Revised RFBT Quizzer On Special Laws New Topics

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS (RFBT)
QUIZZER ON SPECIAL LAWS (NEW TOPICS)

Compiled and Constructed by Vhin
COVERAGE ITEMS
I. INSURANCE CODE 50
II. GOVERNMENT PROCUREMENT LAW 45
III. LABOR STANDARDS AND SSS LAW 50
IV. PHILIPPINE COMPETITION ACT 30
V. CONSUMER PROTECTION LAWS 35
VI. FINANCIAL REHABILITATION & INSOLVENCY ACT (FRIA) 50
VII. TRUTH IN LENDING ACT 10
VIII. CORPORATE GOVERNANCE 40
INSURANCE CODE OF THE PHILIPPINES
1. It is an interest which a person is deemed to have in the subject matter of the insurance
where he has a relation or connection to it such that the person will derive pecuniary benefit
or advantage from the preservation of the subject matter or will suffer pecuniary loss or
damage from its destruction, termination, or injury by the happening of the event insured
against it.
a. Insurable Interest
b. Insurer’s Interest
c. Assumption of risk
d. Assumption of loss
2. The phrase “doing an insurance business” includes the following cases except for one:
a. Making or prosing to make, as insurer, any insurance contract.
b. Making or proposing to make, as surety, any contract of suretyship as a vocation and
not as merely incidental to any other legitimate business or activity.
c. A party guarantees the performance by another of an obligation or undertaking
in favor of a third person.
d. Doing any kind of business, including reinsurance business, specifically recognized as
constituting the doing of an insurance business.
3. Which of the following statements is not correct?

a. A past event may be covered by insurance provided the loss is unknown to both
parties and they expressly stipulated that prior loss is insured by the policy.
b. A past event cannot be covered by insurance if the loss is unknown to both
parties and they expressly stipulated that prior loss is insured by the policy.
c. A married woman may insure her own life and that of her children without the
consent of the husband.
d. A married woman may insure her separate property without the consent of the
husband as she has the right to administer the same.
4. Anyone may be insured except

a. A public enemy
b. A partnership
c. A corporation
d. An association
5. An insurance contract is a mechanism by which all members of a group exposed to a

particular risk contribute premiums to an insurer. In that sense, an insurance contract is
a(an)
a. Insurance planning device
b. Insurance policy
c. Insurance white paper
d. Risk-distributing device
QUIZZER ON SPECIAL LAWS (NEW TOPICS) Compiled by Vhin
6. On January 4, 2019, Mr. P joined Alpha Corporation (ALPHA) as President of the company.
ALPHA took out a life insurance policy on the life of Mr. P with Mutual Insurance Company,
designating ALPHA as the beneficiary. ALPHA also carried fire insurance with Beta Insurance
Co. on a house owned by it, but temporarily occupied by Mr. P again with ALPHA as
beneficiary. On September 1, 2019, Mr. P resigned from ALPHA and purchased the company
house he had been occupying. A few days later, a fire occurred resulting in the death of Mr. P
and the destruction of the house. ALPHA can recover against Mutual Life Insurance
Company for
a. Life insurance only
b. Property insurance only
c. Both A and B
d. Neither A nor B
7. To secure a loan of P10M, O mortgaged his building to C. in accordance with the loan
arrangements, O had the property insured with Acme Insurance Company for P10M with C
as the beneficiary. C also took an insurance on the building upon his own interest with Beta
Insurance Co. for P5M. The building was totally destroyed by fire, a peril insured against in
both insurance policies. It was subsequently determined that the fire had been intentionally
started by O and that, in violation of the loan agreement, O had been storing inflammable
materials in the building. How much can C recover from either or both insurance companies?
a. P5M each to ACME Insurance Company and Beta Insurance Co.
b. P5M to ACME Insurance Company and P-0- to Beta Insurance Co.
c. P-0- to ACME Insurance Company and P5M to Beta Insurance Co.
d. P-0- to ACME Insurance Company and Beta Insurance Co.
8. "A" owns a house valued at P5,000,000.00 which he had insured against fire for
P7,500,000.00. He obtained a loan from "B" in the amount of P3,500,000.00, and to secure
payment thereof, he executed a deed of mortgage on the house, but without assigning the
insurance policy to the latter. For "A's" failure to pay the loan upon maturity, “B" initiated
foreclosure proceedings and in the ensuing public sale, the house was sold by the sheriff to
"B" as highest bidder. Immediately upon issuance of the sheriff's certificate of sale in his
favor, "B" insured the house against fire for P3,500,000.00 with another insurance company.
In order to redeem the house, "A" borrowed P3,500,000.00 from "C" and, as security device,
he assigned the insurance policy of P7,500,000.00 to "C" However, before “A" could pay "B"
his obligation, the house was accidentally and totally burned. Given the facts of the case who
among them has an insurable interest with respect to the house?
a. A only
b. Both A and B
c. Both B and C
d. Both A and C
9. Neil owns a condominium unit presently insured with Holy Insurance Co. for P10 Million. Neil
later sells the condominium unit to Oliver. Somehow Oliver fails to obtain the transfer of the
insurance policy to his name from Neil. Subsequently, fire of unknown origin destroys
completely the condominium unit. Who may collect the insurance proceeds?
a. Neil
b. Oliver
c. Both A and B
d. Neither A nor B
10. As a rule, no policy of insurance other than life shall be cancelled by the insurer except upon
prior notice thereof to the insured, and no notice of cancellation shall be effective unless it is
based on the occurrence, after the effective date of the policy, of one or more of the following,
except:
a. Nonpayment of premium
b. Conviction of a crime arising out of acts decreasing the hazard insured against
c. Discovery of fraud or material misrepresentation
d. Discovery of other insurance coverage that makes the total insurance in excess of the
value of the property insured
11. Which of the following statements in relations to insurance contracts is false?
a. The right of subrogation applies only to property insurance and not to life insurance.
b. The insurer does not lose his right against the wrongdoer even if the latter is
released from liability by the insured after receiving payment.
c. The right of subrogation in insurance is not dependent upon any privity of contract
and simply accrues upon payment of the insurance claim by the insurer.
d. The pecuniary value of human life to the beneficiary can be accurately determined in
an insurance taken by a creditor on the life of a debtor to secure a debt.
12. Which of the following cases shall make the insurer liable on the insurance?
a. A house was insured against fire. Unknown to the parties, it was already gutted by fire
two (2) days before the insurance was taken.
b. An unsecured creditor insured the vehicle of the debtor. The debt remained unpaid
when the debtor died.
c. The company insured the life of its manager. The manager was already
terminated from his employment at the time of his demise.
d. None of the foregoing.
13. X, 18 years of age, took a life insurance on his own life. Who among the following is
disqualified to be the beneficiary in the life insurance contract?
a. X’s estate
b. X’s illegitimate child
c. X’s father
d. X’s grandmother
14. A person may insure himself in the event of failure of his ticket to win in:
a. Lotto
b. Horse race
c. Sweepstakes
d. None of the foregoing
15. X, husband, took a life insurance policy on the life of Y, the former’s only child. The
beneficiary appointed in the policy is Z, the wife of X. the “assured” in the instant case is:
a. X
b. Y
c. Z
d. Y and Z
16. Who among the following parties is considered “public enemy” and, therefore, may not be
insured?
a. Abbu Sayaf members
b. North Korean communists
c. MILF members
17. D owns a house valued at P1,000,000 which he mortgaged to C in order to secure a loan of
P700,000. C took a fire insurance on the house for P800,000 with D paying the premiums
thereon. The house was partially burned due to the storage of some flammable materials by
D, resulting into a loss of P500,000. At the time of the loss, D had already partially paid his
debt leaving an unpaid balance of P400,000. How will the insurance proceeds, if any, be
allotted to the parties?
a. C is entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall
be reimbursed by D.
b. C is entitled to collect P400,000 from the insurer and D gets nothing. The
insurer shall not be reimbursed by D.
c. C is entitled to collect P500,000 from the insurer but he shall return over the
P100,000 to D. the insurer shall not reimbursed by D.
d. Both C and D cannot recover any amount from the insurer.
18. Using the same facts in number 17, except that it was D who took the fire insurance payable
to C in the event of loss. How will the insurance proceeds, if any, be allotted to the parties?
a. C is entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall
be reimbursed by D.
b. C is entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall
not be reimbursed by D.
19. Using the same facts in number 17, except that it was C who took the fire insurance for his
own benefit. How will the insurance proceeds, if any, be allotted to the parties?
a. C is entitled to collect P400,000 from the insurer and D gets nothing. The
insurer shall be reimbursed by D.
b. C is entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall
not be reimbursed by D.
20. Which of the following statements in relation to insurable interest is false?

a. Insurable interest is immaterial when the life insurance policy is taken by the insured
on his own life.
b. Insurable interest must be pecuniary when a person insures the life of another.
c. An unsecured creditor has an insurable interest in the life of the debtor.
d. An unsecured creditor has an insurable interest in the property of the debtor.
21. Which of the following statements in relation to insurable interest is false?

a. The employer has an insurable interest in the life of its key employee.
b. A partner has an insurable interest in the life of his co-partner.
c. The principal has an insurable interest in the life of his surety.
22. Which of the following statements in relation to the beneficiaries of life insurance is true?
a. A common-law wife may be designated as the beneficiary of the life insurance taken by
her common-law husband.
b. A beneficiary need not have any insurable interest in the life of the insured.
c. As a general rule, the beneficiary designated in the policy cannot changed by the
insured.
23. In which of the following cases is the insurer absolved from his liability on the insurance?
a. X’s claim against the insurer was assigned to Y after the occurrence of the loss and
despite an express prohibition to transfer the claim in the insurance contract.
b. X, leaving behind his only child as legal heir, died before his insured house got totally
burned down.
c. X, a partner in XYZ partnership, resigned from the firm and thereafter the insured
building of the partnership got burned.
24. X insured his car for P1,000,000 and motorbike for P500,000 separately in a single
insurance policy for which he paid a total premium of P15,000. X sold the motorbike to his
friend. Thereafter, the remaining car was totally wrecked in a vehicular mishap. The insurer
shall be liable to X in the amount of:
a. P-0-
b. P500,000
c. P1,000,000
d. P1,500,000
25. Which of the following statements relative to concealment is false?
a. Concealment, whether intentional or unintentional, entitles the injured party to
rescind the insurance contract.
b. Fraud is essential for the insurer to rescind the insurance contract on the
ground of concealment.
c. A party needs only to communicate information that is material.
26. Which of the following cases would make the insurer liable on the insurance?
a. Insured concealed that he had contracted syphilis; he died from a vehicular accident a
year later.
b. Insured (an old, illiterate Chinese who does not speak English) concealed the fact that
she was seriously ill in an insurance contract worded in English.
c. Insured concealed that he was suffering from tuberculosis in his non-medical
insurance that dispenses with the usual medical examination before the policy is
issued.
d. Insured concealed the fact that he was diabetic which resulted to his death three
(3) years later.
27. Which of the following is not a characteristic of misrepresentation?

a. It is a statement of a party that something is true when in fact it is not.
b. It is an active form of concealment.
c. It must be intentional in order that the injured party may rescind the insurance
contract.
d. It does not include mere expressions of opinion.
28. One of the following is not an element of the incontestable clause in life insurance:
a. It is applicable to all kinds of life insurance policies.
b. The period of two (2) years may be shortened but it cannot be extended.
c. The period is reckoned from the date of the policy or date of its last reinstatement.
d. It is founded on the general principles of estoppel.
29. Which of the following defenses is barred by the incontestable clause in life insurance
contracts?
a. The person taking the insurance has no insurable interest.
b. The premiums have not been paid.
c. The cause of death is suicide within two (2) years from the date of last
reinstatement of the policy by the insured who insane at the time of its
commission.
d. The action on the policy is not brought within the prescribed period of ten (10) years
from the time the cause of action accrues.
30. X took a life insurance policy on January 3, 2019 with his wife as the beneficiary upon his
death. In the application, X answered in the negative the question of whether or not he was
hospitalized in the past five (5) years prior to the application for insurance. X died of
leukemia on October 1, 2021. Which of the following statements is correct?
a. The insurer is liable because the death occurred more than two (2) years from
the date of issue of the life insurance policy.
b. The insurer is liable because the concealment is immaterial.
c. The insurer is not liable because the death occurred more than two (2) years from the
date of issue of the life insurance policy.
d. The insurer is not liable because the concealment, being material, is not subject to the
incontestability clause in life insurance.
31. Which of the following casualties is a peril of the sea?

a. Jettison
b. Wear and tear of the ship
c. Negligent failure to provide necessary supplies
32. Which of the following statements relative to marine insurance policies is true?
a. An “all risks” marine insurance policy covers all losses during the voyage, provided
they arise only from a maritime peril.
b. An “inchamaree clause” in a maritime insurance policy does cover loss or damage to
the hull or machinery arising from the negligence of the captain or crew.
c. A “lost or not lost” provision in a marine insurance policy means that the
insurer expressly binds itself in the event of loss of the vessel, even if the vessel
should already be lost at the time the contract was entered into.
d. A “floater policy” covers jewelry, works of art and other valuable personal property
which must be moved from one place to another as a condition for the insurer’s
liability in case of loss or damage.
33. Which of the following is a characteristic of a “loan on bottomry”?

