ICARE RFBT Preweek (5) - Batch4

No. 125 Brgy.
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com
iCARE Accountancy Review

Regulatory Framework for Business Transactions
Preweek Handout Five
1. It refers to a type of novation which involves transfer of all the rights of the creditor to a third person, who substitute him in all his rights.
A. Delegacion
B. Expromission
C. Subrogation
D. Dacion en Pago
2. It is a mode of extinguishing to the concurrent amount, the obligations of those persons who in their own right are reciprocally debtors and
creditors of each other.
A. Compensation
B. Novation
C. Merger
D. Remission
3. What is the period of extinctive prescription of the right to file a civil action arising from negotiorum gestio or solutio indebiti?
A. 4 years
B. 6 years
C. 5 years
D. 10 years
4. It is a special form of payment governed by Financial Rehabilitation and Insolvency Act of 2010 whereby the debts of insolvent debtor to
different creditors are extinguished only up to the extent of the net proceeds from the liquidation sale of insolvent debtor's remaining
property.
A. Application of payment
B. Dacion en pago
C. Cession
D. Tender of payment and consignation
5. In the absence of agreement as to the place of payment, where shall payment of an obligation to deliver a determinate thing be made?
A. Wherever the thing might be at the moment the obligation was constituted or perfected.
B. Wherever the thing might be at the moment the obligation was to be consummated.
C. Domicile of the debtor.
D. Domicile of the creditor.
6. What law shall govern dation en pago as a mode of extinguishing obligation?

A. Law on Sales
B. Law on Obligation
C. Law on Contract
D. Law on Pledge
7. It is a type of obligation which has an accessory undertaking to assume greater liability in case of breach.
A. Obligation with a condition
B. Obligation with a penal clause
C. Obligation with a period
D. Obligation with a term
8. It refers to the right of the unpaid creditor to exercise all rights and actions of his non-paying debtor, except those rights which are
inherently personal to him.
A. Accion subrogatoria
B. Accion pauliana
C. Accion directa
D. Accion reindivicatoria
9. In a facultative obligation, to whom shall the right of choice belong?

A. Always creditor
B. Always debtor
C. Generally debtor unless granted to the creditor
D. Generally creditor unless granted to the debtor
10. Which of the following obligations is not immediately due and demandable?
A. Obligation payable when debtor's means permit him to do so
B. Obligation with a resolutory period
C. Obligation in diem
D. Obligation with a resolutory condition
11. This principle of contract means that the contracting parties may provide contractual terms, conditions and stipulations they may deem
convenient provided they are not contrary to law, morals, good customs, public policy or public order.
A. Obligatory force of contract
B. Mutuality of contract
C. Autonomy of contract
D. Relativity of contract
12. Which of the following is a proper combination of contract as to perfection?
Page 1 of 24 (PW-05)
No. 125 Brgy. San Sebastian
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Telephone : (043) 723 8412
A. Contract of Sales - Real contract

B. Contract of Real Estate Mortgage - Consensual contract
C. Contract of Guaranty - Solemn or Formal Contract
D. Contract of Deposit - Formal Contract
13. In the absence of applicable law or valid stipulation of contracting parties, what degree of diligence shall be observed by the contracting
parties in the performance of contract?
A. Utmost diligence
B. High standards of integrity and performance
C. Diligence of a reasonably incautious person
D. Ordinary diligence
14. In case of conflict between the spirit of the contract and the letters as stated in the deed or document evidencing the contract, how shall the
court resolve the ambiguity or doubt in the said contract?
A. The words of the contract shall prevail over the intention of the contracting parties.
B. The intention of the contracting parties shall prevail over the words of the contract.
C. The contract shall be deemed void.
D. The contract shall be deemed voidable.
15. What is the legal remedy available to the injured party in case of absolutely simulated contract?
A. Action for annulment of contract
B. Action for declaration of nullity of contract
C. Action for rescission of contract
D. Action for specific performance of contract
16. What is the legal remedy available to injured party in case of contract he entered into whereby his consent is vitiated by fraud, undue
influence, intimidation or violence by the guilty party?
A. Action for annulment of contract
B. Action for declaration of nullity of contract
C. Action for rescission of contract
D. Action for specific performance of contract
17. Which of the following contracts is valid and binding?

A. Contract of administration entered by the guardian in behalf of the ward whereby the latter suffered lesion by more than
one-fourth of the value of the things which are the object thereof.
B. Contract of sale of a piece of land entered by the agent in behalf of the principal whereby the authority of the agent to sell the
land of the principal is oral
C. Oral contract of partnership involving immovable or real property contributions by the partners
D. Oral executory contract of sale of movable or personal property at a price of at least P500
18. Which of the following executory contracts must be in writing to be enforceable?

A. Contract of subscription of shares of stocks at a price of P500 or more.
B. Contract of loan with principal amount of P500 or more.
C. Contract of partnership with cash contribution exceeding P3,000.
D. Contract of guaranty wherein the principal amount of loan exceeds P500.
19. Which of the following contracts is subject to action for rescission within a period of four years?
A. Contract intended to defraud creditor
B. Contract entered into by an incapacitated person
C. Contract entered into by an agent in behalf of the principal when the agent exceeded his authority
D. Contract wherein the consent is wanting
20. It is a contract whose fulfillment depends upon chance.

A. Aleatory contract
B. Contract of adhesion
C. Auto contract
D. Preparatory contract
21. It is a stipulation whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-
payment of the debt within the term fixed.
A. Pactum creditarium
B. Pactum commissorium
C. Pactum debitarium
D. Pactum crematorium
22. Which of the following obligations may not be validly secured by accessory contract of pledge or mortgage?
A. Void obligations
B. Natural obligations
C. Voidable obligations
D. Unenforceable obligations
23. Which of the following modes of extinguishment of contract of pledge also extinguishes the contract of loan?
A. Voluntary return by the pledgee of the thing pledged to the pledgor.
B. Renunciation in writing by the pledgee of the contract of pledge.
C. Automatic appropriation of the thing pledged by the pledgee at the first default of the debtor.
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D. Sale of the thing pledged at public auction at net proceeds less than the amount of the loan.
24. Who shall be entitled to the excess of the proceeds from the sale at public auction of the thing conventionally pledged after application to
the secured loan?
A. Always pledgee
B. Always pledgor
C. Generally pledgee unless granted to the pledgor
D. Generally pledgor unless granted to the pledgee
25. It is a type of foreclosure of real estate mortgage which is available to the mortgagee only if the deed of real estate mortgage contains a
special power of attorney (SPA) authorizing the public auction of the mortgaged real property despite the absence of prior civil action.
A. Legal foreclosure
B. Judicial foreclosure
C. Extrajudicial foreclosure
D. Conventional foreclosure
26. What is the period for the exercise of right of redemption in case the mortgagee is a bank while the mortgagor is a juridical person?
A. Within three months from the foreclosure sale
B. Within 1 year from the foreclosure sale
C. Within a period not less than 90 days but not more than 120 days from the foreclosure sale
D. Within 30 days from the foreclosure sale
27. Where shall the contract of chattel mortgage involving shares of stock be registered in order for such contract to be valid?
A. Domicile of mortgagor and domicile of registered stockholder
B. Domicile of mortgagee and principal office of the corporation
C. Domicile of mortgagor and principal office of the corporation
D. Domicile of mortgagee and domicile of registered stockholder
28. What is the nature of contract of antichresis as to the perfection?

