ICARE RFBT Preweek Number One

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

Regulatory Framework for Business Transactions
Preweek Handout One
1. D promises to deliver a specific thing to C if the latter will pass the CPA Board Exam. Before the fulfilment of such suspensive
condition, D made improvement to the specific thing. Afterwards, C passed the CPA Board Exam. What is the right of D to such
improvement of specific thing during the pendency of condition at his expense?
A. D is the owner of such improvement because it was made at his expense.
B. D shall have no other right than that granted to the usufruactuary which is the right to enjoy and use the improved
determinate thing for a reasonable time.
C. D has the right to retain the improved specific thing by virtue of legal pledge until he was reimbursed by C for the
improvement he made on the specific thing.
D. D has the right to ask for reimbursement from C for the improvement he has made on the specific thing.
2. A, B and C wrote a promissory note which states “I promise to pay P30,000 to D with the following maturity dates: October 4, 2019
for A’s share; November 5, 2019 for B’s share; and December 7, 2019 for C’s share.” How much may D collect from C if today is
October 4, 2019?
A. P10,000
B. P20,000
C. P30,000
D. None of the above
3. A, B and C are solidarily liable to D for P30,000. D assigned the note to X. Afterwards, X assigned the note to A. How much
obligation is extinguished?
A. P10,000
B. P20,000
C. P30,000
4. A, B and C are solidarily liable to X for P30,000. A is insolvent. X condoned B’s share in the obligation. Which of the following
statements is correct?
A. C is liable to X in the amount of P10,000 only.
B. B is still liable to X in the amount of P20,000.
C. X may only collect P10,000 from B.
D. X may only collect P10,000 from C.
5. A, B and C are liable jointly in the amount of P60,000 to D and E, joint creditors. D condoned the whole obligation. How much
obligation is extinguished by remission?
A. P60,000
B. P30,000
C. P20,000
D. P10,000
6. A owes B P10,000. B owes C P10,000. C owes A P10,000. What mode of extinguishing the three obligations is present?
A. Confusion
B. Merger
C. Compensation
7. H and W are legally separated based on a court judgment. The decision requires H to give monthly support to W of P10,000 at the
beginning of each month. On March 2018, W purchased goods on account from H's business in the amount of P10,000 with
maturity date on May 1, 2018. H has not given W's monthly support for the months of April 2018 and May 2018. Which is
incorrect?
A. If W demands her support for the month of April, H may set up compensation as regards to the debt W owes him.
B. If W demands her support for the month of May, H may claim compensation as regards to the debt W owes him.
C. If H demands payment of the debt from the sale of goods, W may set up compensation as regards to her support for the
month of April.
D. If H demands payment for the debt from the sale of goods, W may set up compensation as regards to her support for the
month of May.
8. D owes C P30,000 due on June 20. C owes D the following debts: P15,000 due on June 2; P4,000 due on June 14; P6,000 due on
June 16; and P3,000 due on June 18. On June 17, C assigned his right to X. C notified D of the assignment but D did not given his
consent thereto. On June 20, how much may X collect from D?
A. P30,000
B. P5,000
C. P2,000
D. Nothing
9. D owes C P30,000 due on June 20. C owes D the following debts: P15,000 due on June 2; P4,000 due on June 14; P6,000 due on
June 16; and P3,000 due on June 18. On June 17, C assigned his right to X without notifying D. It was only on June 20 when X
went to D to collect that D learned of the assignment. On June 20, how much may X collect from D?
Page 1 of 15 (PW-01)
No. 125 Brgy. San Sebastian
Mobile : 0927 283 8234
Telephone : (043) 723 8412
A. P30,000
B. P5,000
C. P2,000
D. Nothing
10. PRU-SUN Insurance company has already prepared the life insurance policy dictating the terms of contract of life insurance. The
policy holder merely signed the life insurance policy after reading its provisions. What type of contract is entered into by the
contracting parties?
A. Auto-Contract
B. Contract of Adhesion
C. Gratuitous Contract
D. Unilateral Contract
11. B borrowed P100,000 cash from L with 10% interest per month with a term of one year. The contract of loan and its accessory
agreement to pay interest are reduced in writing. What is the status of the written agreement to pay 10% interest per month?
A. Unlawful
B. Illegal
C. Usurious
D. Unconscionable
12. Under Article 1382, the following are the requisites of rescissible payment by a debtor to a creditor, except
A. The debtor is already insolvent at the time of payment.
B. The obligation to creditor is not yet due at the time of payment.
C. The debtor makes the payment even if the debt is not yet due.
D. The debtor makes the payment in writing.
13. B is buying a bale of tobacco leaves from S. However, S delivers to B a bale of marijuana leaves which B believes to be a tobacco.
After the delivery of the marijuana leaves, B pays the price for the bale of tobacco leaves. Which is correct?
A. The marijuana leaves will be not confiscated in favor of the government.
B. Both S and B will be criminally prosecuted for the said transaction.
C. The purchase price or money will be forfeited in favor the government.
D. B may recover the money he paid.
14. S sold and delivered to B for P5,000 a specific cow which S new was suffering from Mad Cow Disease. B had no idea that the cow
is suffering from such contagious disease so he paid the price of P5,000 to S. Which is correct?
A. B can still retain the cow suffering from mad cow disease and the authorities of the state cannot condemn it.
B. S can recover the cow from B since void contract produces no effect whatsoever.
C. B may recover the money he has paid.
D. B can still recover the cow suffering from mad cow disease and the authorities of the state cannot condemn it.
15. These are void contracts but which one will produce legal effect?
A. Contract involving illegal service
B. Illegal contract with one party incapable of giving consent
C. Contract with cause and object which are not determinable
D. Contract involving object outside the commerce of men
16. On January 1, 2015, Konstrak Company orally entered into a long-term construction contract with Avista Land for the construction
of a commercial building. The construction started on July 1, 2015 and to be completed on December 31, 2017. What is the status of
this oral construction contract?
A. Unenforceable
B. Valid
C. Voidable
D. Void
17. S sold his only car to B for P100,000 payable in 10 equal monthly installments of P10,000 each. As security, B executed a chattel
mortgage on the car. What is the remedy of S if B fails to pay one installment?
A. Exact fulfillment of the obligation with recovery for deficiency even without stipulation to that effect.
B. Cancel the installment sale of car.
C. Foreclose the chattel mortgage on the thing sold, if one has been constituted without right to recover any deficiency.
D. Any of the above.
18. Using the same data in number 17, if buyer B defaulted in at least two installments after payment of several installments, may the
seller cancel the contract of sale?
A. Yes but the buyer is still required to pay the price.
B. Yes and the seller may still recover the unpaid price.
C. Yes and the buyer must return the car to the seller and the seller must generally return the installments already
received minus reasonable rent unless there is conscionable agreement of forfeiture of all installments received in
favor of the seller.
D. Yes and the buyer and seller cannot agree to the forfeiture of installment already received even if such agreement is not
unconscionable.
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19. Using the same data in number 17 and assuming B fails to pay two or more installments, can S foreclose the chattel mortgage on the
car and recover any deficiency from the foreclosure?
A. Yes S can foreclose the chattel mortgage constituted over the car but cannot recover any deficiency even if there is
stipulation for the recovery because any stipulation for recovery of deficiency is void.
B. No S cannot foreclose the chattel mortgage and cannot recover any deficiency.
C. Yes S can foreclose the chattel mortgage and can recover any deficiency even without stipulation for the recovery.
D. Yes S can foreclose the chattel mortgage and can recover any deficiency only if there stipulation for the recovery.
20. Using the same data in number 17 and assuming B fails to pay two or more installments; can S ask for the exact fulfillment of the
obligation and recover any deficiency from the sale by execution through writ of attachment issued by trial court?
A. No S cannot ask for the exact fulfillment of the contract of sale because it is available only when one installment is not
paid.
B. Yes S can ask for the exact fulfillment of the contract of sale but cannot recover any deficiency from the sale by execution
under any circumstances.
C. Yes S can ask for the exact fulfillment of the contract of sale and can recover any deficiency from the sale by
execution even without stipulation for recovery of deficiency.
D. Yes S can ask for the exact fulfillment of the contract of sale and can recover any deficiency from the sale only if there is
stipulation.
21. Using the same data in number 17 and assuming B fails to pay two or more installments; can S ask for the exact fulfillment of the
obligation and recover any deficiency from the sale by execution through the foreclosure of chattel mortgage on the car?
A. No S cannot ask for the exact fulfillment of the contract of sale because it is available only when one installment is not
paid.
B. Yes S can ask for the exact fulfillment of the contract of sale but cannot recover any deficiency from the sale by execution
under any circumstances.
C. Yes S can ask for the exact fulfillment of the contract of sale and can recover any deficiency from the sale but
through execution only but not further through foreclose of chattel mortgage because they are alternative
remedies.
D. Yes S can ask for the exact fulfillment of the contract of sale and can recover any deficiency from the sale only if there is
stipulation.
22. Using the same data in number 17 except from the fact that the chattel mortgage was executed over B's piano and not over the car
sold. S foreclosed the mortgage over the piano and there is deficiency. Can S recover the deficiency?
A. Yes provided there is stipulation to that effect.
B. Yes even without stipulation to that effect.
C. No because that will be contrary to law.
D. No even without stipulation to that effect.
23. S sold his ring to B for P50,000 under the following terms: down payment of P30,000 and the balance payable at month end. As
security, B executed a chattel mortgage on the ring. B defaulted in the payment of the balance. By reason thereof, S foreclosed the
chattel mortgage on the ring. However, only P15,000 was realized in the foreclosure sale. Can S still proceed against B to collect the
deficiency of P5,000 arising from foreclosure of chattel mortgage on the ring sold?