a. The shipowner is not indemnified for the loss of his vessel during the
contemplated voyage.
b. The lender exacts a lower rate of interest on the loan.
c. The insurable interest of the shipowner for marine insurance purposes is the full value
of his vessel in case it is bottomed.
34. Which of the following statements relative to a “charter party” contract is true?
a. In a bareboat or demise charter, the charterer always hires his own master and crew
other than those of the shipowner.
b. In a bareboat or demise charter, the charterer becomes the owner pro hac vice of
the vessel.
c. In a voyage or time charter, the shipowner becomes a private carrier.
35. Which of the following acts shall not constitute concealment or misrepresentation in marine
insurance?
a. The agent of the shipowner failed to notify the insurer of a material fact regarding the
vessel which the shipowner is ignorant of.
b. Failure of the shipowner to notify the insurer of the opinion of a third person on a
material fact affecting the vessel.
c. Failure to inform the insurer of the nature and amount of the cargo where no
overloading was made.
d. Failure to inform the insurer as to the particular condition of the vessel.
36. Which of the following cases avoids marine insurance on the vessel insured?
a. Vessel was seaworthy at the commencement of the voyage but was unseaworthy while
was in transit.
b. Vessel contracted under a time charter was seaworthy at the commencement of the
voyage but was unseaworthy while it was in transit.
c. Vessel deviated from its designated course in order to assist another vessel in distress.
d. Vessel deviated from its designated voyage in order to save some property
stranded in an uninhabited island.
37. X took marine insurance policy for P4,000,000 on his sea vessel valued at P6,000,000. The
vessel suffered partial loss amounting to P3,000,000. The insurance proceeds shall be:
a. P4,000,000
b. P3,000,000
c. P2,000,000
38. Using the same facts in number 162, except that fire insurance was taken on a building. The
insurance proceeds shall be:
a. P4,000,000
b. P3,000,000
c. P2,000,000
39. Which of the following damages and expenses constitutes general average?
a. Jettisoning cargo in order to save the vessel from sinking.
b. Damage to the cargo when it was unloaded.
c. Additional compensation of the crew when the vessel was detained by the authorities
for suspicion of unlawful venture.
40. Which of the following is not a characteristic of abandonment in marine insurance?

a. It is essential where the shipowner intends to declare constructive total loss in the
thing insured.
b. It cannot apply to freightage unless the vessel is likewise to be abandoned.
c. It requires acceptance on the part of the insurer.
d. The insured may no longer withdraw a valid abandonment made where the insured
property was thereafter recovered.
41. X took an open fire insurance policy on his commercial building. At the time the policy first
took effect the property had a fair market value of P2,000,000. Five (5) years later, 75% of the
property was burned and damaged. At the time of the loss, it would take P4,000,000 to
rebuild the same building due to increase in construction materials in the market. X can
recover from the insurer the amount of:
a. P1,500,000
b. P2,000,000
c. P3,000,000
d. P4,000,000
42. Which of the following cases shall make the insurer liable on an accident and health
insurance?
a. Insured played “Russian roulette” with some friends resulting into a fatal gunshot
wound.
b. Insured was stabbed to death by several robbers who entered is house at night.
c. Insured fell while climbing a very steep hill without any safety gear that resulted to his
death.
d. Insured, while cleaning his pistol, pointed it to his forehead and playfully pulled
the trigger thinking it was not loaded, causing his death.
43. Which of the following cases relative to suicide shall exonerate the insurer liability in a life
insurance policy?
a. The insured who was sane committed suicide on the 3 rd year from the time the policy
had been in force.
b. The insured who was sane committed suicide on the 2nd year from the time the policy
had been in force (the period was stipulated to be 1 year).
c. The insured who was insane committed suicide on the 1 st year from the time the policy
had been in force, and suicide is not an excepted risk in the policy.
44. Which of the following statements relative to double insurance and over-insurance is true?
a. There is always co-insurance in double insurance.
b. There is always over insurance in double insurance.
c. There is always double insurance in over insurance.
45. X owns a building with a fair market value of P4,000,000. He took several fire insurance
policies on the property as follows:
Insurer Insurance Taken Premiums Paid

ABC Ins. Co. P 1,000,000 P 1,000
XYZ Ins. Co. 7,000,000 8,000
TOTAL P 8,000,000 P 9,000
The building was completely burned to the ground by hostile fire. X may recover the amount
of:
a. P1,000,000 from ABC Insurance Co. and P7,000,000 from XYZ Insurance Co.
b. P2,000,000 from ABC Insurance Co. and P2,000,000 from XYZ Insurance Co.
c. P4,000,000 from either ABC Insurance Co. or XYZ Insurance Co.
d. P4,000,000 from XYZ Insurance Co. only
46. Using the same facts in number 45, the portion of the premiums to be returned to X by the
insurers as a result of the over-insurance shall be:
a. P500 from ABC Insurance Co. and P4,000 from XYZ Insurance Co.
b. P125 from ABC Insurance Co. and P1,000 from XYZ Insurance Co.
c. P3,000 from XYZ Insurance Co.
d. P-0-
47. Which of the following statements relative to reinsurance is correct?

a. The reinsurer will only pay the insurer after the latter has paid the insured in case of
loss.
b. The original insured has an interest in the contract of reinsurance.
c. Non-life insurance companies are required by law to take reinsurance when they
assume a risk on any one subject in an amount exceeding twenty per centum
(20%) of their net worth.
48. Marine insurance excludes insurance against loss or damage to:

a. Aircraft
b. Bridges
c. Jewelry
49. Which of the following statements relative to marine insurance is false?

a. Goods that are shipped on deck are generally not covered by a marine insurance
policy.
b. Loss or damage arising from perils of the sea will exonerate the insurer from
liability under a marine insurance policy.
c. Floater policies cover jewelry and other precious items where ever they may be
situated subject to boundary limits fixed in the policy.
50. Which of the following casualties relative to a vessel is a peril of the ship?
a. Barratry
b. Shipwreck
c. Stranding
GOVERNMENT PROCUREMENT LAW
1. Republic Act 9184 or the Government Procurement Reform Act covers the procurement of the
following, except:
a. Goods
b. Infrastructure Projects
c. Assurance Services
d. Consulting Services
2. It is the policy of the Government of the Philippines that procurement of Goods, Infrastructure
Projects and Consulting Services shall be competitive and transparent, and therefore shall
undergo:
a. Oversight bidding
b. Administrative bidding
c. Competitive bidding
d. Regulatory bidding
3. The following are the governing principles on Government Procurement, except:

a. Transparency in the procurement process and in the implementation of procurement
contracts through wide dissemination of bid opportunities and participation of
pertinent non-government organizations.
b. Competitiveness by extending equal opportunity to enable private contracting parties
who are eligible and qualified to participate in competitive bidding.
c. Streamlined procurement process that will uniformly apply to all government
procurement. The procurement process shall be simple and made adaptable to
advances in modern technology in order to ensure an effective and efficient method.
d. System of accountability where both the public officials that only directly
involved in the procurement process as well as in the implementation of
procurement contracts and the private parties that deal with Government of the
Philippines are, when warranted by circumstances, investigated and held liable
for their actions relative thereto.
4. Government Procurement Reform Act covers the procurement of the following, except:
a. Any branch, agency, department, bureau, office, or instrumentality of the Government
of the Philippines.
b. Government-owned and/or controlled corporations (GOCCs)
c. State universities and colleges (SUCs)
5. In case of conflict between the terms of the Treaty or International or Executive Agreement
and the IRR of government procurement reform act
a. Treaty shall prevail over the IRR
b. IRR shall prevail over the Treaty
c. Both Treaty and IRR shall be given equal weight of interpretation
d. Neither A nor B
6. Which of the following activities are covered by R.A. 9184 or the Government Procurement
Reform Act?
a. Lease of government-owned property as lessor for private use
b. Foreign-funded Procurement of Goods, Infrastructure Projects, and Consulting
Services by the Government of the Philippines
c. Participation in local or foreign scholarships, trainings, continuing education,
conferences, seminars or similar activities that shall be governed by applicable COA,
CSC, and DBM rules
d. Hiring of Job Order Workers
7. Under the government procurement law, it refers to the acquisition of goods, consulting
services, and the contracting for infrastructure projects by the Procuring Entity.
a. Proposals
b. Procurement
c. Purchase
d. Executive agreement
8. Under the government procurement law, it refers to a signed offer or proposal to undertake a
contract submitted by a bidder in response to and in consonance with the requirements of
the Bidding Documents.
a. Proposals
b. Job Order
c. Bid
d. Contract for a piece of work
9. Under the government procurement law, it refers to a contractor, manufacturer, supplier,

distributor and/or consultant who submit a bid in response to the requirements of the
Bidding Documents.
a. Procuring entity
b. Consultant
c. Bidder
d. Supplier
10. Under the government procurement law, it refers to the documents issued by the Procuring
Entity as the basis for bids, furnishing all information necessary for a prospective bidder to
prepare a bid for the Goods, Infrastructure Projects and/or Consulting Services required by
the Procuring Entity.
a. Bidding documents
b. Procuring financial documents
c. Working papers
d. Project documents
11. Under the government procurement law, it refers to those goods, materials and equipment
that are used in the day-to-day operations of Procuring Entities in the performance of their
functions.
a. Expendable Supplies
b. Common-Use Supplies and Equipment
c. Foreign-funded goods
d. Non-expendable Supplies
12. Under the government procurement law, it refers to a method of procurement which is open
to participation by any interested party and which consists of the following processes:
advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and
opening of bids, evaluation of bids, post-qualification, and award of contract.
a. Constructive bidding
b. Mutually exclusive bidding
c. Negotiated bidding
d. Competitive bidding
13. Under the government procurement law, it refers to articles which are normally consumed in
use within one (1) year or converted in the process of manufacture or construction, or those
having a life expectancy of more than one (1) year but which shall have decreased
substantially in value after being put to use for only one (1) year.
14. Under the government procurement law, it refers to articles which are not consumed in use
and ordinarily retain their original identity during the period of use, whose serviceable life is
more than one (1) year and which add to the assets of the Government of the Philippines
15. It is the electronic system that is used in the procurement process of government
a. Philippine E-Governance System
b. Philippine Government Electronic Procurement System
c. Philippine Portal System
d. Philippine Procurement Standardization System
16. The pre-bid conference shall be held at least _____ calendar days before the deadline for the
submission and receipt of bids, but not earlier than _____ calendar days from the Philippine
Government Electronic Procurement System (PhilGEPS) posting of the Invitation to Bid or
Bidding Documents and in the case of Consulting Services, from the determination of the
shortlisted consultants.
a. 12 days and 7 days respectively
b. 7 days and 12 days respectively
c. 7 days and 15 days respectively
d. 15 days and 7 days respectively
17. These statements are presented to you:

I. The pre-bid conference shall discuss, clarify and explain, among other things, the
eligibility requirements and the technical and financial components of the contract to
be bid including questions and clarifications raised by the prospective bidders before
and during the Pre-Bid Conference.
II. Pre-bid conference may be conducted in person or face-to-face through
videoconferencing, webcasting, or similar technology, or a combination thereof.
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
18. The minutes of the pre-bid conference shall be recorded and prepared not later than _______
after the pre-bid conference, and shall be made available to prospective bidders not later
than five (5) days upon written request.
a. 3 calendar days
b. 5 calendar days
c. 7 calendar days
d. 10 calendar days
19. Requests for clarification(s) on any part of the Bidding Documents or for an interpretation
must be in writing and submitted to the BAC of the Procuring Entity concerned at least
_______ before the deadline set for the submission and receipt of bids.
a. 3 calendar days
b. 5 calendar days
c. 7 calendar days
d. 10 calendar days
20. The Bids and Awards Committee (BAC) shall respond to the said request by issuing a
Supplemental/Bid Bulletin, duly signed by the BAC Chairperson, to be made available to all
those who have properly secured the Bidding Documents, at least _______ before the deadline
for the submission and receipt of bids.
a. 3 calendar days
b. 5 calendar days
c. 7 calendar days
d. 10 calendar days
21. Prior to Bid evaluation, who examine the technical components of the bids using "pass/fail"
criteria to determine whether all required documents are present?
a. Head of the Procuring Entity (HoPE)
b. Bids and Awards Committee (BAC)
c. Government Procurement Policy Board (GPPB)
d. Technical Working Group (TWG)
22. The bids that passed the preliminary examination shall be ranked from lowest to highest in
terms of their corresponding calculated price shall be referred to as:
a. Highest Calculated Bid
b. Lowest Calculated Bid
c. Average Calculated Bid
23. It is the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and
Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services,
undergoes verification and validation whether he has passed all the requirements and
conditions as specified in the Bidding Documents.
a. Pre-bid Conference
b. Bid Invitation
c. Bid Award
d. Post-Qualification

I. If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the
criteria for post-qualification, his Bid shall be considered the "Lowest Calculated
Responsive Bid," in the case of Consulting Services or the "Highest Rated Responsive
Bid," in the case of Goods and Infrastructure.
II. If a bidder fails to meet any of the requirements or conditions, he shall be "post-
disqualified" and the BAC shall not conduct the post-qualification on the bidder and
declare a failure of bidding.

