# STATEMENTS

This Act shall be known as the "Financial

Rehabilitation and Insolvency Act (FRIA) of 2010".
A. REPUBLIC ACT NO. 10142
1
B. REPUBLIC ACT NO. 10155
C. REPUBLIC ACT NO. 10150
D. REPUBLIC ACT NO. 10100
It shall be made with a view to ensure or maintain
certainly and predictability in commercial affairs,
preserve and maximize the value of the assets of these
debtors, recognize creditor rights and respect priority
of claims, and ensure equitable treatment of creditors
2
who are similarly situated.
A. REHABILITATION
B. LIQUIDATION
C. BOTH A & B
D. NONE OF THE ABOVE
It shall refer to those reasonable and necessary
expenses incurred or arising from the filing of a
petition under the provisions of this Act.
3 A. CLAIM
B. ADMINISTRATIVE EXPENSES
C. CONTROL
D. AFFILIATE
It shall refer to a corporation that directly or
indirectly, through one or more intermediaries, is
controlled by, or is under the common control of
another corporation.
4
A. CLAIM
B. ADMINISTRATIVE EXPENSES
C. CONTROL
D. AFFILIATE
It shall refer to all claims or demands of whatever
nature or character against the debtor or its property,
whether for money or otherwise, liquidated or
unliquidated, fixed or contingent, matured or
5 unmatured, disputed or undisputed.
A. CLAIM
B. ADMINISTRATIVE EXPENSES
C. CONTROL
D. AFFILIATE
It shall refer to the power of a parent corporation to
direct or govern the financial and operating policies
of an enterprise so as to obtain benefits from its
activities.
6
A. CLAIM
B. ADMINISTRATIVE EXPENSES
C. CONTROL
D. AFFILIATE
IT shall refer to the date on which the court issues
7
the Commencement Order, which shall be retroactive to
 the date of filing of the petition for voluntary or
involuntary proceedings.
A. DEBTOR
B. COMMENCEMENT DATE
C. CREDITOR
D. COMMENCEMENT ORDER
It shall refer to the order issued by the court under Section
16 of this Act.
A. DEBTOR
8
B. COMMENCEMENT DATE
C. CREDITOR
D. COMMENCEMENT ORDER
It shall refer to a sole proprietorship duly registered
with the Department of Trade and Industry (DTI), a
partnership duly registered with the Securities and
Exchange Commission (SEC), a corporation duly organized
and existing under Philippine laws, or an individual
9
debtor who has become insolvent as defined herein.
A. DEBTOR
B. COMMENCEMENT DATE
C. CREDITOR
D. COMMENCEMENT ORDER
It shall refer to a natural or juridical person which
has a claim against the debtor that arose on or before
the commencement date.
10 A. DEBTOR
B. COMMENCEMENT DATE
C. CREDITOR
D. COMMENCEMENT ORDER
It shall refer to a claim that is secured by a lien.
A. UNSECURED CLAIM
11 B. SECURED CLAIM
C. UNSECURED CREDITOR
D. SECURED CREDITOR
It shall refer to a creditor with a secured claim.
A. UNSECURED CLAIM
12 B. SECURED CLAIM
C. UNSECURED CREDITOR
D. SECURED CREDITOR
It shall refer to a claim that is not secured by a
lien.
A. UNSECURED CLAIM
13
B. SECURED CLAIM
C. UNSECURED CREDITOR
D. SECURED CREDITOR
It shall refer to a creditor with an unsecured claim.
A. UNSECURED CLAIM
14 B. SECURED CLAIM
C. UNSECURED CREDITOR
D. SECURED CREDITOR
15 It shall refer to proceedings initiated by creditors.
 A. VOLUNTARY LIQUIDATION
B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
It shall refer to proceedings initiated by the debtor.
A. VOLUNTARY LIQUIDATION
16 B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
It is a self-imposed wind up and dissolution of a
company that has been approved by shareholders.
