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WorksheetsTHC LEGAL ASPECTS QUIZ 2
Total questions: 25
Worksheet time: 13mins
What is the essential characteristic of a partnership?
A. A contract involving two or more corporations
B. A relationship created by operation of law
C. A contract where two or more persons bind themselves to contribute money property, or industry to a common fund
D. A limited liability arrangement similar to a corporation
Which of the following is NOT an essential element of a partnership?
A. Contribution of money, property, or industry
B. Intent to divide profits and losses
C. Registration with the Securities and Exchange Commission
D. Existence of lawful object or purpose
A partnership may be constituted in any of the following forms EXCEPT:
A. Oral agreement
B. Written contract
C. Public instrument when immovable property is contributed
D. Corporate charter
Which type of partnership exists even without express agreement, due to the conduct of the parties?
A. Universal partnership
B. De jure partnership
C. De facto partnership
D. Partnership by estoppel
When does a partnership begin to exist?
A. Upon notarization of the partnership contract
B. Upon SEC registration
C. Upon mutual agreement between partners
D. Upon execution of the Articles of Partnership
What is the maximum term of existence of a corporation under the new law?
A. 25 years, renewable
B. 50 years, renewable
C. Indefinite unless otherwise stated
D. 75 years fixed
What vote is generally required to amend the Articles of Incorporation?
A. Majority of the board only
B. Two-thirds (2/3) of the stockholders or members
C. Three-fourths (3/4) of the board
D. Unanimous consent of all incorporators
Who exercises corporate powers in a corporation?
A. Shareholders only
B. Board of Directors or Trustees
C. Corporate Secretary
D. General Manager
Which of the following is TRUE about shareholders or stockholders?
A. They are personally liable for the corporation’s debts
B. They are automatically entitled to manage the corporation
C. They have a proprietary interest in the corporation
D. They can act as corporate officers without appointment
In which situation may a stockholder be held personally liable for corporate obligations?
A. When he/she fails to attend board meetings
B. When the corporate veil is pierced due to fraud or bad faith
C. When the stockholder owns 50% or more of shares
D. When dividends are not declared
Stockholders may inspect the corporate books at reasonable hours, except when:
A. It involves trade secrets and confidential matters
B. The corporation is a close corporation
C. The stockholder owns less than 10 shares
D. The stockholder is also an employee
Which of the following is NOT a cause for the dissolution of a partnership under the Civil Code?
A. Mutual agreement of partners
B. Death of any partner
C. Insolvency of the partnership
D. Expiration of a Corporate term
In a partnership, who pays the liabilities in case of dissolution due to insolvency?
A. Only the managing partner
B. Partners are jointly and severally liable
C. Only those who profited
D. Only the surviving partners
Which of the following best describes a common carrier under Philippine law?
A. A person who occasionally transports goods or passengers
B. A private individual using personal vehicles for family travel
C. Any person or company that offers transport services to the public for compensation
D. A government-owned utility company
Under the Civil Code, what degree of diligence is required of common carriers?
A. Ordinary diligence
B. Slight diligence
C. Extraordinary diligence
D. Reasonable care
Airlines are considered common carriers. Which of the following does NOT constitute a valid defense for non-liability for passenger injury?
A. Pilot followed all standard procedures
B. Flight crew acted in bad faith
C. Clear turbulence warning was ignored by passengers
D. Injury was caused by the passenger’s own reckless act
In the case of passenger death due to airline fault, the heirs may recover:
A. Actual and moral damages only
B. Damages under quasi-delict
C. Actual, moral, exemplary, and temperate damages
D. Refund of ticket only
In airline travel, extraordinary diligence begins:
A. When the passenger enters the airport
B. When the passenger receives a boarding pass
C. From the time of check-in until departure and arrival
D. From takeoff to landing only
A bus company is considered negligent if it:
A. Fails to provide WiFi
B. Allows an unlicensed driver to operate the bus
C. Offers promotional fares
D. Fails to stop for a waiting passenger
If cargo is lost due to theft by an employee of the carrier, the carrier is:
A. Not liable because theft is a crime
B. Liable unless it proves due diligence in selecting and supervising the employee
C. Liable only if insured
D. Not liable if reported immediately
If a typhoon causes damage to cargo, what must the carrier show to escape liability?
A. That the typhoon was unpreventable
B. That all reasonable precautions were taken and the event was unforeseeable
C. That the contract excluded liability due to weather
D. That the shipper assumed the risk
In case of damage or loss of goods, the common carrier is presumed negligent unless it can prove:
A. There was no passenger complaint
B. Exercise of ordinary diligence
C. That loss was due to fortuitous event and all measures were taken to avoid it
D. The value of the goods was overstated
Who among the following partners is generally prohibited from engaging in any other business for himself?
A. Capitalist Partner
B. Industrial Partner
C. Secret Partner
D. Dormant Partner
Which of the following types of partners is liable only to the extent of their contribution?
A. General Partner
B. Industrial Partner
C. Limited Partner
D. Secret Partner
Which of the following is NOT a right of stockholders?
A. Right to vote
B. Right to inspect books
C. Right to demand employment
D. Right to receive dividends when declared
