BAM 241: BUSINESS LAWS AND REGULATIONS Final Examination 8. A and B are partners with A as the managing partner.

8. A and B are partners with A as the managing partner. C owes A P100,000 and the partnership P300,000 which
are now both due. A issued a receipt for the payment of C in the amount of P100,000 in hiw own name. The
INSTRUCTIONS: On the answer sheet provided, shade the box, using a permanent black-inked pen, payment shall be applied to:
corresponding to the letter of your answer. STRICTLY NO ERASURES. You have three hours to complete this A. The partnership credit totally.
examination. B. The payments shall be applied proportionately to both credits.
C. The credit of A only since the receipt is in his name.
1. The partners contribute all the property which actually belongs to them to a common fund, with all the D. The payment shall be applied equally in both credits.
intention of dividing the same among themselves, as well as all the profits which they may acquire therewith.
A. Universal partnership of all profits 9. The following are the remedies of capitalist partners against an industrial partner who engaged in business for
B. Universal partnership of all present property himself:
C. Particular partnership A. The capitalist partners may exclude the industrial partner from the partnership plus damages.
D. None of the above B. The capitalist partners may avail themselves of the benefits which the industrial partner may have obtained
plus damages.
2. The following are the effects of unlawful partnership, except: A. Only I is correct
A. The contract is voidable from the very beginning. B. Only II is correct
B. The profits shall be confiscated in favor of the government. C. Both are true
C. The instruments or tools and proceeds of the crime shall be forfeited in favor of the government. D. Both are false
D. The contribution of the partners shall not be confiscated.
10. X and Y verbally agreed to form a contract of partnership 18 months from today, each one to contribute
3. X and Y orally agreed to form a partnership. Each contributed cash worth P15,000 to common fund. But they P15,000. At the arrival of the said date, if one refuses to go ahead with the agreement, can the other enforce the
did not register the partnership with the Securities and Exchange Commission. agreement?
A. The partnership is void A. Yes, since the agreement is to be enforced after one year from the making thereof, the same should be
B. The partnership is voidable in writing to be enforceable.
C. The partnership is still valid B. No, because the agreement was merely verbal.
D. The partnership is valid and unenforceable C. Yes, because the prior agreement was voluntarily made.
D. Yes, because the contract of partnership is not governed by the Statute of Frauds.
4. The following are obligations of partners, except:
A. . To give their promised contribution 11. The change in the relation of the parties caused by any partner ceasing to be associated in the carrying on, as
B. To engage in any business which is of the kind in which the partnership is engaged. might be distinguished from the winding up of, the business.
C. To account and hold as trustee for any profits derived without the consent of the other partners. A. Dissolution
D. Not to convert partnership money to their own use. B. Liquidation
C. Termination
5. Three of the following are property rights of a partner. Which is not? D. Winding up
A. Right to specific partnership property.
B. Right to demand formal accounting of partnership affairs. 12. A, B and C are partners in ABC partnership. A and B contributed P10,000 each while C contributed his
C. Right to participate in the management. service. After payment of the partnership liabilities to creditors, only P15,000 remains. In the absence of
D. Interest of the partner in the partnership. stipulation to the contrary the share of C shall be:
A. P5,000
6. A, B and C are partners in a partnership with each contributing P100,000 each. D is admitted as a new partner B. P10,000
with a contribution of P50,000. At the time of his admission, the partnership has a preexisting obligation to E in C. P15,000
the amount of P150,000. D. Zero
A. D is not liable to E for this obligation incurred when he was not yet a partner.
B. D is liable up to P25,000. 13. In extra-judicial liquidation, the following will wind-up the partnership, except:
C. D is liable up to P16,667. A. The liquidating partner or partners as agreed upon by all of the partners.
D. D is liable up to P50,000. B. The partners who have not wrongfully dissolved the partnership.
C. The legal representative of the last surviving partner who is not insolvent.
7. A, B, C and E are partners. They contributed to the capital as follows: A-P50,000; B-P100,000; CP150,000; D. The managing partner who has the controlling interest.
and E as the industrial partner, his services. The partnership obligation to outsiders exceeds the total net assets by
P200,000. Who and by how much will the partners be liable for the payment of the P200,000? 14. The following are rights of partner who has not caused dissolution wrongfully, except:
A. A –zero; B-zero; C-zero; E-zero A. To have the partnership property applied to discharge the liabilities of the partnership.