25. A bidder may be considered to have a general conflict of interest if:

a. A bidder has controlling shareholders in common with another bidder
b. A bidder submits more than one bid in this bidding process. However, this
does not limit the participation of subcontractors in more than one bid
c. A bidder receives or has received any direct or indirect subsidy from any other
bidder
d. A bidder has the same legal representative as that of another bidder for purposes of
this bid
26. A method of Procurement that involves direct invitation to bid by the Procuring Entity from
a set of pre-selected suppliers or consultants with known experience and proven capability
relative to the requirements of a particular contract
a. Shopping
b. Repeat Order
c. Limited Source Bidding
d. Direct Contracting
27. A method of Procurement that does not require elaborate Bidding Documents because the
supplier is simply asked to submit a price quotation or a pro-forma voice together with the
conditions of sale, which offer may be accepted immediately or after some negotiations
a. Direct Contracting
b. Limited Source Bidding
c. Negotiated Procurement
d. Shopping
28. A method of Procurement that involves a direct Procurement of Goods from the previous
winning bidder, whenever there is a need to replenish Goods procured under a contract
previously awarded through Competitive Bidding
a. Repeat Order
b. Direct Contracting
c. Shopping
d. Limited Source Bidding
29. A method of Procurement whereby the Procuring Entity simply requests for the submission
of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to
be procured directly from suppliers of known qualification
a. Negotiated Procurement
b. Shopping
c. Repeat Order
d. Direct Contracting
30. A method of Procurement that may be resorted under the extraordinary circumstances
provided for in Government Procurement Reform Act and other instances that shall be
specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a
technically, legally and financially capable supplier, contractor or consultant.
a. Limited Source Bidding
b. Repeat Order
c. Negotiated Procurement
d. Shopping
31. Under the government procurement law, in all cases, the contract shall be awarded only to
the bidder with the:
a. Lowest Calculated Responsive Bid for Consulting Services
b. Highest Rated Responsive Bid for procurement of Goods
c. Lowest Calculated Responsive Bid for procurement of Goods and Infrastructure
Projects
d. Highest Rated Responsive Bid for Infrastructure Projects
32. Limited Source Bidding may be resorted to only in any of the following conditions, except:
a. Procurement of highly specialized types of Goods and Consulting Services which are
known to be obtainable only from a limited number of sources.
b. Procurement of major plant components where it is deemed advantageous to limit the
bidding to known eligible bidders in order to maintain an optimum and uniform level
of quality and performance of the plant as a whole.
c. Those sold by an exclusive dealer or manufacturer, which does not have sub
dealers selling at lower prices and for which no suitable substitute can be
obtained at more advantageous terms to the government.
d. None of the Foregoing
33. Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from the
previous winning bidder whenever there arises a need to replenish goods procured under a
contract previously awarded through Competitive Bidding, subject to post-qualification
process prescribed in the Bidding Documents and provided all the following conditions are
present, except:
a. The unit price must be equal to or lower than that provided in the original contract
b. The repeat order does not result in splitting of requisitions or purchase orders
c. Except in special circumstances defined in the IRR the repeat order shall be availed of
only within six (6) months from the date of the Notice to Proceed arising from the
original contract
d. The repeat order shall not exceed thirty-five percent (35%) of the quantity of
each item of the original contract.
34. Direct Contracting may be resorted to only in any of the following conditions, except:
a. Procurement of Goods of propriety nature, which can be obtained only from the
propriety source, i.e. when patents, trade secrets and copyrights prohibit others from
manufacturing the same items
b. Direct contract shall not exceed twenty-five percent (25%) of the quantity of
each item of the original contract.
c. When the Procurement of critical components from a specific manufacturer, supplier,
or distributor is a condition precedent to hold a contractor to guarantee its project
performance, in accordance with the provisions his contract
d. Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers
selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the government.
35. Shopping may be resorted to under any of the following instances:
a. When there is an unforeseen contingency requiring immediate purchase: Provided,
however, That the amount shall not exceed Fifty thousand pesos (P50,000) subject to
a period review by the GPPB
b. Procurement of ordinary or regular office supplies and equipment not available in the
Procurement Service involving an amount not exceeding Two hundred fifty thousand
pesos (P250,000): Provided, however, That the Procurement does not result in Splitting
of Contracts: Provided, further, That at least three (3) price quotations from bona fide
suppliers shall be obtained and the amounts are subject to a period review by the
GPPB
c. Either A or B
d. Neither A nor B
36. Negotiated Procurement shall be allowed only in the following instances, except:
a. In case of three (3) failed bidding
b. In case of imminent danger to life or property during a state of calamity, or when time is
of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property, or to restore
vital public services, infrastructure facilities and other public utilities
c. Take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent damage
to or loss of life or property, or to restore vital public services, infrastructure facilities and
other public utilities
d. Where the subject contract is adjacent or contiguous to an on-going infrastructure
project, as defined in the IRR: Provided, however, That the original contract is the result
of a Competitive Bidding; the subject contract to be negotiated has similar or related
scopes of work; it is within the contracting capacity of the contractor; the contractor uses
the same prices or lower unit prices as in the original contract less mobilization cost; the
amount involved does not exceed the amount of the ongoing project; and, the contractor
has no negative slippage: Provided, further, That negotiations for the procurement are
commenced before the expiry of the original contract. Wherever applicable, the principle
shall also govern consultancy contract, where the consultants have unique experience
and expertise to deliver the required service
37. The Bidding Documents shall be prepared by the Procuring Entity following the standard
forms and manuals prescribed by the Government Procurement Policy Board. The Bidding
Documents shall include the following, except:
a. Invitation to Bid/Request for Expression of Interest
b. Form of Bid, Price Form, Bill of Qualities
c. Form, Amount, and Validity of Performance Security and Warranty
d. Approved Budget for the Contract (ABC)
38. Pre-procurement Conference is led by:

a. Bids and Awards Committee
b. Procuring Entity
c. Government Procurement Policy Board
d. Private Entity

I. Bidders may be asked to pay a fee to recover the cost for the preparation and
development of the Bidding Documents pursuant to the Guidelines on the Sale of
Bidding Documents.
II. The concerned Bids and Awards Committee (BAC) shall make the Bidding Documents
available from the time the Invitation to Bid / Request for Expression of Interest need
not to advertised/posted until the deadline for the submission and receipt of bids.

40. Specifications for the procurement of Goods shall be based on:
a. Relevant characteristics
b. Functionality and/or performance requirements
c. Both A and B
d. Neither A nor B
41. During the Pre-procurement Conference, the participants, led by Bids and Awards
Committee shall:
a. Confirm the description and scope of the contract, the Approved Budget for the Contract,
and contract duration.
b. Ensure that the procurement is in accordance with the Project Procurement Management
Plan and Annual Procurement Plan.
c. Review, modify and agree on the criteria for eligibility screening, evaluation, and post-
qualification.
d. All of the above

I. Bidders shall submit their bids through their duly authorized representative using the
forms specified in the Bidding Documents in two (2) separate sealed bid envelopes, or
two (2) password-protected Bidding Documents in compressed archive folders, in case
of electronic bid submission, and which shall be submitted simultaneously.
II. The first envelope shall contain the financial component of the bid, and the second
shall contain the technical component of the bid, including the eligibility requirements
under the IRR for the procurement of Goods and Infrastructure Projects, and the
second shall contain the financial component of the bid.

a. Only Statement II is True
43. Specifications for the procurement of Goods shall be based on:

a. Relevant characteristics
b. Functionality and/or performance requirements
c. Both A and B
d. Neither A nor B
44. Pre-procurement Conference is led by:

a. Bids and Awards Committee
b. Procuring Entity
c. Government Procurement Policy Board
d. Private Entity
45. During the Pre-procurement Conference, the participants, led by Bids and Awards
Committee shall:
a. Confirm the description and scope of the contract, the Approved Budget for the
Contract, and contract duration.
b. Ensure that the procurement is in accordance with the Project Procurement
Management Plan and Annual Procurement Plan.
c. Review, modify and agree on the criteria for eligibility screening, evaluation, and post-
qualification.
d. All of the above
LABOR STANDARDS AND SSS LAW
1. Which of the following statements presents the correct legal principle in determining hours
worked?
a. All hours are hours worked which the employee is required to give to his
employer, regardless of whether or not such hours are spent in productive labor
or involve physical or mental exertion.
b. An employee needs to leave the premises of the workplace in order that his rest period
to be counted, it being enough that he stops working, may rest completely and may
leave his workplace.
c. If the work performed was necessary or it benefited the employer, or the employee
could not abandon his work at the end of his normal working hours because he had
no replacement, all time spent or such work shall be considered as hours worked,
even if the work was with or without the knowledge of his employer or immediate
supervisor.
2. The time during which an employee is inactive by reason of interruptions in his work beyond
his control shall be considered working time if:
a. The imminence of the resumption of work requires the employee's presence at the
place of work
b. The interval is too brief to be utilized effectively and gainfully in the employee's own
interest
c. Either A or B
d. Neither A nor B
3. The following instances are considered as compensable hours worked, except:

a. All time during which an employee is required to be on duty or to be at the employer’s
premises or to be at a prescribed work place.
b. All time during which an employee is suffered or permitted to work
c. Rest periods of short duration during working hours.
4. Of the four definitions below, which one does NOT fit the definition of “solo parent” under the
Solo Parents Welfare Act?
a. Solo parenthood while the other parent serves sentence for at least one year.
b. A woman who gives birth as a result of rape.
c. Solo parenthood due to death of spouse.
d. Solo parenthood where the spouse left for abroad and fails to give support for
more than a year.
5. The following are instances where an employer can require an employee to work overtime,
except:
a. In case of actual impending emergencies caused by serious accident, fire, Flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of live
property, or imminent danger to public safety
b. When the country is at war or when other national or local emergency has been
declared by the national assembly or the chief executive
c. When there is urgent work to be performed on machines, installations, or equipment,
in order to avoid serious loss or damage to employer or some other cause of similar
nature
d. Where the completion or continuation of the work started after the eight hour is
necessary to prevent serious obstruction or prejudice to the business or
operation of the employer
*Where the completion or continuation of the work started before the eight hour is necessary to
prevent serious obstruction or prejudice to the business or operation of the employer.
6. This year, Independence Day (June 12) falls on a Sunday. Sunday is the rest day of Gregorio
whose daily rate is ₱500.00. If Gregorio is required by his employer to work on that day for
eight (8) hours, how much should he be paid for his work?
a. ₱650
b. ₱1,000
c. ₱1,500
d. ₱1,300
* For working on his scheduled rest day, according to Art. 93(a), Gregorio should be paid ₱500.00
(his daily rate) plus ₱150.00 (30% of his daily rate) = ₱650.00. This amount of ₱650.00 should be
multiplied by 2 = ₱1, 300.00. This is the amount that Gregorio as employee working on his scheduled
rest day which is also a regular holiday, should receive. Art. 94(c) of the Labor Code provides that an
employee shall be paid a compensation equivalent to twice his regular rate for work on any regular
holiday. The “regular rate” of Gregorio on June 12 is with an additional thirty percent because the
day is also his scheduled rest day.
7. Using the information in number 6, If Gregorio works for ten (10) hours on that day, how
much should he receive for his work?
a. ₱1,300
b. ₱1,500
c. ₱1,625
d. ₱1,875
* ₱1.300.00 which is the amount that Gregorio is to receive for working on June 12 should be divided
by 8 to determine his hourly rate of ₱162.50. This hourly rate should be multiplied by 2 (the number
of hours he worked overtime). Thus, the amount that Gregorio is entitled to receive for his overtime
work on June 12 is ₱325.00 plus the amount paid for the regular hours of ₱1,300 equals ₱1,625
8. X Company’s CBA grants each employee a 14th month year-end bonus. Because the company
is in financial difficulty, its head wants to negotiate the discontinuance of such bonus. Would
such proposal violate the “non-diminution rule” in the Labor Code?
a. No, but it will certainly amount to negotiating in bad faith.
b. Yes since the rule is that benefits already granted in a CBA cannot be withdrawn or
reduced.
c. No, since the law does not prohibit a negotiated discontinuance of a CBA benefit.
d. Yes, since such discontinuance will cancel the enjoyment of existing benefits.
9. In computing for 13th month pay, Balagtas Company used as basis both the employee’s
regular base pay and the cash value of his unused vacation and sick leaves. After two and a
half years, it announced that it had made a mistake and was discontinuing such practice. Is
the management action legally justified?
a. Yes, since 13th month pay should only be one-twelfth of the regular pay.
b. No, since the erroneous computation has ripened into an established, non
withdrawable practice.
c. Yes, an error is not a deliberate decision, hence may be rectified.
d. No, employment benefits can be withdrawn only through a CBA negotiation.
10. Pangan, Santos, Domondon & Associates (PASADO), which employs around 50 CPAs and
100 regular staff, suffered losses for the first time in its history. The management informed
its employees that it could no longer afford to provide them free lunch. Consequently, it
announced that a nominal fee would henceforth be charged. Was PASADO justified in
withdrawing this benefit which it had unilaterally been providing to its employees?
a. Yes, because it is suffering losses for the first time.
b. Yes, because this is a management prerogative which is not due to any legal or
contractual obligation.
c. No, because this amounts to a diminution of benefits which is prohibited by the
Labor Code.
d. No, because it is a fringe benefit that has already ripened into a demandable right.
11. The meal time (lunch break) for the dining crew in Glorious Restaurant is either from 10
a.m. to 11 a.m. or from 1:30 p.m. to 2:30 p.m., with pay. But the management wants to
change the mealtime to 11: a.m. to 12 noon or 12:30 p.m. to 1:30 p.m., without pay. Will the
change be legal?
a. No, because lunchbreak regardless of time should be with pay.
b. No, because existing practice cannot be discontinued unilaterally.
c. Yes, in the absence of an agreement to the contrary, the management
determines work hours and, by law, meal break is without pay.
d. Yes, the management has control of its operations.
12. John Paul requested Rowell, a union officer and concurrently chairman of the company's
Labor-Management Council, to appeal to the company for a recomputation of John Paul’s
overtime pay. After 5 p.m., his usual knock-off time, Rowell spent two hours at the Personnel
Office, reconciling the differing computations of John Paul’s overtime. Are those two hours
compensable?
a. No, because the matter could have been resolved in the labor-management council of
which he is the chairman.
b. No, since Rowell’s action has nothing to do with his regular work assignment.
c. Yes, because the time he spent on grievance meetings is considered hours
worked.
d. Yes, because Rowell performed work within the company premises.
13. Night differential is differentiated from overtime pay in that

a. while overtime pay is for work done beyond eight hours, night differential is added to
the overtime pay if the overtime work is done between 6:00 p.m. and 12 midnight.
b. while overtime pay is given for overtime work done during day or night, night
differential is given only for work done between 10:00 p.m. and 6:00 a.m.
c. while overtime pay is paid to an employee whether on day shift or night shift, night
shift differential is only for employees regularly assigned to night work.
d. while overtime pay is 25% additional to the employee's hourly regular wage, night
differential is 10% of such hourly wage without overtime pay.
14. An employer may require an employee to work on the employee's rest day
a. to avoid irreparable loss to the employer.
b. provided he is paid an extra of at least 50% of his regular rate.
c. only when there is a state of calamity.
d. subject to 24-hour advance notice to the employee.
15. When is employee’s meal break considered as hours of work?

