BLT FINALS REVIEWER PDF

1. Which of the following partnerships has complied with all the requisites for its lawful establishment? a. Partnership de facto c. Open partnership b. Partnership de jure d. Universal partnership...

1. Which of the following partnerships has complied with all the requisites for its lawful establishment? a. Partnership de facto c. Open partnership b. Partnership de jure d. Universal partnership 2. It is a partner who does not take an active part in the business of the partnership but may be known to be a partner by third persons a. Secret partner c. Dormant partner b. Silent partner d. Ostensible partner 3. First statement: a partner is deemed to be a co-owner of his co-partners of specific partnership property. Second statement: A partner’s right in specific partnership property is assignable provided there is consent from the other partners. c. Only the first statement is correct a. Both statements are correct d. Only the second statement is correct b. Both statements are incorrect 4. Which of the following statements relative to a corporation is false? a. A corporation has a legal personality distinct and separate from its stockholders. b. A corporation may be entitled to an award of moral damages where its good reputation is besmirched resulting into social humiliation. c. The interest of shareholders is corporate property is purely inchoate. d. A corporation is not within the protection of constitution regarding the right to secure against unreasonable searches and seizures. 5. Which is an element of the doctrine of “piercing the veil of corporate entity?” a. Complete control over the business. b. b. Control is used to commit fraud or wrong c. c. Control and breach of duty are the proximate cause of the injury or loss. d. d. All of the foregoing 6. The doctrine or” piercing the veil of corporate entity” shall not be applied where: a. The corporate operates for the benefit of single individual who exercises complete over its funds. b. The corporate controls the majority of stock of another corporation. c. The corporation is a mere alter ego of another corporation. d. The corporation is organized as a device to evade an outstanding legal obligation. 7. Which of the following is uncharacteristic of rehabilitation proceedings on corporations, partnerships and associations under the Rules of Procedure on Corporate Rehabilitation? a. Proceedings are in rem. b. Jurisdiction is acquired upon commencement of the proceedings. c. Proceedings are non-adversarial. d. Proceedings are summary in nature. 8. A stockholder's right of pre-emption may be denied where: a. Shares are to be issued in order to comply with the minimum 60% Filipino ownership required by law. b. Shares are to be issued in good faith and with the approval of at least 2/3 of the outstanding capital stock in payment of a previously contracted debt. c. Both (a) and (b). d. Neither (a) nor (b). 9. The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business and it is given a. A payment of a debt by installment or c. As an annuity to a widow or representative of otherwise a deceased partner. b. As wages or rent d. As his interest in the partnership 10. Partnership as distinguished from corporation a. Acquires juridical personality upon approval c. Created by operation of law by the SEC and issuance of a certificate d. No power of succession b. Has limited liability 11. A limited partner is generally not allowed to be any of the following, except: a. Ostensible partner c. Named partner b. Managing partner d. Silent partner 12. In distributing partnership profits, this shall take priority: a. Agreement as to distribution of profits c. Capital contributions b. Agreement as to distribution of losses d. Equal 13. Which of the following statements relative to corporate officers is true? a. The term of office of the corporate President is coterminous with his term as a board director. b. The corporate President may simultaneously serve as the corporate Treasurer or Secretary. c. The corporate Treasurer must be a citizen of the Philippines. d. The corporate Secretary must also be a director or trustee of the corporation. 14. A, B, C, D, E, F and G are the members of the board of directors of a corporation. Unfortunately, E, F and G resigned for personal reasons. How shall the vacancies be filled up? a. The vacancies shall be filled up by the majority vote of the board of directors. b. The vacancies shall be filled up by the majority vote of the stockholders in a regular or special meeting. c. The vacancies shall be filled up by the vote of at least 2/3 of the stockholders in a regular or special meeting. d. None of the foregoing. 15. Which of the following is a characteristic of a de facto corporation? a. There is a bona fide attempt to comply with the requirements of the law in organizing the corporation. b. There is an actual exercise of corporate powers in good faith. c. Both (a) and (b). d. Neither (a) nor (b). 16. What is the term of corporate existence? a. The term as specified in the articles of incorporation which must not be less than fifty (50) years. b. The term as specified in the articles of incorporation which must not be more than fifty (50) years. c. Fifty (50) years. d. Indefinite number of years. 17. Which of the following statements relative to an incorporator is true? a. Duly established cooperatives and corporations primarily organized to hold equities in rural banks may be incorporators of rural banks. b. Natural persons may be incorporators of stock and non-stock corporations. c. Both (a) and (b). d. Neither (a) nor (b). 