B. A-P33,333; B-P66,666; C-P100,000; E-zero B. To have the surplus, if any, applied to pay in cash the net amount owing to the respective partners.
C. A-P45,000; B-P45,000; C-P55,000; E-55,000 C. To be indemnified for damages caused by the partner who did not caused the dissolution
D. A-P50,000; B-50,000; C-P50,000; E-P50,000 wrongfully.
D. To continue the business in the same name either by themselves or jointly with others during the
agreed term of the partnership and for that purpose may possess the partnership property.
15. I. A partnership is a separate juridical entity, the shares to be paid out to the partners is necessarily limited II. It must be signed and sworn to by all members, and an amendment substituting a limited partner or
only to its total resources. adding a limited or general partner shall be signed also by the member to be substituted or added, and when
II. A partnership must refund the shares of the partners, the amount to be refunded is necessarily limited to its a limited partner is to be substituted, the amendment need not be signed by the assigning limited partner.
total resources. III. The certificate of limited partnership, as amended, must be filed for record in the Office of the Securities
III. Before the partners can be paid their shares, the creditors of the partnership must first be compensated. and Exchange Commission.
After all, the creditors have been paid, whenever is left of the partnership assets becomes available for the A. Only I is true.
payment of the partners shares. B. Only I and II are true.
A. Only I is correct. C. Only I and III are true.
B. Only II is correct. D. All are true.
C. All are true.
D. All are false. 22. It refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public
needs whether governmental or proprietary in nature, and owned by the Government directly or through its
16. I. The dissolution of the partnership discharges the existing liability of any partner. instrumentalities either wholly, or, where applicable as in case of stock corporations, to the extent of at least 51
II. The individual property of a deceased partner shall be liable for all obligations of the partnership incurred percent of its capital stock.
while he was a partner, but subject to the prior payment of his separate debts. A. Private corporation
A. Only I is correct B. Closed corporation
B. Only II is correct C. Government-owned or controlled corporation
C. Both are true D. Local government units
D. Both are false.
23. The stockholders or members mentioned in the articles of incorporation as originally forming and composing
17. Is one formed by two or more persons having as members one or more general partners and one or more the corporation and who are signatories thereof.
limited partners. A. Corporators
A. General partnership B. Board of directors
B. Limited partnership C. Board of trustees
C. Real partnership D. Incorporators
D. Partnership by estoppel
24. All persons who assume to act as a corporation knowing it to be without authority to do shall be liable as
18. Spouses H and E formed a limited partnership to engage in real estate business and H contributed P500,000. general partners for all debts, liabilities and damages incurred or arising as a result thereof.
Is the partnership between the spouses valid? A. Foreign corporation
A. The partnership is not valid because the spouses cannot enter into a limited partnership. B. Domestic Corporation
B. The partnership is valid because spouses are prohibited to enter into a universal partnership only. C. Corporation by prescription
C. The partnership is valid because spouses can enter into a partnership, limited or general, universal or D. Corporation by estoppel
particular.
D. The partnership is not valid because spouses cannot enter into any kind of partnership for business. 25. The following are the characteristics of a corporation, except:
A. It is an artificial being
19. The requisites for an assignee to become a substituted limited partner are the following, except: B. Created by meeting of minds
A. All the partners must consent or if the limited partner-assignor, being empowered in the certificate of C. It has the right of succession
limited partnership, gives the assignee that right. D. It has the powers, attributes and properties expressly authorized by law or incident to its existence
B. The certificate of limited partnership must be amended.
C. The certificate of limited partnership must be registered in the Department of Trade and 26. I. The exclusive right to vote and be voted for in the election of directors must be for a limited period not to
Industry. exceed 5 years subject to the approval of the SEC.