A. No because Recto Law prohibits recovery of deficiency.
B. Yes if deficiency has been agreed upon contrary to Recto Law.
C. Yes because Recto Law does not apply to sale on straight term and the general rule is that if the foreclosure sale in
chattel mortgage results in deficiency, the same may be recovered by the mortgagee in the absence of stipulation to
the contrary.
D. No because recovery of deficiency is only available in execution sale.
24. S sold to B the December 2020 harvest of his specific farm lot. Unfortunately, due to a typhoon, the said harvest did not materialize.
What is the status of above mentioned contract of sale of future harvest?
A. The contract of sale remains to be valid because validity of contract is determined upon meeting of minds.
B. The contract of sale becomes void because of the absence of subject matter.
C. The contract of sale becomes unenforceable because it is still executor.
D. The contract of sales becomes voidable because of vitiation of consent.
25. On September 12, 2018, S sold under contract to sell a specific car to B without delivery. On September 15, 2018, S sold again the
said car to D under contract of sale with delivery but without payment of price. On September 17, 2018, B fully paid the price to S.
Which is correct?
A. B has better right over the car than D because he has earlier title.
B. B has better right over the car because he is the first payer of the car.
C. The rule on double sale will not apply because there is no double sale.
D. There is double sale upon payment of the price by B.
26. The contract of chattel mortgage stipulates that the foreclosure sale of mortgaged personal property will be done in a private auction
instead of a public sale as provided by the Chattel Mortgage Law in case of debtor’s default in the payment of secured obligation. Is
the stipulation for private auction of mortgaged personal property valid?
A. No because the Chattel Mortgage Law requires the foreclosure sale to be done in public auction only.
B. Yes by virtue of autonomy of contract and doctrine of estoppel.
C. No because public auction will be prejudicial to the interest of the mortgagor.
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D. Yes provided the proceeds from the public auction will exceed the amount of the secured obligation.
27. Lender loaned P1M to borrower. Third person Plegor secured payment of the loan with a pledge of shares worth P1.2M. Borrower
defaulted in the payment of the loan. Borrower ignored several demands for payment of the loan. This prompted Lender to cause the
notarial sale of the pledge shares. The public auction was scheduled on September 24, 2010 at 9am. Borrower and pledgor
separately received notices of the auction from notary public on September 23, 2010 at 4pm. Borrower and pledgor were not able to
attend the auction due to the short notice. Hence, the Lender was the sole and winning bidder with a bid of P1,200,000. Borrower
and pledgor questioned the validity of sale. Do they have basis to do so?
A. No because they received reasonable notice
B. Yes because only the lender participated in the bid.
C. Yes because it amounted to pactum commissorium
D. No because lender paid the full worth of shares
28. This affidavit in chattel mortgages states that the mortgagor and mortgagee do severally swear that the foregoing chattel mortgage is
made for the purpose of securing the obligation specified in the conditions thereof, and not for any other and that the same is a just
and valid obligation and not entered into for purposes of fraud. It refers to the affidavit that must be attached in the document
evidencing the contract of chattel mortgage in order to bind or to prejudice third persons.
A. Affidavit of Good Faith
B. Affidavit of Loss
C. Affidavit of Desistance
D. Affidavit of Recognition
29. LIFE Company, is a partnership engaged in the water distribution business, is composed of partners L, I, F and E. One day, L was
driving the firm's truck beyond the speed limit in order to serve its customers, when he rammed into and caused the extensive
damage on the parked car of T. Which is correct?
A. Only L can be held liable for damages to T.
B. LIFE Company and L are solidarily liable to damages to T.
C. LIFE Company and the four partners are solidarily liable to damages to T.
D. LIFE Company and the four partners are jointly liable to damages to T.
30. POGI Enterprises, a partnership engaged in the business of renting out video films, is owned by partners Patrick, Oliver, Gerald and
Ignacio, with Patrick as the manager. Diether owes POGI Enterprises P6,000 and Oliver, P4,000. Both debts are unsecured and are
already due. Diether pays Oliver P4,000 for which Oliver issues his own receipt. How shall the payment be applied?
A. The payment shall be applied to Oliver’s credit only.
B. The payment shall be applied to POGI’s credit only.
C. The payment shall be divided proportionately between POGI Enterprise and Oliver, at P2,400 and P1,600, respectively.
D. The payment shall be divided equally between POGI Enterprises and Oliver at P2,00 each.
31. Which partner is exempted from making additional capital contribution to the partnership in order to save the venture from
imminent loss?
A. Industrial partner
B. Managing partner
C. Silent partner
D. Secret partner
32. He is a partner in a limited partnership who is liable for partnership’s debts up to the extent of his capital contribution only.
A. Limited partner
B. General partner
C. Nominal partner
D. Managing partner
33. Which of the following may not be contributed by a pure limited partner?
A. Cash
B. Personal property
C. Real property
D. Services, industry or labor
34. TIR Limited Partnership LTD is organized by A, B and C. A contributed cash to the partnership. B contributed property, plant and
equipment to the partnership. C contributed services to the partnership. Who among the partners may be classified as limited
partner?
A. A, B and C
B. A and B only
C. A only
D. B and C only
35. A, B and C are partners in ABC Partnership. Later, they sell their ABC Partnership business to D with the agreement that D shall
assume all the liabilities of the partnership to third persons. However, the third persons have no knowledge of the sale to D. Which
is correct?
A. The liabilities of ABC Partnership to third persons are extinguished
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B. Third party creditors may only ask from D for payment of ABC partnership obligations.
C. The creditors of ABC partnership are no longer creditors of A, B, and C
D. A, B, and C remain to be liable to the creditors of ABC Partnership in addition to D’s liability to these creditors.
36. TRIUMPH Company, a partnership engaged in the buying and selling of car spare parts, has the following partners with their
respective contributions: T-P10,000; R-P20,000; I-P30,000; U-P40,000; M-P100,000; P-P200,000 and H-P300,000. No one was
appointed as manager of the partnership. In the course of the operation of the partnership, T proposed to buy car spare parts from
Dominion Motors but his proposal was opposed by R. A voting among the partners took place and I, U and M sided with T, while P
and H sided with R. Which is correct?
A. The group of T, I, U and M will prevail because they constitute the majority.
B. The group of R, P and H will prevail because they constitute the controlling interest.
C. None will prevail because no one is appointed as manager of the partnership.
D. The partners will have to appoint a manager in order to resolve the conflict.
37. This principle means that a shareholder is not personally liable for the debts of the corporation and that a corporation is not also
liable for the personal debts of its shareholder.
A. Doctrine of Separate Personality
B. Limited Liability Rule
C. Trust Fund Doctrine
D. Business Judgement Rule
38. GREAT Company, a partnership engaged in the distribution of generators is composed of G, R, E, A and T. G is the managing
partner. Which the following transactions entered into by the following partners in behalf of the partnership without any authority is
binding to the partnership?
A. The sale of a generator by R to a customer who was not aware that R had no authority. The customer has paid for
the generator which is due for delivery.
B. The purchase of a car by E from Honda Comopany whose owner was not aware of E’s lack of authority. The car and the
price are due for delivery and payment, respectively.
C. Both A and B
D. Neither A nor B
39. Under Old Corporation Code of the Philippines, which of the following statements is false?
A. Private corporation has the express power to establish pension, retirement, and other plans for the benefit of its directors,
trustees, officers and employees.
B. Private corporation has the express power to give donations in aid of any political party or candidate or for
purposes of partisan political activity.
C. Both A and B
D. Neither A nor B
40. Under Revised Corporation Code of the Philippines, which of the following statements is true?
A. Domestic corporation has the express power to give donations in aid of any political party or candidate or for
purposes of partisan political activity.
B. Foreign corporation has the express power to give donations in aid of any political party or candidate or for purposes of
partisan political activity.
C. Both A and B
D. Neither A nor B
41. If not specified, the preferred shares in a private corporation under the Corporation Code of the Philippines are?
A. Cumulative preferred shares
B. Preferred as to earnings
C. Preferred as to assets
D. Participating as to earnings
42. What is the difference between discounted shares and watered shares?
A. Discounted shares are stocks issued for a consideration the valuation of which is intentionally understated while watered
shares are stocks issued that resulted to understatement of stockholders’ equity.
B. Discounted shares are stocks issued above its fair market value while watered shares are stocks issued above its par value
or issue price.
C. Discounted shares are stocks issued below its fair market value while watered shares are stocks issued below its par
value or issue price.
D. All of the above
43. The Board of Directors of ABC Inc. agreed to tax evasion. Securities and Exchange Commission filed an action directly against the
Board of Directors. The Board of Directors denies, stating that the corporation has a separate juridical personality. Which is true?
A. The Board of Directors can never be sued because it has personality separate and distinct from the corporation.
B. The SEC is right. Corporation can never be held criminally liable for fines but only its directors.
C. The SEC is right. The juridical personality of the corporation may be pierced if it is used to commit tax evasion.
D. The Board of Directors is right because it can invoke the principle of business judgement rule.
44. X subscribed for 1,000 of P500 par value common stock for P500,000. He was able to pay only P200,000 and so the 600 unpaid
shares were declared delinquent. Accrued interest to date amounted to P21,000 and expenses for the public sale amounted to
P4,000. The following bids were offered:
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A – P325,000 for 800 shares

