Reference no: EM132804052

Problem 1: This refers to an equitable right of shareholders to subscribe to newly issued shares in the corporation in porportion to their present shares in order to maintain their equity in their susrplus as well as proportionate standing in the corporation.

a. Pre-emptive right.

b. Right of redemption

c. Right of existence

d. Right of succession

Problem 2: Which of the following qualifications is necessary in order that one may be elected president of the corporation?

a. He must not be a shareholder or director of a competitor corporation.

b. He must be a citizen and a resident of the Philipppines.

c. He must be a director of the corporation.

d. He must not be a president of any other corporation.

Problem 3: ABC Corporation has a 5% participating preference shares issue, along with ordinary shares issue. Which of the following statements is true?

a. Participating preference shareholders receive an average dividend payment of 5%.

b. Participating preference shareholders receive a minimum dividend payment of 5%.

c. Participating preference shareholders receive only 5% in dividends.

d. Participating preference shareholders receive a maximum dividend payment of 5%.