D. The certificate of limited partnership must be registered in the Securities and Exchange Commission. II. Preferences grated to preferred stockholders gives them a lien upon the property of the corporation nor
make them creditors of the corporation.
20. The following are allowable business transactions of a limited partner with the partnership, except: A. Only II is true
A. Receive from a general partner or the partnership any payment, conveyance, or release from the B. Only Ii is true.
liability if at the time the assets of the partnership are not sufficient to discharge partnership C. Both are true
liabilities to persons not claiming as general or limited partners. D. Both are false
B. To lend money to the partnership.
C. To transact business with the partnership. 27. Is that portion of the authorized capital stock which has been both subscribed and paid.
D. To receive on account of resulting claims against the partnership, with general creditors, a pro rata A. Authorized capital stock
share of the assets. B. Paid-up capital
C. Unissued capital
21. The requirements for amendment are the following, except: D. Outstanding capital
I. It must be in writing as far as necessary to set forth clearly the change in the certificate which it is desired to
make.
28. The following are limitations in the amendment of the articles of incorporation, except: 35. It means that the stockholder who dissented and voted against the proposed corporate action, may choose to
A. The amendment must be for legitimate purposes and must not be contrary to the Corporation Code and get out of the corporation by demanding payment of the fair market value of his shares.
special laws. A. Pre-emptive right
B. The amendment must be approved by a majority of the board of directors or board of trustees. B. Appraisal right
C. The amendment requires the vote or written assent of stockholders’ representing majority of the C. Stockholders right
outstanding capital stock or majority members if it be a non-stock corporation. D. Right to liquidation
D. The original and amended articles together shall contain all provisions required by law to be set out in
the articles of incorporation. 36. The following are the requirements of increase or decrease authorized capital stock, except:
A. No decrease of the capital stock shall be approved if its effect shall prejudice the rights of corporate
29. The following are the reasons that a principal office of the corporation must be stated in its articles of creditors.
incorporation, except: B. Approval by a majority vote of the board of directors.
A. To fix the residence of the corporation in a definite place. C. ratification by the stockholders holding at least 2/3 of the outstanding capital stock.
B. To determine the venue of court cases involving corporation. D. Approval thereof by the DTI.
C. For purposes of board of directors’ meeting.
D. To determine the place where the books and records of the corporation are ordinarily kept. 37. The following are the requisites for the exercise of a corporate power to invest corporate funds in another
corporation, except:
30. I. It is the certificate of incorporation that gives juridical personality to a corporation and places it under the A. Approval of the majority of the board of directors or trustees.
jurisdiction of the Securities and Exchange Commission. B. Ratification by the stockholders representing at least 2/3 of the outstanding capital stock, or by at least
II. A corporation commences its corporate existence and juridical personality and is deemed incorporated 2/3 of the members in the case of non-stock corporations, at a stockholder’s or member’s meeting duly
from the date the DTI issues certificate of incorporation under its official seal. called for the purpose.
A. Only I is true. C. Written notice of the proposed investments and the time and place of the meeting shall be addressed to
B. Only II is true. each stockholder or member by mail or served personally.
C. Both are true. D. Any dissenting stockholder shall have pre-emptive right.
D. Both are false.
38. I. The requirement of unrestricted retained earnings to cover the shares is based on the doctrine of limited
31. I. A delinquent corporation shall have a period of 2 years to resume operations and comply with all capacity.
requirements that the SEC shall prescribe. II. There can be no distribution of assets among the stockholders without first paying corporate creditors.