B – P325,000 for 600 shares
C – P250,000 for 600 shares
D – P200,000 for 400 shares
What is the consequence of the sale to the highest bidder?
A. D shall own 400 shares and X shall retain 600 shares.
B. A shall own 800 shares and X shall retain 200 shares.
C. B shall own 600 shares and the corporation shall own 400 shares.
D. B shall own 600 shares and X shall retain 400 shares.
45. Shareholders who shall receive dividends are those who are registered as such in the stock and transfer book as of the:
A. Date of declaration
B. Date of record
C. Date of payment
46. Which distinction between a cash dividend and a stock dividend is false?
A. The declaration of cash dividend requires only a majority of the quorum of the board of directors, whereas the
declaration of stock dividend requires the approval of at least 2/3 of the members of the board.
B. Cash dividend, once declared, belongs to the stockholder and cannot be transferred to any surplus account of the
corporation; whereas the declaration of stock dividend may be rescinded before its actual issuance.
C. Cash dividend has the effect of distributing the accumulated profits to the stockholders; whereas stock dividend has the
effect of capitalizing such accumulated profits thereby increasing the corporation’s capital.
D. A delinquent stockholder is still entitled to receive cash dividend but it must be applied to his unpaid subscription balance
whereas stock dividend shall be withheld until the delinquent stockholder pays the subscription in full.
47. X is a director owning 20% of the outstanding capital stock of ABC Corporation and 40% of DEF Corporation. The corporations
entered into a contract whereby ABC sold its commercial lot to DEF Corporation. The contract was approved as follows: ABC
Corporation – 15 directors in Articles of Incorporation; 6 out of 9 attending directors voted in the affirmative including X; DEF
Corporation – 11 Directors in Articles of Incorporation; 5 out of 7 attending directors voted in the affirmative, including X. What is
the status of the contract entered into by the two corporations having interlocking director?
A. Perfectly valid
B. Voidable
C. Unenforceable
D. Void
48. Which is not a power of a private corporation under Old Corporate Code of the Philippines?
A. To sue and be sued
B. Succession
C. Making donations in aid of any political party
D. Establishment of retirement and other benefit plans for its directors, trustees, officers and employees
49. An existing corporation which has an authorized capital stock of 40,000 shares @ P100 par value out of which only 10,000 shares
have been offered for subscription which are now fully paid and subscribed. The corporation increased its authorized capital stock
by an additional 20,000 shares @ P100 par value. What is the minimum subscription and paid up requirement prior to the approval
of the increase in the authorized capital stock?
A. At least 15,000 shares must be subscribed and at least 3,750 shares thereof must be paid before the increase in capital
stock will be approved by the SEC.
B. At least 12,250 shares must be subscribed and at least 3,125 shares thereof must be paid before the increase in capital
stock will be approved by the SEC.
C. At least 5,000 shares must be subscribed and at least 3,125 shares thereof must be paid before the increase in
capital stock will be approved by the SEC.
D. None of the above.
50. Which of the following defects would make the corporate a de facto corporation?
A. The corporate name which resembles the name of a pre-existing corporation is likely to deceive the public but the
certificate of registration has already been issued by SEC.
B. Failure to file the articles of incorporation with the SEC.
C. Absence of certificate of incorporation or registration from SEC.
D. Continuing business operations despite the discovery of the defect or defects after incorporation without any action to
correct them.
51. Under Old Corporation Code of the Philippines, which of the following cases may be approved by SEC for incorporation of a
private corporation if there are five incorporators (A, B, C, D and E)?
A. A, B and C are Filipinos residing in Canada; and D and E are American citizens residing in the Philippines.
B. A, B, C, D are over 21 years old; E is 16 years old.
C. A, B, C, and D are natural persons; E is a registered partnership.
D. A, B, C, and D are subscribers of 1 share; all the remaining subscriptions belong to E.
52. Which of the following amendments to the articles of incorporation requires for its approval at least majority vote of the board of
directors and only the vote or written assent of at least 2/3 of the outstanding capital stock instead of personal voting or ratification
vote by at least 2/3 of the outstanding capital stock?
A. Amendment to decrease or increase capital stock
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B. Amendment to increase the number of the sits in the board of directors

