Pre-incorporation contract between the promoter and the company becomes binding by ratification by ___________Question 6Answera.General meetingb.Independent Board of Director of which the promoter participatedc.Managing Directord.Independent Board of Director, of which the promoter was recused.

The contract entered between the company at its embryonic stage and other parties is otherwise known asQuestion 7Answera.Articles of Associationb.pre-incorporation undertakingc.pre-incorporation contractd.memorandum of understanding

A promoter is in a ________ relationshipQuestion 3Answera.Businessb.agencyc.promotiond.fiduiciary

Pre-emptive right may be denied to a stockholder ____________.a.At the discretion of the board of directorsb.By the articles of incorporation or by amending the articles of incorporationc.By the by-laws of the corporationd.By the vote of 2/3 of all shareholders

When all requirements as to incorporation have been met a certificate of incorporation is issued under the hand of the _______ of the CommissionQuestion 2Answera.director generalb.None of the optionsc.designate officerd.chief executive

A person served as director of both Corporation A and Corporation B. This director was presentat a meeting of the board of directors of Corporation A when it approved a contract betweenCorporation A and Corporation B, and his presence and affirmative vote were necessary toestablish a quorum of the board and approve the contract. The contract was fair and reasonable toCorporation A at the time it was approved. Is the contract voidable by Corporation A?a) Yes, if the common directorship was not known to the board of Corporation A.b) Yes, because the director’s presence and affirmative vote were necessary toestablish a quorum of the board and approve the contract.c) No, because common directorship cannot be a valid ground to void any contractapproved by a board of directors.d) No, because the contract was otherwise fair and reasonable to Corporation A atthe time it was approved