II. Upon compliance by the corporation, the SEC shall issue an order lifting the delinquent status. Failure to Hence, any disposition of corporate funds to the prejudice or creditors is rescissible.
comply with the requirements and resume operations within the period given by the SEC shall cause the A. Only I is true
revocation of the corporation’s certificate of incorporation. B. Only II is true
A. Only I is true C. Both are true
B. Only II is true D. Both are false
C. Both are true
D. Both are false 39. I. No management contract shall be entered into for a period longer than 5 years for any 1 term.
II. No corporation shall possess or exercise corporate powers other than those conferred by the Revised
32. It is a person who, apart from shareholding and fees received from the corporation, is independent of Corporation Code or by its articles of incorporation and except as necessary or incidental to the exercise of
management and free from any business or other relationship which could, or could reasonably be perceived to the powers conferred.
materially interfere with the exercise of independent judgement in carrying out the responsibilities as a director. A. Only I is true
A. Dependent director B. Only II is true
B. Independent director C. Both are true
C. Authorized director D. Both are false
D. Outstanding director
40. The rules and regulations or private laws enacted by the corporation to regulate, govern and control its own
33. A person shall be disqualified from being a director, trustee or officer of any corporation if, within 5 years actions, affairs and concerns and its stockholders or members and directors and officers with relation thereto and
prior to the election or appointment as such, the person was: among themselves in their relation to it.
A. Convicted by final judgement of an offense punishable by imprisonment for a period exceeding 6 years. A. By-laws
B. Found administratively liable for any offense involving fraudulent acts. B. Articles of incorporation
C. Found by a foreign court or equivalent foreign regulatory authority for acts, violations or misconduct. C. Resolution
D. All of the above. D. Rules, regulation and discipline

34. Immediately after their election, the directors of the corporation must formally organize and elect: 41. It is a condition precedent in the acquisition of corporate existence.
A. A president, who must be a director. A. By-laws
B. A treasurer, who must be a resident. B. Articles of incorporation
C. A secretary, who must be a citizen and resident of the Philippines. C. Shares of stock
D. All of the above. D. Rules, regulation and discipline
42. A private corporation may provide the following in its bylaws: C. When a director, trustee or officer has contractually agreed or stipulated to hold himself personally and
A. The modes by which a stockholder, member, director, or trustee may attend meetings and cast their solidarily liable with the corporation.
votes. D. When a director, trustee or officer is made, by specific provision of by-laws, personally liable for
B. The form for proxies of stockholders and members and the manner of voting them. his corporate action.
C. The manner of election or appointment and the term of office of all officers other than directors or
trustees. 49. I. Stocks shall not be issued for a consideration less than the par or issued price thereof.
D. All of the above. II. Where the consideration is other than actual cash, or consists of intangible property such as patents of
copyrights, the valuation thereof shall initially be determined by the incorporators or the board of directors,
43. Is the book which records the names and addresses of all stockholders arranged alphabetically, the subject to approval of the SEC.
installments paid and unpaid on all stock for which subscription has been made, and the date of payment thereof. A. Only I is true
A. Stock and transfer book B. Only II is true
B. Check book C. Both are true
C. Journals D. Both are false
D. Ledgers
50. I. As a rule, the doctrine of corporate opportunity is violated where the stocks are issued by the corporation
44. The following are the requirements imposed on a voting trust agreement, except: for a consideration which is less than its par value.
A. The agreement must be in writing and notarized and specify the terms and conditions thereof. II. Subscribers for stock shall pay to the corporation interest on all unpaid subscriptions from the date of
B. A certified copy of such agreement shall be filed with the corporation and with the Securities subscription, if so required by, and at the rate of interest fixed in the by-laws.
and Exchange Commission; non-compliance, however, said agreement is effective and A. Only I is true
enforceable. B. Only II is true
C. The certificate or certificates of stock covered by the voting trust agreement shall be cancelled and new C. Both are true
ones shall be issued in the name of the trustee or trustees stating that they are issued pursuant to said D. Both are false
agreement.
D. It shall be noted that the transfer in the name of the trustee or trustees is made pursuant to said voting 51. The books and records required to be kept by the corporation are the following, except:
trust agreement. A. Daily time record
B. Minutes of meetings of stockholders or members.
44. I. In case of pledged or mortgaged shares in stock corporations, the pledgee or mortgagee shall have the right C. Minutes of all meetings of directors or trustees.
to attend and vote at meetings of stockholders. D. Stock and transfer book, in case of stock corporations.
