GPA REVIEW SCHOOL OF THE PHILIPPINES REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS Quizzer Direction: Read and sclect the best answer for the following questions. T. Tis 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 Partnership b. Corporation ©. Cooperative 4, Sole-proprictorship 2 Ibis autonomous and duly registered associetion of persons, with a common bord of interest, who have voluntarily Joined together to achieve their sociel, economic, and cultural needs and aspirations by making equiteble contributions ‘o the capital required, patronizing their products and services and accepting e fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative prinsiples. a. Partnership b. Corporation ©. Cooperative d. Sole-proprietorship 3. Which of the following is the purpose of a cooperative? ‘a. To encourage thrift and savings mobilization among the members 'b, To maximize the contro! of wealthy people of businesses c. To acquire land for development as condontiniura projects for commercial purposes d, To advocate sirike, rally and boycott 4. Which ofthe following is not a purpose of a cooperative? x ‘a, To promote ard advance the economic, social and educational status of the members b. To encourage and promote self-help or seifemployment as an engine for economic growth and poverty alleviation c. To generate finds and extend eredit to the members for productive and provident purposes; 4. To create monopoly or business considered as restraint of trade 5. Which of the following is an objective of'a cooperative? ‘a To provide goods and services to its members to enable ther to attain increased income, sevings, investments, productivity, and purchasing power, and promote among themseives equitable distribution of net surplus > through maximum utilization of economies of scale, cost-sharing and risk-sharing b, To icach members of inefficient ways of doing things in a cooperative manner €. To sllow the higher income and more privileged groups to inerease their ownership in the wealth of the nation. 4. To provide minimal socia! and economic benefits to iis members 6 As ageneral rale, what is the quorum in the regular or special meeting of general assembly of a cooperative bank? ‘a. At least one half plus one of the number of voting shares of all the members in good standing Sb. At least 2596 of all members entitled to vate At least 5% of all members entitied to vole d. At least 3/4 of ell members with voting tights present and constituting a quorum 7. Asan exception to general rule, what is the quorum in the meeting of general assembly of @ cooperative bank for the ‘amendment of its articles of cooperation or by-lays? ‘At least one half plus one of the number of voting shares ofall the members in good standing At least 25% of all members entitled to vote At least 5% of all members entitled to vore ‘At least 3/4 of all members with voting rights present and constituting a quorum pose ‘What iste voting right ofthe members of a conperative bank? a. Each individual member shall have only one vote 1. ‘The voting rights of the members shall be proportionate tothe numberof their paid-up shares. GB fb Each individual member shall have one (1) basic vote and as many incentive votes as provided for in the bylaws but not exceed five (5) votes. 4. Bach individual member shall have five (5) basic votes. 9. What is the quorum necessary for validity of meeting of Board of Directors of ordinary cooperative? a, Atleast majority of the members of the Board unless the bylavss prove otherwise b. One-half plus one of all the members of the board of directors ©. Atleast 3/4 of the members of the Board unless the bylaws provide otherwise 4 Atleast 23 of the members of the Board unless the bylaws provide otherwise ———_$S$$ Regulatory Framework for Business Transactions (B44 4) Page 1 of 2210, What is the quorum necessary for valdty of meeting of Board of Directors of ordinary cooperative? 8. Atleast majority ofthe members of the Board ualess the bylaws provide ctherwise B, & One-half plus one ofall the members of the board of directors © Atleast 3/4 of the members of the Board unless the bylaws provide otherwise 4, Atleast 2/3 of the members of the Board unless the bylaws provide otherwise 11, What is the required vote for division of eooperative to two or more cooperatives? 2. Atleast 34 of all the members with voting rights, present and constituting a quorum b. Atleast 13 of all the members with voting rights, present and constituing a quorum | Ac: Atleast 2 of all the members with ‘Voting rights, present and constituting a quorum ¢. Atleast majority ofall the members with voting rights, present and constituting a quomim | 12. What is the required vote for the termination of a membership ‘ina cooperative for any of the valid causes enumerated | by Cooperative Code? ‘& At least 2/3 of all the memibers ofthe cooperative with right to vote & At least of all the members of the cooperative with right 1o vote 1) & Atleast % of all the members ofthe board of directors of the cooperative © ch Atleast majority ofall the members of the board of directors of the cooperative 1 13, Which ofthe following is nota negotiable instrument? a. Treasury warrant Bond ©. Certificate of deposit 4. Banker's acceptance 14. Which of the following is not a requisite of « uegotlable promissory note? ‘The promissory note must be in writing and signed by the maker. bs ‘he promissory note must be payable on demand, or atu fixed time or at « determinable future time. [)_& Thepayee of a promissory nots payable to order must be named or otherwise indicated therein with reasonable cartainty. 