A. Real contract
B. Solemn contract
C. Consensual contract
D. Legal contract
29. In case of contract of real estate mortgage or contract of chattel mortgage, may the mortgagee recover the deficiency in case the net
proceeds from the foreclosure sale is less than the amount of the secured loan?
A. No despite any stipulation for recovery.
B. No unless there is stipulation for recovery.
C. Yes in the absence of any stipulation to the contrary.
D. Yes despite prohibition allowing recovery.
30. In which accessory contract is the creditor allowed to appropriate the collateral in case it is not sold in at least two public auctions?
A. Contract of pledge
B. Contract of real estate mortgage
C. Contract of chattel mortgage
D. All of the above
31. What is the prescriptive period available to buyer to file either action redhibitoria (rescission) or action quanti minoris (proportionate
reduction of price) in case the he discovered the determinate thing he bought contains hidden defect?
A. 40 days from the date of delivery
B. 3 days from the date of delivery
C. 6 months from the date of delivery
D. 1 year from the date of delivery
32. In a contract of sale, what act transfers ownership of the thing sold from the seller to the buyer?
A. Actual or constructive delivery
B. Full payment of the price
C. Perfection of contract of sale
D. Execution of the deed of sale
33. Under Maceda Law, what is the cash surrender earned by a buyer of residential property in installments who has paid at least 15 years of
installments in case the seller decided to cancel the installment sale of residential property due to the default by the buyer?
A. 50% of total amount he paid
B. 75% of total amount he paid
C. 90% of total amount he paid
D. 100% of total amount he paid
34. Which of the following rights of unpaid seller shall he exercise in case the goods sold are perishable?
A. Right of stoppage in transitu
B. Right to retain or possessory lien
C. Right of rescission or to cancel the sale
D. Right of resale
35. Under Maceda Law, what is the earned grace period to pay the defaulted installment by a buyer of residential property in installments who
has paid one year of installments in case he defaulted in installment payment?
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A. Right to grace period equal to not less than 60 days to pay without additional interest.
B. Right to grace period equal to not less than 30 days to pay without additional interest.
C. Right to grace period equal to not less than one month to pay without additional interest.
D. Right to grace period equal to not less than 15 days to pay without additional interest.
36. Under PD 957, who shall be liable to pay the real property tax and assessment on a subdivision lot or condominium unit before the passage
of title or ownership to the buyer?
A. Developer but subject to right of reimbursement from the buyer
B. Developer without right of recourse from the buyer
C. Buyer of the unit
D. Developer and buyer proportionately to the period of possession
37. As a general rule, what is the status of contract of sale entered into between husband and wife whose community or conjugal property are
already legally separated by virtue of legal separation as ordered by the Family Court?
A. Valid
B. Voidable
C. Rescissible
D. Null and void
38. It is a type of constructive delivery that takes effect by delivering the keys of the place where the movable is stored.
A. Traditio clavium
B. Traditio longa manu
C. Traditio brevi manu
D. Traditio constitutum possessorium
39. What is the prescriptive period for action redhibitoria (rescission) in case of sale of animal with redhibitory defect?
A. 40 days from the date of delivery
B. 3 days from the date of delivery
C. 6 months from the date of delivery
D. 1 year from the date of delivery
40. Which of the following instances will not result to presumption of pacto de retro sale as equitable mortgage?
A. When the seller retains possession of the property.
B. When the vendor binds himself to pay the real property taxes on the thing sold.
C. When the period for the exercise of right of repurchase is extended.
D. When the price of pacto de retro sale is inadequate.
41. If the universal partnership is entered into without specification, what shall be its contruction?
A. Particular partnership
B. General professional partnership
C. Universal partnership of all present property
D. Universal partnership of profits
42. In the absence of stipulation to the contrary, when shall the juridical personality of the partnership begin?
A. From the moment the partners have completed their contributions.
B. From the moment of the execution of the contract of partnership.
C. From the moment of submission with the SEC of the Articles of Co-Partnership.
D. From the moment the SEC issues the Certificate of Registration of Partnership.
43. Which partner is not liable up to the extent of his separate assets for unpaid liabilities of the partnership?
A. Limited partner
B. Industrial partner
C. General partner exempted by agreement for unpaid liabilities of the partnership
D. All of the above
44. Which of the following is prohibited from inspecting the partnership's books?
A. Dormant partner
B. Nominal partner
C. Secret partner
D. Silent partner
45. Which partnership acts may be validly done by the managing partner alone?
A. Disposition of goodwill of the business
B. Renunciation of claim of the partnership
C. Assignment of partnership property in trust for creditors
D. Entering into a major contract with suppliers
46. In the absence of stipulation in the Articles of Co-Partnership, which of the following partners may be excluded from the partnership?
A. Industrial partner who engages in any business for himself without express permission from the partnership.
B. Capitalist partner who engaged in a similar business of the partnership without express permission from the partnership.
C. Managing partner who engages in any business for himself without express permission from the partnership.
D. Dormant partner who engaged in a similar business of the partnership without express permission from the partnership.
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47. Which of the following modes will not automatically dissolve a general partnership?
A. Death of a partner
B. Civil interdiction of a partner
C. Insanity of a partner
D. Insolvency of a partner
48. In the liquidation of a limited partnership, which of the following claims shall be settled last?
A. Claims for profits of general partner
B. Claims for profit of limited partner
C. Claims for capital contribution of general partner
D. Claims for capital contribution of limited partner
49. In the absence of agreement, how shall industrial partner share in the partnership profit?
A. He shall receive a share equivalent to the share of the least capitalist partner.
B. He shall receive equally with all the partners.
C. He shall not receive any share.
D. He shall receive a just and equitable share.
50. Which managing partner may be validly removed without just cause by the controlling partner?
A. Managing partner appointed in the articles of co-partnership
B. Managing partner appointed in a document other than the articles of co-partnership
C. Managing partner appointed at the time of execution of articles of co-partnership
D. All of the above
51. Which of the following is a characteristic of a private corporation?

A. It may be created by mere consent of the founders or incorporators of the proposed corporation.
B. It enjoys the right of succession.
C. It has all the rights, powers and attributes of a person unless denied by law.
D. It may be dissolved even without the consent of the state.
52. Which of the following is an incidental or inherent power of a private corporation?

A. Power to appropriate retained earnings for legitimate purposes
B. Power to enter into merger or consolidation
C. Power to select a corporate name
D. Power to increase its authorized capital stock
53. In which of the following cases may the court exceptionally pierce the veil of corporate fiction in order to make parent corporation liable to
the unpaid liabilities of its bankrupt subsidiary corporation?
A. When there are interlocking directors in the parent corporation and subsidiary corporation.
B. When the parent corporation owns the controlling interest or 100% of voting common stocks of subsidiary corporation.
C. When the parent corporation and subsidiary corporation have the same business address and parent corporation provides
management services to subsidiary corporation.
D. When the subsidiary corporation is a mere alter ego or mere instrumentality of parent corporation and the corporate
fiction is used by the parent corporation to commit fraud against the creditors of subsidiary corporation.
54. It refers to a corporation that is created for religious purposes and classified into either corporation sole or religious society.
A. Ecclesiastical corporation
B. Eleemosynary corporation
C. Lay corporation
D. Civil corporation
55. In which of the following corporate acts may preferred stocks classified as non-voting in the Articles of Incorporation be allowed to vote?
A. Approval of management contract
B. Distribution of stock dividends
C. Ratification of disloyalty of a director
D. Amendment of articles of incorporation
56. When no-par value common share is issued, what is the minimum issue price?
A. P1
B. P5
C. P10
D. P5,000
57. Which of the following corporations may issue no-par value common shares?
A. Buildings and loan association
B. Oil company
C. Banks
D. Public utilities
58. What is the maximum ownership of foreigners in educational institution?

A. 40%
B. 60%
C. 30%
D. None
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59. It refers to any transaction or contract entered by a corporation outside its express, implied and incidental powers.
A. Illegal act
B. Ultra vires act
C. Unlawful act
D. Unenforceable act
60. Which of the following is an automatic ground for dissolution of a private corporation?
A. When the name of the newly formed corporation resembles the name of another registered corporation
B. When the corporation fails to formally organize within the period required by law from its incorporation
C. When the corporation declares dividends despite the presence of deficit
D. When the required minimum Filipino ownership in an existing corporation is not met
61. Which of the following is a qualification of a member of board of directors?

A. He must be a resident of the Philippines.
B. He must be a Filipino citizen.
C. He must be an incorporator of the corporation.
D. He must be a stockholder or subscriber of the corporation.
62. There are 15 directors in a private corporation. 11 directors attended the meeting of the board called for the approval of collective
bargaining agreement with the labor union. What is the required vote for the approval of this corporate act?
A. At least 8 directors
B. At least 5 directors
C. At least 6 directors
D. At least 7 directors
63. Which of the following reasons of vacancy in the board of directors may allow the remaining members of the board constituting a quorum
to fill up the vacancy?
A. Death of a director
B. Removal of a director by stockholders
C. Expiration of term of a director
D. Increase in the sits in the board of directors
64. Which corporate act may be validly performed by the executive committee of the corporation?
A. Selection of independent external auditor
B. Distribution of cash dividends
C. Amendment of by-laws
D. Incurring or increasing bond indebtedness
65. It refers to the contractual right of a stockholder in a close corporation to be given the first opportunity to acquire the shares of stocks to be
sold by other stockholders at a reasonable price before it is offered to outsiders.
A. Appraisal right
B. Preemptive right
C. Right of first refusal
D. Redeemable right
66. This doctrine means that the stockholders or members of a corporation are liable to the debts of the corporation but only up to the extent of
their capital contribution.
A. Business judgment or management prerogative rule
B. Limited liability rule
C. Doctrine of separate personality
D. Trust fund doctrine
67. What type of dividend is still required to be ratified by the stockholders for its validity?
A. Property dividend
B. Stock dividend
C. Cash dividend
D. Scrip dividend
68. As a general rule, what is the maximum surplus profits that can be retained by a stock corporation?
A. 100% of legal capital
B. 100% of paid up capital
C. 100% of subscribed capital stock
D. 100% of authorized capital stock
69. Where shall the regular meeting of stockholders be located?

A. In the city/municipality as specified in the articles of incorporation.
B. In the city/municipality as specified in the by-laws of the corporation.
C. In the city/municipality as specified in both articles of incorporation and by-laws of the corporation.
D. In the city/municipality where the principal office is located preferably at the principal office of the corporation.
70. In which meeting is proxy voting allowed?

A. Election of board of directors
B. Election of corporate officers
C. Meeting of executive committee
D. Meeting of board of directors
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71. Which right is still available to delinquent subscribers?

A. Right to dividends
B. Right to become a director
C. Right to vote
D. Right to preemption
72. Which right is not available to subscribers who are not yet declared delinquent?
A. Right to inspect corporate books
B. Right to certificate of stock
C. Right to vote
D. Right to become a director
73. Which of the following is not valid consideration for the issuance of shares of stocks?
A. Unrestricted retained earnings
B. Future services
C. Previously incurred corporate indebtedness
D. Intangible property
74. It refers to a suit brought by one or more stockholders or members in the name and on behalf of the corporation to redress wrongs
committed against it or to protect or vindicate corporate rights, whenever the officials of the corporation refuse to sue or are the ones to be
sued or hold control of the corporation. The corporation is a necessary party to the suit.
A. Individual suit
B. Nuisance suit
C. Derivate suit
D. Representative suit
75. When shall public sale of delinquent stocks be held counted from the date of delinquency of stocks?
A. Within a period of 60 days
B. Within a period of 30 days
C. Within a period 10 days
D. Within a period of not less than 30 days but not more than 60 days
76. Which of the following is not an essential requisite of merger or consolidation of two or more corporations?
A. It must be approved by at least majority vote of the boards of directors of the merging or consolidating corporations.
B. It must be ratified by at least 2/3 vote of the outstanding capital stocks of the merging or consolidating corporations.
C. It must be approved by Securities and Exchange Commission and Philippine Competition Commission.
D. It must be approved by the creditors of the merging or consolidating corporations.
77. Which type of corporation may be incorporated as a close corporation?