a. If less than 60 minutes
b. If less than 90 minutes
c. If less than 50 minutes
d. If less than 30 minutes
16. An employee’s wages are being deducted by the employer for the amount the latter pays for
the premiums on an insurance policy. However, the employee never gave his consent to be
insured. Is the action of the employer valid?
a. Yes, because it is a facility, furthermore, it is for the benefit of the employee
b. No, because for premiums paid by the employer, to be deductible, on an
insurance policy taken out for the employee, the latter must first give his/her
consent
c. Yes, because the employer is always allowed to deduct from the wages of an employee
the amount of premiums paid by the former
d. No, because although it may be a facility it is, however, for the benefit of the employer
17. An employee’s work schedule is from 8:00 a.m. to 12:00 noon followed by 1 hour lunch
break, and then from 1:00 p.m. to 5:00 p.m. He reported for word at 8:30 a.m., took his
lunch break at 12 noon resumed working at 1:30 p.m.and was required to work until 6:00
p.m. The employee was marked late by the personnel manager for that day. For how many
hours should the employee be compensated for that day?
a. 7 hours
b. 8 hours
c. 7.5 hours
d. 9 hours
18. Clarissa Medrano is a ground steward of Philippine Airlines (PAL). Although it was her rest
day, she reported for work on December 31 st and even rendered overtime work. Her total pay
for this day inclusive of the premium pay and overtime pay is
a. 100% for the first 8 hours + 60% for rest day and holiday + 50% as overtime for rest
day and holiday.
b. 130% for the first 8 hours + 50% for rest day and holiday + 30% as overtime for rest
day and holiday.
c. 200% for the first 8 hours + 30% for rest day and holiday + 25% as overtime for rest
day and holiday
d. 100% for the first 8 hours + 50% for rest day and holiday + 30% as overtime for
rest day and holiday
19. Ivan receives a daily salary of P880 in his work as a factory worker. His work schedule for
the Holy Week is as follows:
Maundy Thursday (no work)

Good Friday (8:00 am – 12:00 noon; 1:00 – 7:00 pm)
Black Saturday (8:00 am – 12:00 noon; 1:00 – 7:00 pm), declared as special non-working
holiday and it is the rest day of Ivan
How much is the overtime pay of Ivan for the three-day period?
a. P825
b. P858
c. P944
d. P1,001
*OT on Good Friday = (880/8 hours) x 200% x 130% x 2 hours = P572

*OT on Black Saturday = (880/8 hours) x 150% x 130% x 2 hours = P429
*Total OT = P572 + P286 = P1,001
20. Using the information in number 19, how much is Ivan’s total holiday pay for the three-day
period (excluding the overtime pay)?
a. P1,760
b. P1,144
c. P3,784
d. P2,640
*P880 + (P880 x 200%) + (P880 x 130%) = P2,640
21. Irene, A member of SSS is giving birth on December 2022, with P967.50 monthly
contributions. The monthly salary credit based on SSS table of contribution is computed as
P21,500. Compute the maternity benefit due to Irene assuming the delivery is normal
a. P43,000
b. P75,250
c. P86,000
d. P55,900
22. Using the information in number 21, except that Irene is a solo parent when she deliver her
baby, compute the maternity benefit due
a. P43,000
b. P75,250
c. P86,000
d. P55,900
23. Using the information in number 21, except that Irene suffer a miscarriage during her
pregnancy, compute the maternity benefit due
a. P43,000
b. P75,250
c. P86,000
d. P55,900
*Computation of Maternity Leave Benefit due:
 Total amount of SSS maternity benefit = (Average monthly salary credit / 180 days)
= Daily Maternity Allowance x Number of paid leave days
 Number of paid leave days
 For normal/caesarian delivery = 105 days
 For solo parents = 120 days
 For miscarriage/abortion/stillbirth = 60 days
 Total amount of SSS maternity benefit (Normal delivery) = (21,500 x 6 months) / 180
days = 716.67 x 105 days = P75,250 (rounded off)
 Total amount of SSS maternity benefit (Solo parent) = (21,500 x 6 months) / 180 days
= 716.67 x 120 days = P86,000 (rounded off)
 Total amount of SSS maternity benefit (Miscarriage) = (21,500 x 6 months) / 180 days
= 716.67 x 105 days = P43,000 (rounded off)
24. Kathlyn seeks your advice on when a woman entitled to a special leave benefit of two (2)
months with full pay based on her gross monthly compensation following surgery caused by
gynecological disorders?
a. When a woman employee has rendered continuous aggregate employment service of at
least three (3) months for the last six (6) months.
b. When a woman employee has rendered continuous aggregate employment service of at
least two (2) months for the last six (6) months.
c. When a woman employee has rendered continuous aggregate employment
service of at least six (6) months for the last twelve (12) months.
d. When a woman employee has rendered continuous aggregate employment service of at
least seven (7) months for the last twelve (12) months.
25. It applies to compensation for manual labor, skilled or unskilled, paid at stated times and
measured by the day, week, month or season.
a. Salary
b. Wage
c. Remuneration
d. Benefit
26. Kevin is a regular employee of a company with a basic salary of P450 per day and a six-day
workweek or an equivalent. The following are the information regarding Kevin’s Monthly
Basic Salary for the year 2021:
January No absence P12,285 (including COLA of P500)

February No absence P12,285 (including COLA of P500)
March No absence P12,285 (including COLA of P500)
April 1 day leave with pay P12,285 (including COLA of P500)
May 2 days leave with pay P12,285 (including COLA of P500)
June No absence P12,285 (including COLA of P500)
July 2 days leave with pay P12,285 (including COLA of P500)
August On maternity leave No salary but with maternity benefit
amounting to P65,000
September On maternity leave No salary
October No absence P12,285 (including COLA of P500)
November 2 days leave without pay P11,120 (excluding COLA of P500)
December 5 days leave without pay P9,170 (excluding COLA of P500)
Compute the 13th month pay of Kevin for the year 2021:
a. P9,964.17
b. P9,547.50
c. P9,880.83
d. P12,285.00
27. Which of the following statements is false?
a. Payment of wages shall be paid only in legal tender.
b. Payment of wages by money orders is allowed when such manner of payment is
customary.
c. Payment of wages by postal checks is allowed where it is stipulated in a Collective
Bargaining Agreement (CBA).
d. Payment of wages by vouchers is allowed when expressly requested by the
employee.
28. Which of the following incidents renders eating time as worked time?
a. Eating is done in the production line, even though the machines are idle.
b. Eating is done in the work desk while the employee is watching a noontime show on
television.
c. Eating is done in the company cafeteria together with a customer who is
inquiring about company products.
d. Eating is done outside office premises but employee is inquired to keep his cellphone
open for emergency calls.
29. Rogelio, an effeminate, working in a women’s beauty salon since January 2022, gives care
and custody to his nephew who was left him by the boy’s parents who are working abroad.
Presenting to his employer a Solo Parent I.D. card, he asks for paid absence of seven (7) days
as parental leave under the Solo Parent’s Welfare Act. For which reason given below may the
employer deny Rogelio’s request?
a. He is effeminate.
b. He is an uncle, not a parent, to the boy.
c. He has not yet rendered one (1) year of service.
d. The father and the mother are both earning abroad.
30. Howard, has been cohabiting with Lanie without benefit of marriage for 10 months. He
applies for paternity leave with his employer (a bakery with only 6 employees) where he is a
probationary employee, because Lanie gave birth to a baby boy last week. Which of the
reasons may the employer deny the request of Howard?
a. The employer with less than ten (10) employees is exempt from the law.
b. Howard is still a probationary employee.
c. Lanie is an illegitimate spouse.
d. Paternity leave benefits require prior exhaustion of maternity benefit.
31. Kathlyn seeks your advice on when a woman entitled to a special leave benefit of two (2)
months with full pay based on her gross monthly compensation following surgery caused by
gynecological disorders?
a. When a woman employee has rendered continuous aggregate employment service of at
least three (3) months for the last six (6) months.
b. When a woman employee has rendered continuous aggregate employment service of at
least two (2) months for the last six (6) months.
c. When a woman employee has rendered continuous aggregate employment
service of at least six (6) months for the last twelve (12) months.
d. When a woman employee has rendered continuous aggregate employment service of at
least seven (7) months for the last twelve (12) months.
32. AUTOKO Factory engaged in the assembling of automotive components, decided to have
their building renovated. Fifty (50) persons, composed of engineers, architects and other
construction workers, were hired by the company for this purpose. The work was estimated
to be completed in Three (3) years. The employee contended that since the work would be
completed after more than one (1) year, they should be subject to compulsory coverage of the
Social Security Law. Was their contention correct?
a. No. Employments of purely casual and not for the purpose of the occupation of
business of the employer are excepted from compulsory coverage.
b. Yes. Under the new SSS law, compulsory coverage covers those employed for more
than six (6) months whether it is a project based or fixed term employment.
c. Yes. The subject employees are fixed term employee of AUTOKO factory, as such they
could be under the compulsory coverage of the SSS law.
d. No. AUTOKO factory is exempted from the coverage of SSS law. A factory engaged in
automotive components is covered by PEZA law and not of the SSS law.
33. The following are considered included in the 8-hour work day of an employee, except:
a. Rest periods of short duration during work hours
b. Meal periods of not less than 30 minutes
c. Meal periods of less than 20 minutes
d. Time it takes to withdraw their wages if paid through an ATM and during work hours
34. Labor Standard Benefits, as covered under the Labor Code are the following, except:
a. Overtime pay
b. 13th month pay
c. Holiday pay
d. Night-shift differential
35. Under the Civil Code, the laborer’s wages shall not be subject to attachment except for:
a. Deficiency in the work produced
b. Unrealized profits of the employer due to the fault of the employee
c. Absences from the workplace
d. Debts incurred for clothing, food and shelter
36. The following statements are presented to you for evaluation:

I. Work may be performed beyond 8-hours per day provided that the employee is paid
additional compensation for the overtime worked equivalent to 30% of his regular wage.
II. Overtime work on a holiday or rest day shall be paid an additional compensation
equivalent to the first eight hours worked on a holiday or rest day plus not more than
25% thereof.

a. Both Statements are true
b. Both Statements are false
c. Only Statement I is true
d. Only Statement II is true
37. It is an additional pay granted to covered employee for services rendered on holidays and
rest days.
a. Bonus
b. Incentive
c. Holiday pay
d. Differential Compensation
38. What is the reason for instituting the concept of overtime pay?
a. To encourage the hiring of more employees
b. To burden the employer
c. To discourage working beyond 8 hours
d. To provide more benefits for the employee

I. Payment to an employee must be made in legal tender even if the employee requests that
it be made in some other form.
II. Payment in cheques or vouchers is prohibited at all times.

40. When an employee works from 8 a.m. to 5 p.m. on a legal holiday falling on his rest day,
which of the following formulas do you use to compute for his day's wage on that day?
a. His daily regular wage
b. His regular daily wage plus 200%
c. His regular daily wage multiplied by 200%
d. His regular daily wage multiplied by 200% plus 30% of the 200%
41. Under the Labor Code, the term “one-half (½) month salary” as related to retirement pay
means:
a. 15 days’ pay plus a full 13th month pay.
b. 15 days' pay plus 1/12th of the 13th month pay and the cash equivalent of five
days service incentive leave.
c. 15 calendar days' pay per year of service plus allowances received during the
retirement year.
d. 15 days' pay plus 1/12th of the 13th month pay and 1/12th of the cash value of
service incentive leave.
42. Of the four definitions below, which one does NOT fit the definition of “solo parent” under the
Solo Parents Welfare Act?
a. Solo parenthood while the other parent serves sentence for at least one year.
b. A woman who gives birth as a result of rape.
c. Solo parenthood where the spouse left for abroad and fails to give support for
more than a year.
d. Solo parenthood due to death of spouse.
Situational (For numbers 43 to 50)

The following facts are relevant. Mr. Co has in his employ 4 waitresses, 2 cashier, a janitor and a
guard in a restaurant in Cebu City. Also, he has one pianist who plays every Tuesdays and
Thursdays. He dictates the pianist on what to play and what to wear every time the pianist plays.
43. How many days of service incentive leave is the pianist entitled for the year?
a. 5 days with pay after one year of service
b. 5 days with pay regardless of year of service
c. 10 days with pay regardless of year of service
d. 0 days with pay regardless of year of service
44. If the pianist works only from 10pm-11pm, how much of night shift differential is he entitled
to receive?
a. Basic pay x 110%
b. Basic pay x 10%
c. Basic pay/8 x 10%
45. If the pianist played only for 3 months within the year, how much is he entitled to 13th
month pay?
a. ½ of the total basic salary earned
b. ½ of the total basic salary earned x 3/ 12
c. Not entitled because he only worked for 3 months
d. No entitled because Mr. Co employs less than 10 employees.
46. If the waitress was not able to work on the Wednesday before Maundy Thursday but worked
on Maundy Thursday, how much wage is she entitled if he worked on Good Friday?
a. Basic pay x 100%
b. Basic pay x 200%
c. Basic pay x 260%
47. The guard’s rest day is on a Friday but he was asked to work on August 21 Ninoy Aquino
Day that is a Friday this year. Worse, he was asked to render work for 9 hours. How much is
the guard entitled as overtime pay?
a. 125% of his hourly wage
b. 250% of his hourly wage
c. 169% of his hourly wage
d. 195% of his hourly wage
48. The cashier was pregnant and wanted to apply for maternity leave. Which of the following
conditions is not necessary for the cashier to comply with?
a. She should be an SSS member at the time of delivery.
b. She must have given the required notification to the SSS through her employer.
c. The employee must be married.
d. The employer must have paid at least three (3) monthly contributions to the SSS
within the twelve-month period immediately before the date of delivery.
49. The janitor would like to entitle for a solo parent’s leave. Can he do so?
a. No, he is not entitled to do so.
b. Yes, he can as long as he has rendered at least six months of service, whether
continuous or broke.
c. Yes, he can even though he has contracted marriage and he is no longer left alone
with the responsibility of parenthood.
d. Yes, he can and if he does not avail of it, he can only convert it to cash if it was
previously specifically agreed upon.
50. The waitress wanted to be entitled of the leave for Violence Against Women and their
Children. Which of these will entitle her to such benefit?
a. present a certification from the labor arbiter that an action relative to the matter is
pending.
b. present a certification from the municipal mayor that an action relative to the matter is
pending.
c. present a certification from a competent physician that she has suffered violence.
d. present a certification from the barangay councilor that an action relative to the
matter is pending.
PHILIPPINE COMPETITION ACT
1. A mechanism for allocating goods and services is a generally accepted precept under the
Philippine Competition Act
a. Effectiveness of market competition
b. Efficiency of market competition
c. Sustainability of market competition
d. Transparency of market competition
2. The following are main goals or objectives of enactment of Philippine Competition Act, except:
a. Promote managerial spirit
b. Enhance resource productivity
c. Facilitate technology development and transfer
d. Allow consumers to exercise their right of choice over goods and services
3. Pursuant to the constitutional goals for the national economy to attain a more equitable
distribution of opportunities, income, and wealth, the State shall:
a. Enhance economic efficiency and promote free and fair competition in trade, industry
and all commercial economic activities, as well as establish a National Competition
Policy to be implemented by the Government of the Republic of the Philippines and all
of its political agencies as a whole;
b. Prevent economic concentration which will control the production, distribution, trade,
or industry that will unduly stifle competition, lessen, manipulate or constrict the
discipline of free markets;
c. Penalize all forms of anti-competitive agreements, abuse of dominant position and
anti-competitive mergers and acquisitions, with the objective of protecting consumer
welfare and advancing domestic and international trade and economic development.
d. All of the foregoing
4. The Philippine Competition Act is enforceable and applicable against the following, except:
a. Any person or entity engaged in any trade, industry and commerce in the Republic of
the Philippines.
b. International trade having direct, substantial, and reasonably foreseeable effects in
trade, industry, or commerce in the Republic of the Philippines, including those that
result from acts done outside the Republic of the Philippines.
c. Combinations or activities of workers or employees nor to agreements or
arrangements with their employers when such combinations, activities,
agreements, or arrangements are designed solely to facilitate collective
bargaining in respect of conditions of employment.
5. What is the principle or main approach enshrined in the Philippine Competition Act?
a. Proportionality approach
b. Expediency approach
c. Eclectic approach
d. Subsidiarity approach
6. A quasi-judicial agency mandated to promote the wellbeing and efficiency of competition in