18. One of the following transactions does not require the adequacy of unrestricted retained earnings: a. Redemption of redeemable shares c. Reacquisition on treasury shares b. Dividend on common stock d. Dividend on preferred stock 19. A non-voting preferred stock cannot vote in: a. Filling of vacancy in the board. c. Increase or decrease in capital stock b. Amendment of articles of incorporation d. Dissolution of the corporation 20. Which of the following partnership profit/loss stipulation is valid? a. Stipulation excluding any capitalist partner from share in partnership profit b. Stipulation excluding any industrial partner from share in partnership profit c. Stipulation excluding a capitalist partner from share in partnership loss d. Stipulation excluding an industrial partner from share in partnership loss 21. Which managing partner may not be validly removed by the partner owning controlling interests without justifiable cause or if the managing partner acted in good faith? a. Managing partner appointed in the articles of co-partnership  b. Managing partner appointed in a separate document other than the articles of co-partnership c. Both a and b d. Neither a nor b 22. Preferred shares that are entitled to receive not only the stipulated dividends at a certain rate but also pro-rata with the common shares in the remaining profits are known as: a. Cumulative c. Participating b. Non-cumulative d. Non-participating 23. Which of the following components of stockholders’ equity does not form part of legal capital? a. Paid-in capital stock c. Premium on capital stock b. Retained earnings d. Donated capital 24. Which of the following statements does not characterized a no-par value share? a. It always has an issued value b. It may be issued together with par value shares. c. It may be issued even if the subscription is not yet fully paid. d. It has no stated value appearing on the certificate of stock. 25. The value of a share of stock, which is increased by net profits or reduced by net losses of the corporation, is known as: a. Book value c. Market value b. Par value d. Liquidating value 26. Which of the following corporations may issue no-par value stock? a. Banks c. Public utilities b. Insurance companies d. None of the foregoing 27. Which of the following components of stockholders’ equity does not form part of legal capital? a. Paid-in capital stock c. Premium on capital stock b. Retained earnings d. Donated capital 28. Which of the following statements in relation to capital stock is false? a. There is no authorized capital stock in no par value shares. b. Subscribed capital stock is still unissued. c. Treasury stock is not part of outstanding capital stock. d. None of the foregoing. 29. One of the following is not a feature of “authorized capital stock”. a. It applies only to par value stock. b. It represents the maximum stock that may be issued by the corporation. c. It may include subscribed capital stock. d. It may include retained earnings. 30. One of the following is a feature of a share of stock: a. It makes the stockholder a creditor of c. It represents property of the corporation the corporation. d. It requires a certificate of stock to vest b. It is an incorporeal right. ownership. 31. Which of the following is not a feature of preferred stock? a. It cannot vote, unless expressly granted in the article of incorporation. b. It is only preferred as to dividends in the absence of stipulation, c. It is always a par value stock. d. It may be redeemed stock. 32. What is/are the remedies available to injured partners if the capitalist partner engages in a business of the same kind of the partnership without the express permission of the partnership? a. To ask the guilty capitalist partner to bring to the common fund any profits accruing to him from the said transaction b. To ask the guilty capitalist partner to bear all the losses from the said transaction. c. Both a and b d. Neither a nor b 33. The liability of the partners, including industrial partners for partnership contracts entered into in its name and for its account, when all partnership assets have been exhausted is a. Pro-rata. c. Solidary. b. Joint. d. Voluntary 34. Sharing of gross returns by itself proves a partnership. a. True c. Maybe b. False d. Partly true, partly false 35. A limited partner is generally not allowed to be any of the following, except: a. Ostensible partner c. Named partner b. Managing partner d. Silent partner 36. Partnership as distinguished from corporation a. Acquires juridical personality upon approval c. Created by operation of law by the SEC and issuance of a certificate d. No power of succession b. Has limited liability 37. Which of the following statements relative to de jure and de facto corporations is false? a. A de jure corporation is one that was able to comply substantially with all the requirements of the law for its incorporation. b. A de facto corporation is one that was able to make colorable compliance of the legal requirements for its incorporation. c. A de jure corporation's existence can be attacked in a quo warranto proceeding. d. None of the foregoing. 38. Which of the following statement is true? a. A corporation enjoying a legislative franchise to supply electricity may engage in buying and selling agricultural lands. b. A corporation engaged in car dealership may engage in land transportation business. c. A corporation engaged in deep sea fishing may operate in ice plant as a public service operator. d. A corporation engaged in the manufacture of rubber shoes may engage in the manufacture of rubber cement. 