SY2021-22 S2 SERFBT Final Exam PART 1

Which of the following may be protected by patent registration?

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Programs for computers
Methods for treatments of the human body
Microbiological process
Aesthetic creations
19. The Corporation Code sanctions a contract between two or more corporations which
have interlocking directors, provided there is no fraud that attends it and it is fair and reasonable
under the circumstances. The interest of an interlocking director in one corporation may be
either substantial or nominal. It is nominal if his interest:
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Does not exceed 25% of the outstanding capital stock.
Does not exceed 20% of the outstanding capital stock.
Exceeds 20% of the outstanding capital stock.
Exceeds 25% of the outstanding capital stock.
Shall refer to an audit on the efficiency and effectiveness of the cooperative as a whole its
management and officers; and its various responsibility centers as basis for improving individual
team or overall performance and for objectively informing the general membership on such
performance.
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Regular audit
Social audit
Annual audit
Performance audit
In which type of corporate acts may a non-voting preferred stockholders disqualified from
participating?
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Sale of all or substantially all of corporate properly
Increase or decrease of capital stock
Merger or consolidation of corporations
Distribution of stock dividends
In the partnership of A, B, C, and D. D was designated as the managing partner. D’s able
management prevented the firm to suffer from the economic turbulence caused by the instability
of the Philippine peso. Partners A, B, and C became jealous of D’s good name. As a result, D
was capriciously and whimsically removed as manager without a valid cause. Is the removal
valid?
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No, D’s appointment is irrevocable without a just or lawful cause
Yes, provided it is approved by all the other partners
No, D can only be removed for a valid cause with vote of the partners owning the controlling
interest
Yes, D’s removal is valid even without his consent
X Corporation posted a P1M profit in its realty business and its real estate has appreciated in
value to the tune of P4M. The board then declared dividends computed on the basis of P5M
representing profits and appreciation in value of its real estate. Is the dividend declaration valid?
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Not valid because dividends must come only from the profits.
Not valid because there was no 2/3 ratification by the outstanding capital stock.
Valid being based on profits and increments in the value of the corporate assets.
Valid if creditors do not object nor protest against the same
A corporate officer or director cannot, take advantage for their personal benefit a business
opportunity which the corporation is financially able to undertake.
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Doctrine of corporate opportunity
Doctrine of limited capacity
Trust fund doctrine
Doctrine of corporate fiction
It refers to buying and selling securities at the close of the market in an effort to alter the closing
price of the security.
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Wash sales
Squeezing the Float
Marking the close
Short sale
Under the SSS Law, the following shall be considered as permanent total disability, EXCEPT –
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Brain injury causing Alzheimer’s disease
Complete loss of sight of both eyes
Loss of two limbs
Permanent complete paralysis of two limbs
Night differential is differentiated from overtime pay in that -
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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.
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.
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.
while overtime pay is 25% additional to the employee's hourly regular wage, night differential is
10% of such hourly wage without overtime pay.
Anne owed Bessy P1M due on April 1, 2022 but failed to pay her on due date, Bessy sent a
demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt
of the letter, Anne personally offered to pay Bessy in manager's check but the latter refused to
accept the same. The 5 days lapsed. May Anne's obligation be considered extinguished?
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No, since tender of payment even in cash, if refused, will not discharge the obligation without
proper consignation in court
No, since a manager's check is not considered legal tender in the Philippines
Yes, since Anne tendered payment of the full amount due
Yes, since Bessy's refusal of the manager's check, which is presumed funded amounts to a
satisfaction of the obligation
The following are acts for the manipulation of security prices, EXCEPT -
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Directly or indirectly, endorse or guarantee the performance of any put, call, straddle, option or
privilege in relation to any security registered on a securities exchange
Circulation or dissemination of information to the effect that the price of any such security will or
is likely to rise or fall because of market operations
Make, regarding any security registered on an exchange, any statement which is false or
misleading with respect to any material fact, and which he knew or had reasonable ground to
believe is false or misleading
Create a false or misleading appearance of active trading in any listed security traded in an
Exchange
A depositor has three separate single bank accounts with PIM, P2M and P3M, balance
respectively, in the same bank which is closed by BSP. How much is the maximum insured
amount by PDIC from these deposits?
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P 500,000
P 1,500,000
1,000,000
P6,000,000
Which of the following statements is FALSE regarding payment of insured deposit by PDIC?