the market for the benefit of consumers and businesses.
a. Philippine Competition Regulatory Authority
b. Philippine Competition Commission
c. Philippine Business Competition Authority
d. Department of Trade and Industry
7. While the Philippines was one of the last member states of the Association of Southeast Asian
Nations (ASEAN) to pass such a law on competition, it only took _____ to establish the
Philippine Competition Commission (PCC) from the enactment of the Philippine Competition
Act.
a. 3 months
b. 5 months
c. 6 months
d. 1 year
8. Under the Competition Act, it refers to the purchase of securities or assets, through contract
or other means, for the purpose of obtaining control by One (1) entity of the whole or part of
another; Two (2) or more entities over another; or One (1) or more entities over one (1) or
more entities
a. Acquisition
b. Merger
c. Consolidation
d. Divestiture
9. Under the Competition Act, it refers to any type or form of contract, arrangement,
understanding, collective recommendation, or concerted action, whether formal or informal,
explicit or tacit, written or oral.
a. Undertaking
b. Memorandum of Understanding
c. Agreement
d. Representation
10. Under the Competition Act, it refers to any type or form of undertaking, collective
recommendation, independent or concerted action or practice, whether formal or informal
a. Customs
b. Treaty
c. Conduct
d. Agreement
11. Under the Competition Act, it refers to information which concerns or relates to the
operations, production, sales, shipments, purchases, transfers, identification of customers,
inventories, or amount or source of any income, profits, losses, expenditures
a. Business Information
b. Confidential Business Information
c. Confidential Financial Information
d. Confidential Trade Secrets
12. Under the Competition Act, it refers to the ability to substantially influence or direct the
actions or decisions of an entity, whether by contract, agency or otherwise
a. Substantive right
b. Significant Influence
c. Dominancy
d. Control
13. Under the Competition Act, it refers to a position of economic strength that an entity or
entities hold which makes it capable of controlling the relevant market independently from
any or a combination of the following: competitors, customers, suppliers, or consumers
a. Marketing Position
b. Competitive Position
c. Dominant Position
d. Strategic Position
14. Under the Competition Act, it refers to any person, natural or juridical, sole proprietorship,
partnership, combination or association in any form, whether incorporated or not, domestic
or foreign, including those owned or controlled by the government, engaged directly or
indirectly in any economic activity
a. Entity
b. Firm
c. Subsidiary
d. Parent Company
15. Under the Competition Act, it refers to the group of goods or services that are sufficiently
interchangeable or substitutable and the object of competition, and the geographic area
where said goods or services are offered.
a. Relevant product market
b. Relevant geographic market
c. Relevant market
d. Market
16. Under the Competition Act, it comprises all those goods and/or services which are regarded
as interchangeable or substitutable
c. Relevant market
d. Market
17. Under the Competition Act, it comprises the area in which the entity concerned is involved in
the supply and demand of goods and services, in which the conditions of competition are
sufficiently homogenous and which can be distinguished from neighboring areas because the
conditions of competition are different in those areas.
c. Relevant market
d. Market
18. The following agreements, between or among competitors, are per se prohibited, except:
a. Restricting competition as to price, or components thereof, or other terms of trade;
b. Fixing price at an auction or in any form of bidding including cover bidding, bid
suppression, bid rotation and market allocation and other analogous practices of bid
manipulation;
c. Setting, limiting, or controlling production, markets, technical development, or
investment;

I. An entity that controls, is controlled by, or is under common control with another entity
or entities, have common economic interests, and are not otherwise able to decide or act
independently of each other, shall be considered competitors.
II. Dividing or sharing the market, whether by volume of sales or purchases, territory, type of
goods or services, buyers or sellers or any other means is per se prohibited by the
Competition Law.

20. Under the Philippine Competition Act, they are defined as those that substantially prevent,
restrict, or lessen competition.
a. Anti-competitive agreements
b. Anti-graft and corrupt practices
c. Anti-social contract
d. Anti-treaty agreements
21. The following shall be guilty of unfair competition, and shall be subject to an action
therefore:
a. Any person who shall employ deception or any other means contrary to good faith, by
which he shall pass off the goods manufactured by him or in which he deals, or his
business, or services for those of the one having established such goodwill;
b. Any person who shall commit any acts calculated to produce said result
c. Both A and B
d. Neither A nor B
22. This refers to instances when businesses, together or alone, restrict or prevent competition in
certain industries or segments through their market dominance
a. Abuse of rights
b. Abuse of dominance
c. Abuse of competition
d. Abuse of market share
23. Unfair competition as distinguished from Infringement of trademark or Trade Name:
a. Fraudulent intent is unnecessary
b. Prior registration is a prerequisite to the action
c. There is an unauthorized use
d. There is passing off of one’s goods as those of another
24. Competitors agree to restrict their sales to specific geographic areas, effectively creating local
monopolies for each of them. This is known as:
a. Price Fixing
b. Bid-Rigging
c. Output Limitations
d. Market Sharing
25. Parties participating in a tender process coordinate their bids, rather than submit
independent bid prices. This is known as:
a. Price Fixing
b. Bid-Rigging
d. Market Sharing
26. Competitors agree to limit production or set quotas, or else to coordinate investment plans.
This is known as:
a. Price Fixing
b. Bid-Rigging
d. Market Sharing
27. Competitors collude with one another to fix prices for goods or services, rather than allowing
prices to be determined by market forces. This is known as:
a. Price Fixing
b. Bid-Rigging
d. Market Sharing

I. It is illegal for business rivals to act together in ways that can limit competition, lead to
higher prices, or hinder other businesses from entering the market.
II. Agreements between or among competitors are also called vertical agreements.

29. Under the competition law, it is the selling goods or services below cost with the object of
driving competition out of the relevant market.
a. Price Fixing
b. Discriminatory behavior
c. Bid-rigging
d. Predatory pricing
30. The following are prohibited acts under the abuse of dominant position, except:
a. Imposing barriers to entry or committing acts that prevent competitors from growing
within the market in an anti-competitive manner;
b. Making a transaction subject to acceptance by the other parties of other obligations
which have no connection with the transaction;
c. Socialized pricing for the less fortunate sector of the economy;
d. Imposing restrictions on the lease or contract for sale or trade of goods or services,
such as fixing prices, giving preferential discounts or rebate upon such price, or
imposing conditions not to deal with competing entities, the object or effect of the
restrictions is to prevent, restrict or lessen competition substantially.
CONSUMER PROTECTION LAW
1. The following items are classified as “basic necessities” under R.A. No. 7581 as amended by
R.A. 10623, otherwise known as the Price Act:
a. Rice; corn bread; fresh pork; beef and poultry meat
b. Fresh fruits; flour; dried, processed and canned pork, beef and poultry meat
c. Both A and B
d. Neither A nor B
2. There is prima facie evidence of profiteering punishable under the Price Act whenever:
a. Cooking oil is sold at a grossly excessive price without any price tag.
b. Fertilizer is sold at a misrepresented weight.
c. Fresh crabs and shrimps are sold 50% more than their normal prices in the
immediately preceding month.
d. Adulterated medicines are sold.
3. The President, upon the recommendation of the implementing agency or the Price
Coordinating Council, may impose a price ceiling on any basic necessity or prime commodity
if any of the following conditions so warrants:
a. The impendency, existence, or effect of a calamity
b. The prevalence or widespread acts of illegal price manipulation
c. Either A or B
d. Neither A nor B
4. Under the Consumer Act of the Philippines, what agency regulates the preparation and sale
of meat, fresh fruits, poultry, milk, fish, vegetables and other foodstuff (unprocessed food) for
consumption?
a. Department of Health
b. Department of Agriculture
c. Department of Trade and Industry
d. Local Government Units (LGUs)
5. Under the Consumer Act of the Philippines, which of the following statements is false?
a. Consumer products and services refer to goods, services and credits, debts or
obligations which are primarily for personal, family, household or agricultural
purposes including, but not limited to, food, drugs, cosmetics and devices.
b. An act or practice shall be deemed deceptive whenever the producer, manufacturer,
supplier or seller, through concealment, false misrepresentation or fraudulent
manipulation, induces a consumer to enter into a sale or lease transaction of any
consumer product or service.
c. Chain distribution plans or pyramid sales schemes are prohibited by the Consumer
Act of the Philippines to be employed in the sale of consumer products.
6. Under the Consumer Act of the Philippines, a “home solicitation sale” means a consumer sale
or lease which is personally solicited by any person or organization by telephone, person-to-
person contact or by written or printed communication. Which of the following statements is
not an element of a “home solicitation sale”?
a. It is consummated at the buyer’s residence or place of business, at the seller’s
transient quarters, or away from the seller’s regular place of business.
b. It is communicated to the buyer by way of general advertising through radio,
television, newspaper or magazine.
c. It shall only be conducted between 9 a.m. to 7 p.m. on working days.
d. A permit from the concerned department must be obtained prior to the conduct of the
sale.
7. Michael purchased an electric fan on cash basis from RST Megasaver. The unit is
manufactured by ABC Corporation and distributed by DEF Enterprises, and is covered by an
express and full warranty. Michael barely the electric fan for a few days when it ceased to
operate anymore. Which of the following statements relative to the Consumer Act of the
Philippines is correct?
a. Michael is not entitled to a refund should the unit be found to be irreparable.
b. Michael should surrender the warranty card or official receipt together with the
defective product to ABC Corporation.
c. ABC Corporation shall be responsible in making good the warranty of the unit
d. RST Megasaver is solidarily liable on the warranty with ABC Corporation and DEF
Enterprises
8. Under the Consumer Act of the Philippines, the original and exclusive jurisdiction to mediate,
conciliate, hear and adjudicate all consumer complaints belongs to the:
a. Consumer Arbitration Officers
b. National Consumer Affairs Council
c. Barangay Lupon
d. Regular Court
9. Under the law, it is prohibited act wherein the undue accumulation of any basic necessity or
prime commodity is beyond one’s normal inventory level:
a. Hoarding
b. Profiteering
c. Cartel
d. Economic Sabotage
10. The sale or offering for sale of any basic necessity or prime commodity at a price grossly in
excess of its true worth is known as:
a. Hoarding
b. Profiteering
c. Cartel
d. Economic Sabotage
11. It refers to sale devices whereby a person, upon condition that he makes an investment, is
granted by the manufacturer or his representative a right to recruit for profit one or more
additional persons who will also be granted such right to recruit upon condition of making
similar investment.
a. Chain distribution plans
b. Pyramid sales schemes
c. Either A or B
d. Neither A nor B
12. An act strengthening consumer protection in the purchase of brand new motor vehicles and
the sale of defective vehicles and deceptive practices:
a. R.A. 7394 or The Consumer Act of the Philippines
b. R.A. 10642 or The Philippine Lemon Law
c. R.A. No. 7581 as amended by R.A. 10623, otherwise known as the Price Act
13. Under the Lemon Law, how long does the consumer protection last?
a. Within 6 months from the date of original delivery to the customer or up to ten
thousand (10,000) kilometers of operations after such delivery, whichever comes first.
b. Within 6 months from the date of original delivery to the customer or up to twenty
thousand (20,000) thousand kilometers of operations after such delivery, whichever
comes first.
c. Within 12 months from the date of original delivery to the customer or up to
twenty thousand (20,000) thousand kilometers of operations after such delivery,
whichever comes first.
d. Within 12 months from the date of original delivery to the customer or up to ten
thousand (10,000) thousand kilometers of operations after such delivery, whichever
comes first.
14. Under the Lemon Law, it refers to any person, natural or juridical, engaged in the business of
manufacturing or assembling motor vehicles
a. Consumer
b. Dealer or retailer
c. Distributor
d. Manufacturer
15. Under the Lemon Law, it refers to any person, natural or juridical, authorized by the
manufacturer or distributor to sell brand new motor vehicles directly to the retail buyers and
the public:
a. Consumer
b. Dealer or retailer
c. Distributor
d. Manufacturer
16. This is defined as the date stated on the label of food, drug, cosmetic, device or hazardous
substance after which they are not expected to retain their claimed safety, efficacy and
quality or potency and after which it is no longer permissible to sell them.
a. Best before date
b. Better before date
c. Expiry date
d. Manufacturing date
17. It is the identification of drugs and medicines by their scientifically and internationally
recognized active ingredients.
a. Brand name
b. Generic name
c. Scientific name
d. Medical name
18. It means any substance which will cause on normal living tissue, allergy or photodynamic
quality of hypersensitivity which becomes evident on reapplication of the same substance, to
be designated as such by the implementing agency
a. Muriatic acid
b. Active substance
c. Strong sensitizer
d. Chemical reactant
19. It means any device written, printed, affixed or attached to a consumer product or displayed
in a consumer repair or service establishment for the purpose of indicating the retail price
per unit or service.
a. Price tag
b. Label
c. Package price
d. Bar code
20. A special packaging

a. Contains all the information reasonably needed by consumer
b. Is difficult for children to open
c. Is made out of potentially hazardous materials
d. Is biodegradable or oxo-biodegradable
21. The agency in charge with implementing the Consumer Act of the Philippines is:
a. Department of Trade and Industry
b. Department of Consumer Protection
c. Department of Finance
d. Department of Budget and Management
22. What word is required to be indicated on substances which are extremely flammable?
a. Danger
b. Caution
c. Attention
d. Warning
23. It is that part of the label that is most likely to be displayed, presented, shown or examined
under normal and customary conditions of display for retail or sale.
a. Primary display panel
b. Principal display panel
c. Front display panel
d. First display panel
24. What is the end goal of deceptive sales acts or practices?