39. One of the following attributes is not common to both a corporation and a partnership? a. Succession c. Juridical personality b. Income tax rate d. Can act through agents only 40. A partnership which has for its object determinate things, their use or fruits, or a specific undertaking, or the exercise of a profession or vocation. a. Universal partnership of present property c. Particular partnership b. Universal partnership of profits d. Limited partnership 41. A. corporation may be a partner to another corporation where: a. All partners are managing partners and the articles of incorporation expressly allow it. b. The foreign n corporation is a general partner in a domestic limited partnership. c. A joint venture is entered into that is not in line with its business. d. None of the foregoing 42. Which of the following statements relative to a corporation, stock or non-stock, is trust? a. All incorporators are stockholders. c. All incorporators are subscribers. b. All corporators are incorporators. d. None of the foregoing 43. One of the following is not a feature of “authorized capital stock”. a. It applies only to par value stock.  b. It represents the maximum stock that may be c. It may include subscribed capital stock. issued by the corporation. d. It may include retained earnings. 44. One of the following is a feature of a share of stock: a. It makes the stockholder a creditor of the corporation. b. It is an incorporeal right. c. It represents property of the corporation d. It requires a certificate of stock to vest ownership. 45. Which of the following is not a feature of preferred stock? a. It cannot vote, unless expressly granted in the article of incorporation. b. It is only preferred as to dividends in the absence of stipulation, c. It is always a par value stock. d. It may be redeemed stock. 46. Which is not a requirement for a partner’s admission or representation to be considered as evidence against the partnership? a. The admission must concern partnership affairs. b. The admission must be made within the scope of the authority of the partner making the admission. c. The admission must be made during the existence of the partnership d. The admission must be made in judicial proceedings. 47. One of the following is NOT an inherent limitation: a. Taxes must be for public purposes c. Territoriality rule b. Uniformity of taxation d. Government exemption 48. Although the power of taxation is basically legislative in character, it is NOT the function of Congress to a. Fix with certainty the amount of taxes. b. collect the tax levied under the law. c. identify who should collect the tax. d. determine who should be subject to the tax. 49. Transfer of the tax burden by one whom the tax is assessed to another a. Shifting c. Tax exemption b. Capitalization d. Transformation 50. First Statement – Tax and debt can be subject to off-set. Second Statement – Taxes are generally payable only in money. a. True, True c. False, True b. True, False d. False, False 51. The following government agencies are tasked with the implementation of tax laws in the Philippines, except a. Bureau of Internal Revenue c. Local Government Units – City, Province, b. Bureau of Customs Municipality d. Philippine National Police 52. Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? c. Sumptuary theory a. Power to destroy theory d. Symbiotic doctrine b. Lifeblood theory 53. The following are sources of tax laws, except: a. Constitution c. Decisions of the Supreme Court b. Statue d. Opinion of law luminaries 54. The annual income tax return shall consist of a maximum of ____ pages.  a. One (1) c. Three (3) b. Two (2) d. Four (4) 55. The 1st quarter income tax return of an individual deriving income from business or profession is due on or before: a. April 15 of the same taxable year c. April 15 of the following year b. May 15 of the same taxable year d. May 15 of the following year 56. The following are the characteristics of income tax, except a. National c. Indirect b. General d. Ad Valorem 57. Edwin Nola sold his principal residence for P16,000,000 when the cost to him of the same was P5,000,000. At the time of the sale the zonal and assessed value are Php20,000,000 and P15,000,000, respectively. The capital gains tax on the sale is. c. P900,000 a. P300,000 d. P0 b. P1,200,000 58. Broget, is employed and paid a monthly salary equivalent to the statutory minimum wage. The following are his employment income during the year: I. Statutory minimum wage P150,000 II. 13th month pay 15,000 III. Overtime pay earned during the year 25,000 IV. Night shift differential pay 20,000 V. Hazard pay 75,000 VI. Holiday pay 15,000 The taxable income of Broget during the year is c. P0 a. P300,000 d. P90,000 b. P35,000 Mrs and Mr Beltran, CPA and Lawyer, respectively, had the following data for taxable year ended December 31, 2023: I. Salaries, Mrs P600,000 II. Bonus (13th month pay), Mrs 60,000 III. Professional Fees, (net of 10% withholding tax) Mr 7,200,000 IV. Expenses – Practice of profession 3,200,000 V. Rental income (net of 5% withholding tax) 712,500 VI. Rental expenses 280,000 VII. Other income, husband 840,000 59. The taxable income of Mr. Beltran is: a. P5,875,000 c. P835,000 b. P3,235,000 d. P235,000 60. The taxable income of Mrs. Beltran is: a. P5,875,000 c. P835,000 b. P3,235,000 d. P235,000 61. Mr. X invested his property in exchange for shares in ABC Corporation. Later on, the same property mortgaged as security for the loan of ABC Corporation from M Bank. For failure to pay, the mortgage was foreclosed and proceeds were less than the amount of the outstanding balance of the loan which M Bank sought from Mr. X contending