C. Amendment to incur bonded indebtedness
D. Amendment to reduce voting requirement in a close corporation
53. Under Old Corporation Code of the Philippines, which statement about an incorporator is true?
A. Duly established cooperative and corporations primarily organized to hold equities in rural banks may be incorporators of
rural banks.
B. Natural persons may be incorporators of stock and nonstock corporations.
C. Both A and B.
D. Neither A nor B.
54. What is the term of corporate existence under Old Corporation Code of the Philippines?
A. The term as specified in the articles of corporation which must not be less than 50 years.
B. The term as specified in the articles of corporation which must not be more than 50 years.
C. 50 years.
D. Indefinite number of years.
55. There are fourteen (14) sits in the Board of Directors of ABC Incorporated, a stock corporation. Three (3) sits are vacant due to the
following reasons: (a) removal of a director by at least 2/3 of the common stockholders; (b) expiration of term; and (c) increase in
the sit in the board. How shall the three (3) vacancies in the board of directors be filled up?
A. By plurality vote of the common stockholders who attended the meeting constituting a quorum which is majority of
the outstanding common stockholders
B. By majority vote of the remaining directors constituting quorum
C. Either A or B
D. Neither A nor B
56. There are fourteen (14) sits in the Board of Directors of ABC Incorporated, a stock corporation. Seven (7) sits are vacant due to the
following reasons: (a) death; (b) disqualification; (c) abandonment of office; and (d) resignation. How shall the seven (7) vacancies
in the board of directors be filled up?
A. By plurality vote of the common stockholders who attended the meeting constituting a quorum which is majority of
the outstanding common stockholders
C. Either A or B
D. Neither A nor B
57. There are fourteen (14) sits in the Board of Directors of ABC Incorporated, a stock corporation. Four (4) sits are vacant due to the
following reasons: (a) death; (b) disqualification; (c) abandonment of office; and (d) resignation. How may the four (4) vacancies in
the board of directors be filled up?
A. By plurality vote of the common stockholders who attended the meeting constituting a quorum which is majority of the
outstanding common stockholders
C. Either A or B
D. Neither A nor B
58. There are fourteen (14) sits in the Board of Directors of ABC Incorporated, a stock corporation. Two (2) sits are vacant due to the
following reasons: (a) disqualification and (b) removal of a director by at least 2/3 of the common stockholdders. How shall the two
(2) vacancies in the board of directors be filled up?
A. By plurality vote of the common stockholders who attended the meeting constituting a quorum which is majority of the
outstanding common stockholders
C. Either A or B
D. Neither A nor B
59. In which of the following cases are the directors of the corporation not personally liable to the debts of the corporation?
A. When they willfully and knowingly voted for and assented to patently unlawful acts of the corporation.
B. When they acquired any personal or pecuniary interest in conflict with their duty.
C. When they consented to the issuance of watered stocks, or having knowledge thereof, failed to file objections with the
corporate secretary.
D. When they committed simple negligence or they acted in good faith or bona fide in directing the affairs of the
corporation under the principle of business judgment rule or management prerogative.
60. When is the interest of an interlocking director in a corporation considered substantial?