II. In case of shares of stock owned jointly by two or more persons, in order to vote the same, the consent of
all the co-owners shall be necessary. 52. the following are the limitations on the right of inspection by a stockholder, except:
A. Only I is true A. The right must be exercised during reasonable hours on business days.
B. Only II is true B. The person demanding the right has not improperly used any information obtained through any \
C. Both are true previous examination of the books and records of the corporation.
D. Both are false C. The demand is made in good faith or for a legitimate purpose.
D. The right can be exercised only by the common stockholders.
46. Evidence of the holder’s ownership of the stock and his right as a shareholder.
A. Treasury stock 53. I. The corporate secretary has the duty to record and prepare the minutes of the meeting.
B. Shares of stock II. Without the certification of the corporate secretary, it is incumbent upon the other directors or stockholders
C. Certificate of stock as the case may be, to submit proof that the minutes of the meeting is accurate and reflective of what
D. Par value stock transpired during the meeting.
A. Only I is true
47. For a valid transfer of stocks, there must be strict compliance with the mode of transfer prescribed bylaw. The B. Only II is true
following are the requirements, except: C. Both are true
A. There must be delivery of the stock certificate. D. Both are false
B. The certificate must be endorsed by the owner or his attorney-in-fact or other persons legally
authorized to make the transfer. 54. I. A corporation shall furnish a stockholder or member, within 10 days from receipt of their written request,
C. To be valid against third parties, the transfer must be recorded in the books of the corporation. its most recent financial statement, in the form and substance of the financial reporting required by the
D. To be valid against third parties, the transfer must be recorded in the SEC. Commission.
II. At the regular meeting of stockholders or members, the board of directors or trustees shall present to such
48. The following, except one, are the exceptional circumstances warranting the disregard of the doctrine of stockholders or members a financial report of the operations of the corporation for the preceding year,
separate personality: which shall include financial statements.
A. When directors and trustees or, in appropriate case, the officers of a corporation vote for or assent to A. Only I is true
patently unlawful acts of the corporation. B. Only II is true
B. When a director or officer has consented to the issuance of watered down stocks or who, having C. Both are true
knowledge thereof, did not forthwith file with the corporate secretary his written objection thereto. D. Both are false.
55. It is the union of two or more existing entities to form a new entity called the consolidated corporation. 62. It is one where no part of its distributable as dividends to its members, trustees, or officers.
A. Merger A. Non-stock corporation
B. Consolidation B. Stock corporation
C. Acquisition C. Close corporation
D. Business combination D. Corporation sole

56. The merger or consolidation shall have the following effects: 63. The following are the characteristics of a non-stock corporation, except:
A. The constituent corporations shall become a single corporation. A. It does not have capital stock dividend into shares.
B. The separate existence of the constituent corporations shall cease. B. No part of its income during its existence is distributable as dividends to its members, trustees, or
C. The surviving or the consolidated corporation shall possess all the rights, privileges, immunities, and officers.
powers and shall be subject to all the duties and liabilities of a corporation. C. As a general rule, it is not empowered to engage in business. Moreover, it is prohibited to make
D. All of the above. income or profits as an incident to its operation.
D. There is non-transferability of membership.
57. I. When the SEC is satisfied that the consolidation of the corporations is not inconsistent with the provisions
of the Corporation Code and existing laws, it issues a certificate of consolidation which makes the 64. I. Any profit which a non-stock corporation may obtain as an incident to its operations shall, whenever
reorganization official. necessary or proper, be used for the furtherance of the purpose or purposes for which the corporation was
II. Since there is a dissolution of the absorbed corporations, there is winding up of their affairs or liquidation organized.
of their assets. II. A non-stock corporation can be converted into a stock corporation by mere amendment of its articles of
A. Only I is true incorporation.
B. Only II is true A. Only I is true
C. Both are true B. Only II is true
D. Both are false C. Both are true
D. Both are false
58. It means that a stockholder who dissented and voted against the proposed corporate action, may choose to get
out of the corporation by demanding payment of the fair market value of his shares. 65. I. In stock corporations, shareholders may generally transfer their shares.