A. Insurance company
B. Mining company
C. Stock exchange
D. Review center
78. What is the required vote for the delegation to the board of directors of the power to amend the by-laws?
A. At least majority of the board of directors with ratification of at least 2/3 of the stockholders.
B. At least majority of board of directors with ratification of at least majority of the stockholders.
C. At least 2/3 of the stockholders.
D. At least majority of the stockholders.
79. What is the required vote for the approval of management contract in the absence of interlocking directors between the managing and
managed corporation?
A. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for both managing corporation and
managed corporation.
B. At least majority of the board of directors with ratification of at least majority of the stockholders for both managing
corporation and managed corporation.
C. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for managing corporation and at
least majority of the board of directors with ratification of at least majority of the stockholders for managed corporation.
D. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for managed corporation and at least
majority of the board of directors with ratification of at least majority of the stockholders for managing corporation.
80. What is the requirement for the simple amendment of the articles of incorporation of stock corporation?
A. By at least majority vote of the board of directors and the vote or written assent of the stockholders representing at least
two-thirds (2/3) of the outstanding capital stock.
B. By at least majority vote of the board of directors and ratification of the stockholders representing at least two-thirds (2/3) of the
outstanding capital stock.
C. By at least majority vote of the board of directors and the approval of the stockholders representing at least two-thirds (2/3) of the
outstanding capital stock.
D. By at least majority vote of the board of directors and the oral agreement of the stockholders representing at least two-thirds (2/3)
of the outstanding capital stock.
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81. Which of the following defenses may be set up against a holder in due course?
A. Forged signature of the maker
B. Stolen negotiable instrument
C. Illegality of consideration
D. Filling up of blank negotiable instrument
82. Which of the following defenses may be set up only against a holder not in due course but not available against a holder in due course?
A. Wrong date
B. Minority
C. Want of authority of agent
D. Fraud in esse contractus
83. Which of the following is not a party to a negotiable bill of exchange?

A. Referee in case of need
B. Drawer
C. Acceptor
D. General indorser
84. Which of the following is not a warranty of a qualified indorser?

A. That the instrument is genuine and in all respects what it purports to be.
B. That he has good title to it.
C. That all prior parties had capacity to contract.
D. That the instrument, is at the time of his indorsement, is valid and subsisting.
85. Which of the following indorsements waives the benefit provided by law to the general indorser?
A. Qualified indorsement
B. Facultative indorsement
C. Conditional indorsement
D. Restrictive indorsement
86. Which of the following is not a requisite of a negotiable promissory note?

A. It must be in writing and signed by the maker.
B. It must contain an unconditional promise to pay a certain sum of money.
C. It must be payable on demand or at a fixed time or at a determinable future time.
D. It must be payable to order or to bearer.
87. Which of the following indorsements will convert an originally negotiable order instrument into a negotiable bearer instrument?
A. Special indorsement
B. Irregular indorsement
C. Blank indorsement
D. Qualified indorsement
88. How is a negotiable instrument payable to order validly negotiated?

A. By mere indorsement
B. By mere delivery
C. By indorsement coupled with delivery
D. By assignment of credit
89. It refers to the signification by the drawee of his assent to the order of the drawer. This act will make the drawee an acceptor who is
primarily liable to the negotiable bill of exchange according to the tenor of his acceptance.
A. Discharge
B. Acceptance
C. Delivery
D. Issuance
90. Where the negotiable instrument is so ambiguous that there is doubt whether it is a bill of exchange or promissory note, what shall be its
construction?
A. The holder may treat it as either bill of exchange or promissory note at his election.
B. The person primarily liable must treat it as a bill of exchange.
C. The holder must treat it as a promissory note.
D. The instrument is deemed to be non-negotiable.
91. It is a paper which is attached to a negotiable instrument and where the indorsement is written.
A. Allonge
B. Attache
C. Align
D. Average
92. Which of the following will not discharge a negotiable instrument?

A. By the intentional cancellation, destroying, burning, or tearing of the negotiable instrument by the holder
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B. When the maker or acceptor becomes the holder of the negotiable instrument at or after maturity in his own right
C. By payment in due course by drawer or general indorser
D. By payment in due course by or on behalf of the maker or acceptor
93. Which of the following will discharge a party secondarily liable?

A. By giving notice of dishonor to the party secondarily liable
B. By the discharge of a subsequent party
C. By a valid tender of payment of a prior party
D. By release of a principal debtor when the holder’s right of recourse against the parties secondarily liable is reserved
94. What is the period allowed by law for the drawee to accept the bill?
A. The drawee is allowed 24 hours after presentment in which to decide whether or not he will accept the bill.
B. The drawee is allowed 48 hours after presentment in which to decide whether or not he will accept the bill.
C. The drawee is allowed 36 hours after presentment in which to decide whether or not he will accept the bill.
D. The drawee is allowed 12 hours after presentment in which to decide whether or not he will accept the bill.
95. If acceptance is given by the drawee, what is the date of acceptance?

A. Date of the presentation of the bill for acceptance.
B. Date of the actual acceptance.
C. Day before the date of the presentation of the bill for acceptance.
D. Day after the date of the actual acceptance of the bill.
96. In which of the following instances shall a notice of dishonor still necessary in order to make a drawer liable to the instrument?
A. When the drawer and drawee are the same person.
B. When the drawee is a fictitious person or an incapacitated person
C. Where the drawer has countermanded payment.
D. When the drawee becomes insolvent.
97. It refers to a type of check whereby the drawer engages to pay the bona fide holder absolutely and not upon a condition to pay upon
presentment and non-payment, thereby, waiving the notice of dishonor from the holder.
A. Certified check
B. Crossed check
C. Stale check
D. Memo check
98. The following are the instances when a bill of exchange may be treated as a promissory note by the holder, except
A. Where the drawer and drawee are the same person.
B. Where the drawee is a fictitious person.
C. Where the drawee is a person not having a capacity to contract.
D. Where the drawer and drawee are both juridical persons.
99. The following are the effects of a certification of check by the bank on which it is drawn, except
A. It is equivalent to acceptance by the drawee bank.
B. If procured by the holder, the drawer and all general indorsers are discharged.
C. It operates as an assignment of the funds of the drawer in the hands of the drawee bank.
D. It operates as an act of dishonor of the check by the drawee bank.
100. What period must lapse from maturity date of the check for it to be considered a stale check?
A. 3 months
B. 4 months
C. 5 months
D. 6 months
101. J and E entered into a universal partnership of all present property. At the time their agreement J had a four-door apartment which he
inherited from his father 3 years earlier. E, on the other hand, had a fishpond which he acquired by dacion en pago from R. During the first
year of the partnership, rentals collected on the four-door apartment amounted to P480,000; while fish harvested from the fishpond were
sold for P300,000. During the same period, E received by way of donation a vacant lot from an uncle. The partners had a stipulation that
future property shall belong to the partnership. Which of the following does not belong to the common fund of the partnership?
A. Fishpond
B. Rental of P480,000
C. Apartment
D. Vacant land
102. V and J entered into a universal partnership of profits. At the time of the execution of the articles of partnership, V had a two-door
apartment which he inherited from his father 3 years earlier. J, on the other hand, had a fleet of taxis which he purchased 2 years before. In
the first year of the partnership, V earned P500,000 as a radio talent, while James won P1,000,000 in the lotto. During the same period,
rentals of P120,000 were collected from the apartment, while fare revenues of P200,000 were realized from the operation of the fleet of
taxis. Which of the following belongs to the partnership?
A. Two-door apartment
B. Lotto winnings of P1,000,000
C. Salary of P500,000
D. Fleet of taxis.
103. What is the classification of partnership formed for the exercise of a profession which is duly registered with SEC?
A. Universal partnership of profits.
B. Universal partnership of all present property.
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C. Particular partnership.
D. Partnership by estoppel.
104. Which partnership contract is valid?

A. A universal partnership of all present property between husband and wife.
B. A universal partnership of profits between a man and a woman living together as husband and wife without the benefit of
marriage.
C. A particular partnership between husband and wife.
D. A universal partnership of profits between a private individual and a public offer.
105. J, A and W are partners in JAW Enterprises. Not having established yet their credit standings, the three partners requested S, a well-know
businessman, to help them negotiate a loan from C, a money lender. With the consent of J, A and W, Simon represented himself as a
partner of JAW Enterprises. Thereafter, C granted a loan of P150,000.00 to JAW Enterprises. What kind of partner is S?
A. Managing partner.
B. Liquidating partner.
C. Ostensible partner.
D. Partner by estoppel.
106. Which of the following stipulations is valid?

A. A stipulation excluding a capitalist partner from profits.
B. A stipulation exempting a capitalist partner from losses.
C. A stipulation exempting an industrial partner from losses.
D. A stipulation excluding an industrial partner from profits.
107. A partner can engage in business for himself without the consent of his co-partners if he is:
A. A capitalist partner whether or not the business he will engage in is of the same kind as or different from the partnership business.
B. An industrial partner whether or the business he will engage in is of the same kind as or different from the partnership business
C. A capitalist partner and the business he will engage in is of a kind different from the partnership business.
D. An industrial partner and the business he will engage in is of a kind different from the partnership
108. Which of the following statements is false when no one among the partners was appointed as manager?
A. Each partner will be considered as agent of the partnership.
B. Any one may make an important alteration in the immovable property of the partnership without the consent of the
others provided it is useful to the partnership.
C. In case the act of one partner is opposed by another , the decision of the majority of the partnership will prevail.
D. In case of a tie in the voting the tie shall be resolved by the vote of the partner owning the controlling interest.
109. The partnership will bear the risk of the loss of three of the following things, except
A. Things contributed to be sold.
B. Fungible things or those that cannot be kept without deteriorating.
C. Things contributed so that only their use and fruits will be for the common benefit.
D. Things brought and appraised in the inventory.
110. In three of the following wrongful acts of partners, the partnership is solidarily liable with all the partners to third persons. Which one is the
exception?
A. For loss or injury caused to a third person by reason of the wrongful act or omission of a partner acting in the ordinary course of
business.
B. Where a partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it.
C. Where the partnership receives money or property of a third person in the ordinary course of business and such money or
property is misapplied by a partner while it is in the custody of the partnership.
D. For loss or injury caused to a third person by reason of the use of partnership property by a partner for personal
purpose.
111. Which of the following statements is false?