A. When it is at least 20% of outstanding capital stock
B. When it is more than 20% of outstanding capital stock
C. When it is at least 50% of outstanding capital stock
D. When it is more than 50% of outstanding capital stock
61. A owns 30% of outstanding common stocks of ABC Corporation. A also owns 10% of outstanding common stocks of DEF
Corporation. ABC Corporation entered into a major contract with DEF Corporation. In the meeting of ABC Corporation, 8 out of
15 directors attended including A. 5 out of 8 directors who attended the meeting approved the said material contract including A. In
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the meeting of DEF Corporation, 9 out of 15 directors attended including A. 6 out of 9 directors who attended the meeting approved
the said contract including A. What is the status of the contract entered into between ABC Corporation and DEF Corporation which
are corporations with interlocking director A?
A. Valid and binding
B. Voidable on the part of ABC Corporation
C. Voidable on the part of DEF Corporation
D. Voidable on the part of both corporations
62. Which of the following matters may be provided in the by-laws of the corporation instead of its articles of incorporation?
A. Creation of executive committee
B. Provision on founder's shares
C. Denial of stockholders' preemptive right
D. Purpose clause of the corporation
63. This doctrine means that the capital and assets of the corporation are considered funds reserved for payment of liabilities of the
corporation to third persons.
A. Trust fund doctrine
B. Right of succession
C. Limited liability rule
D. Separate entity concept
64. Which of the following statements about the purpose clause of a corporation is incorrect?
A. The secondary purposes of a corporation need not be related with its primary purpose.
B. Nonstock nonprofit corporation may provide proprietary or commercial activities as its secondary purpose.
C. Both A and B.
D. Neither A nor B
65. In case the by-laws is silent, where shall the meeting of the board of directors of a stock corporation be held?
A. Anywhere provided within the Philippines
B. Anywhere in or out of the Philippines
C. In the principal office of the corporation
D. In the principal operation of the corporation
66. How many days must lapse from the maturity date of the subscription balance for subscribed shares to be considered delinquent?
A. 10 days
B. 20 days
C. 30 days
D. 40 days
66. Which of the following statements about a non-stock corporation is incorrect?

A. Members may be deprived of the right to vote by proxy in the articles or by-laws.
B. Voting by mail or other similar means in the election of the board of trustees may be authorized by by-laws with approval
of SEC.
C. Officers of the non-stock corporation may be elected directly by the members unless otherwise provided in the by-laws.
D. Cumulative voting is available in the election of the members of the board of trustees even if cumulative voting is
not authorized in the articles of incorporation or by-laws of the corporation.
67. Unless otherwise provided in the articles of incorporation or by-laws, what is the number of the board of trustees of ordinary
nonstock corporation under the Old Corporation Code of the Philippines?
A. It should be not less than 5 but not more than 15.
B. It should be not less than 5 but may exceed 15 as provided in the articles of incorporation or by-laws.
C. It should be not less than 5 but not more than 10.
D. It should be not less than 5 but not more than 20.
68. What is the term of office of the Board of Trustees of an ordinary non-stock corporation?
A. One year
B. Two years
C. Three years
D. Four years
69. What is the location of the regular or special meetings of members of a non-stock corporation?
A. The place shall be in the principal office of the corporation.
B. At any place even outside the principal office of the corporation as long as provided in the by-laws and within the
Philippines.
C. The place shall be in the residence of the founding members.
D. The place shall be in the residence of the President.
70. What is the nature of transferability of membership in a nonstock corporation?

A. Membership in a non-stock corporation and all rights arising therefrom are personal and non-transferable, unless
the articles of incorporation or the by-laws otherwise provide.
B. Membership in a non-stock corporation and all rights arising therefrom are not personal and transferable, unless the
articles of incorporation or the by-laws otherwise provide.
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C. Membership in a non-stock corporation is a property right that can be transferred automatically.

D. Membership in a non-stock corporation is assignable despite the absence of provision in the articles of incorporation or
by-laws of the corporation.
71. Which of the following statements is true concerning termination of membership in a nonstock corporation?
A. Membership shall be terminated in the manner and for the causes provided in the articles of incorporation or the by-laws.
B. Termination of membership shall have the effect of extinguishing all rights of a member in the corporation or in its
property, unless otherwise provided in the articles of incorporation or the by-laws.
C. Both A and B
D. Neither A nor B
72. Which of the following statements is true if a foreign corporation engages in business in the Philippines without necessary license or
permit from SEC?
A. The said foreign corporation shall not be permitted to maintain or intervene in any action, suit, or proceeding in any court
or administrative agency of the Philippines.
B. The said foreign corporation may be sued or proceeded against before Philippine courts or administrative tribunals on any
valid cause of action recognized under Philippines laws.
C. Both A and B
D. Neither A nor B
73. May a foreign corporation doing or engaging business in the Philippines without necessary license or permit from SEC maintain an
action before Philippine courts or administrative bodies?
A. Never because it has no license as required by Corporation Code.
B. Yes by virtue of doctrine of estoppel but it must first acquire the necessary license before the appropriate
government agency for the action to prosper.
C. Never because it will encourage violation of BP 68
D. Yes in all cases because such prohibition is anti-competitive and unreasonable discrimination.
74. Which of the following statements is true if a foreign corporation not doing business in the Philippines does not obtain license or
permit from SEC?
A. Said foreign corporation may sue and be sued for isolated transactions or contracts it entered into in the Philippines, as
well as for those which are casual or incidental thereto.
B. Said foreign corporation may sue in any court or administrative agency of the Philippines for violation of its intellectual
property rights as provided in World Trade Organization Treaty.
C. Both A and B
D. Neither A nor B
75. Which of the following is incorrect about a proxy under Corporation Code of the Philippines?
A. Proxy can be denied in the articles of incorporation and by-laws of a nonstock corporation.
B. Proxy may be validly constituted only for one year.
C. Proxy is not allowed to vote through a sub-proxy.
D. Proxy is not allowed in the meetings of the board of trustees.
76. Which is not a characteristic of a proxy?

A. An oral proxy is not valid.
B. It can be denied in the articles of incorporation and by-laws of a non-stock corporation.
C. A continuing proxy within a period of five (5) years is not valid.
D. It is not allowed in meetings of the board of trustees.
77. It refers to issuance of shares of stocks below par value.

A. Discounted stocks
B. Watered stocks
C. Secret reserves
D. Treasury shares
78. Which of the following is not a requisite of a negotiable promissory note?

A. The promissory note must be in writing and signed by the maker.
B. The promissory note must be payable on demand, or at a fixed time or at a determinable future time.
C. The promissory note must be payable to a specified person named therein.
D. The payee of a promissory note payable to order must be named or otherwise indicated therein with reasonable certainty.
79. Which of the following is not a negotiable instrument?