A. VOLUNTARY LIQUIDATION
17
B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
It is a situation in which a company is forced by a
court of law to stop doing business because it owes
money and cannot pay its debts.
18 A. VOLUNTARY LIQUIDATION
B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
It connotes reopening or reorganization. Aim is to
restore corporation to its successful operation and
continue corporate life.
19 A. BANKRUPCY
B. REHABILITATION
C. INSOLVENCY
D. LIQUIDATION
It connotes winding up or settling with creditors and
debtors.
A. BANKRUPCY
20
B. REHABILITATION
C. INSOLVENCY
D. LIQUIDATION
It is a legal process through which people or other
entities who cannot repay debts to creditors may seek
relief from some or all of their debts.
21 A. BANKRUPCY
B. REHABILITATION
C. INSOLVENCY
D. LIQUIDATION
It is the state of being unable to pay the money owed,
by a person or company, on time.
A. BANKRUPCY
22
B. REHABILITATION
C. INSOLVENCY
D. LIQUIDATION
Nature of proceedings.
23 A. IN REM
B. SUMMARY/NON-ADVERSARIRAL
 C. BOTH A & B
D. NONE OF THE ABOVE
Petition to initiate voluntary proceedings filed by
debtor by whom if the business is sole proprietorship.
A. OWNER
24
B. MAJORITY OF THE OWNERS
C. MAJORITY OF THE DIRECTORS
D. MAJORITY OF THE TRUSTEES
Petition to initiate voluntary proceedings filed by
debtor by whom if the business is partnership.
A. OWNER
25
B. MAJORITY OF THE OWNERS
C. MAJORITY OF THE DIRECTORS
D. MAJORITY OF THE TRUSTEES
Petition to initiate voluntary proceedings filed by
debtor by whom if the business is stock corporation.
A. OWNER
26
B. MAJORITY OF THE OWNERS
C. MAJORITY OF THE DIRECTORS
D. MAJORITY OF THE TRUSTEES
Petition to initiate voluntary proceedings filed by
debtor by whom if the business is non-stock
corporation.
27 A. OWNER
B. MAJORITY OF THE OWNERS
C. MAJORITY OF THE DIRECTORS
D. MAJORITY OF THE TRUSTEES
Involuntary proceedings is initiated by,
A. CREDITOR
28 B. GROUP OF CREDITORS
C. DEBTOR
D. BOTH A & B
It shall refer to a corporation which has control over
another corporation either directly or indirectly
through one or more intermediaries.
29 A. SUBSIDIARY
B. PARENT
C. STAKEHOLDER
D. OFFICER
It shall refer to a corporation more than fifty percent
(50%) of the voting stock of which is owned or
controlled directly or indirectly through one or more
intermediaries by another corporation, which thereby
30 becomes its parent corporation.
A. SUBSIDIARY
B. PARENT
C. STAKEHOLDER
D. OFFICER
It shall refer to a natural person holding a management
31 position described in or contemplated by a juridical
entity's articles of incorporation, bylaws or
 equivalent documents, except for the corporate
secretary, the assistant corporate secretary and the
external auditor.
A. SUBSIDIARY
B. PARENT
C. STAKEHOLDER
D. OFFICER
It shall refer, in addition to a holder of shares of a
corporation, to a member of a nonstock corporation or
association or a partner in a partnership.
32 A. SUBSIDIARY
B. PARENT
C. STAKEHOLDER
D. OFFICER
It shall refer to transactions in the pursuit of the
individual debtor's or debtor's business operations
prior to rehabilitation or insolvency proceedings and
on ordinary business terms.
33
A. ORDINARY COURSE OF BUSINESS
B. EXTRAORDINARY COURSE OF BUSINESS
C. EITHER OF A & B
D. NEITHER A & B
It shall refer to monetary claims against the debtor,
including stockholder's advances that have been
recorded in the debtor's audited financial statements
as advances for future subscriptions.