A. Pre-emptive right II. Membership in and all rights arising from a non-stock corporation are transferable.
B. Appraisal right A. Only I is true
C. Voting right B. Only II is true
D. Management Right C. Both are true
D. Both are false
59. Any stockholder of a corporation shall have the right to dissent and demand payment of the fair value of his
shares in the following instances, except: 66. An impartial person who is neither a stockholder nor a creditor of the corporation or of any subsidiary or
A. In case any amendment to the articles of incorporation has the effect of shares, or of authorizing affiliate of the corporation, and whose further qualifications, if any, may be determined by the SEC.
preferences in any respect superior to those of outstanding shares of any class, or of extending or A. Provisional stockholder
shortening the term of corporate existence. B. Provisional member
B. In case of increase or decrease of capital stock. C. Provisional trustee
C. In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or substantially all D. Provisional director
of the corporate property and assets.
D. In case of merger or consolidation. 67. Any person to whom stock or a close corporation has been issued or transferred has, or is conclusively
presumed to have notice.
60. The following are instances where a dissenting stockholder who demands payment of his shares is no longer A. That he is a person not eligible to be a holder of stock of the corporation
allowed to withdraw from his decision, except: B. That transfer of stock to him would cause the stock of the corporation to be held by more than the
A. The corporation consents to the withdrawal. number of persons permitted by its articles of incorporation to hold stock of the corporation; or
B. The proposed corporate action is approved by the SEC where its approval is necessary. C. That the transfer of stock is in violation of restriction on transfer of stock.
C. The proposed corporate action is abandoned or rescinded by the corporation. D. All of the above
D. The SEC determines that such stockholder is not entitled to appraisal right. 68. An action by the directors of a close corporation without a meeting shall not be deemed valid if:
A. Before or after such action is taken, written consent thereto is signed by a majority of directors.
61. The effects of transfer of dissenting shares are the following: B. All the stockholders have actual or implied knowledge of the action and make no prompt objection
I. The rights of the transferor as a dissenting stockholder shall cease and the transferee shall have all the rights thereto in writing.
of a regular stockholder. C. The directors are accustomed to take informal action with the express or implied acquiescence of all
II. All dividend distributions which would have accrued on such shares shall be paid to the transferee. the stockholders.
A. Only I is true D. All the directors have express or implied knowledge of the action in question and none of them makes
B. Only II is true prompt objection thereto in writing.
C. Both are true
D. Both are false
69. Any stockholder of a close corporation may, by written petition to the SEC, compel the dissolution of such 76. I. If a corporation does business in the Philippines without a license, it cannot sue before the Philippine courts.
corporation whenever: II. If a corporation is not doing business in the Philippines, it still needs a license to sue before Philippine
I. Any of acts of the directors or officers is illegal, or fraudulent, or dishonest, or oppressive or unfairly courts on an isolated transaction or on a cause of action entirely independent of any business transaction.
prejudicial to the corporation or any stockholder. A. Only I is true
II. Corporate assets are being misapplied or wasted. B. Only II is true
A. Only I is true C. Both are true
B. Only II is true D. Both are false
C. Both are true
D. Both are false 77. It refers to any person who provides truthful information relating to the SEC or possible commission of any
offense or violation under the Revised Corporation Code.