a. Induce a consumer to enter into a sales or lease transaction of any consumer
product or service
b. Control market prices to the advantage of sellers and to the disadvantage of
consumers
c. Deliver quantities or amounts less than what was initially agreed upon
d. Employ impossible and false therapeutic claims on medicines
25. A seller’s deceptive act or practice may only occur:

a. Before the transaction
b. During the transaction
c. After the transaction
d. Before, during, or after the transaction
26. An unfair or unconscionable sales act or practice:

a. Takes advantage of product scarcity, whether manmade or otherwise
b. Takes advantage of a consumer’s ignorance or illiteracy
c. Takes advantage of a consumer’s financial standing
d. Takes advantage of the unreadability of a product’s packaging
27. Statement 1: Chain distribution plans or pyramid sales schemes shall not be employed in the
sale of consumer products.
Statement 2: DTI is prohibited from issuing to any business entity the authority to conduct
any home solicitation sale of any consumer product or service.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.
28. Which of the following is not a prohibited representation in a home solicitation sale?
a. the buyer has been specially selected
b. a survey, test or research is being conducted
c. the seller has specifically obtained a permit from the government
d. the seller is making a special offer to a few persons only for a limited period of time
29. Which of the following is part of the minimum label requirements for consumer products?
a. A translation in Filipino of any active ingredients
b. Net quantity of contents
c. Date of manufacture
d. Any incidental use for the product
30. Which of the following is not part of the minimum label requirements for consumer
products?
a. Duly registered trademark
b. Country of manufacture, if imported
c. Patent registration number
d. Address of the imported, if imported
31. In addition to the minimum label requirements for consumer products, additional labeling
requirements for cosmetics include all of the following, except:
a. expiration date
b. whether or not it may be an irritant
c. color or style of the cosmetic
d. contra-indications
32. Statement 1: A food shall also be deemed mislabeled if it is offered for sale under the name of
another food.
Statement 2: A food shall also be deemed mislabeled if it bears or contains any artificial
flavoring, artificial coloring, or chemical preservative and such is not indicated.
33. If a drug is for use by man and contains any quantity of cannabis, heroin, morphine, or
opium, the label should contain:
I. The quantity or proportion of such substance
II. The statement “Warning – May be habit forming”
III. Adequate directions for use
a. I and II only.
b. II and III only.
c. I and III only.
d. I, II, and III.
34. For hazardous substance which is defined as highly toxic, which word should appear in the
label:
a. “Deadly”
b. “Poison”
c. “Corrosive”
d. “Unsafe”
35. The statement “keep out of the reach of children” should be indicated in:
a. articles not intended for use by children and at the same time, is not a banned
hazardous substance
b. articles not intended for use by children and at the same time, is a banned hazardous
substance
c. articles intended for use by children and at the same time, is not a banned hazardous
substance
d. articles intended for use by children and at the same time, is a banned hazardous
substance
FINANCIAL REHABILITATION AND INSOLVENCY ACT (FRIA)
1. Under R.A. 10142 otherwise known as Financial Rehabilitation and Insolvency Act (FRIA) of
2010, the term “debtor” includes:
a. Banks
b. Government-owned-and-controlled corporations
c. Both A and B
d. Neither A nor B
2. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, which of the following
statements relative to a court-supervised rehabilitation is false?
a. The insolvent debtor may file the verified petition for rehabilitation provided it
is approved by the owner in case of sole proprietorship, 2/3 of the partners in
case of partnerships, or majority vote of the board of directors or trustees and
authorized by at least 2/3 of outstanding capital stock or members in the case of
corporations.
b. Any creditor or group of creditors may file a verified petition for rehabilitation of the
debtor provided his or their claim/s amount to at least ₱1,000,000 or at least 25% of
the subscribed capital stock or partners’ contributions, whichever is higher
c. Both A and B
d. Neither A nor B
3. Which of the following acts is within the ambit of a Stay or Suspension Order under the
Financial Rehabilitation and Insolvency Act (FRIA) of 2010?
a. Cases pending appeal before the Supreme Court as of commencement date of the Stay
or Suspension Order.
b. Claims against issuers of letter of credit where the property is not necessary to the
rehabilitation of the debtor
c. Both A and B
d. Neither A nor B
4. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, a person may be
appointed as a Rehabilitation Receiver if:
a. He is a creditor, owner, partner or stockholder of the debtor.
b. He is, or was, within five (5) years from the filing of the petition, an owner, partner,
director, officer or employee of the debtor or any of the creditors, or the auditor or
accountant of the debtor.
c. He is related by consanguinity or affinity within the fourth civil degree to any
individual creditor, owner of a sole proprietorship-debtor, partners of a partnership-
debtor or to any stockholder, director, officer, employee or underwriter of a
corporation-debtor.
5. The Financial Rehabilitation and Insolvency Act (FRIA) of 2010 provides that a transaction
occurring prior to the commencement date of the rehabilitation proceedings entered into by
the debtor or involving its funds or assets may be rescinded or declared null and void by the
rehabilitation court on the ground that the same was executed with intent to defraud a
creditor/s or which constituted undue preference of creditors. A disputable presumption of
such design shall arise where:
a. The transaction involves an accelerated payment of a claim to a creditor within
ninety (90) days prior to the commencement date.
b. The transaction provides security or additional security executed within ninety (90)
days after the commencement date.
c. Both A and B
d. Neither A nor B
6. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, a creditor has
adequate protection over the property securing its claim where:
a. The debtor fails or refuses to honor a pre-existing agreement with the creditor to keep
the property insured.
b. The debtor fails or refuses to take commercially reasonable steps to maintain the
property.
c. The property has depreciated to an extent that the creditor is undersecured.
7. The verified petition filed with the court for a Pre-Negotiated Rehabilitation Plan must be
endorsed or approved by:
a. Creditors holding at least 2/3 of the total liabilities of the debtor.
b. Secured creditors holding more than 50% of the total secured claims of the debtor and
unsecured creditors holding more than 50% of the total unsecured claims of the
debtor.
c. Both A and B
d. Neither A nor B
8. An Out-of-Court Informal Restructuring Agreement or Rehabilitation Plan under the

Financial Rehabilitation and Insolvency Act (FRIA) of 2010 requires the agreement of the
debtor and the approval of creditors representing at least:
a. 75% of secured claims, 75% of unsecured claims, and 80% of total secured and
unsecured claims
b. 67% of secured claims, 75% of unsecured claims, and 85% of total secured and
unsecured claims
c. 70% of secured claims, 70% of unsecured claims, and 75% of total secured and
unsecured claims
d. 50% of secured claims, 50% of unsecured claims, and 75% of total secured and
unsecured claims
9. A standstill period may be agreed upon by the parties pending negotiation and finalization of
the Out-of-Court Informal Restructuring Agreement or Rehabilitation Plan, provides:
a. The agreement is approved by the creditors representing more than 50% of the
total liabilities of the debtor.
b. Notice thereof is published in a newspaper of general circulation once a week for three
(3) consecutive weeks and the standstill period does not exceed 180 days from the date
of effectivity.
c. Both A and B
d. Neither A nor B
10. An insolvent juridical debtor, such as partnerships and corporations, may be liquidated by
way of voluntary liquidation whereby the insolvent debtor shall file a verified petition for its
liquidation with the court containing:
a. Schedule of the debtor’s debts and liabilities and inventory of all its assets.
b. Name of one (1) nominee to the position of liquidator
c. Both A and B
d. Neither A nor B
11. In the involuntary liquidation of a debtor under the Financial Rehabilitation and Insolvency
Act (FRIA), the initiating three (3) or more creditors must have claims against the debtor in
the aggregate amount of:
a. At least ₱500,000 or at least 50% of the subscribed capital stock or partners’
contributions whichever is lower
b. At least ₱500,000 or at least 50% of the subscribed capital stock or partners’
contributions whichever is higher
c. At least ₱1,000,000 or at least 25% of the subscribed capital stock or partners’
contributions whichever is lower
d. At least ₱1,000,000 or at least 25% of the subscribed capital stock or partners’
contributions whichever is higher
12. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, what remedy is
available to an individual debtor who, possessing sufficient property to cover all his debts,
foresees the impossibility of meeting them when they respectively fall due?
a. Voluntary liquidation
b. Involuntary insolvency
c. Suspension of payments
13. To form a majority vote on any proposed agreement during the creditor’s meeting in
suspension of payments, it is necessary:
a. That three-fourths (3/4) of the creditors voting unite upon the same proposition.
b. That the claim represented by said majority vote amount to at least four-fifths (4/5) of
the total liabilities of the debtor.
c. Both A and B
d. Neither A nor B
14. What are the grounds for which an objection may be made to the decision of the majority in
the creditors’ meeting?
a. Defects in the call of the meeting, in the holding thereof, and in the deliberations had
thereat which prejudice the rights of the creditors.
b. Fraudulent connivance between one or more creditors and the individual debtor to
vote in favor of the proposed agreement.
c. Fraudulent conveyance of claims for the purpose of obtaining a majority.
d. All of the foregoing.
15. X filed a petition for suspension of payments in court. During the pendency of the
proceedings, a writ of execution was issued by another court in favor of C, an unsecured
creditor, against X. M, a creditor-mortgagee, also initiated the foreclosure of the mortgaged
property of X. which of the following statements relative to Suspension of Payments under
the FRIA is correct?
a. Both the execution in favor of C and the foreclosure on the mortgage in favor of M
shall be suspended.
b. Both the execution in favor of C and the foreclosure on the mortgage in favor of M
shall proceed.
c. The execution in favor of C shall proceed but the foreclosure on the mortgage in favor
of M shall be suspended.
d. The execution in favor of C shall be suspended but the foreclosure on the
mortgage in favor of M shall proceed.
16. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, which of the following
petitions amounts to an act of insolvency?
a. Voluntary liquidation
b. Suspension of Payments
c. Rehabilitation
d. Involuntary insolvency
17. Which of the following statements relative to the Liquidation Order is false?
a. The juridical debtor shall be deemed dissolved and its corporate or juridical existence
terminated upon issuance of the Liquidation Order.
b. Separate actions for collection of an unsecured claim shall be allowed.
c. The legal title and control of all assets of the debtor, except those that may be exempt
from execution, shall be deemed vested in the Liquidator or, pending his election or
appointment, with the court.
d. All contracts of the debtor shall be deemed terminated and/or breached, unless the
liquidator, within ninety (90) days from the date of his assumption of office, declares
otherwise and the contracting party agrees.
18. When an action that is still pending upon the issuance of the Liquidation Order is
transferred to the Liquidator, he may:
a. Settle the case.
b. Contest the case which is already on appeal
c. Either A or B
d. Neither A nor B
19. The Liquidation Order shall not affect the right of a secured creditor to enforce his lien in
accordance with the applicable contract or law. A secured creditor may:
a. Waive his right under the security or lien, prove his claim in the liquidation
proceedings and share in the distribution of assets of the debtor.
b. Maintain his rights under the security or lien.
c. Either A or B
d. Neither A nor B
20. Which of the following statements relative to the appointment of the Liquidator is false?
a. The Liquidator shall be elected by the creditors who have filed their claims within the
period set by the court and whose claims are not barred by the Statute of Limitations.
b. The Liquidator may be appointed by the court if the creditors did not attend the on-
date set for the election of the Liquidator.
c. The Rehabilitation Receiver who was administering the debtor prior to the
commencement of the liquidation may be appointed as the Liquidator.
21. Which of the following statements is true regarding proceedings under the Financial
Rehabilitation and Insolvency Act?
a. It is a proceeding in rem, which means it binds the whole world.
b. The proceedings are adversarial in nature, which means it requires an opposing party
and is heavily litigated.
c. It is a proceeding in personam, which means that it attaches to the person
d. Jurisdiction over all persons affected is acquired by service of summons.
22. An insolvent person is one who is generally:

I. Unable to pay its or his liabilities as they fall due
II. Has liabilities greater than its or his assets
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
23. Statement 1: In order to be considered as a creditor under the FRIA, the credit must have
security.
Statement 2: In order to be considered as a creditor under the FRIA, the claim of the creditor
must have arisen on or before commencement date.
24. Which of the following proceedings is covered by the FRIA?

I. Voluntary rehabilitation
II. Voluntary liquidation
III. Involuntary liquidation
a. I and II only.
b. I and III only.
c. II and III only.
d. I, II, and III.
25. This involves calling the creditors to a meeting to propose and agree on a schedule of
payments and to prevent the debtor from making any payment outside the necessary or
legitimate expenses of the business, and the issuance of a suspension order to prevent
pending executions against the debtor.
a. Amicable settlement
b. Suspension of payments
c. Pre-negotiated rehabilitation
d. Voluntary rehabilitation
26. Suspension of payments cover:

a. Individual debtors.
b. Partnerships only.
c. Partnerships and corporations.
d. Individual debtors, partnerships, and corporations.
27. In suspension of payments:

a. The amount of indebtedness is reduced
b. The amount of indebtedness is not affected
c. The number of creditors is reduced
d. The number of creditors shall not exceed five (5)
28. How much is the minimum requirement for the amount of claims in suspension of
payments?
a. P500,000
b. P1,000,000
c. P5,000,000
d. None
29. Statement 1: Under suspension of payments, the debtor is required to be insolvent.