A. Partnership creditors are preferred as to partnership assets.
B. Partnership creditors as preferred as to each partner's separate assets.
C. A partner's separate creditors are preferred as to the partner's separate assets.
D. A partner's separate creditors may attach a partner's share in the partnership assets.
112. A partner is a co-owner with his partners of specific partnership property. Such co-ownership:
A. allows a partner to assign his right in such property
B. allows a partner to use such property for partnership business
C. entitles the spouse, children and other relatives of the partner to claim support from such property
D. gives the private creditors of a partner to attach his right in such property
113. A limited partners is prohibited on account of his claim against the partnership from performing the following acts, except
A. To receive or hold as collateral security any partnership property.
B. To receive from a general partner or the partnership any payment, conveyance, or release from liability, if partnership assets are
not sufficient to discharge partnership liabilities to outside creditors.
C. Transact business with the partnership.
D. None of the foregoing.
114. A limited partner shall be liable as general partner in three of the following cases. Which one is the exception?
A. When he is a general-limited partner as stated in the certificate.
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B. When he takes part in the control of the business.

C. When he participates in the management of the business.
D. When his surname which appears in the partnership name is also the surname of a general partner.
115. The following partnerships are required to be registered with Securities and Exchange Commission for convenience and to prejudice third
persons, except
a. Partnership when the partners’ total contribution is at least P3,000 in cash, personal property or real property
b. Partnership wherein the partners’ contribution includes immovable or real property
c. Limited partnership
d. General partnership involving an industrial partner
116. A delinquent stockholder is not entitled to the following rights, except the right:
A. to be voted.
B. to vote or be represented in the meetings of the stockholders.
C. to dividends.
D. He is not entitled to all the rights of the stockholder.
117. A, B, C, D, E, F and G are the duly elected directors for 2014 of Excellent Corporation whose articles of incorporation provide for 7
directors. On August 1, 2014, Directors A, B, C, D an E met to fill two vacancies in the board brought about by the valid removal of F for
disloyalty to the corporation and the death of G. In the said meeting, the remaining directors voted for X to replace F and Y, a son of G, to
replace his father. Both X and Y are owners of at least one share of stock of the remaining corporations. The election of X and Y by the
remaining director is:
A. Valid for both X and Y.
B. Not valid for both X and Y.
C. Valid with respect to X; not valid with respect tp Y.
D. Not valid with respect to X; valid with respect to Y.
118. In the meeting of the board of directors of the Grand Corporation, a construction company, held on August 31, 2014, directors A, B,C, D
and E were presented among the 9 directors. The meeting had for its agenda the following:
I. The appointment of new treasurer.
II. The approval of the contract for the purchase of cement worth P50,000.00 from Construction Supplies Co.
When the voting took place, directors A, B, C and D voted for the election of Y as the new treasurer; and directors A, B and C voted for the
approval of the contract with X Construction Supplies.
A. Both corporate acts are valid.
B. Both corporate acts are not valid.
C. The election of Y as the new treasurer is valid; the approval of the contract with X
Construction Supplies is not valid.
D. The election of Y as the new treasurer is invalid; the approval of the contract with X Construction Supplies is valid.
119. Under this theory, the nationality of a corporation is that of the country under whose laws it was formed.
A. Control test.
B. Incorporation test.
C. Domiciliary test.
D. Grandfather rule.
120. The subscriber of unpaid shares which are not delinquent shall be entitled to the following rights, except the right to:
A. Vote
B. Inspect corporate books.
C. A stock certificate
D. Dividends.
121. Under this doctrine, the separate personality of a corporation may be disregarded if it is used for fraudulent or illegal purpose or to escape
the faithful compliance of an obligation,
A. Trust fund doctrine.
B. Doctrine of piercing the veil of corporate entity.
C. Doctrine of corporate opportunity.
D. Doctrine of limited company.
122. A stock that is issued without consideration or below par value of the issued price is known as:
A. watered stock.
B. delinquent stock.
C. redeemable stock.
D. preferred stock.
123. A non-voting stock may vote in the following corporate acts, except in case of:
A. approval of the compensation of directors.
B. merger or consolidation.
C. increase or decrease in capital stock.
D. sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of corporate property.
124. A is a director and owns 50% of the outstanding capital stock of Ace Corporation which is engaged in the trading of computers. Ace
Corporation purchased computer table from Top Corporation of which A is also a director and own 15% of its outstanding capital stocks.
The articles incorporation of both corporations provide for 5 directors. In the approval of the contract for the said purchase, A did not
attend the meeting of the board of directors of Ace Corporation, while in the meeting of the board of directors of Top Corporation which
was called for the same purpose, directors A, B, C and D were present with all of them voting for the approval of the contract. Assuming
that there is no fraud and that the contract is fair and reasonable under the circumstances, the contract between Ace Corporation and Top
Corporation is:
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A. valid.
B. voidable at the option of Top Corporation.
C. unenforceable against Top Corporation.
D. void because corporations with interlocking directorate should not enter into a contract with each other.
125. Which of the following acts may be performed by the executive committee of a corporation?
A. Declaration of stock dividends
B. Filling of vacancies in the board or directors.
C. Amendment or repeal of the by-laws or adoption of new by-laws.
D. Approval of contracts in the ordinary course of business.
126. S is the registered owner of 500 shares of stocks of XYZ Corporation whose articles of incorporation provide for 11 directors. In the annual
election of directors for 2014, 12 stockholders filed their certificate of candidacy for the position, namely, A, B, C, D, E, F,G,H,I,J,K and L.
K and L are minority stockholders whom S wishes to elect to represent him and the other minority stockholders in the board. In the said
election of directors, S may cast a maximum of:
A. 500 votes.
B. 6,000 votes.
C. 5,500 votes.
D. 1,000 votes.
127. One of the distinctions between a partnership and a corporation is that a partnership:
A. is managed by a board of directors.
B. is characterized by the principle of delectus personae.
C. has the right of succession.
D. may be dissolved only with the consent of the State.
128. One of the distinctions between a proxy and a voting trust agreement is that in a voting trust agreement:
A. the representative acquires legal title to the shares to be voted.
B. the exercise of the right to vote is limited to a particular meeting.
C. the representative cannot vote if the stockholder is present during the meeting.
D. the agreement need not to be recorded with the Securities and Exchange Commission.
129. Which of the following statements is false concerning treasury shares?