34
A. EQUITY
B. CAPITAL
C. ASSET
D. LIABILITY
There is failure of rehabilitation in the following
cases:
A. Dismissal of the petition by the court
35
B. The debtor fails to submit a Rehabilitation Plan
C. BOTH A & B
D. NONE OF THE ABOVE
Which is not a content of a Rehabilitation Plan?
A. ESTABLISH CLASSES OF VOTING CREDITORS
36 B. ESTABLISH SUBCLASSES OF VOTING CREDITORS
C. BOTH A & B
D. ALL ARE CONTENTS OF REHABILITATION PLAN
Party to the proceedings shall refer to ____
A. DEBTOR
37 B. CREDITOR
C. STAKEHOLDER
D. ALL OF THE ABOVE
An act providing for the rehabilitation or liquidation
of financially distressed enterprises and individuals.
38 A. REPUBLIC ACT NO. 10142
B. REPUBLIC ACT NO. 10155
C. REPUBLIC ACT NO. 10150
 D. REPUBLIC ACT NO. 10100
It shall refer to a creditor that is a member of a
class of creditors, the consent of which is necessary
for the approval of a Rehabilitation Plan under this
Act.
39
A. VOTING DEBTOR
B. VOTING CREDITOR
C. VOTING STAKEHOLDER
D. VOTING SHAREHOLDER
It shall be made according to the relevant provisions
of the Corporation Code in the case of stock or
nonstock corporations or the Civil Code in the case of
partnerships that are not inconsistent with this Act.
40
A. DECISION OF CREDITOR
B. DECISION OF DEBTOR
C. DECISION OF STAKEHOLDER
D. DECISION OF SHAREHOLDER
It shall refer to a broker dealer, underwriter,
transfer agent or other juridical persons transacting
securities in the capital market.
41 A. SECURITIES MARKET PARTICIPANTS
B. SECURITIES PRODUCTION PARTICIPANTS
C. UNSECURED MARKET PATICIPANTS
D. UNSECURED PRODUCTION PATICIPANTS
It refers to administrative expenses, except?
A. SELLING EXPENSES
42 B. PAYMENT OF NEW OBLIGATIONS
C. FEES OF THE REHABILITATION RECEIVER
D. OTHER EXPENSES ALLOWED BY THE COURT
It shall refer to real or personal property of the
debtor upon which a lien attaches.
A. LIABILITY
43
B. LIEN
C. ENCUMBERED PROPERTY
D. COLLATERAL
It shall refer to a statutory or contractual claim or
judicial charge on real or personal property that
legality entities a creditor to resort to said property
for payment of the claim or debt secured by such lien.
44
A. LIABILITY
B. LIEN
C. ENCUMBERED PROPERTY
D. COLLATERAL
It shall refer to monetary claims against the debtor,
including stockholder's advances that have been
recorded in the debtor's audited financial statements
as advances for future subscriptions.
45
A. LIABILITY
B. LIEN
C. ENCUMBERED PROPERTY
D. COLLATERAL
 It is an asset that a lender accepts as security for a
loan.
A. LIABILITY
46
B. LIEN
C. ENCUMBERED PROPERTY
D. COLLATERAL
All are considered equal before the liquidation
proceeding.
A. PARI EN PASSU
47
B. PARE PA NGIT
C. AKO AY NA PASSU
D. NONE OF THE ABOVE
It shall refer to the person or persons, natural or
juridical, appointed as such by the court pursuant to
this Act and which shall be entrusted with such powers
and duties as set forth herein.
48
A. CREDITOR
B. DEBTOR
C. REHABILITATION RECEIVER
D. LIQUIDATION RECEIVER
It shall refer to proceedings initiated by creditors.
A. VOLUNTARY LIQUIDATION
49 B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
It shall refer to proceedings initiated by the debtor.
A. VOLUNTARY LIQUIDATION
50 B. VOLUNTARY PROCEEDINGS
C. INVOLUNTARY LIQUIDATION
D. INVOLUNTARY PROCEEDINGS
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.
1
A. CORPORATION
B. PARTNERSHIP
C. SOLE PROPRIETORSHIP
D. JOINT-VENTURE
It is a formal arrangement by two or more parties to
manage and operate a business and share its profits.