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The depositor of the closed insured bank has twelve (12) months from date of bank takeover to
file his deposit insurance claim
Payment may be made in cash or through making available to each depositor a transferred
deposit in another insured bank in an amount equal to insured deposit of such depositor
The six-month period shall not apply if the documents of the claimant are incomplete or if the
validity of the claim requires the resolution of issues of facts and low by another office, body or
agency, independently or in a coordination with PDIC
The claim for insured deposit should be settled within six (6) months from the date of filing
provided all requirements are met but the claim must be filed within twenty-four (24) months
after bank takeover
A bought a business class ticket from B Airlines. As she checked in, the manager downgraded
her to economy on the ground that a congressman had to be accommodated in the business
class A suffered discomfort and embarrassment of the downgrade, she sued the airlines for
quasi-delict bot B Airlines countered that since her travel was governed by a contract between
them, no quasi-delict could arise. Is the airline correct?
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Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between
the parties
No, the breach of contract may in fact be tortious as when it is tainted as in this care with
arbitrariness, gross bad faith, and malice
Yes, since the facts show a breach of contract, not quasi-delict
No, denying A the comfort and amenities of the business class is provided in the ticket in a
tortious act
Equitable-PCI Bank and BDO Unibank entered into business combination which will result to
BDO Unibank absorbing all the net assets of Equitable-PCI Bank. What type of business
combination is present in this case?
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Dissolution
Merger
Consolidation
Spin-off
Which of the following predicate crimes of money laundering does NOT allow the Anti-Money
Laundering Council to inquire the bank accounts of launderer without court order from Court of
Appeals?
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Destructive Arson
Terrorism
Hijacking
Illegal Recruitment
1st statement - Whoever pays for another's debt may demand from the debtor what he has
paid2nd statement - The delivery to and acceptance by the creditor of a certified cashier's.
check produces payment of the debtor's obligation
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Both statements are false
1st statement is false, 2nd statement true
Option 1
Both statements are true
1st statement is true, 2nd statement is false
I. The Philippine Competition Act applies to trade associations.II. The Philippine Competition Act
applies to non-profit activities
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Both statements are true
Both are false
First is true, second is false
First is false, second is true
X is a minority stockholder of CCC Corporation. Y is a member of the Board of Directors of CCC
Corporation and at the same time he is the President. X believes that Y is mismanaging CCC
Corporation hence, as a stockholder and in behalf of the other stockholders, he wanted to sue
Y. which statement is most accurate?
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Derivative suit is not the remedy in this situation
A derivative suit must be instituted in behalf of the corporation
Derivative suit is an exclusive remedy that X can institute
X can institute a derivative suit in behalf of himself as a stockholder
FIRST NAME AND MIDDLE INITIAL
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PIA P.
A, B and C are partners engaged in a retail business. Their contribution is P20,000.00 each. D
is admitted as a new partner with a contribution of P8, 000.00. At the time of his admission, the
partnership has an outstanding obligation to E in the amount of P80, 000.00. In this case:
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D will be liable only if he knew of the liability of P80,000 at the time he joined the partnership.
D is liable to E for this obligation so that after the assets of the partnership amounting to
P68,000.00 will be exhausted leaving a balance of P12, 000.00, only A, B and C shall be liable
jointly or pro rata, out of their separate property.
D is liable to E for this obligation so that after the assets of the partnership will be exhausted,
leaving a balance of P12,000.00, all the partners shall be liable jointly or pro rata, including D,
out of their separate property.
D is not liable to E for this obligation and his P8,000 contribution shall remain with the
partnership
What is the minimum number of days for maintaining a balance in the checking account to cover
the check he issued for the drawer to be exempted from conviction for violation of BP 22?
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A period of at least 150 days from maturity date of check
A period of at least 90 days from the maturity date of check
A period of at least 120 days from maturity date of check
A period of at least 180 days from maturity date of check
The following are essential requisites common to pledge and mortgage, EXCEPT one:
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The pledgor or mortgagor is the absolute owner of the thing pledged or mortgaged
The person constituting the pledge or mortgage has the free disposal of the thing or he is legally
authorized for the purpose
They are constituted to secure the fulfillment of a principal obligation
The contract of pledge or mortgage is registered with the Register of Deeds
If the licenses, clearances, permits, certifications or authorizations for the installation and
operation of telecommunication, broadcast towers, facilities, equipment and services require
approval by appropriate local legislative body such as the Sanggunian, what is the prescribed
period for the approval of the said application?
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a non extendible period of forty (40) working days
a non extendible period of twenty (20) working days
a non extendible period of thirty (30) working days
a non extendible period of ten (10) working days
A borrowed P1M from B. A mortgaged his land to secure the fulfilment of the contract of loan.
The real estate mortgage contract provides that B will become the automatic owner of the land
upon default of A and. At the maturity date of the loan, A defaulted. B foreclosed the real estate
mortgage and tried to sell it in public auction. Two public auctions were held, but there were no
bidders. Which is CORRECT?
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B becomes the owner of the land upon default of A since that is provided in the contract.