A. They are not part of subscribed shares but they are entitled to dividends.
B. They have no voting right because they are not outstanding shares.
C. They may be disposed of or issued for a price lower that the par value or issued provided such price is reasonable and approved
by Board of Directors.
D. Once treasury shares are disposed of by the corporation will entitle the purchaser or acquiree the right to vote.
130. Under Old Corporation Code, which of the following will cause the automatic dissolution of corporation?
A. Continuous inoperation for a period of at least 5 years.
B. Failure to formally organized and commence the transaction of its business or the constructions of its works within 2
years from its incorporation.
C. Failure to adopt by-laws and submit the same to the Securities and Exchange Commission within 30 days from the receipt of the
official notice of the issuance of its certificate of incorporation.
D. Commissions by the corporation of an ultra-vires act.
131. A, B,C,D, E,F,G,H and I are directors of Strong Cement Corporation whose articles of incorporation provide for 9 directors. In the meeting
of September 2014, directors A, B, C, D and E were present to approve a contract for the purchase of cement bags from E who deals in the
said product. The contract was deliberated upon exhaustively by the said directors in the meeting including E. When the voting took place,
however, only A, B, C and D who found the contract fair and reasonable under the circumstances, voted for its approval. The contract
between the corporation and E is:
A. Valid and enforceable.
B. Voidable at the option of the corporation.
C. Unenforceable against the corporation.
D. Void because a corporation must not enter into a contract with any of its directors since a director occupies a position of trust.
132. A, B, C, D, and E distributed calling cards identifying themselves as directors of Summit Corporation, to several individuals during a
business conference. In reality, however, no such corporation is registered with the Securities and Exchange Commission . X, who received
a calling card granted credit amounting to P50,000.00 to “Summit Corporation” believing that such corporation really existed. When the
supposed corporation was unable to pay, X brought a court action against it. At that time, “Summit Corporation” had assets of P30,000.00.
Which is correct?
A. “Summit Corporation” is liable only up to P30,000.00, its remaining assets, since it is different from A, B,C,D and E who are not
liable in their individual capacities.
B. X can go after the separate assets of “Summit Corporation.”
C. A,B,C,D, and E can move for the dismissal of the court action because “Summit Corporation”has no personality of its own.
D. X cannot allege the lack of juridical personality on the part of “Summit Corporation”because he is estopped from doing so.
133. An auditing firm composed of Certified Public Accountants may validly form:
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A. a corporation
B. a partnership
C. Either A or B
D. Neither A nor B
134. A, B, C, D, E, F and G are directors of Commonwealth Appliance Corporation, a trader of appliances, whose articles of incorporation
provide for 7 directors. On September 1,2014, the board of directors met to approve a contract for the purchase of appliances from A who
is an importer of appliances. Present during the meeting were A, B, C,D and E with A, B, C, and D voting for the approval of the contract.
Assuming that the contract is fair and reasonable under the circumstances, what is the status of the contract between the corporation and A?
A. Valid.
B. Voidable.
C. C. Unenforceable.
D. Void.
135. Alpha Corporation’s articles of incorporation provide for 7 directors and an unauthorized capital stock of P1,000,000.00 divided into
10,000 shares with a par value of P100.00 per share. In the election of directors for 2010, the following ran for the position: A, B, C, D, E,
F ,G and H. On that date, the corporation had 7,000 outstanding shares of which 5,000 shares had been paid in full, while 2,000 shares
were paid to the extent of 50% of the subscription price. All the shares were subscribed at par value and covered by a binding subscription
agreement. If you were a stockholder who owns a 500 shares, how many votes are you entitled to cast in the election of directors?
A. 500 votes.
B. 3,500 votes.
C. 4,000 votes
D. 7 votes.
136. Aphine Corporation obtained a loan amounting to P1,000,000.00 from Eastern Bank. To secure the obligation, P, the president of Alphine,
mortgaged his own building in favour of the bank. The contract of loan and deed have been signed by the parties but have not been
acknowledged before a notary public. Which is correct?
A. Alphine Corporation and P are one and the same person.
B. P may validly mortgage his own property to secure the obligation of Alphine to the bank.
C. The mortgage is not yet binding between the parties since it has not been notarized.
D. The mortgage contract can stand independently from the contract of loan.
137. On May 1, 2015,S subscribed to 1,000 shares of stock of Sigma Corporation at the par value of P10.00 per share. Pursuant to the policy of
corporation which requires a down payment of 60% of the subscription price, S paid P6,000.00 upon the execution of the subscription
contract. The balance of the subscription must be paid after 30 days, which in the case of the subscription of S, is May 31,2015. Which is
correct?
A. Upon the execution of the subscription contract , S may demand the issuance to him of a stock certificate covering 600 shares.
B. S is already qualified to vote although he has not yet paid his subscription in full.
C. If S fails to pay the balance of his subscription on May 31, 2015, his shares will become delinquent on June 1, 2015.
D. In case of delinquency , only 400 shares will be considered delinquent.
138. Which is the operative act that will give juridical personality upon a corporation?
A. The filing of the articles of incorporation.
B. The filing of the by-laws.
C. The issuance of the certificate of incorporation.
D. The execution by the incorporators of the articles of incorporation which is the
contract among themselves.
139. How many shares are needed to elect 3 directors and assure each of them a seat in the board of director assuming that the articles of
incorporation provide for 11 directors and the corporation has 5,000 shares outstanding and entitled to vote?
A. 1,251 shares.
B. 5,000 shares.
C. 1,667 shares.
D. 1,364 shares.
140. Sevilla owned a 5 storey building where he operated at the ground floor Café de Seville, a restaurant which was frequented by the tenants
of the building and the employees of the neighboring establishments. He also owned an adjoining vacant lot which Benitez had been
offering to buy for some time. Eventually, Sevilla told the vacant lot to Benitez under an agreement that Benitez should not put up any
restaurant, catering or similar business on the lot within 5 years from the time of sale. Benitez completed the construction of a building on
the lot in 6 months and admitted lessees including Peggie’s Place, an eatery managed by Peggie , Benitez's sister, and owned by Golden
Spoon Corporation which was incorporated just three months earlier at the instance of Benitez as principal stockholder owning 95% of the
subscribed capital and Peggie and the other investors as minority stockholders. Sevilla now complains that Benitez violated his agreement
with him but Benitez contends that Golden Spoon is a different company. Which is correct?
A. Benitez did not violate the agreement because Golden Spoon has a personality
separate and distinct from that of Benitez.
B. Benitez violated the agreement because under the circumstances, he and the Golden Spoon Corporation should be
considered as one.
C. Benitez did not violate the agreement because the eatery is being managed by
another person.
D. Sevilla has no course of action against Golden Spoon under the Principle of Relativity of Contract because Golden Spoon was
not a party to the agreement between him (Sevilla) and Benitez.
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141. The article incorporation of Alco Corporation, a construction company, classify its shares into voting common stock and non-voting
preferred stock, and provide for 11 directors. Its by-laws, on the other hand, give the board of directors the authority to approve transactions
not exceeding P2,000,000.00 . Any transaction in excess of the said amount has to be ratified by the stockholders. In which of the following
cases may the non-voting preferred stock still vote?
A. Approval of a loan amounting to P3,000,000.00 from Banco de Loro.
B. Declaration of stock dividends from the unissued common stock.
C. Increase in the number of directors from 11 to 15.
D. Purchase of cement worth P 2,500,000.00 from Davao Cement Corporation.
142. In which of the following corporations will those composing the corporation be liable as general partners?
A. Corporation by prescription.
B. De Facto corporation
C. Corporation by estoppel.
D. De jure corporation.
143. The articles of incorporation of Alpha Corporation, a construction company, provide for 7 directors. In the monthly meeting of the board of
directors held on June 15, 2014, directors A, B,C D and E were present and the following resolutions were approved:
I. A resolution for the purchase of 500 pieces of hallow blocks from Excellent Concrete Enterprises, a sole proprietorship
owned by E. B, C ,D, and E voted for the resolution.
II. A resolution appointing T as the new treasurer of the corporation. A, B, C, and D voted for the resolution.
Which resolutions are valid?

A. Both resolution are valid.
B. Both resolution are not valid.
C. Only resolution I is valid.
D. Only resolution II is valid.
144. Which cause of vacancy in the board of directors may be filled by the board of directors if the remaining directors still constitute a quorum
and by the stockholders if such quorum does not exist?
A. Removal of a director.
B. Resignation of a director.
C. Increase in the number of directors.
D. Expiration of the term of some directors.
145. The following statements are presented to you:

I. All Ultra-vires acts are illegal acts.
II. All illegal acts are Ultra-vires acts.
A. Both statements are true.
B. Both statements are false.
C. I is true; II is false.
D. I is false; II is true.
146. The following are transactions pertaining to shares of stock of a certain corporation:
1. Subscriptions to 100 shares of stocks at P100 per value per share by Mr. AA.
2. Purchase of 30 shares of stocks from the corporation’s treasury shares by Mr.BB at a total price of P300.
3. Purchase of 100 shares of stocks by Mr. CC at a total price of P1,200.00, fro Mr. DD ,another stockholder.
Which of the above transactions are enforceable although they are not in writing?
a. I and II.
b. II and III.
c. I and III.
d. I only.
147. In which of the following corporate acts is the appraisal right not available?
A. Merger or consolidation.
B. Extension or shortening of corporate term or existence.
C. Sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of its corporate stock,
D. Investment of funds for the accomplishment of the primary purpose of the corporation.
148. Under Old Corporation Code, which of the following is not a qualification of incorporators of a stock corporation?
A. They must be natural persons.
B. They must be of legal age.
C. Majority of them must be citizen of the Philippines.
D. They must be subscribers to at least 1 share of stock of the corporation.
149. The certificate of incorporation of Seven Star Corporation, a trading corporation, was issued although only 2 of its 5 incorporators are
residents of the Philippines. Three, however, are citizens of the Philippines. The corporation created in such a situation is a:
A. de jure corporation.
B. corporation by estoppel.
C. de facto corporation.
D. No corporation was created at all.
150. The following statements pertaining to the power of a corporation to ssue non-voting shares are presented to you for evaluation:
I. Those classified as “redeemable” or “preferred” may be deprived of the voting right.
II. All shares of the corporation may be deprived of the voting right.
III. Non-voting shares may vote in certain corporate acts such as in the amendment of the articles of incorporation.
a. I and II are true.
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b. II and II are true.

c. I and III are true.
d. All statements are true.
151. Under Old Corporation Code, which of the following is not a qualification of directors of a stock corporation?
A. Each director must be the owner of at least 1 share of stock.
B. Such shares of stock must stand in their names in the book of the corporation during their term as directors.
C. Majority of the directors must be citizen of the Philippines
D. The number of directors should not be less than 5 nor more than 15.
152. Which of the following special corporations is required by the Corporation Code to have its number of directors in multiples of 5, i.e., 5, 10
or 15?
A. A stock educational corporation.
B. A non stock educational corporation
C. A corporation sole.
D. A religious society.
153. A, B, C, D and E are all licensed mechanical engineers. They want to put up a business for the purpose of importing industrial machineries.
What kind of business organization may they put up for such purpose?
A. Partnership only.
B. Corporation only.
C. Either a partnership or a corporation.
D. Neither a partnership nor a corporation.
154. A is a Certified Public Accountant; B is a lawyer; while C is a mechanical engineer. They want to put up a business for the purpose of
exporting dried fish. Under Old Corporation Code, what kind of business organization may the three of them establish for such purpose?
A. Partnership only.
B. Corporation only.
C. Either a partnership or a corporation.
D. Neither a partnership nor a corporation because they belong to different professions.
155. In which of the following instances is a foreign corporation not engaged in business in the Philippines?
A. Opening a liaison office of the Philippines.
B. Participating in the management of a domestic business in the Phlippines.
C. Having a nominee director to represent its interest in a domestic corporation.
D. Appointing a distributor who is domiciled in the Philippines.
156. These statements are presented to you:

I. The member of the board of directors of a corporation may provide for themselves compensation other than per diems.
II. A director who receives compensation as such may also be given separate compensation if the serves the corporation in
another capacity like the president who is required to be a director.
In your evaluation of the foregoing statements:
A. Both statements are true.
B. Both statements are false.
C. Only Statement I is true.
D. Only Statement II is true.
157. Which statements are false?

A. The existence of interlocking incorporators, directors and officers is sufficient to justify piercing of the veil of the corporate
fiction.
B. Substantial identity of incorporators or directors of corporations necessarily implies fraud.
C. Both A and B
D. Neither A nor B
158. Which statements are true?