4. ‘The promissory note must be payable to a specified person named therein, 15. Which of the following instruments is non-negotiable? a. A bill of exchange written with the use of pencil b. Abill of exchange written on a well. ‘&.~A promissory nite written ora piece of paper. 4. A promissory note signed with a mark. or 16, Which of the following instmiments is an invalid inctrument? | "Pay P or order P1090 ou of my share from profits of ABS, LTD." Signed, M i b. "Pay P of order P2,000 in two equal installments plus 10% interest per annum." Signed. M, D_ . “Pay Per onterB,000 one moath before Xs devise" Sica 4. None of te above. 17. Which of the following instruments ie Wot unconditional ands, therefore, non-negotiable? & (Pay P or ondsr P1,000 and reimburse yourself with the proceeds ef the watch you are selling to me.” ‘b"Pay bearer 4,000 from my shure in the profis of our partnership tusiness * | Bye stprmise to pay Por ender 3,009 as Payment for the ting [ pinchased from him," & "Pay bearer P2,000 and charge the payment to my account in your mands ” 18, M made and delivered a négotiahle promissory note paysbe to P er onder and authorized F to fill up the amount of no more than P20,000. P filled up the amount of P35,000. P subsequently indorsed and delivered the note to A who Subsequently indorsed and detivered the nats to B, a holder in due course. Who may be held Hable to B for P25,000? a Ponly bh Aorly &. PandAcoly a. M,Pand a 19. X stole'a pre-tigned bianl: negotiable promissory note payable to order from Ms office cabinet. Xthen placed tho Aticunt of P15,000 and Ps name 2s the paves, than indoreed ené delivered the role to A using PS name by ‘otpieg the lntio’s signature. ther subsequcatly sndorsed and delivered the nate to B who subseciontiy indorsed od della the note fo, a bolder in due course, Who is liable to C inthe amount o7 Pis,0n0? 4 MBCA adB (bX And only © 6. x. Wand Boaly 4. M,Pand Xoniy Regulatory Framework for Business Trsnsections (B41 4) Pave 2 af?)20, X stole a negotiable promissory note payeble to the order of X that is completely made by M. X subsequently indorsed and delivered the note to A who subsequently indorsed and delivered the not to B, a holder in due course. Who may be held liable by B? a. Aonly pb Xonly ? c, XandA only 4 M,Xand A 21, M made a negotiable promissory note payable to the order of P for P5,000, P indorsed and delivered the note to A. X stole the note from A and then forged A's signature in order to indorse the note to B and the delivered the note to B. B subsequently indorsed andl delivered the note to C, a holder in due course, Who may be held liable by C? a M,P,X,AandB b. PX, Aand Boaly ©. X,AandB only d. XandB only 22, M executed a negotiable promissory note in the sum of P100,000 to the order of P for the purchase of jewelry which P does not own or possess. P indorsed and delivered the note to A, a holder in due course, From whom may A collect 100,000? a. From both M and P b. FromM only ¢. FromPonly d. None of the above 23. M wanted to held his friend P who needed cash desperately. In exchenge for P's valuable painting and accommodate P,M oxecuted a negotiable promissory note for P400,000 naming P as the payee therein, Subsequently, P indorsed and delivered the note at BDO Bank and received the proceeds out of the discounted note. Upon maturity date, P and BDO Bank decided to extend the maturity date by another six months without knowledge and consent of M. The grace period also matured without the note being paid. Which is correet? a Mis primarily liable to BDO Bank whereas P is only secondarily liable to BDO Bank. b. Only Pis liable to BDO Bank because M is released from his obligation when the period was extended without D his knowledge and consent. Only M is litle to BDO Bank as an accommodation party to the note. d. None of the above, 24, M made a negotiable promissory note payable to the order of P. X stole the note and forged P's signaure to indorse the rote 10 A and delivered the note to A. A subsequently indorsed and delivered the note to B as follows "Pay 10 B without recourse, (Sgd. A)." Who among the parties shail be liable 1o B? _ & XMandP -b Xand A only 2c XandMonly Xonly 25, M made a negotiable promissory note for PS,000 payeble to the order of P. P indorsed and delivered the note to A. as follows: "Pay A upon the passing of A of the Bar Examination next year.” A flunked the bar examination held in the following year and the note matured. Which is correct? a. Mmay or may not pay A the sum of P5,000 and in ease he does, he discharged ftom his cbligation on the note, b. Mshould not pay A the sum of P5,000 because the condition is not fulfilled, © Mand P should not pay A the sum of P3,000 because the promise is not umconditional and therefore, the 5 instrument is non-negotiable, None of the above. 26. M made a negotiable promissory note payable to P or bearer. P specially indorsed aud delivered the note to A who specially indorsed and delivered the note to B. X stole the note from B and delivered it to C without any indorsement.C is aholder in due course. Who may be held liable to C7 a Xonly b. Mand X only c M,P,A and X only 4, M,P, A,B and X only 27. Which of the following is not a requisite of holder in due course? 2, He took the instrument complete and regular upon its face, 'b. He became the holder of the instrument before it is overdue and without notice that it had been previously r dishonored if'such was the fect. V6 Hetook the instrument in good faith and for value, 4. He has no knowledge of any fact which would impair the validity of the instrument or render it valueless. Regulatory Framework for Business Transactions (8474) Page 3 of 22