However, it may become liable for fines to be imposed in the criminal
action.
c. Both A and B .
d. Neither A nor B.
7. Which of the following corporate legal doctrines refers to the doctrine of separate juridical personality?
a. It means that a corporation is a juridical entity with legal personality separate and distinct from those acting for and, in
its behalf and, in general, from the people comprising it; and that obligations incurred by the corporation, acting through
its directors, officers and employees are its sole liabilities .
b. It means that a stockholder is personally liable for the financial obligations of the corporation to the extent only of his
unpaid subscription or that a stockholder's liability for corporate debts extends only up to the amount of his capital
contribution.
Source: https://www.studocu.com/ph/document/philippine-school-of-business-administration/bachelor-of-science-in-accountancy/rfbt-republic-act-no11232-revised-corporation-code-of-the-philippines-with-answers/11384388
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