A. CORPORATION
2
B. PARTNERSHIP
C. SOLE PROPRIETORSHIP
D. JOINT-VENTURE
It is a type of enterprise that is owned and run by one
person and in which there is no legal distinction
between the owner and the business entity.
3 A. CORPORATION
B. PARTNERSHIP
C. SOLE PROPRIETORSHIP
D. JOINT-VENTURE
 Formed or organized for the government of the portion
of the state.
A. PRIVATE CORPORATION
4
B. PUBLIC CORPORATION
C. GOCC
D. NONE OF THE ABOVE
Created for political purposes connected with the
public good in the administration of the civil
government.
5 A. PRIVATE CORPORATION
B. PUBLIC CORPORATION
C. GOCC
D. NONE OF THE ABOVE
A corporation is created by operation of law under the
Corporation Code.
A. PRIVATE CORPORATION
6
B. PUBLIC CORPORATION
C. GOCC
D. NONE OF THE ABOVE
Mainly governed by the Corporation Code.
A. PRIVATE CORPORATION
7 B. PUBLIC CORPORATION
C. GOCC
D. NONE OF THE ABOVE
Created under a special law or charter.
A. PRIVATE CORPORATION
8 B. PUBLIC CORPORATION
C. GOCC
D. NONE OF THE ABOVE
When did the present corporation code effected?
A. May 1, 1890
9 B. June 1, 1890
C. May 1, 1980
D. June 1, 1980
Corporation which have capital stock divided into
shares and are authorized to distribute to the holder
of such shares or allotments.
10 A. Non-stock
B. Stock
C. Public
D. Private
Another term for “special law”.
A. Characters
11 B. General Law
C. Chartres
D. Charters
Corporators in a stock corporation is?
A. Members; stockholders
12 B. Incorporator; corporator
C. Corporator; incorporator
D. Stockholders, members
 The following may classify shares, except?
A. Incorporators
13 B. Stockholders
C. Board of directors
D. Members
Shares classified as such in the articles of
incorporation which may be given certain rights and
privileges not enjoyed by the owners of other stocks.
14 A. Redeemable shares
B. Retained shares
C. Funder’s share
D. Founder’s share
A corporation’s accumulated income after dividends have
been distributed, except?
A. Distributed profits
15
B. Undistributed profits
C. Retained earnings
D. Earned surplus
Stocks issued for a consideration less than the par or
issued price thereof or in any other form other than
cash valued in excess of it fair value.
16 A. Watered stocks
B. Treasury stocks
C. Treasury shares
D. Redeemable shares
Incorporator must have at least 5-15
persons.
A. Artificial
17
B. Natural
C. Juridical
D. Judicial
Corporate term of a corporation.
A. 50 years
18 B. 55 years
C. 50 years unless sooner dissolved or extended
D. 55 years unless sooner dissolved or extended
There is no minimum authorized capital stock as long as
the paid-up capital is not less than?
A. P 3,000
19
B. P 30,000
C. P 5,000
D. P 50,000
A written contract to purchase newly issued shares of
stock or bonds.
A. Subscription
20
B. Stock subscription
C. Both A & B
D. None of the above
It is a type of corporation that as to purpose, it is a
21 corporation formed for some private purpose, benefit or
end.
 A. Public corporation
B. Quasi-public corporation
C. Private corporation
D. D. Foreign corporation
Shares which may give certain rights and privileges
A. Founders share
22 B. Redeemable share
C. Preferred stock
D. Promotional share
They are the one who certifies the financial statement
of its asset and liabilities.
A. CPA
23
B. Financial managers
C. Attorney
D. Corporation
Portion of the authorized capital stock which has been
both subscribed and paid
A. Subscription
24
B. Paid-up Capital
C. Treasury Stock
D. Watered Stock
In the articles of incorporation, there should be at
least ___ to ___ incorporators.