70. A corporation formed for the same purpose as corporation sole. It consists of two or more persons. A. Whistleblower
A. Corporation sole B. Intermediary
B. Corporation aggregate C. Mediator
C. Close corporation D. Conciliator
D. Corporation de facto
78. An independent auditor who, in collusion with the corporation’s directors or representatives, certifies the
71. The One Person Corporation shall submit the following within such period as the SEC may prescribe: corporation’s financial statements despite its incompleteness or inaccuracy, its failure to give a fair and accurate
A. Annual financial statements. presentation of the corporation’s condition, or despite containing false or misleading statements, shall be punished
B. A report containing explanations or comments by the president on every qualification, reservation, or with a fine ranging from,
adverse remark or disclaimer made by the auditor in the latter’s report. A. P80,000 to P500,000
C. A disclosure of all well-dealings and related party transactions entered into between the ONE Person B. P20,000 to P200,000
Corporation and the single stockholder. C. P100,000 to P5,000,000
D. All of the above. D. P200,000 to P2,000,000

72. The following may be grounds of involuntary dissolution of the corporation: 79. I. A corporation that conducts its business through fraud shall be punished with a fine ranging from P200,000
A. Non-use of corporate charter. to P2,000,000.
B. Continuous inoperation of a corporation. II.A corporation used for fraud, or for committing or concealing graft and corrupt practices as defined under
C. Upon receipt of a lawful court order dissolving the corporation. pertinent statutes, shall be liable for a fine ranging from P100,000 to P5,000,000
D. All of the above. A. Only I is true
B. Only Ii is true
73. The following are voluntary modes of dissolution of a corporation, except: C. Both are true
A. By the vote of the board of directors or trustees and the resolution adopted by the stockholders or D. Both are false
members where no creditors are affected.
B. By legislative enactment. 80. It is one who has complied with all the membership requirements and entitled to all the rights and privileges
C. By amending the articles of incorporation to shorten the corporate term. of membership.
D. In case of a corporation sole, by submitting to the SEC a verified declaration of the dissolution for A. Regular members
approval. B. Associate members
C. All of the above
74. I. Where the dissolution of a corporation may prejudice the rights of any creditor, the petition for dissolution D. None of the above
shall be filed with the SEC.
II. The petition shall be signed by a majority of its board of directors or trustees and that its dissolution was 81. It refers to a duly registered cooperative to which a Laboratory Cooperative is affiliated with.
resolved upon by the affirmative vote of the stockholders representing at least majority of the outstanding A. Guardian cooperative
capital stock or by at least majority of the members. B. Laboratory cooperative
A. Only I is true C. Principal cooperative
B. Only II is true D. Subsidiary cooperative
C. Both are true
D. Both are false 82. The general assembly shall have the following exclusive powers which cannot be delegated, except:
A. To determine and approve amendments to the articles of cooperation and by laws.
75. Is one formed, organized or existing under any laws other than those of the Philippines and whose laws allow B. To elect or appoint the members of the board of directors, and to remove them for cause.
Filipino citizens and corporations to do business in its own country or state. C. To approve developmental plans of the cooperative.
A. Foreign corporation D. To approve merger and consolidation.
B. Domestic corporation
C. Government owned-and controlled corporation 83. It refers to the officers/individuals duly authorized by the cooperative to prepare, certify/approve the reports
D. None of the above and in whose had the delay/failure has occurred.
A. General assembly
 B. Committee members 91. A cooperative may not invest its capital in one of the following:
C. Accountable officers A. In shares or debentures or securities of any other cooperative.
D. Board of trustees B. In any reputable bank in the locality, or any cooperative.
C. In securities issued or guaranteed by the Government.
84. It is a certificate issued by the CDA to the operating cooperative that have complied with the mandatory D. None of the above.
requirements.
A. Certificate of Incorporation 92. AN independent CPA accredited by the CDA, whose relationship to the client is to express an opinion on the
B. Certificate of Commendation financial statements.
C. Certificate of Appreciation A. Cooperative Internal Auditor
D. Certificate of Compliance B. Cooperative External Auditor
C. Cooperative Inspector
85. Except one, every cooperative shall have the following documents ready and accessible to its members and D. Cooperative Examiner
representatives of the CDA for inspection during reasonable office hours at its official address:
A. A copy of the Philippine Cooperative Code and all other laws pertaining to cooperatives. 93. I. The auditor shall submit to the board of directors and to the audit committee the financial audit report.
