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Page 1 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS REO CPA REVIEW REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS...

Page 1 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS REO CPA REVIEW REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS PREWEEK – OCTOBER 2024 BATCH 1. Which of the following is NOT considered mislabeling for Food, Cosmetics, Drugs and Devices? A. if its labeling is false or misleading in any way B. if its in package form unless it bears a label conforming to the requirements of the Consumer Protection Act or the regulations promulgated therefor C. if any word, statement or other information required by or under authority of the Consumer Protection Act to appear on the principal display panel of the label or labeling is not prominently placed w thereon with such conspicuousness as compared with other words, statements, designs or devices in the labeling and in such terms as to ie render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use D. if its container is so made, formed or filled as to be misleading E. None of the choices ev 2. A consumer product or service is of a particular standard, quality, grade, R style, or model when in fact it is not. This is an example of: A. Unfair sales practices B. Unconscionable sales practices PA C. Deceptive sales practices D. All of the choices 3. Which of the following will have subsidiary liability only relative to C consumer product warranty? A. Manufacturer B. Importer EO C. Dealer D. Retailer 4. Before the Lemon Law can be invoked, it is necessary to have __ separate R attempts of repair prior to the notice of availment and the delivery of the vehicle with the last repair attempt. A. 2 B. 3 C. 4 D. 5 5. If a vehicle would be replaced or the purchase price refunded, a reasonable allowance for use will be provided. If the vehicle was originally purchased for P2,000,000, indicated a distance in the odometer of 12,000 kms over the 6 months of use, how much would be such reasonable allowance for use? A. P120,000 B. P200,000 C. P240,000 D. P300,000  Page 2 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 6. If a petition for rehabilitation is filed and the court finds that the debtor is not insolvent, the course of action to be taken would be: A. To give course to the petition B. To deny the petition C. To convert the proceedings to liquidation D. To require to debtor to submit additional proof 7. The approval required for a pre-negotiated rehabilitation would be: A. Creditors representing more than 50% of the total claims and the confirmation of the court; or confirmation of the court even without approval of the creditors if a valid ground exists. B. Creditors holding at least 2/3 of the total liabilities and at least 50% of the secured claims and at least 50% of the unsecured claims. C. At least 67% of the secured obligations; 75% of the unsecured obligations; and at least 85% of the total liabilities. w D. Creditors representing 3/5 of the total liabilities and 2/3 of the creditors voting. ie 8. A suspension order would be applicable to ____ and would last _____. A. Court-supervised rehabilitation; 3 months B. Suspension of payments; 3 months ev C. Court-supervised rehabilitation; as long as the proceedings continue D. Suspension of payments; as long as the proceedings continue R 9. Voluntary liquidation of an individual debtor would require debts of: A. At least P500,000 PA B. More than P500,000 C. P1,000,000 or 25% of the outstanding capital, whichever is higher D. P1,000,000 or 25% of the outstanding capital, whichever is lower C 10. The period of confirmation of a rehabilitation plan in a court- supervised rehabilitation must not exceed: A. 6 months EO B. 1 year C. 18 months D. 2 years R 11. All of the following apply only to a Suspension of Payments proceeding, except: A. Applies to individual debtors only B. It is always voluntary C. It may apply whether the debtor is technically insolvent or actually insolvent D. Secured debtors are not affected 12. The following are the options available to a secured creditor in the event of liquidation, except: 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. In which case, the value of the property may be fixed by the liquidator  Page 3 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS C. The liquidator may sell the property and satisfy the secured creditor’s entire claim from the proceeds of the sale D. The secured creditor may enforce the lien and foreclose on the property 13. Which of the following does not require at least two parties to commit the prohibited act? A. Anti-Competitive Agreement B. Abuse of Dominant Position C. Prohibited Mergers and Acquisitions D. All of the choices require at least two parties 14. Making a transaction subject to acceptance by the other parties of other obligations which, by their nature or according to commercial usage, have no connection with the transaction. This is considered: A. Anti-Competitive Agreement w B. Abuse of Dominant Position C. Prohibited Mergers and Acquisitions ie D. All of the choices ev 15. Which of the following is output limitation? 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 R bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation C. Setting, limiting, or controlling production, markets, technical PA development, or investment D. 