A is no longer liable to pay the loan since the land is not sold in the first and second public
auctions.
B may appropriate the land since it is not sold in the first and second public auctions.
A remains to be the owner of the land and remains to be liable to B.
If a buyer of a residential condominium unit in instalment has paid an equivalent 3 years-worth
of installments, his rights include all of the following except:
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Grace period of 90 days
Right to assign his interest
Cash Surrender Value of 55%
Right to pay the balance in full
I. A loan agreement which provides that the debtor shall pay interest at the rate determined
by the bank’s branch manager violates the disclosure requirement of the Truth in Lending
Act. II. A violation of the Truth in Lending Act will adversely affect the validity of the loan
contract entered into.
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I and II are false
Only II is true
Only I is true
I and II are true
ABC Corp. issued redeemable shares. Under the terms of the issuance, the shares shall be
redeemed at the end of 10 years from date of issuance, at par value plus a premium of 10%.
Choose the CORRECT statement relating to these redeemable shares.
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Holders of redeemable shared enjoy a preference over creditors;
ABC Corp. may redeem the shared at the end of 10 years without need for unrestricted retained
earnings provided that, after the redemption, there are sufficient assets to cover its debts
Corporations are not allowed to issue redeemable shares; thus, the issuance by ABC Corp. is
ultra vires;
ABC Corp. would need unrestricted retained earnings to be able to redeem the shares;
The nationality of the corporation determined by the nationality of the stockholders in control of
the same is called:
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Management test
Domicile test
Control test
Incorporation test
When may a Certified Public Accountant (CPA) become a covered person under AMILA such
that it must be required to report covered transactions and suspicious transactions to AMLC?
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When the CPA renders management consultancy or tax advisory/compliance services with a
client.
When the CPA is rendering assurance services to a client under independent contractor
relationship
When the CPA manages the client money, securities or assets or when engages in the
organization of contributions for the creation, operation or management of companies or
creation of juridical persons
When the CPA performs audit of historical financial statements of a publicly listed entity.
7. X Corp., whose business purpose is to manufacture and sell vehicles, invested its funds
in Y Corp., an investment firm, through a resolution of its Board of Directors. The investment
grew tremendously on account of Y Corp’s excellent business judgment. But a minority
stockholder in X Corp. assails the investment as ultra vires. Is he right and, if so, what is the
status of the investment?
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Yes, it is an ultra vires act of its Board of Directors but voidable only, subject to stockholders’
ratification.
Yes, it is an ultra vires act of its Board of Directors and thus void.
Yes, it is an ultra vires act of the corporation itself and, consequently, void.
Yes, it is an ultra vires act of the corporation itself but voidable only, subject to stockholder’s
ratification.
The following claims are covered by the Financial Rehabilitation and Insolvency Act, EXCEPT-
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Claims or demands of whatever nature or character against the debtor or its property
Claims against directors and officers of the debtor arising from acts done in the discharge of
their functions falling within the scope of their authority.
All claims of the government, whether national or local, including taxes, tariffs and customs
duties
Claims for insurance benefits against an insolvent insurance company
What is the required vote for declaration of cash dividends?
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Approval by stockholders representing at least 2/3 of the outstanding capital stock.
Approval by at least majority vote of the board of directors and ratification by stockholders
representing at least 243 of the outstanding capital stock.
Approval by at least majority vote of the board of directors and ratification by stockholders
representing at least majority of the outstanding capital stock.
Approval by at least majority vote of the board of directors.
LAST NAME
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DABALMAT
It refers to a secret code which secures and defends sensitive information that cross over public
channels into a form decipherable only with a matching electronic key.
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Manual key
Electronic key
Digital signature
Password
Statement 1- A director is removed from office by a vote of the stockholders holding or
representing at least 2/3 of outstanding capital stock. The vacancy occasioned by such removal
can be filled by the vote of at least. Statement 2- Treasury shares sold for less than par or
issued value are considered "watered stock and as such are prohibited by law.
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False, true
True false
False, false
True, true
It refers to any information whether recorded in a material form or net, from which the identity of
an individual is apparent or can be reasonably and directly ascertained by the entity holding the
information, or when put together with other information would directly and certainly identify an
individual.
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Sensitive information
Privileged information
Personal information
Confidential information
A gratuitous re-issue of treasury shares will result in -
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Capital surplus
Property dividend
Watered stock
Stock dividend
In which of the following debts is legal compensation proper? When one of the debts-
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Arises from a claim for support by gratuitous tile
Arises from the obligation of a depository
Arises from a voidable contract
Consists in civil liability arising from penal offense
What is the required vote for validity of management contract between managing corporation
and managed corporation in the absence of interlocking director?