A. The sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of the corporate property require the
vote of majority of the board of directors or trustees, and 2/3 of the outstanding capital stock or 2/3 of the members.
B. The board of directors or trustees may abandon the sale or other disposition of all or substantially all of the corporate property
without further approval from the stockholders or members.
C. Both A and B
D. Neither A nor B
159. Who may vote the shares without the need of any written proxy?
A. The pledgee of shares of stocks
B. The mortgagee of shares of stocks
C. The executor of an estate which owns the shares of stocks
D. The stockholder who transferred his shares in a voting trust agreement
160. S and ABC Corporation entered into a Deed of Sale of Shares of Stocks for the acquisition of S of 1,000 of the unissued shares of the latter
at P100 par value per share. S was to give a down payment of 50% with the balance to be paid after 30 days. What kind of contract was
entered between S and ABC Corporation?
A. Contract of Sale
B. Contract of Purchase
C. Contract of Subscription
D. Some other contract
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161. S, a stockholder of ABC Corporation, visited the corporate office and demanded the inspection of the books of accounts of the company. D,
the director who was in charge of such books, refused to allow S to inspect them on the ground that six months earlier, S used some
financial data he obtained from XYZ Corporation of which he was also a stockholder, in order to aid a competitor of XYZ Corporation to
the detriment of the latter. Was the refusal justified?
A. No because the data that S improperly used was taken from another corporation.
B. Yes because such improper use of data, although pertaining to another corporation, is a legal ground to deny a
stockholder the exercise of his right to inspect the corporate books.
C. No because such refusal is a violation of stockholder's right to inspect the corporate books.
D. No because such ground can be used only against S if he were to inspect the books of XYZ Corporation.
162. What business combination is presented by the following equations?

I. A+B=A
II. A+B=C
A. I-Merger and II-Consolidation
B. II-Consolidation and I-Merger
C. Both Merger
D. Both Consolidation
163. What is the date of measurement of fair value of shares of a dissenting stockholder in the exercise of his appraisal right?
A. Fair value on the day on which the vote was taken, excluding any appreciation or depreciation in anticipation of such corporate
action
B. Fair value on the day prior to the date on which the vote was taken, excluding any appreciation or depreciation in
anticipation of such corporate action
C. Fair value on the day on which the vote was taken, including any appreciation or depreciation in anticipation of such corporate
action
D. Fair value on the day prior to the date on which the vote was taken, including any appreciation or depreciation in anticipation of
such corporate action
164. What is the term of office of trustees of Green Livelihood Projects Inc., a nonstock nonprofit corporation?
A. One year
B. Two years
C. Three years
D. Five years
165. Under Old Corporation Code, which statements about number of trustees of nonstock nonprofit corporation is correct?
A. The number of trustees may be more than 15.
B. The number of trustees may be less than 5.
C. Both A and B
D. Neither A nor B
166. Which of the following statements is true?

A. Under the Corporate Code of the Philippines, a close corporation is one whose members belong to the same family. In other
words, it is a family corporation.
B. Insurance company, Corporations vested with public interest, Oil company, Mining company, Educational institutions,
Banks, Stock Exchange and Public Utility cannot be incorporated as close corporations.
C. Both A and B
D. Neither A nor B
167. Which is true about a close corporation?

A. The business of a close corporation may be managed by the stockholders rather than by board of directors.
B. If the stockholders of close corporation manage the close corporation, no meeting is required to elect directors.
C. Both A and B.
D. Neither A nor B.
168. Which is false about a close corporation?

A. The stockholders may agree among themselves to the effect that they are partners among themselves.
B. Any action of the board of directors without a meeting shall be valid if all the stockholders have actual or implied knowledge of the
action and they make no prompt objection in writing.
C. In case of deadlock in management, the SEC may order the corporation to acquire its own shares of stock provided it has
unrestricted retained earnings.
D. A close corporation shall not list in any stock exchange or make any public offering of any of its stock of any class.
169. Immediately after their election, the directors must formally organize by the election of the following mandatory corporate officers, except
A. President
B. Vice President
C. Treasurer
D. Corporate Secretary
170. Which position may be concurrently held by a president of an ordinary corporation unlike in a one person corporation?
A. Treasurer
B. Corporate Secretary
C. Chairman of the Board of Directors
D. None of the above
171. Which position may be concurrently held by a president of a one person corporation?
A. Treasurer
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B. Corporate Secretary
C. Either A or B
D. Neither A nor B
172. Which position in a corporation requires the officer to be a director?

A. President and Chairman of the Board of Directors
B. Secretary and Treasurer
C. President and Secretary
D. President and Treasurer
173. Which is not required to be a director of a corporation?

A. President and Chairman of the Board of Directors
B. Secretary and Treasurer
C. President and Secretary
D. President and Treasurer
174. The certificate of registration of ABC Corporation was issued by SEC despite the fact that only 3 out of 7 incorporators were residents of
the Philippines. What is the effect of such inadvertent issuance of certificate of incorporation?
A. It means ABC Corporation is unincorporated.
B. It makes ABC Corporation a de facto corporation.
C. It does not affect the acquisition by ABC Corporation of the status as a de jure corporation.
D. It results to automatic dissolution of the ABC Corporation.
175. Under Old Corporation Code, which of the following documents may be submitted before or after the incorporation?
A. Verification certificate as to the name of the corporation
B. By-laws
C. Certificate of bank deposit as to the paid-up capital
D. Articles of incorporation
176. An incorporator of a stock corporation at the time of incorporation must be

A. the owner of at least one share of stock of the corporation
B. a member of first board of directors
C. a duly elected officer of the corporation
D. All of the foregoing
177. A subscriber of the capital stock of a corporation still to be formed must be:
A. an incorporator
B. a signatory to the articles of incorporation
C. a member of the incoming board of directors
D. None of the foregoing
178. The articles of incorporation of ABC Corporation provide for 15 directors. Which is invalid provision in the by-laws?
A. That the quorum in the meeting of the board of directors be at least 8 directors
B. That the quorum in the meeting of the board of directors be at least 10 directors
C. That the quorum in the meeting of the board of directors be at least 7 directors
D. That by-laws do not mention anything about the quorum in the meetings of directors
179. What may be the composition of the executive committee of a corporation?

A. Directors
B. Stockholders who are neither officers nor directors
C. Officers who are neither stockholders nor directors
D. A combination of A, B and C
180. The executive committee must have at least:

A. Three members who must act with a unanimous vote of all of its members
B. Three members who must act by a majority vote of all the members
C. Five members who must act with a unanimous vote of all of its members
D. Five members who must act by a majority vote of all the members
181. Which of the following causes of vacancy in the board of directors may be filled by the remaining directors if they still constitute a
quorum?
A. Removal of a director
B. Increase in the number of directors
C. Expiration of the term of a director
D. Disqualification of a director
182. Who may be removed as a director without cause during their term of office?
A. A director representing the majority stockholders
B. A director representing the minority stockholders
C. Either A or B
D. Neither A nor B
183. Which shares may be issued with or without par value?

A. Common shares
B. Preferred shares
C. Both common shares and preferred shares
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D. Neither common shares nor preferred shares
184. This rule protects directors who act with due care and in good faith, as long as their decisions are lawful and in the best interests of the
corporation. This also prohibits the court from reversing the decision of the board on act of management or administration.
A. Fairness rule
B. Business judgment rule or Doctrine of Management Prerogative
C. Golden rule
D. Anti-trust rule
185. It refers to a suit brought by a stockholder against the corporation for the violation of his rights as a stockholder.
A. Individual suit
B. Class suit
C. Representative suit
D. Derivative suit
186. A stock corporation, in general, is taxed in the same manner as a

A. General professional partnership
B. Commercial or business partnership or non-general professional partnership
C. Sole proprietorship
D. Cooperative
187. S is the owner of 500 shares of stocks of ABC Corporation whose articles of incorporation provide for 5 directors. In the annual election of
directors, the following ran for the position of directors: A, B, C, D, E and F. Which is incorrect as to the casting of votes?
A. 500 votes each for the 6 candidates
B. 500 votes each for A, B, C, D and E
C. 2,500 votes for A
D. 1,000 votes for A, 1,000 votes for B and 500 votes for C
188. Which is not a characteristic of a stock corporation?

A. Perpetual or indefinite life
B. Transferability of ownership interests
C. Unlimited liability on the part of the stockholders
D. Ability to attract large amount of capital
189. Which provision in the Articles of Incorporation cannot be amended?

A. Name of corporators
B. Number and name of incorporators
C. Term of existence
D. Primary purpose
190. No-par value shares may not be issued for a price lower than:
A. stock exchange quotation price
B. issued price
C. market price
D. fair market price
191. Which shares of stocks may be issued at a price higher than P5.00 per share?
A. par value shares
B. no-par value shares
C. Both A and B
D. Neither A nor B
192. Which shares of stocks may be issued at a price lower than P5.00 per share?
A. par value shares
B. no-par value shares
C. Both A and B
D. Neither A nor B
193. Other than from retained earnings, dividends may be declared out of
A. Paid up capital in excess of par value
B. Paid up capital in excess of issued price
C. Both A and B
D. Neither A nor B
194. Which is incorrect composition of capital stock of a corporation?

A. Both par value and no-par value shares
B. Both preferred and common shares
C. Either par value or no-par value shares
D. Either common or preferred shares
195. Which of the following statements is true?

A. A director is an agent of the corporation by virtue of being elected as a director.
B. A director who owns the controlling interest in a corporation has only one vote in the meeting of the board of directors.
C. Both A and B
D. Neither A nor B
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196. Which of the following does not vote on per head basis?
A. Directors of a stock corporation
B. Stockholders of a stock corporation
C. Trustees of a nonstock corporation
D. Members of a nonstock corporation
197. Which statements are false?