that the property was invested by him. Mr. X cannot be made liable under which principle: a. Corporate Entity Theory  b. Piercing the Veil of Corporate Entity c. Limited Liability Principle d. All of the above 62. Under the Revised Corporation Code, a corporation has: a. A maximum of 50 years of existence b. A maximum of 50 years of existence but renewable not earlier than 5 years prior to expiration of the term c. A maximum of 50 years of existence but renewable not earlier than 3 years prior to expiration of the term d. Perpetual existence 63. A, B, C, D and E is organizing a corporation whose Authorized Capital Stock is P64,000. How much is the minimum paid-up capital requirement under the Revised Corporation Code for the corporation to incorporate? a. P0 b. P4,000 c. P5,000 d. P16,000 64. A restriction as to transfer of shares in an ordinary stock corporation must be indicated in: I. Articles of Incorporation II. By-Laws III. Certificate of Stock a. I, II and III b. I and III c. I and II d. II and III 65. The existence of a corporation sole begins from: a. The time the parties came to an agreement to form a corporation and contribute money or property. b. Filing of the verified articles of incorporation. c. Issuance of a certificate of registration. d. First day of the year following the filing of the Articles of Incorporation 66. The following are qualifications of a director, except: a. They must own at least 1% share. b. They meet all the qualifications under the by-laws c. They do not possess any of the disqualifications under the Corporation Code. d. None of the choices is an exception 67. A, is a stockholder of Silvestre Corporation, who holds 10,000 shares thereof. A stockholders meeting was called to elect members of a 5-man Board. How many votes can A cast in favor of B if they employ cumulative voting? a. 10,000 votes b. 50,000 votes c. 25,000 votes  d. 100,000 votes 68. A, B, C, D and E are members of the Board of Directors. A retired and D died. In this case, who shall fill-up the vacancy? a. Stockholders in a meeting called for the purpose, regardless if the directors still have a quorum b. A, B and C, since they still constitute a quorum c. A, B and C, regardless if they still constitute a quorum d. Stockholders in a meeting called for the purpose since the directors no longer have a quorum 69. A, B, C, D and E are directors of REALTY CORP., Z wanted to sell his property with a fair market value of P100M for P90M. Z offered the property first to A, who acquired it for P90M and eventually sold the same for P100M. In this case, a. A can keep the profits provided the sale is ratified by the stockholders. b. A can keep the profits because it was offered to him and not to REALTY CORP. c. The sale is not subject to ratification and A may be required to remit the profits to REALTY CORP d. None of the above 70. The following government agencies are tasked with the implementation of tax laws in the Philippines, except. a. Bureau of Internal Revenue b. Bureau of Customs c. Local Government Units – City, Province, Municipality d. Philippine National Police 71. The following shall form part of taxation laws in the Philippines, except: a. National Internal Revenue Code b. Implementing Rules and Regulation issued by the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue c. Decisions of the Supreme Court d. Comment of an authority in Taxation Law, submitted to the Supreme Court, as an amicus curae 72. Which of the following statements is not correct? a. The state can have the power of taxation even if the Constitution does not expressly give it the b. The provisions of taxation in the Philippine Constitution are grants of power and not limitations on taxing powers. c. For the exercise of the power of taxation, the state can tax anything at any time; power to tax; d. Taxes may be imposed to raise revenues or to regulate certain activities within the state; 73. Value-added tax is an example of: a. Graduated tax; b. Progressive tax; c. Regressive tax; d. Proportional tax. 74. The reduction in the selling price of income producing property by an amount equal to the capitalized value of future taxes that may be paid by the purchaser a. Shifting b. Capitalization c. Tax exemption d. Transformation 75. The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as a. assessment. b. levy. c. payment. d. collection. 76. The following are sources of tax laws, except: a. Constitution b. Statue c. Decisions of the Supreme Court d. Opinion of law luminaries 77. Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? a. Power to destroy theory b. Lifeblood theory c. Sumptuary theory d. Symbiotic doctrine 78. The power to tax is the power to destroy. Is this always so? a. No. The Executive Branch may decide not to enforce a tax law which it believes to be confiscatory. b. Yes. The tax collectors should enforce a tax law even if it results to the destruction of the property rights of a taxpayer. c. Yes. Tax laws should always be enforced because without taxes the very existence of the State is endangered. d. No. The Supreme Court may nullify a tax law, hence, property rights are not affected. 79. Levying of local government taxes may be exercised by: a. The local executive only b. The legislative branch of the local government only c. The local executive and the legislative branch of the local government unit d. Neither the local executive nor the legislative branch of the local government can exercise the power. 80. Which of the following has no power of taxation? a. Province of Bulacan b. Quezon City c. Barangay Holy Spirit d. Cordillera Administrative Region