A. 5;15
25
B. 5;10
C. 5;20
D. 5;25
One that controls another as a subsidiary or affiliate
by the power to elect its management.
A. Holding Company
26
B. Affiliate Company
C. Parent and Subsidiary Companies
D. None of the Above
One that is subject to common control to a mother or
holding company and operated as part of a system.
A. Holding Company
27
B. Affiliate Company
C. Parent and Subsidiary Companies
D. None of the Above
When a corporation has a controlling financial interest
in one or more corporations.
A. Holding Company
28
B. Affiliate Company
C. Parent and Subsidiary Companies
D. None of the Above
One which has a capital stock divided into shares and
is authorized to distribute to the holders such shares,
dividends or allotments of the surplus profit.
29
A. Non-stock Corporation
B. Private Corporation
C. Public Corporation
 D. Stock Corporation
A corporation where no part of its income is
distributable as dividends to members, trustees or
officers.
30 A. Non-stock Corporation
B. Private Corporation
C. Public Corporation
D. Stock Corporation
It is known as an artificial being
A. Limited partner
31 B. Corporation
C. Partner by Estoppel
D. Partnership
What shares may be given certain rights and privileges
that does not enjoyed by the owners of other stocks?
A. Special shares
32
B. Redeemable shares
C. Founder’s shares
D. Share in escrow
Stocks shall not be issued for a consideration
________the par or issued price thereof.
A. Greater than
33
B. Equal
C. Above
D. Less than
No shares of stock against which the corporation holds
any shall be transferable in the book of the
corporation.
34 A. Unpaid claim
B. Unclaim but paid
C. Claim and paid
D. Paid claim
Full amount on the issuance of stock certificate
includes?
A. Interest and income
35
B. Interest and expense
C. Expense and income
D. Any of the above
They are the one who held corporate directors and
officers for the solidary liability.
A. SEC
36
B. BIR
C. Supreme court
D. Corporation
Who pays to the corporation the unpaid subscription?
A. Directors
B. Members
37
C. Stockholders
D. Subscribers

38 The following are the ways to pay unpaid subscription,

 except?
A. Voluntary
B. Property dividends
C. Extra-judicial
D. Judicial
Who declares unpaid subscription?
A. Trustees
39 B. Directors
C. Members
D. Shareholders
Duration in filing complaint in recovering delinquent
stock.
A. 3 months
40
B. 9 months
C. 6 months
D. 5 months
The due incorporation of any corporation claiming to be
in good faith to be a corporation under this code.
A. De Facto Partnership
41
B. De Jure Corp
C. De Jure Partnership
D. De Facto Corp
All persons who assumes to act as a corporation knowing
it to be without authority to do so.
A. Corporation by estoppel
42
B. Third person
C. Estoppel
D. Corporation by third person
The 2-year rule and the 5-year rule are not applicable
if the failure to organize or continuously operate is
due to causes beyond the control of the corporation.
43 A. False
B. True
C. Maybe
D. Depends
The governing body of a corporation.
A. Members
44 B. Corporate President
C. Board of Directors
D. Board of Trustees
The following are contents of report of election,
except?
A. Names of the elected
45
B. Nationalities of the elected
C. Residences of the elected
D. All of the above
representing a majority of the outstanding
capital stock of the corporation must be present,
46 either in person or by proxy during the election
A. Members
B. Corporate President
 C. Board of Directors
D. Board of Trustees
Directors, trustees or offices convicted by final
judgment of violation of the Corporation Code committed
within prior to the date of his election or
appointment.
47
A. 5 years
B. 16 years
C. 6 years
D. 15 years
are not allowed to attend or vote by proxy at
board meetings.
A. Directors
48
B. Trustees
C. A and B
D. A only
The power to remove directors or trustees belongs to?
A. Corporate officers
49 B. Stockholders
C. Members
D. B & C
The following are filled of vacancies by the
stockholders/members except?
A. Decrease in the number of trustees
50
B. Removal by stockholders/members
C. Expiration of a term
D. Increase in number of directors