A. A person may become a stockholder of a corporation through the receipt of a stock dividend given to him in payment of services
previously rendered.
B. A contract of subscription has for its object unissued or issued shares such as treasury shares.
C. Both A and B
D. Neither A nor B
198. Who is the highest bidder in the public auction of delinquent shares of stocks?
A. The one who is willing to pay the highest amount for the highest number of shares
B. The one who is willing to pay the lowest amount for the lowest number of shares
C. The one who is willing to pay the full amount of the subscription, accrued interest, cost of advertisement and expenses of sale
for the smallest number of shares
D. The one who is willing to pay the full amount of the subscription, accrued interest, cost of advertisement and expenses of sale for the
largest number of shares
199. C is a director of S who is a stockholder of record of 1,000 shares of ABC Corporation. S sells the shares to B through a deed of absolute
sale that has not yet been recorded in the books of ABC Corporation. What is the status of sale?
A. It is valid between S and B.
B. It is valid against ABC Corporation and C.
C. It is valid to S, B, ABC Corporation and C.
D. It is not valid to any person.
200. For the purpose of determining the validity of the contract entered into between corporations with interlocking directors whose interest in
one corporation is nominal and substantial in the other, the presence of the interlocking director shall not be necessary to constitute a
quorum, and his vote should not be necessary for the approval of the contract in the meeting of the board of directors:
A. of the corporation where his interest is substantial
B. of the corporation where his interest is nominal
C. Both A and B
D. Either A or B
201. When is the interest of an interlocking director considered substantial?

A. at least 20%
B. more than 20%
C. at least 25%
D. more than 25%
202. Which is false about educational corporation?

A. It may be a stock or nonstock corporation.
B. It is similar to an ordinary nonstock corporation organized for educational purposes.
C. A family administered pre-school institution need not be incorporated.
D. The approval of the SEC is necessary to its incorporation.
203. Which is false about religious corporation?

A. It is different from an ordinary corporation organized for educational purposes.
B. The Roman Catholic Church has the juridical personality of a corporation even if not registered with SEC.
C. A religious group, sect or denomination is not required by law to incorporate as a religious corporation.
D. The approval of the SEC is necessary for its incorporation.
204. Which of the following is not a mode of voluntary dissolution of a corporation?

A. At least majority vote of the board of directors/trustees and at least 2/3 vote of the stockholders/members.
B. Bankruptcy
C. Filing of a petition for dissolution before the SEC
D. Amendment of articles of incorporation to shorten the corporate term
205. Which is not a mode of involuntary dissolution of a corporation?

A. Legislative revocation of franchise
B. Judicial decree
C. Order of SEC
D. Expiration of corporate term
206. Which is false about the dissolution of a corporation?

A. Liquidation involves the sale or conversion of all corporate assets into cash and payment of all liabilities.
B. Winding up involves the final distribution of whatever remains, if any, to the stockholders as a return of their investment.
C. A corporation has only a period of five years from the time it was dissolved within which to liquidate its affairs.
D. Corporate creditors who do not belong to the corporation shall be preferred in payment than corporate creditors who are also
stockholders, members, directors, trustees or officers of the corporation.
207. ABC Corporation is a foreign corporation doing business without license. ABC Corporation entered into a contract with DEF Corporation,
a domestic corporation who violated the contract. Which is correct?
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A. ABC can sue DEF before Philippine courts without securing the necessary license.
B. ABC can never sue DEF before Philippine courts under all instances.
C. The contract between ABC and DEF is null and void.
D. ABC may secure the required license from SEC after the breach and then sue DEF afterwards.
208. Which activity is considered doing business in the Philippines?

A. A foreign corporation that is engaged in the manufacturing of uniforms purchased soccer jerseys from the Philippines.
B. A foreign corporation sold construction equipment in an isolated transaction.
C. A foreign insurance company issued a policy to the consignee of exported steel pipes.
D. A foreign subsidiary assumed the payment of the loan by a foreign corporation doing business in the Philippines, and the subsequent
acquisition by the former of the latter.
209. Which activity is not considered doing business in the Philippines?

A. A foreign shipping company loaded cargoes in the Philippines once a year for two consecutive years.
B. A foreign corporation that manufactures cars appointed a Philippine distributor who merely transmits to its orders from buyers, the
former fixing the price and the down payment, receiving payment directly from buyers, and shipping the cars directly to the buyers.
C. A foreign corporation licensed a domestic corporate to manufacture its products.
D. A foreign corporation appointed an exclusive distributor of its products in the Philippines, registered its trade name, and sent an officer
to conduct a training program four times.
210. Which is a characteristic of appraisal right of a stockholder in a close corporation?

A. It is absolute, unless expressly curtailed in the articles of incorporation.
B. It can be exercised on voting and nonvoting stocks, including treasury shares.
C. Both A and B
D. Neither A nor B
211. What is the age of members of laboratory cooperative?

A. At least 7 years old but below 18 years of age
B. At least 12 years old but below 18 years of age
C. At least 15 years old but below 18 years of age
D. At least 10 years old but below 18 years of age
212. It refers to the portion of net surplus allocated to the amount returned to individual members who patronize the goods and services of the
cooperative in proportion to their individual patronage.
A. Patronage refund
B. Interest on share capital
C. Dividend
D. Return of investment
213. What is the minimum amount of community development fund of a cooperative?

A. At least 50% of net surplus
B. At least 10% of net surplus
C. At least 3% of net surplus
D. At least 7% of net surplus
214. It shall not be construed as profit but as an excess of payments made by the members for the loans borrowed, or the goods and services
availed by them from the cooperative or the difference of the rightful amount due to the members for their products sold or services
rendered to the cooperative including other inflows of assets resulting from its other operating activities and which shall be deemed to have
been returned to them if the same is distributed as prescribed in Cooperative Code.
A. Retained earnings
B. Accumulated profits
C. Net surplus
D. Contributed capital
215. What is the required vote for the voluntary dissolution of a cooperative?
A. By at least majority vote of the board of directors and by a resolution duly adopted by the affirmative vote of at least 2/3 of all
members with voting rights, present and constituting a quorum
B. By at least majority vote of the board of directors and by a resolution duly adopted by the affirmative vote of at least 3/4 of all
C. By at least majority vote of the board of directors and by a resolution duly adopted by the affirmative vote of at least majority of all
D. By at least majority vote of the board of directors and by a resolution duly adopted by the affirmative vote of at least 25% of all
216. How often shall the regular meeting by the general assembly of a cooperative be held?
A. At least annually
B. At least monthly
C. At least quarterly
D. At least weekly
217. What is the required vote for the termination of a membership in a cooperative for any of the valid causes enumerated by Cooperative
Code?
A. At least 2/3 of all the members of the cooperative with right to vote
B. At least ¾ of all the members of the cooperative with right to vote
C. At least ¾ of all the members of the board of directors of the cooperative
D. At least majority of all the members of the board of directors of the cooperative
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218. How is a cooperative created?

A. By mere consent
B. By prescription
C. By operation of law
D. By execution of formality required by law
219. What is the maximum amount of education and training fund of a cooperative?
A. Not more than 50% of net surplus
B. Not more than 10% of net surplus
C. Not more than 3% of net surplus
D. Not more than 7% of net surplus
220. After the first five years of operation of a cooperative, what is the minimum amount of reserve fund of a cooperative?
A. At least 50% of net surplus
B. At least 10% of net surplus
C. At least 3% of net surplus
D. At least 7% of net surplus
221. Who shall perform the annual social audit of a cooperative registered under CDA?
A. Independent external auditor in good standing with PICPA and accredited by PRC-BoA and CDA
B. Independent social auditor accredited by Cooperative Development Authority
C. Internal auditor of the Cooperative
D. External auditor accredited by Bangko Sentral ng Pilipinas
222. What is the recommendatory period for liquidation of a cooperative from the date of its dissolution?
A. One year
B. Three years
C. Two years
D. Five years
223. What is the proper procedure for dissolution of a cooperative when its dissolution affects or prejudices the rights of its creditors?
A. By mere submission of the resolution adopted by the Board of Directors to dissolve the cooperative with the approval of 3/4 of the
voting or regular members to the Cooperative Development Authority
B. By filing a formal petition with notice and hearing with Cooperative Development Authority
C. Either A or B
D. Neither A nor B
224. Which cooperative registered with Cooperative Development Authority is absolutely exempted from all types of taxes without
qualification?
A. Cooperative that does not transact business non-members or the general public
B. Cooperative that transacts business with both members and non-members
C. Cooperative that transacts business with both members and non-members with accumulative reserves and undivided net savings of not
more than P10,000,000
D. Cooperative that transacts business with both members and non-members with accumulative reserves and undivided net savings of
more than P10,000,000
225. What is the required vote for ratification of acquisition made by a director of a cooperative who by virtue of his office, acquires for
himself an opportunity which should belong to the cooperative or for ratification of voidable contract entered by a self-dealing director with
a cooperative?
A. At least 2/3 of members with voting rights, present and constituting a quorum
B. At least 3/4 of members with voting rights, present and constituting a quorum
C. At least majority of members with voting rights, present and constituting a quorum
D. At least 25% of members with voting rights, present and constituting a quorum
226. How often shall the regular meeting of the board of directors of a primary cooperative be held?
A. At least monthly
B. At least weekly
C. At least annually
D. At least quarterly
227. What is the number of members of board of directors of a cooperative?