Statement 2: Suspension of payments is initiated by the debtor.
30. As a rule, no creditor shall sue or institute to collect his claim from the debtor form the time
of the filing of the petition for suspension of payments and for as long as the proceedings
remain pending. Which of the following creditors are excepted from this prohibition?
a. Creditors having claims for personal labor.
b. Creditors with accounts that are overdue for at least 365 days.
c. Creditors with loan contracts embodied in a public instrument.
d. Unsecured creditors.
31. As a rule, no creditor shall sue or institute to collect his claim from the debtor from the time
of the filing of the petition for suspension of payments and for as long as the proceedings
remain pending. Which of the following creditors are not excepted from this prohibition?
a. Creditors having claims for maintenance
b. Creditors having claims pertaining to last illness of the wife of the debtor
c. Creditors having claims pertaining to the funeral expenses of the children of the
debtor
d. Creditors having claims pertaining to the construction of the last legal residence
of the debtor
32. In relation to suspension of payments, in order to constitute a quorum, how many creditors
should attend the creditor’s meeting?
a. Creditors holding at least 1/2 of the liabilities of the debtor
b. Creditors holding at least 2/3 of the liabilities of the debtor
c. Creditors holding at least 3/5 of the liabilities of the debtor
d. Creditors holding at least 3/4 of the liabilities of the debtor
33. In order to approve a proposed agreement with creditors, a double majority is required. A
double majority constitutes:
I. 1/2 of the creditors voting
II. 2/3 of the creditors voting
III. Claims of the majority vote amount to at least 3/5 of the total liabilities
IV. Claims of the majority vote amount to at least 2/3 of the total liabilities
a. I and III.
b. II and III.
c. I and IV.
d. II and IV.
34. It is the restoration of the debtor to a condition of successful operation and solvency.
a. Solvency
b. Recovery
c. Restoration
d. Rehabilitation
35. If a corporation is the debtor, who initiates an involuntary rehabilitation?

a. The corporation’s creditor
b. Majority of the directors or trustees
c. Stockholders representing 2/3 of the outstanding capital/members of non-stock
corporation
d. Stockholders representing 1/2 of the outstanding capital/members of non-stock
corporation
36. If a corporation is the debtor, who initiates a voluntary rehabilitation?
I. The corporation’s creditor
II. Majority of the directors or trustees
III. Stockholders representing 2/3 of the outstanding capital/members of non-stock
corporation
IV. Stockholders representing 1/2 of the outstanding capital/members of non-stock
corporation
a. I only.
b. II and III only.
c. II and IV only.
d. I, II, and III only.
37. Involuntary rehabilitation may be initiated by creditors with claims or aggregate of whose
claim is:
a. at least P1,000,000 or 25% of the subscribed capital stock or partners’
contributions, whichever is higher
b. at least P1,000,000 or 25% of the subscribed capital stock or partners’ contributions,
whichever is lower
c. at least P1,000,000 and 25% of the subscribed capital stock or partners’ contributions
d. at least P1,000,000
38. In rehabilitation proceedings under FRIA, the commencement order includes:

a. A cease and desist order
b. A hold order
c. A stay order
d. An injunction order
39. The Commencement Order has the effect of:

I. Suspension of all actions or proceedings, in court or otherwise for the enforcement of
claims against the debtor
II. Suspend all actions to enforce any judgment, attachment or other provisional remedies
against the debtor
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
40. The Commencement Order is issued withing:

a. Five days from the filing of the petition.
b. Ten days from the filing of the petition.
c. Fifteen days from the filing of the petition.
d. Thirty days from the filing of the petition.
41. A case for estafa has been filed against Mr. X by Ms. Y. Ms. Y alleged that Mr. X
misappropriated P1,000,000 which she handed in trust to Mr. X. Subsequently, the other
creditors of Mr. X filed a petition for involuntary rehabilitation of Mr. X. A commencement
order was issued by the court. What happens to the case for estafa filed against Mr. X?
a. The criminal case for estafa is dismissed.
b. The criminal case for estafa is suspended or held in abeyance until the
commencement order has been lifted.
c. The criminal case for estafa is deemed submitted for decision of the court.
d. The criminal case for estafa shall not be affected by the issuance of the
commencement order.
42. Which of the following is not a responsibility of the rehabilitation receiver?

a. Preserving the value of the assets of the debtor
b. Preparation of a rehabilitation plan
c. Approval of the rehabilitation plan
d. Implementation of the rehabilitation plan
43. When appointed by the court, it shall take the place of the management and the governing
body of the debtor and assume their rights and responsibilities.
a. Substitute Board
b. Court-Appointed Administrator
c. Management Committee
d. Creditors’ Committee
44. The rehabilitation plan may include:

I. Debt forgiveness
II. Dacion en pago
III. Debt-equity conversion
a. I and II only.
b. I and III only.
c. II and III only.
d. I, II, and III.
45. Statement 1: The debtor needs to agree with the out-of-court rehabilitation plan.
Statement 2: Creditors representing at least 75% of the secured obligation must agree with
the out-of-court rehabilitation plan.
46. The standstill period shall not exceed

a. Sixty (60) days from the date of effectivity
b. Ninety (90) days from the date of effectivity
c. One hundred twenty (120) days from the date of effectivity
d. One hundred fifty (150) days from the date of effectivity
47. In both voluntary and involuntary liquidation, the amount of debt must be at least:
a. P500,000
b. P1,000,000
c. P5,000,000
d. P10,000,000
48. In involuntary liquidation, what must the creditors prove?

a. That the debtor is insolvent
b. That the debtor committed acts of insolvency
c. That the debtor has no more assets
d. That the debtor has outstanding balances amounting to P5,000,000
49. Which of the following is not an act of insolvency by the debtor?

a. That being absent from the Republic of the Philippines, with intent to defraud his
creditors, he remains absent
b. That he conceals himself to avoid the service of legal process for the purpose of
hindering or delaying the liquidation or of defrauding his creditors
c. That being a merchant or tradesman, he has generally defaulted in the payment
of his current obligations for a period of fifteen (15) days
d. That an execution having been issued against him on final judgment for money, he
shall have been found to be without sufficient property subject to execution to satisfy
the judgment
50. During the pendency of court-supervised or pre-negotiated rehabilitation proceedings, may

the court order the conversion of rehabilitation proceedings to liquidation proceedings?
a. Yes, when a petition for rehabilitation is filed and it is established that the
debtor is indeed insolvent but there is no substantial likelihood for the debtor to
be successfully rehabilitated.
b. Yes, when a petition for rehabilitation is filed and it is established that the debtor is
not insolvent and has substantial assets which may be liquidated.
c. Yes, when a petition for rehabilitation is filed and it is established that the debtor is
indeed insolvent and there is substantial likelihood that the sale of the assets is the
more expedient way of satisfying creditor’s claims.
d. No, in no case may a court-supervised or pre-negotiated rehabilitation proceeding be
converted to a liquidation proceeding.
TRUTH IN LENDING ACT
1. R.A. No. 3765 otherwise known as Truth in Lending Act, applies to:
a. Pawnshops
b. Small-loan money lenders
c. Both A and B
d. Neither A nor B
2. As used in R.A. 3765 or Truth in Lending Act, the term “Board” refers to:
a. Board of Investments
b. Central Board of Assessment Appeal
c. Board of Lending and Loan Regulation
d. Monetary Board of the Bangko Sentral ng Pilipinas (BSP)
3. Under the Truth in Lending Act, which of the following includes in the term “credit”?
a. Loan
b. Mortgage
c. Deed of Trust
d. All of the foregoing
4. Under the Truth in Lending Act, which of the following shall be fully disclosed?
a. True cost of credit
b. True creditors and debtors
c. True financial history of the borrower
5. Under the Truth in Lending Act, the following are furnished by the creditor to person whom
credit is extended, except:
a. The amounts, if any, to be credited as downpayment and/or trade-in
b. The cash prize or delivered price of the property or service to be acquired
c. The total amount to be financed
d. The percentage that the finance bears to the total amount to be financed expressed as
a simple annual rate on the outstanding unpaid balance of the obligation.
6. Under the Truth in Lending Act, finance charges include:

a. Fees
b. Service charges
c. Both A and B
d. Neither A nor B
7. Bank X lends money to B and it provides the following provision “The interest shall be at the
rate indicative of (the bank’s) retail rate or as determined by the Branch Head of the Bank”.
The said provision is:
a. Valid
b. Void
c. Voidable
d. Unenforceable
8. Violation of the Truth in Lending Act gives rise to:

a. Civil liability
b. Criminal liability
c. Both A and B
d. Neither A nor B
9. The hallmark of the Truth in Lending Act is:

a. Accountability
b. Sustainability
c. Full disclosure
d. Proportionality
10. Under the Truth in Lending Act, an action to recover such penalty may be brought within the
period of:
a. One (1) year from the date of violation
b. Two (2) years from the date of violation
c. Three (3) years from the date of violation
d. Five (5) years from the date of violation
CODE OF CORPORATE GOVERNANCE
1. It is a system of direction, feedback and control using regulations, performance standards and
ethical guidelines to hold the Board and senior management accountable for ensuring ethical
behavior reconciling long-term customer satisfaction with shareholder value – to the benefit
of all stakeholders and society.
a. Corporate Ethics & Accountability
b. Corporate Governance
c. Corporate Finance
d. Corporate Social Responsibility
2. The following are the purpose of Corporate Governance, except:

a. To maximize the organization’s long-term success
b. Creating sustainable value for its shareholders, stakeholders and the nation.
c. Both A and B
d. Neither A nor B
3. The following are the main scope Code of Corporate Governance for publicly listed companies,
except:
a. The Board’s Governance Responsibilities
b. Disclosure and Transparency
c. Internal control system and risk management framework
d. Cultivating a synergic relationship with stakeholders
4. Under the Code of Corporate Governance they are considered as high-level statements of
Corporate Governance good practice, and are applicable to all companies.
a. Framework
b. Principles
c. Recommendations
d. Explanations
5. Under the Code of Corporate Governance, these are objective criteria that are intended to
identify the specific features of corporate governance good practice that are recommended for
companies operating according to the Code.
a. Framework
b. Principles
c. Recommendations
d. Explanations
6. Under the Code of Corporate Governance, they strive to provide companies with additional
information on the recommended best practice.
a. Framework
b. Principles
c. Recommendations
d. Explanations
7. Which of the following Corporate Governance principles relates to the Board’s Governance
Responsibilities?
a. The company should be headed by a competent, working board to foster the
long-term success of the corporation, and to sustain its competitiveness and
profitability in a manner consistent with its corporate objectives and the long-
term best interests of its shareholders and other stakeholders.
b. The company should establish standards for the appropriate selection of an external
auditor, and exercise effective oversight of the same to strengthen the external
auditor’s independence and enhance audit quality.
c. A mechanism for employee participation should be developed to create a symbiotic
environment, realize the company’s goals and participate in its corporate governance
processes.
d. The company should treat all shareholders fairly and equitably, and also recognize,
protect and facilitate the exercise of their rights.
8. The following principles of Corporate Governance relates to Disclosure and Transparency,
except:
a. The company should establish corporate disclosure policies and procedures that are
practical and in accordance with best practices and regulatory expectations.
b. The company should ensure that material and reportable non-financial and
sustainability issues are disclosed.
c. To ensure the integrity, transparency and proper governance in the conduct of
its affairs, the company should have a strong and effective internal control
system and enterprise risk management framework.
d. The company should maintain a comprehensive and cost-efficient communication
channel for disseminating relevant information. This channel is crucial for informed
decision-making by investors, stakeholders and other interested users.
9. The paradigm or approach adopted in framing the Code of Corporate Governance for Publicly-
listed companies is known as:
a. Equal Importance approach
b. Expediency approach
c. Comply or explain approach
d. Risk based approach
10. Under the Code of Corporate Governance for Publicly-listed companies, which of the
following officers should appear before the SEC when summoned in relation to compliance
with the Code?
a. Chairman of the Board
b. Chief Executive Office
c. Corporate Secretary
d. Compliance Officer
11. Under the Code of Corporate Governance, The Board should align the remuneration of key
officers and board members with the long-term interests of the company. Key considerations
in determining proper compensation include the following, except:
a. The level of remuneration is commensurate to the responsibilities of the role.
b. no director should participate in deciding on his remuneration
c. remuneration pay-out schedules should be sensitive to risk outcomes over a multi-
year horizon
12. Under the existing Code of Corporate Governance, remuneration for employees in control
functions is determined independent of any business line being overseen, and performance
measures are based principally on the achievement of their objectives so as not to
compromise their independence. Which of the following does not belong to the control
functions?
a. Sustainability function
b. Risk function
c. Compliance function
d. Internal audit function
13. The following are the Board Committees which are mandatorily to be established as provided
for in the Code of Corporate Governance, except:
a. Audit Committee
b. Corporate Governance Committee
c. Board Risk Oversight Committee
d. Inter-company Transactions Committee
14. The Board should establish this committee to enhance its oversight capability over the
company’s financial reporting, internal control system, internal and external audit processes,
and compliance with applicable laws and regulations.
a. Audit Committee
c. Board Risk Oversight Committee
d. Related Party Transaction Committee
15. Which of the following is not the responsibility/role of the Audit Committee under the Code
of Corporate Governance?
a. Establishes and identifies the reporting line of the Internal Auditor to enable him to
properly fulfill his duties and responsibilities.
b. Reviews and monitors Management’s responsiveness to the Internal Auditor’s findings
and recommendations.
c. Reviews the disposition of the recommendations in the External Auditor’s management
letter.
d. Establishes a risk-based internal audit plan, including policies and procedures, to
determine the priorities of the internal audit activity, consistent with the
organization’s goals.
16. The Board should ensure that it is assisted in its duties by a Corporate Secretary. Which of
the following is the responsibility of a Corporate Secretary under the Code of Corporate
Governance?
a. Appears before the SEC when summoned in relation to compliance with this Code.
b. Assures the availability of proper orientation for first-time directors and continuing
training opportunities for all directors.
c. Oversees the drafting of the by-laws and ensures that they conform with
regulatory requirements.
d. Has a good working knowledge of the corporation’s industry and market and keeps
up-to-date with its core business purpose.
17. Which of the following is NOT a responsibility of the Corporate Secretary of a publicly-listed
company as contained under the existing Code of Corporate Governance?
a. Ensures the attendance of board members and key officers to relevant trainings
b. Assists the Board and the board committees in the conduct of their meetings,
including preparing an annual schedule of Board and committee meetings and the
annual board calendar, and assisting the chairs of the Board and its committees to set
agendas for those meetings
c. Keeps abreast on relevant laws, regulations, all governance issuances, relevant
industry developments and operations of the corporation, and advises the Board and
the Chairman on all relevant issues as they arise
d. Works fairly and objectively with the Board, Management and stockholders and
contributes to the flow of information between the Board and management, the Board
and its committees, and the Board and its stakeholders, including shareholder
18. Which of the following is a responsibility of the Compliance Officer of a publicly-listed