B. A copy of the regulations of the SEC. II. The auditor is not liable to any person in an action for defamation based on any act, done, or any statement
C. A copy of the articles of cooperation and by laws of the cooperative. made by him in good faith in connection with any matter he is authorized or required to do.
D. A register of members. A. Only I is true
B. Only II is true
86. In case a cooperative is unable to fulfill its obligations to creditors due to insolvency, such cooperative may C. Both are true
apply for such remedies as it may deem fit under the provisions of: D. Both are false
A. Financial Rehabilitation and Insolvency Act
B. Securities Regulation Code 94. I. A member shall have the right to examine the records required to be kept by the cooperative.
C. Philippine Cooperative Code II. Every cooperative shall, at its principal office, keep and carefully preserve the records required by the
D. Civil Code of the Philippines Philippine Cooperative Code to be prepared and maintained.
A. Only I is true
87. The following are the effects of liquidation, except: B. Only II is true
A. All debts are realized and assets are converted into cash. C. Both are true
B. Debts are settled in accordance with the provisions of the New Civil Code in the Preference and D. Both are false
Concurrence of Credits or with the following claim of priorities.
C. Reserves are disposed of in accordance with the existing laws, rules and regulations, and the by 95. One if not correct. The net surplus of every cooperative shall be distributed as follows:
laws of the cooperative. A. An amount for the reserve fund which shall be at least 10% of net surplus.
D. Remaining assets are returned to the board of directors. B. An amount for the education and training fund, shall not be more than 10% of the net surplus.
C. An amount for the community development fund, which shall not be less than 7% of the net surplus.
88. It refers to the termination of the juridical personality of the cooperative through appropriate judicial D. An optional fund, a land and building, and any other necessary fund the total of which shall not exceed
proceedings, or by an order of the CDA, or through its own initiative. 7%.
A. Dissolution
B. Liquidation 96. I. Every cooperative shall determine its net surplus at the close of every fiscal year and at such other times as
C. Termination may be prescribed by the bylaws.
D. None of the above II. The net surplus shall be construed as profit.
A. Only I is true
89. I. The dissolution of a cooperative may either be voluntary or involuntary. B. Only II is true
II. Dissolution is voluntary if it is initiated through the voluntary decision of the members of cooperatives. C. Both are true
A. Only I is true D. Both are false
B. Only II is true
C. Both are true 97. A cooperative organized tor ender public services as authorized under a franchise or certificate of public
D. Both are false convenience and necessity duly issued by the appropriate government agency.
A. Producers cooperative
90. Cooperative may derive their capital from any or all of the following sources, except: B. Public service cooperative
A. Member’s share capital C. Workers cooperative
B. Loans and borrowings including deposits D. Financial services cooperative
C. Revolving capital which consists of the deferred payment of patronage refunds, or interest on share
capital 98. The CDA shall exercise lead regulatory powers and supervision over the operations of the financial service
D. Issued shares of stock cooperatives, thus, it can:
A. Issue rules and regulations for the safe and sound conduct of operations of financial service
cooperatives.
 B. Establish standards of operation for uniform application to all financial service cooperatives.
C. Prescribe ratios, ceilings, limitations, or other forms of regulation cooperatives which shall, conform
to internationally accepted standards.
D. All of the above.

99. I. Existing cooperatives may organize themselves into a cooperative insurance entity for the purpose of
engaging in the business of insuring life and property of cooperatives and their members.
II. The provisions of the Insurance Code and all other laws and regulations relative to the organization and
operation of an insurance company shall apply to cooperative insurance entities organized under the
Philippine Cooperative Code.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false.

100. I. Disputes among members, officers, directors and committee members, and intra-cooperative, inter-
cooperative, intra-federation of inter-federation disputes shall, as far as practicable, be settled amicably in
accordance with the conciliation or mediation mechanisms embodied in the by-laws of cooperatives.
II. The conciliation and mediation committee of the cooperative shall facilitate the amicable settlement of
intra-cooperative disputes and disputes among members, officers, directors, and committee members.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

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