A. At least 5 but may not exceed 15
B. At least 5 but may exceed 15
C. Always 5
D. Always 15
228. In the absence of a date fixed in the cooperative by-laws, when shall the regular meeting by the general assembly of the cooperative be
held?
A. Any date within 90 days after the close of each fiscal year
B. Any day of April
C. April 15
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D. Any day of December
229. What type of shares of stocks of a cooperative may be held by an associate member who is a cooperative member who has no right to vote
nor be voted upon and shall be entitled only to such rights and privileges as the bylaws may provide?
A. Preferred shares
B. Common shares
C. Redeemable shares
D. Convertible shares
230. What civil degree of consanguinity or affinity will disqualify two or more relatives in the same cooperative to become co-employees or co-
officers?
A. At least second civil degree
B. At least third civil degree
C. At least fourth civil degree
D. At least fifth civil degree
231. What is a conclusive evidence of juridical personality of a cooperative and its due registration with CDA unless it is proved that such
registration has been cancelled?
A. Articles of Cooperation signed by the founders or cooperators of a cooperative
B. Cooperative By-laws signed by the founders or cooperators of a cooperative
C. Certificate of Registration issued by Cooperative Development Authority under its official seal
D. Certification of Registration issued by Bureau of Internal Revenue under its official seal
232. In case of joint account involving a juridical/artificial person and a natural person, who shall be entitled to the maximum insured deposit of
P500,000 to such joint account?
A. Both juridical person and natural person equally in the amount of P250,000 each
B. Natural person only
C. Juridical person only
D. Neither juridical person nor natural person
233. Which of the following inquiries or disclosures of Philippine Peso Deposit is violative of Bank Secrecy Law?
A. Inquiry wherein the money deposited is the very subject matter of the litigation
B. Inquiry in cases of impeachment of the impeachable officers under the 1987 Constitution
C. Disclosure with oral consent by the depositor
D. Disclosure upon order of competent court in cases of bribery or dereliction of duty of public officials
234. In which of the following legal processes may foreign currency deposit be subjected to?
A. Attachment or garnishment by regional trial court
B. Subpoena duces tecum by Congress of the Philippines, either House of Representative or Senate
C. Inquiry by the impeachment court during impeachment trial
D. Reporting covered transactions or suspicious transactions by banks to Anti-Money Laundering Council
235. Which of the following institutions is not covered by Unclaimed Balances Law?
A. Savings and mortgages banks
B. Mutual buildings and loan associations
C. Trust company
D. Cooperatives
236. Which of the following is not a covered person of Anti-Money Laundering Law?
A. Money changer, foreign currency dealers and remittance companies
B. Insurance companies and pre-need companies
C. Securities dealers, brokers, salesman and investment houses
D. Grocery stores, convenience stores and supermarket
237. Which of the following is not a minimum customer identification information under Anti-Money Laundering Law?
A. Date and place of birth of customer
B. Nationality and contract number of customer
C. Facebook, instagram and twitter accounts of customer
D. Specimen signature and biometrics of customer
238. What is the minimum retention period for covered persons to maintain and safely store all records of customer identification and
transaction documents of their customers counted from the date of transaction or date of closure of account?
A. At least two years
B. At least three years
C. At least four years
D. At least five years
239. In which predicate crime of money laundering is the Anti-Money Laundering Council (AMLC) allowed to inquire bank deposits of
suspected launderer despite the absence of court order from Court of Appeals?
A. Financing of terrorism
B. Plunder
C. Smuggling
D. Human trafficking
240. Which professionals are exempted from reporting covered transactions or suspicious transactions to Anti-Money Laundering Council
(AMLC) if the disclosure would compromise client confidences?
A. Insurance agents or brokers
B. Stock agents or brokers
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C. Fund managers
D. CPA and/or Lawyers
241. Which customer accounts involving covered persons of Anti-Money Laundering Law are not prohibited by Anti-Money Laundering Law?
A. Anonymous accounts
B. Fictitious accounts
C. Number accounts
D. Non-checking number accounts
242. What is the initial validity period and maximum validity period, respectively, of freeze order issued by Court of Appeals involving bank
deposits of suspected launderer?
A. 10 days and 3 months respectively
B. 15 days and 5 months respectively
C. 20 days and 6 months respectively
D. 30 days and 12 months respectively
243. Which negotiable instrument if dishonored might subject the maker or drawer to criminal prosecution under BP 22?
A. Check
B. Bill of exchange
C. Promissory note
D. Any of the above
244. What criminal liability may be imposed by Municipal Trial Court Judge for issuance of worthless checks or bouncing checks?
A. Imprisonment only
B. Fines only
C. Either Imprisonment or Fines
D. Either Imprisonment or Fines or Imprisonment with Fines
245. Under BP 22, what is a prima facie evidence of the making or issuance of worthless or bouncing check, and the due presentment to the
drawee for payment and the dishonor thereof, and that the same was properly dishonored for the reason written, stamped or attached by the
drawee on such dishonored check?
A. The dishonored check with stamped of the words no sufficient funds (NSF) by the drawee bank.
B. The passbook or bank statement coming from the bank.
C. The oral testimony of the holder.
D. The audited financial statements of the maker or drawer of check.
246. Under Ease of Doing Business Act of 2018, it serves as a central system to receive applications and capture application data involving
business-related transactions, including primary and secondary licenses, and business clearances, permits, certifications or authorizations
issued by the local government units (LGUs): Provided, That the it may also provide links to the online registration or application systems
established by national government units (NGAs).
A. Central Business Portal (CBP)
B. Business One Stop Shop (BOSS)
C. Action
D. Regulation
247. Under Ease of Doing Business Act of 2018, it serves as a single common site or location, or a single online website or portal designated for
the Business Permits and Licensing System (BPLS) of a Local Government Units (LGUs) to receive and process applications, receive
payments, and issue approved licenses, clearances, permits, or authorizations.
A. Central Business Portal (CBP)
B. Business One Stop Shop (BOSS)
C. Action
D. Regulation
248. Under Ease of Doing Business Act of 2018, what is the validity period of business permits in Local Government Units (LGUs)?
A. Two years
B. One year
C. Three years
D. Six months
249. Under Ease of Doing Business Act of 2018, what is the maximum number of signatories in any document involving government services?
A. Three signatories
B. Two signatories
C. Four signatories
D. Five signatories
250. Under Ease of Doing Business Act of 2018, what is the form for validity of denial of any application to government agencies?
A. Any denial of application or request for access to government service shall be fully explained in writing the reasons stating the
name of the person making the denial and the grounds upon which such denial is based.
B. Any denial of application or request for access to government service may be made orally.
C. Either A or B
D. Neither A nor B
251. Under Ease of Doing Business Act of 2018, this scheme means that the acknowledgment receipt together with the official receipt for
payment of all required fees issued to the applicant or requesting party shall be enough proof or has the same force and effect of a license,
clearance, permit, certification or authorization in case of unjustified inaction by government agencies within the period provided by law.
A. Prescriptive period
B. Estoppel
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C. Laches
D. Automatic approval scheme
252. What is the coverage of Electronic Commerce Act?

A. Any data message and electronic document used in the context of commercial activities only
B. Any date message and electronic document used in the contect of non-commercial activities only
C. Both A and B
D. Neither A nor B
253. What is the scope of Electronic Commerce Act?

A. Any data message and electronic document in domestic dealings, transactions, arrangments, agreement contracts, and exchanges and
storage of information.
B. Any data message and electronic document in international dealings, transactions, arrangments, agreement contracts, and exchanges
and storage of information.
C. Both A and B
D. Neither A nor B
254. He refers to any natural or juridical person qualified to act as such under Data Privacy Act to whom a personal information controller may
outsource the processing of personal data pertaining to a data subject.
A. Personal information controller
B. Personal information auditor
C. Personal information manager
D. Personal information processor
255. Which personal information is protected and covered by Data Privacy Act of 2012?
A. Information about an individual who is or was performing service under contract for a government institution that relates to the
services performed, including the terms of the contract, and the name of the individual given in the course of the performance of those
services
B. Information relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the
government to an individual, including the name of the individual and the exact nature of the benefit
C. Personal information processed for journalistic, artistic, literary or research purposes
D. Personal information of members of labor union processed for collective bargaining agreement purposes
256. Which of the following information is not a sensitive personal information of a data subject the processing of which is not generally
allowed?
A. Individual's race or ethnic origin or color
B. Individual's marital status or age
C. Individual's religious, philosophical or political affiliations
D. Individual's wages or salaries
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No. 125 Brgy.

iCARE Accountancy Review

6. What law shall govern dation en pago as a mode of extinguishing obligation?

9. In a facultative obligation, to whom shall the right of choice belong?

12. Which of the following is a proper combination of contract as to perfection?

A. Contract of Sales - Real contract

17. Which of the following contracts is valid and binding?

18. Which of the following executory contracts must be in writing to be enforceable?

20. It is a contract whose fulfillment depends upon chance.

28. What is the nature of contract of antichresis as to the perfection?

51. Which of the following is a characteristic of a private corporation?

52. Which of the following is an incidental or inherent power of a private corporation?

58. What is the maximum ownership of foreigners in educational institution?

61. Which of the following is a qualification of a member of board of directors?

69. Where shall the regular meeting of stockholders be located?

70. In which meeting is proxy voting allowed?

71. Which right is still available to delinquent subscribers?

77. Which type of corporation may be incorporated as a close corporation?

83. Which of the following is not a party to a negotiable bill of exchange?

84. Which of the following is not a warranty of a qualified indorser?

86. Which of the following is not a requisite of a negotiable promissory note?

88. How is a negotiable instrument payable to order validly negotiated?

92. Which of the following will not discharge a negotiable instrument?

93. Which of the following will discharge a party secondarily liable?

95. If acceptance is given by the drawee, what is the date of acceptance?

104. Which partnership contract is valid?

106. Which of the following stipulations is valid?

111. Which of the following statements is false?

B. When he takes part in the control of the business.

129. Which of the following statements is false concerning treasury shares?

Which resolutions are valid?

145. The following statements are presented to you:

b. II and II are true.

156. These statements are presented to you:

157. Which statements are false?

158. Which statements are true?

162. What business combination is presented by the following equations?

166. Which of the following statements is true?

167. Which is true about a close corporation?

168. Which is false about a close corporation?

172. Which position in a corporation requires the officer to be a director?

173. Which is not required to be a director of a corporation?

176. An incorporator of a stock corporation at the time of incorporation must be

179. What may be the composition of the executive committee of a corporation?

180. The executive committee must have at least:

183. Which shares may be issued with or without par value?

D. Neither common shares nor preferred shares

186. A stock corporation, in general, is taxed in the same manner as a

188. Which is not a characteristic of a stock corporation?

189. Which provision in the Articles of Incorporation cannot be amended?

194. Which is incorrect composition of capital stock of a corporation?

195. Which of the following statements is true?

197. Which statements are false?

201. When is the interest of an interlocking director considered substantial?

202. Which is false about educational corporation?

203. Which is false about religious corporation?

204. Which of the following is not a mode of voluntary dissolution of a corporation?