a. Ensures proper onboarding of new directors (i.e., orientation on the company’s
business, charter, articles of incorporation and by-laws, among others)
b. Monitors, reviews, evaluates and ensures the compliance by the corporation, its
officers and directors with the relevant laws, this Code, rules and regulations and all
governance issuances of regulatory agencies
c. Reports the matter to the Chairman of the Board if violations are found and
recommends the imposition of appropriate disciplinary action
d. Collaborates with other departments to properly address compliance issues, which
may be subject to investigation
19. Which of the following is NOT a responsibility of the Compliance Officer of a publicly-listed
a. Ensures the integrity and accuracy of all documentary submissions to regulators
b. Appears before the SEC when summoned in relation to compliance with this Code
c. Identifies possible areas of compliance issues and works towards the resolution of the
same
d. Advises on the establishment of board committees and their terms of reference.
20. Sound strategic policies and objectives translate to the company’s proper identification and
prioritization of its goals and guidance on how best to achieve them. This creates
a. Goodwill to the corporation
b. Good financial standing of the corporation
c. Optimal value to the corporation
d. Good ethical conduct of the corporation
21. The Board should be headed by a competent and qualified Chairperson. Which of the
following is a responsibility of the Chairperson of a publicly-listed company as contained
under the existing Code of Corporate Governance?
a. Serves as the link between external operations and external stockholders.
b. Determines the corporation’s strategic direction and formulates and implements its
strategic plan on the direction of the business.
c. Guarantees that the Board receives accurate, timely, relevant, insightful, concise
and clear information to enable them to make sound decision.
d. Adopts corporate governance policies and ensures that these are reviewed and
updated regularly and consistently implemented in form and substance.
22. Which of the following is NOT a responsibility of the Chairperson of a publicly-listed

a. Makes certain that the meeting agenda focuses on strategic matters, including the
overall risk appetite of the corporation, considering the developments in the business
and regulatory environments, key governance concerns, and contentious issues that
will significantly affect operations
b. Communicates and implements the corporation’s vision, mission, values and
overall strategy and promotes any organization or stakeholder change in relation
to the same
c. Facilitates discussions on key issues by fostering an environment conducive for
constructive debate and leveraging on the skills and expertise of individual directors
d. Ensures that the Board sufficiently challenges and inquires on reports submitted and
representations made by Management
23. Under the Code of Corporate Governance, It is the Board’s responsibility to implement a
process to appoint competent, professional, honest and highly motivated management
officers who can add value to the company. The Board should develop this plan in order to
define and help the individuals prepare for the job.
a. Long-term development plan
b. Professional development plan
c. Succession plan
d. Sustainability development plan
24. The Board should be primarily responsible for approving the selection and assessing the
performance of the Management led by the
a. Chairman of the Board
b. Chief Executive Officer
c. Chief Compliance Officer
d. Chief Risk Officer
25. The following corporate officers led the controlling functions of the corporation, except:
a. Chief Executive Officer
b. Chief Compliance Officer
c. Chief Risk Officer
d. Chief Audit Executive
26. Under the Code of Corporate Governance, Board’s oversight responsibility includes the
following except:
a. Implementation of the key control functions, such as risk management, compliance
and internal audit
b. Reviewing the corporation’s human resource policies, conflict of interest situations,
compensation program for employees and management succession plan.
c. Both a and b
d. Neither a nor b
I. Board committees should be set up to the extent possible to support the effective
performance of the Board’s functions, particularly with respect to audit, risk
management, related party transactions, and other key corporate governance
concerns, such as nomination and remuneration.
II. The composition, functions and responsibilities of all committees established should
be contained in a publicly available Committee Charter.

28. The Board should establish board committees that focus on specific board functions to aid
in the optimal performance of its roles and responsibilities. Which of the following is a valid
composition of a Board Committee?
a. Audit Committee composed of the following – Mr. A (Chairman; An independent
director); Mr. B (Member; an Executive director); and Mr. C (Member; An Executive
director).
b. Corporate Governance Committee composed of the following – Mr. A (Chairman; An
independent director); Mr. B (Member; CEO); and Mr. C (Member; An independent
director).
c. Corporate Governance Committee composed of the following – Mr. X (Chairman;
Independent director); Mr. Y (Member; Independent director); and Mr. Z (Member;
Independent director)
d. Audit Committee composed of the following – Mr. X (Chairman; Concurrently
Chairman of Related Party Transaction Committee; An independent director); Mr. Y
(Member; An independent director); and Mr. C (Member; An independent director).
29. Under the Code of Corporate Governance, this Committee is responsible for overseeing the
senior management in establishing and maintaining an adequate, effective and efficient
internal control framework. It ensures that systems and processes are designed to provide
assurance in areas including reporting, monitoring compliance with laws, regulations and
internal policies, efficiency and effectiveness of operations, and safeguarding of assets.
a. Audit Committee
c. Related Party Transactions Committee
d. Board Risk Oversight Committee
30. Under the Code of Corporate Governance for Publicly-listed companies, the Audit Committee
has the following duties and responsibilities, except:
a. Recommends the approval the Internal Audit Charter (IA Charter), which formally
defines the role of Internal Audit and the audit plan as well as oversees the
implementation of the IA Charter
b. Establishes and identifies the reporting line of the Internal Auditor to enable him to
properly fulfill his duties and responsibilities.
c. Establishes a risk-based internal audit plan, including policies and procedures, to
determine the priorities of the internal audit activity, consistent with the
organization’s goals
d. Coordinates, monitors and facilitates compliance with laws, rules and regulations.
31. Subject to a corporation’s size, risk profile and complexity of operations, the Board should
establish a separate Board Risk Oversight Committee (BROC) that should be responsible for
the oversight of a company’s Enterprise Risk Management system to ensure its functionality
and effectiveness. Which of the following is incorrect regarding the organization of Board Risk
Oversight Committee?
a. The BROC should be composed of at least three members, all of them should be
independent directors, including the Chairman.
b. The Chairman should not be the Chairman of the Board or of any other committee.
c. At least one member of the committee must have relevant thorough knowledge and
experience on risk and risk management.
d. The establishment of a Board Risk Oversight Committee (BROC) is generally for
conglomerates and companies with a high-risk profile.
32. The Corporate Governance Committee is tasked with ensuring compliance with and proper
observance of corporate governance principles and practices. It has the following duties and
functions, except:
a. Oversees the implementation of the corporate governance framework and periodically
reviews the said framework to ensure that it remains appropriate in light of material
changes to the corporation’s size, complexity and business strategy, as well as its
business and regulatory environments
b. Recommends continuing education/training programs for directors, assignment of
tasks/projects to board committees, succession plan for the board members and
senior officers, and remuneration packages for corporate and individual performance
c. In case the company does not have a Board Risk Oversight Committee and/or
Related Party Transactions Committee, performs the functions of said
committees
d. Ensures that the results of the Board evaluation are shared, discussed, and that
concrete action plans are developed and implemented to address the identified
areas for improvement.
33. Under the Code of Corporate Governance for Publicly-listed companies, the Board Risk
Oversight Committee has the following duties and responsibilities, except:
a. Oversees the implementation of the enterprise risk management plan through a
Management Risk Oversight Committee.
b. Evaluates the risk management plan to ensure its continued relevance,
comprehensiveness and effectiveness.
c. Reviews at least annually the company’s risk appetite levels and risk tolerance limits
based on changes and developments in the business, the regulatory framework, the
external economic and business environment, and when major events occur that are
considered to have major impacts on the company
34. Board Risk Oversight Committee should develop a formal enterprise risk management plan
which contains the following elements, except:
a. common language or register of risks
b. well-defined risk management goals, objectives and oversight
c. uniform processes of assessing risks and developing strategies to manage prioritized
risks
35. Which of the following statements is true about the composition of Related Party Transaction
(RPT) Committee?
a. Should be composed of at least three (3) non-executive directors, all of whom should
be independent.
b. Should be composed of at least three (3) non-executive directors, two (2) of
whom should be independent, including the Chairman.
c. Should be composed of at least five (5) non-executive directors, three (3) of whom
should be independent, including the Chairman.
d. Should be composed of at least three (3) non-executive directors and two (2) executive
directors, three (3) of whom should be independent, including the Chairman.
36. Which of the following is NOT a responsibility of the Chief Executive Officer of a publicly-
listed company under the existing Code of Corporate Governance?
a. Serves as the link between internal operations and external stockholders.
b. Builds the corporate culture and motivates the employees of the corporation.
c. Manages the Corporation’s resources prudently and ensures a proper balance of the
same.
d. Facilitates discussion on key issues by fostering an environment conducive for
constructive debate and leveraging on the skills and expertise of individual
directors.
37. The Board should designate a lead director among the independent directors if the Chairman
of the Board is not independent, including if the positions of the Chairman of the Board and
Chief Executive Officer are held by one person. Which of the following is not a function of a
lead director?
a. Provides the Board with timely information and interfaces between the Board
and the employees
b. Serves as an intermediary between the Chairman and the other directors when
necessary
c. Convenes and chairs meetings of the non-executive directors
d. Contributes to the performance evaluation of the Chairman, as required
38. Which of the following is not a responsibility of the Chief Audit Executive of a publicly-listed
company under the existing Code of Corporate Governance?
a. Communicates the internal audit activity’s plans, resource requirements and impact of
resource limitations, as well as significant interim changes, to senior management and
the Audit Committee for review and approval
b. Presents findings and recommendations to the Audit Committee and gives advice to
senior management and the Board on how to improve internal processes.
c. Evaluating and categorizing each identified risk using the company’s predefined
risk categories and parameters
d. Spearheads the performance of the internal audit activity to ensure it adds value to
the organization
39. Which of the following is not a responsibility of the Chief Risk Officer of a publicly-listed
company under the existing Code of Corporate Governance?
a. Advises the Board on its risk appetite levels and risk tolerance limits
b. Collaborates with the CEO in updating and making recommendations to the Board
Risk Oversight Committee
c. Communicates the top risks and the status of implementation of risk management
strategies and action plans to the Board Risk Oversight Committee
d. Supervises the entire ERM process and spearheads the development, implementation,
maintenance and continuous improvement of ERM processes and documentation
40. It is a principle expressly embodied in the New Code of Corporate Governance for Publicly
Listed Companies wherein the Code does not in any way prescribed a “one size fits all” and it
is designed to allow boards some flexibility in establishing their corporate governance
arrangements.
a. Sustainability
b. Equity
c. Proportionality
d. Subsidiarity

Revised RFBT Quizzer On Special Laws New Topics

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Revised RFBT Quizzer On Special Laws New Topics

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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS (RFBT)

QUIZZER ON SPECIAL LAWS (NEW TOPICS)

INSURANCE CODE OF THE PHILIPPINES

3. Which of the following statements is not correct?

4. Anyone may be insured except

5. An insurance contract is a mechanism by which all members of a group exposed to a

20. Which of the following statements in relation to insurable interest is false?

21. Which of the following statements in relation to insurable interest is false?

27. Which of the following is not a characteristic of misrepresentation?

31. Which of the following casualties is a peril of the sea?

33. Which of the following is a characteristic of a “loan on bottomry”?

40. Which of the following is not a characteristic of abandonment in marine insurance?

Insurer Insurance Taken Premiums Paid

47. Which of the following statements relative to reinsurance is correct?

48. Marine insurance excludes insurance against loss or damage to:

49. Which of the following statements relative to marine insurance is false?

3. The following are the governing principles on Government Procurement, except:

9. Under the government procurement law, it refers to a contractor, manufacturer, supplier,

17. These statements are presented to you:

In your evaluation of the foregoing statements:

24. These statements are presented to you:

In your evaluation of the foregoing statements:

25. A bidder may be considered to have a general conflict of interest if:

38. Pre-procurement Conference is led by:

39. These statements are presented to you:

In your evaluation of the foregoing statements:

42. These statements are presented to you:

In your evaluation of the foregoing statements:

43. Specifications for the procurement of Goods shall be based on:

44. Pre-procurement Conference is led by:

3. The following instances are considered as compensable hours worked, except:

13. Night differential is differentiated from overtime pay in that

15. When is employee’s meal break considered as hours of work?

Maundy Thursday (no work)

*OT on Good Friday = (880/8 hours) x 200% x 130% x 2 hours = P572

*P880 + (P880 x 200%) + (P880 x 130%) = P2,640

January No absence P12,285 (including COLA of P500)

36. The following statements are presented to you for evaluation:

In your evaluation of the foregoing statements:

39. The following statements are presented to you for evaluation:

In your evaluation of the foregoing statements:

Situational (For numbers 43 to 50)

6. A quasi-judicial agency mandated to promote the wellbeing and efficiency of competition in

19. The following statements are presented to you for evaluation:

In your evaluation of the foregoing statements:

28. The following statements are presented to you for evaluation:

In your evaluation of the foregoing statements:

20. A special packaging

24. What is the end goal of deceptive sales acts or practices?

25. A seller’s deceptive act or practice may only occur:

26. An unfair or unconscionable sales act or practice:

8. An Out-of-Court Informal Restructuring Agreement or Rehabilitation Plan under the

22. An insolvent person is one who is generally:

24. Which of the following proceedings is covered by the FRIA?

26. Suspension of payments cover:

27. In suspension of payments:

29. Statement 1: Under suspension of payments, the debtor is required to be insolvent.

35. If a corporation is the debtor, who initiates an involuntary rehabilitation?

38. In rehabilitation proceedings under FRIA, the commencement order includes:

39. The Commencement Order has the effect of:

40. The Commencement Order is issued withing:

42. Which of the following is not a responsibility of the rehabilitation receiver?