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Approval by at least majority of the board of directors and ratification by stockholders
representing at least majority of the outstanding capital stock of managing corporation and
approval by at least majority vote of the board of directors and ratification by stockholders
representing at least majority of the outstanding capital stock on the part of managed
corporation.
Approval by at least majority of the board of directors and ratification by stockholders
representing at least 2/3 of the outstanding capital stock of managing corporation and approval
by at least majority vote of the board of directors and ratification by stockholders representing at
least majority of the outstanding capital stock on the part of managed corporation.
Approval by at least majority of the board of directors and ratification by stockholders
representing at least 2/3 of the standing capital stock of managing corporation and approval
Approval by at least majority of the board of directors and ratification by stockholders
representing at least majority of the outstanding capital stock of managing corporation and
approval by at least majority vote of the board of directors and ratification by stockholders
representing at lean 2/3 of the outstanding capital stock on the part of managed corporation.
In distributing the profits of the partnership, the order to be followed will be:
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Equal; Capital Contributions; Agreement of the partners as to profits
Agreement of the partners as to losses; Capital contributions; Equal
Agreement of the partners as to profits; Capital contributions; Equal
Agreement of the partners as to losses; Agreement of the partners as to profits; Capital
Contributions; Equal
An Out-of-Court Restructuring Agreement must be approved by creditors who, EXCEPT –
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Represent 85% of total liabilities, secured and unsecured, of the debtor
Represent 80% of secured and unsecured liabilities of the debtor
Represent 67% of secured obligations of the debtor
Represent 75% of unsecured obligations of the debtor
It refers to a method of procurement which is open to participation by any interested party and
which consist of the following processes: advertisement, pre-bid conference, eligibility screening
of bids, evaluations of bids, post - qualification, and award of contract, the specific requirements
and mechanics
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Selective Bidding
Cover Bidding
Shopping
Competitive Bidding
What is the effect if the approving government agency fails to approve or disapprove an
application for a license, clearance, permit, certification or authorization within the prescribed
processing time of a total of seven (7) working days?
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Said application shall be deemed denied.
The applicant shall file another application.
Said application shall be deemed approved.
The applicant shall go to the proper court of law to file an action for mandamus.
Mukasa Kho, Farrah Tingleyt, Tong Hitmore, Nick Collins and Sue Rocha formed Super
Corporation and the Articles and issued a certificate of incorporation. Thereafter, it was
discovered that they have not completed their required period of residency in the Philippines. As
a result, which of the following is not correct?
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The Solicitor General has the right to question or contest the validity of its corporate existence
through a quo-warrant proceedings.
In a suit filed by May Tolosa, against the corporation for breach of contract, she can allege that
the corporation has no legal personality and therefore all incorporators shall be held personally
liable for damages
The corporation shall be considered as a de-facto corporation and shall be allowed to function
as corporation under the color of law.
The right to exercise corporate powers, shall not be inquired into collaterally in any private suit
to which the corporation maybe a party
A, was a consistent scholar at a prestigious university enjoying free tuition fees, books, clothing
and housing allowances and was given a cash allowance of P25,000.00 per month. Due to
some family problems, he decided to go back to General Santos City and enrolled at Holy trinity
College, but before he could obtain his credentials, he was required to refund the amount of
P300,000.00 equivalent to the privileges he enjoyed as that was the condition in the scholarship
grant. Can he recover the amount?
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No, because of the principle of solution indebiti.
No, because the contract is the law between the parties
Yes, because the stipulation is contrary to morals and public policy
No, because of the principle of mutuality of contracts
What is the maximum par value of a share in a cooperative?
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P 100
1,000
P5
P 10
Which of the following statements FALSE?
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All commodity future contracts are gambling and against public policy.
A tender offer is an offer to acquire at least 15% of any class of any equity security of a listed
corporation by filing a declaration to that effect with the SEC.
None of the above
A preneed plan includes life, pension, education and interment plans
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?
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His regular daily wage multiplied by 200%
His daily regular wage
His regular daily wage plus 200%
His regular daily wage multiplied by 200% plus 30% of the 200%
The capital stock of ABC Corporation is divided into common shares and preferred shares.
Preferred shares are preferred as to dividends and common shares are those shares which
have the regular and ordinary attributes of a share of a corporation. Which statement is most
accurate?
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Classifications of shares may be allowed for as long as it is clearly stated as such in the Articles
of Incorporation of the Corporation
Classifications of shares is mainly for business purpose to attract investors
This kind of classification may not be allowed or else it will violate the Doctrine of Equality of
shares
Classifications of shares may be allowed with the approval of the stockholders and the Board of
Directors
In which of the following would the risk of loss be with the transferee upon delivery by the
owner?
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Sale on trial of satisfaction
Sale on approval
Agency to sell
Sale or return