A. Treasury warrant
B. Bond
C. Certificate of deposit
D. Banker's acceptance
80. Which of the following instruments is not unconditional and is, therefore, non-negotiable?
A. "Pay P or order P1,000 and reimburse yourself with the proceeds of the watch you are selling to me."
B. "Pay bearer P4,000 from my share in the profits of our partnership business."
C. "I promise to pay P or order P3,000 as payment for the ring I purchased from him."
D. "Pay bearer P2,000 and charge the payment to my account in your hands."
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81. Which of the following instruments is still negotiable despite the additional provision thereof?
A. I promise to pay P or order P50,000 or to paint his house at the option of holder.
B. I promise to pay bearer P50,000 and all the taxes that may be assessed on the mortgage securing this note.
C. I promise to pay P or order P50,000 and to insure the movable pledged to secure the note.
D. I promise to pay bearer P50,000 and to give him a gold ring.
82. Which of the following statements to instruments payable on demand is false?

A. A bill of exchange which is payable at sight is payable as soon as it is seen by the drawer.
B. An instrument which payable on call is payable on demand.
C. An instrument where no time for payment is expressed is payable on demand.
D. An instrument which is issued, accepted or indorsed when overdue is deemed payable on demand as regards the person so
issuing, accepting or indorsing it.
83. Which of the following is an order instrument?

A. I promise to pay X or bearer.
B. I promise to pay Captain Barbell or order.
C. Indorsements made at the back of an order instrument: Pay to A, (Sgd.) P; Pay to B, (Sgd.) A; Pay to C, (Sgd.) B; Sgd. C.
84. Which of the following is a bearer instrument?

A. Pay P the sum of P10,000 on demand.
B. Pay to the order of P the sum of P10,000 on December 31, 2030.
C. Pay order P10,000 upon sight.
85. X stole a negotiable promissory note payable to the order of X that is completely made by M. X subsequently indorsed and
delivered the note to A who subsequently indorsed and delivered the note to B, a holder in due course. Who may be held liable by
B?
A. A only
B. X only
C. X and A only
D. M, X and A
86. Which of the following statements about forgery is false?

A. It is the intent to defraud that distinguishes forgery from spoliation.
B. Forgery has the effect of making the negotiable instrument void.
C. In an order negotiable instrument, parties subsequent to a forged indorsement cannot acquire any right as against parties
prior to the forgery.
D. The party whose indorsement is forged in a negotiable instrument which is originally payable to bearer is liable to a holder
in due course.
87. M made a negotiable promissory note payable to the order of P for P5,000. P indorsed and delivered the note to A. X stole the note
from A and then forged A's signature in order to indorse the note to B and the delivered the note to B. B subsequently indorsed and
delivered the note to C, a holder in due course. Who may be held liable by C?
A. M, P, X, A and B
B. P, X, A and B only
C. X, A and B only
D. X and B only
88. Which of the following is an invalid indorsement?

A. An indorsement which is contained in an allonge where there is still sufficient space at the bank of the negotiable
instrument.
B. A partial indorsement is made where part of the amount has already been paid.
C. A note for P10,000 is indorsed by A for P7,000 and by B for P3,000 simultaneously.
D. A note for P10,000 is indorsed by A and B for the full amount.
89. M made a negotiable promissory note payable to P or bearer. P specially indorsed and delivered the note to A who specially
indorsed and delivered the note to B. X stole the note from B and delivered it to C without any indorsement. C is a holder in due
course. Who may be held liable to C?
A. X only
B. M and X only
C. M, P, A and X only
D. M, P, A, B and X only
90. R drew a bill of exchange with P as the payee and S as the drawee. Indorsements were as follows: P to A, A to B, B to C, and C to
D, present holder. B and C had an agreement that B would be held liable first before C. S became insolvent. In what order should D
hold the secondary parties liable?
A. B; C; A; P; R
B. C; B; A: P; R
C. R; P; A; B; C
Page 10 of 15 (PW-01)
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91. Which of the following is not a requisite of a holder in due course?

A. He took the instrument complete and regular upon its face.
B. He became the holder of the instrument before it is overdue and without notice that it had been previously dishonored if
such was the fact.
C. He took the instrument in good faith and for value.
D. He has no knowledge of any fact which would impair the validity of the instrument or render it valueless.
92. In which of the following cases is the holder deemed to be a holder in due course?
A. The holder acquired the instrument through the indorsement of one of the two payees.
B. The holder acquired the instrument at noontime on its maturity date.
C. The holder accepted the instrument from the payee under a strong and reliable warning of the latter's swindling activities.
93. Which of the following is a characteristic of fraud in factum or fraud in esse contractus?
A. It is fraud in the execution of the instrument.
B. The person actually knows that what he signed is a negotiable instrument but he was induced to do so because of insidious
words or fraudulent machinations.
C. It is a personal defense that cannot be set up against a holder in due course.
94. M made an autograph in a sheet of paper to P who converted it to a promissory note with amount of P100,000 in favor of P or order.
P indorsed the note to A who knew about the fraud. A, in turn, indorsed the note to B, a holder in due course. B further negotiated
the note to C, a present holder. Which is true?
A. M is liable to C if the latter has no knowledge of the fraud.
B. M is liable to C whether or not the latter has knowledge of the fraud.
C. M is not liable to C if the latter has no knowledge of the fraud.
D. M is not liable to C whether or not the latter has no knowledge of fraud.
95. In which of the following cases must presentment for payment be made?
A. To the drawer, where he made a stop payment order to the drawee-bank.
B. To the drawer, where he withdrew all his deposit in the drawee-bank.
C. To the indorser, where the instrument was made or accepted for his accomodation.
96. Who shall be given notice of dishonor?

A. Maker and acceptor
B. Qualified indorser and person negotiating the instrument by mere delivery
C. Payee who generally indorsed the instrument
D. None the above
97. Which of the following is a real defense that can affect a holder in due course?
A. Illegality of consideration
B. Filing of blank instrument contrary to authority given
C. Forgery
D. Incomplete-Undelivered instrument
98. Which between negotiable check and negotiable bill of exchange has to be presented for acceptance by the holder to its drawee
before presentment for payment?
A. Negotiable check
B. Negotiable bill of exchange
C. Both A and B
D. Neither A nor B
99. It shall refer to the amount available out of the deferred payment of the patronage refund and interest on share capital of the
members or by authorized deduction of a percentage from the product sold or per unit of product handled by the cooperative in
order to strengthen the capital structure of the cooperative.
A. Deferred Capital
B. Reserve Fund
C. Revolving Capital
D. Endowment Fund
100. Which of the following is a fund of a cooperative?

