he Securities and Exchange Commission denied the amendment of the Articles of Incorporation of Corporation B because it found out the corporation will be used as a drug den. What is the definite ground of disapproval of the amendment? a. The certification concerning the amount of capital stock subscribed and/ or paid is false. b. The purpose/s are patently unconstitutional, illegal, immoral or contrary to government rules and regulations. c. Not substantially in accordance with the Code. d. The required percentage of Filipino ownership of the capital stock under existing laws or Constitution has not been complied with.

he Securities and Exchange Commission denied the amendment of the Articles of Incorporation of Corporation B because it found out the corporation will be used as a drug den. What is the definite ground of disapproval of the amendment? a. The certification concerning the amount of capital stock subscribed and/ or paid is false. b. The purpose/s are patently unconstitutional, illegal, immoral or contrary to government rules and regulations. c. Not substantially in accordance with the Code. d. The required percentage of Filipino ownership of the capital stock under existing laws or Constitution has not been complied with.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter4: Ethical Responsibilities Of Accountants

Section4.1: Creve Couer Pizza, Inc.

Problem 2Q

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Which action is not considered an act discreditable to the accounting profession? a) Being finally determined by a court of competent jurisdiction to have violated any of the federal antidiscrimination laws. b) Having a bank collect notes received from a client in payment of fees. c) Failing to follow standards and procedures established by governmental agencies in audits of grants by those agencies. d) Negligently permitting another to sign a document containing materially false and misleading information.
Should corporate lawyers who become aware that someone at the client corporation may have violated securities laws report their suspicions only to persons within the corporation, or should they report their concerns to the SEC?
Which of the following statement is true of a corporation’s by-laws? A corporation’s by-laws, being an intramural document, only binds corporate insiders. A corporation’s by-laws, being and intramural document binding on corporate insiders, cannot be dispensed with and any act done by corporate insiders in violation thereof is null and void. A corporation’s by-laws, being an intramural document, binds only corporate insiders and such third parties with actual knowledge of its contents. A corporation’s by-laws, being a public document on record with the SEC, binds all parties.
Contraventions of the Corporations Act that are considered significant include: O a fraud by officers or employees of the entity. O b. insolvent trading. O c. breaches of accounting standards. O d. all are correct.
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. A prohibition in the articles of incorporation and by-laws that none of the stockholders shall engage in similar competing of antagonistic business or activity to what the corporation is primarily engaged in – is a valid and reasonable exercise of corporate authority is not a reasonable exercise of corporate powers is no in consonance with the business judgement rule is in violation of fair competition in an industry
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