A. Reserve fund
B. Deferred fund
C. Escrow fund
D. Retained fund
101. Which of the following statements is false about the privileges of a cooperative?
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A. Cooperatives shall be exempt from the payment of all court and sheriff’s fees payable to the Philippine Government for
and in connection with all actions brought under Cooperative Code, or where such actions is brought by the Cooperative
Development Authority before the court, to enforce the payment of obligations contracted in favor of the cooperative.
B. Cooperatives organized among government employees, notwithstanding any law or regulation to the contrary, shall enjoy
the free use of any available space in their agency, whether owned or rented by the Government.
C. Cooperative shall enjoy the privilege of being represented by the provincial or city fiscal or the Office of the Solicitor
General, free of charge, except when the adverse party is the Republic of the Philippines.
D. Cooperatives engaged in credit services and/or federations shall be entitled to loans credit lines, rediscounting of
their loan notes, and other eligible papers with the Bangko Sentral ng Pilipinas.
102. Which of the following statements about the financial statements audit of a cooperative is true?
A. The financial statements of the cooperatives must comply with the provisions of Philippine Financial Reporting Standards
(PFRS).
B. The financial statements audit of cooperative must be conducted by independent external CPA auditor in
accordance with Philippine Standards on Auditing (PSA).
C. The financial statements auditors of cooperatives have to be accredited only with Cooperative Development Authority
(CDA) but not with Professional Regulation Commission – Board of Accountancy (PRC-BoA).
D. The financial statements auditors of cooperatives are not required to be a member in good standing of Philippine Institute
of Certified Public Accountants (PICPA).
103. What is the voting requirement before an electric cooperative already registered before National Electrification Administration
(NEA) be registered with Cooperative Development Authority (CDA)?
A. 5% of all members in good standing
B. 25% of all members in good standing
C. 20% of all members in good standing
D. 3/4 of all members in good standing
104. It refers to a type of cooperative that promotes and undertakes savings and lending services among its members.
A. Credit cooperative
B. Financial service cooperative
C. Cooperative bank
D. Lending cooperative
105. What is the minimum number of years of operation before a single-purpose cooperative may transform into a multipurpose or
before it may create a subsidiary cooperative?
A. At least two (2) years of operation
B. At least three (3) years of operation
C. At least one (1) years of operation
D. At least four (4) years of operation
106. The following are the purposes of laboratory cooperative, except

A. To serve as a training ground for its members to prepare them for membership in regular cooperatives
B. To teach the value of thrift and saving mobilization among its members
C. To instill cooperative values, principles, financial discipline and leadership skills among its members
D. To accumulate fund for the setting up of a guardian cooperative
E. To promote and advance Filipino social and cultural values, ecological awareness and sustainable development
107. Which of the following credits is covered by insurance of PDIC?

A. Demand Draft
B. Savings Deposit
C. Money
D. Telegraphic Notes
108. Ana has P700,000 savings deposit in a closed bank. She was able to recover the insured deposit amounting to P500,000 from PDIC.
What will happen to the P200,000 portion which is not insured by PDIC?
A. Ana may go after the remaining net free assets of the closed bank upon its liquidation.
B. Ana will never be able to recover such P200,000 unsecured deposit.
C. Ana will be classified as unsecured credit with priority in the liquidation.
D. Ana can go after the separate assets of the stockholders of the closed bank.
109. Angel has five bank deposits in a closed bank named Banco Filipino enumerated below:
Angel and ABC Partnership Joint Checking Account 100,000
Angel and Angel Corporation Joint Demand Account 1,500,000
Angel and Gian Joint Time Deposit 200,000
Angel Savings Deposit 150,000
Angel Computer Shop – Checking Account 700,000
How much is the insured deposit by PDIC in relation to Angel?
A. P500,000
B. P600,000
C. P950,000
D. P1,000,000
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110. Which of the following may not be escheated in favor of the state under the provisions of Unclaimed Balances Law?
A. Deposit
B. Security
C. Telegram note
D. Demand Draft
111. Which of the following institutions is not covered by Unclaimed Balances Law?
A. Banks
B. Trust Company
C. Buildings and Loans Association
D. Nonstock Savings and Loans Association
112. Which of the following is neither covered nor protected by Bank Secrecy Law?
A. Turnover by bank officials of garnished bank deposit by virtue of writ of garnishment issued by a court
B. Disclosure of bank deposits by bank manager to BIR Tax Examiner by virtue of Letter of Authority issued by BIR
Commissioner
C. Revelation of transaction history of checking account to journalist conducting investigation regarding unexplained wealth
of a politician
D. Leak of bank deposit balance by an external auditor to an insurance agent for the purpose of gaining referral commission
113. Which of the following is not a covered person by Anti-Money Laundering Law (AMLA)?
A. Pawnshops
B. Non-stock savings and loan association
C. Pre-need companies
D. Real estate developers
114. What is the Republic Act No. of Terrorism Financing Prevention and Suppression Act a.k.a. the law punishing Financing of
Terrorism?
A. Republic Act No. 10168
B. Republic Act No. 10173
C. Republic Act No. 11032
D. Republic Act No. 11232
115. It refers to the financial intelligence unit of the Republic of the Philippines which is entrusted with the implementation of Anti-
Money Laundering Law.
A. Anti-Money Laundering Council
B. Monetary Board of Bangko Sentral ng Pilipinas
C. Insurance Commission
D. Securities and Exchange Commission
116. Who is the chairman of the Anti-Money Laundering Council?

A. BSP Governor
B. Insurance Commissioner
C. SEC Chairperson
D. BIR Commissioner
117. This principle means that no administrative, criminal or civil proceedings shall lie against any person for having made a covered
transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any criminal
prosecution under the Anti-Money Laundering Law (AMLA) or any other Philippine law.
A. Immunity from Suit
B. Safe Harbor Provision
C. Tax Exemption
D. Privileged Communication
118. Politically Exposed Persons (PEPs) as envisioned by AMLA include the following, except
A. Judge of Regional Trial Court or Municipal Trial Court
B. Chairman and Commissioners of COMELEC, COA or CSC
C. Armed Forces of the Philippines (AFP) Chief
D. Senators and Congressmen
119. What is the drawer’s receipt of notice of dishonor envisioned by B.P. Blg. 22 for conviction of issuance of worthless check?
A. The prosecution in B.P. Blg. 22 must establish that a written notice of dishonor was actually received by the maker
or drawer of the dishonored check.
B. The prosecution in B.P. Blg. 22 may establish that an oral notice of dishonor was given or sent to the maker or drawer of
the dishonored check.
C. The prosecution in B.P. Blg. 22 may establish that there is constructive notice to the maker or drawer of the dishonored
check.
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120. Which of the following satisfies the drawer’s actual receipt of notice of dishonor envisioned by B.P. Blg. 22 for conviction of
issuance of worthless check?
A. An illegible signature or mark, such as when a recipient merely signs his/ her initials on the registry return card or notice
of dishonor.
B. The notice of dishonor sent to the office of the maker or drawer of the dishonored check with signature of the receptionist.
C. The signature appearing on the registry return card or notice of dishonor, in case of personal service, belongs to
that of the issuer of the dishonored check or, at the very least, to his duly authorized agent.
121. Which of the following intellectual property rights with a legal life of seven (7) years is applicable for the new and industrial
practicable technical solution without inventive step so-called “minor inventions”?
A. Utility Model
B. Patent
C. Trademark
D. Copyright
122. Which of the following is nonpatentable?

A. Aesthetic creation
B. Windshield wiper
C. Salt Lamp
D. Soft Touch Technology
123. Which of the following is copyrightable?

A. Philippine Financial Reporting Standards (PFRS)
B. Jurisprudence or Decisions of Supreme Court
C. National Internal Revenue Code of the Philippines
D. Speech of a Senator
124. It refers to a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying security at a predetermined
price, called the exercise or strike price, on or before a predetermined date, called the expiry date, which can only be extended by
SEC upon stockholders' approval.
A. Forward Contract
B. Future Contract
C. Option Contract
D. Warrants
125. He refers to a person who, acting alone or with others, takes initiative in founding and organizing the business or enterprise of the
issuer and receives consideration therefore.
A. Promoter
B. Subscriber
C. Founder
D. Underwriter
126. He refers to a person who guarantees on a firm commitment and/or declared best effort basis the distribution and sale of securities
of any kind by another company.
A. Promoter
B. Underwriter
C. Subscriber
D. Founder
127. Which of the following securities must be registered before Securities and Exchange Commission (SEC)?
A. Securities issued or guaranteed by the Philippine government
B. Certificates issued by a trustee in bankruptcy duly approved by the proper adjudicatory body
C. Bank’s own shares of stocks
128. What is the difference between data privacy and data protection?
A. Data privacy refers to the rights of the data subject while data protection refers to the means employed to protect
the rights of the data subject.
B. Data privacy refers to a person while data protection refers to the technology.
C. Data privacy refers to the technical rules and regulations while data protection refers to substantive laws.
D. Data privacy refers to technology while data protection refers to legal principles.
129. Which of the following transactions in the government is covered by Ease of Doing Business Act of 2018?
A. Government services covering business transactions
B. Government services covering nonbusiness transactions
C. Both A and B
D. Neither A nor B
130. This is a policy that prohibits government officer or employee to have any contact with an application except (1) during the
preliminary assessment of the request and evaluation of sufficiency of submitted requirements and (2) necessary with any
requesting party concerning an application or request.
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A. Zero-Contact Policy
B. Online Policy
C. Invisible Policy
D. Intangible Policy
131. It refers to respective most current and updated service standards of any government agency in the form of information billboards
which shall be posted at the main entrance of offices or at the most conspicuous place, in their respective websites and in the form
of published materials written either in English, Filipino, or in the local dialect, that detail the processing of business transactions in
a specific government agency.
A. Citizen’s Charter
B. Citizen’s Bill of Rights
C. Citizen’s Check and Balance
D. Citizen’s Protection
132. The following data are provided by Utang Credit Cooperative, a cooperative already existing for at least five years:
Interest Income on loan granted to members P900,000
Service Fees Revenue 50,000
Membership Fees Revenue 3,000
Operating Expenses 683,000
Interest on share capital holdings 70%
Interest on patronage refunds 30%
What is the net surplus of the cooperative?
A. P270,000
B. P220,000
C. P223,000
D. P217,000
133. Using the same data in number 218, what is total statutory reserve to be deducted from net surplus before computation of interest on
share capital holdings assuming the maximum fund is given for other optional funds?
A. P81,000
B. P35,100
C. P54,000
D. P72,900
134. Using the same data in number 218, what is the minimum interest on share capital holdings?
A. P56,700
B. P25,200
C. P32,100
D. P36,300
135. Which of the following statements about ease of doing business act is incorrect?
A. To eliminate bureaucratic red tape, avert graft and corrupt practices and to promote transparency and sustain ease of doing
business, the Department of Information, Communication and Technology (DICT) shall be primarily responsible in
establishing, operating and maintaining a Central Business Portal (CBP) or other similar technology, as the DICT may
prescribe.
B. All government offices and agencies providing government services shall be subjected to a Report Card Survey to be
initiated by the Anti Red-Tape Authority (ARTA), in coordination with the Civil Service Commission (CSC), and the
Philippine Statistics Authority (PSA), which shall be used to obtain feedback on how provisions of Ease of Doing
Business Act are being followed and how the agency is performing.
C. In order to expedite the processing of licenses, clearances, permits, certifications or authorizations, the Anti Red Tape
Authority (ARTA), together with the Department of Information, Communication and Technology (DICT), shall develop
a fast and reliable interconnectivity infrastructure.
D. If a government office or agency fails to approve or disapprove an original application or request for issuance of
license, clearance, permit, certification or authorization within the prescribed processing time, said application or
request shall be deemed approved even if all required documents have not yet been submitted and all required fees
and charges have not yet been paid.
136. It refers to the document to be used to obtain information and/or estimates of hidden costs incurred by applicants or requesting
parties to access governments services which may include, but is not limited to, bribes and payment to fixers. The result of the
survey shall also become basis for the grant of awards, recognition and/or incentives for excellent delivery of services in all
government agencies.
A. Report Card Survey
B. Feedback mechanism
C. Business one stop shop
D. Automatic approval mechanism
-Nothing Follows-
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No. 125 Brgy.

iCARE Accountancy Review

A – P325,000 for 800 shares

B. Amendment to increase the number of the sits in the board of directors

60. When is the interest of an interlocking director in a corporation considered substantial?

66. Which of the following statements about a non-stock corporation is incorrect?

70. What is the nature of transferability of membership in a nonstock corporation?

C. Membership in a non-stock corporation is a property right that can be transferred automatically.

76. Which is not a characteristic of a proxy?

77. It refers to issuance of shares of stocks below par value.

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

79. Which of the following is not a negotiable instrument?

82. Which of the following statements to instruments payable on demand is false?

83. Which of the following is an order instrument?

84. Which of the following is a bearer instrument?

86. Which of the following statements about forgery is false?

88. Which of the following is an invalid indorsement?

D. None of the above

91. Which of the following is not a requisite of a holder in due course?

96. Who shall be given notice of dishonor?

100. Which of the following is a fund of a cooperative?

106. The following are the purposes of laboratory cooperative, except

107. Which of the following credits is covered by insurance of PDIC?

116. Who is the chairman of the Anti-Money Laundering Council?

D. Any of the above.

122. Which of the following is nonpatentable?

123. Which of the following is copyrightable?

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