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 C 16. Parties to the merger or acquisition agreement wherein the value of the transaction exceeds _____ are prohibited from consummating their agreement EO until thirty (30) days after providing notification to the Commission in the form and containing the information specified in the regulations issued by the Commission. A. P1,000,000,000 B. P3,200,000,000 R C. P5,000,000,000 D. P10,000,000,000 17. Acquisition, as used in the Philippine Competition Act would refer to the purchase of securities or assets, through contract or other means, for the purpose of obtaining control by all of the following except: A. One (1) entity of the whole or part of another B. Two (2) or more entities over another C. One (1) or more entities over one (1) or more entities D. None is an exception 18. First Statement: Having a dominant position is generally prohibited unless otherwise proven. Second Statement: An agreement may not necessarily be deemed a violation of the Philippine Competition Act, if the transaction contributes to improving the production or distribution of goods and services or to promoting  Page 4 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS technical or economic progress, while allowing consumers a fair share of the resulting benefits. Third Statement: The acquisition of the stock or other share capital of one or more corporations solely for investment and not used for voting or exercising control and not to otherwise bring about, or attempt to bring about the prevention, restriction, or lessening of competition in the relevant market shall not be prohibited. A. Only 1 statement is correct B. Only 2 statements are correct C. All 3 statements are correct D. None of the 3 statements are correct 19. Which of the following stages of competitive bidding in the Government Procurement Law uses a pass/fail criteria? A. Preliminary Examination w B. Post-Qualification C. Eligibility Check ie D. Opening of Bids ev 20. In the preliminary examination of bids, A. The technical component is opened first B. The financial component is opened first R C. Both the technical and financial components are opened together D. The Bids and Awards Committee decides which component to open first PA 21. A bid for consulting services that passes the post-qualification stage is referred to as: A. The lowest calculated responsive bid B. The highest calculated responsive bid C C. The lowest rated responsive bid D. The highest rated responsive bid EO 22. In general, the approval of the recommendation of the BAC of the winning bidder is: A. 10 calendar days B. 15 calendar days R C. 20 calendar days D. 30 calendar days 23. 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, would be a condition to resort to this kind of alternative procurement: A. Limited Source Bidding B. Direct Contracting C. Negotiated Procurement D. Repeat Order 24. Resort to Repeat Order would be allowable if the additional quantity of goods to be secured does not exceed ___ of the original quantity: A. 10% B. 25% C. 50%  Page 5 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS D. 100% 25. Payments under the insurance contract is contingent upon the happening of an event which may or may not happen or that which may happen at an indeterminate time. This refers to which characteristic of an insurance contract? A. Risk-distributing device B. Contract of adhesion C. Aleatory D. Contract of indemnity 26. Insurable interest is required to exist only at the time the insurance was taken out: A. Life Insurance B. Property Insurance w C. Both Life and Property Insurance D. Neither Life nor Property Insurance ie 27. Precious stones, jewels, jewelry, precious metals, whether in course of ev transportation or otherwise may be covered by which type of insurance? A. Marine insurance B. Fire insurance R C. Casualty insurance D. Variable insurance PA 28. The maximum pay-out in a microinsurance A. 50x the statutory minimum wage B. 100x the statutory minimum wage C. 500x the statutory minimum wage C D. 1000x the statutory minimum wage 29. Which of the following would require materiality before it can be a EO ground to cancel the insurance contract? A. False Representation B. Concealment C. Breach of Warranty R D. All of the choices 30. A claim under a property insurance is required to be settled ___ days after the ascertainment of loss. A. 15 days B. 30 days C. 60 days D. 90 days 31. Sanji’s regular working hours are 1-10pm with a 1 hour lunch break from 5-6pm. In a particular day, he worked 3 hours overtime. How much would be the total pay he would receive for that day if he receives a regular pay of P800/day? A. P1,212.50 B. P1,205.00 C. P1,190.00 D. P1,175.00  Page 6 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 32. If an employee worked during his rest day that is at the same time a special holiday, the pay he would be entitled to is equivalent to: A. 130% B. 150% C. 169% D. 200% 33. Under Proclamation No. 368 dated 11 October 2023, which of the following is a regular holiday? A. Ninoy Aquino Day B. Bonifacio Day C. All Saints’ Day D. Feast of the Immaculate Conception of Mary w 34. Which of the following entitles an employee to 10 days leave with pay? A. Solo Parent Leave ie B. Paternity Leave C. VAWC Victims’ Leave D. Service Incentive Leave 35. ev First Statement: The 13th month pay is equivalent to 1 month salary Second Statement: The 13th month pay must be paid not later than November R 30 Third Statement: The 13th month pay may be given as Christmas bonus in the form of goods PA A. Only 1 statement is true B. Only 2 statements are true C. All 3 statements are true D. All 3 statements are false C 36. Which of the following compulsory members is not required to pay the entire 14% contribution for 2024? EO A. Employees B. Self-employed individuals C. Overseas Filipino Workers D. All of the choices are required R 37. If an employee had CYS of service equivalent to 25 years and an average monthly salary credit of P15,000, how much is his monthly pension in case of permanent total disability? A. P9,300 B. P8,800 C. P8,300 D. P7,800 38. First Statement: In no case shall the daily sickness benefit be paid longer than 90 days in one 1 calendar year. Second Statement: Any unused portion of the sickness benefit in a year can be carried forward and added to the total number of compensable days allowable in the subsequent year Third Statement: The daily sickness benefit shall not be paid for more than 240 days on account of the same confinement  Page 7 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS Fourth Statement: The sickness benefit is equivalent to 90% of the average monthly salary credit A. Only 1 statement is correct B. Only 2 statements are correct C. Only 3 statements are correct D. All 4 statements are correct 39. The maternity leave with pay that a female solo-parent member is entitled to: A. 105 days B. 120 days C. 135 days D. 150 days 40. For the year 2024, if a kasambahay receives P3,000 monthly salary, what w would be his/her monthly salary credit for purposes of determining the SSS contribution? ie A. P3,000 B. P3,500 C. P4,000 41. D. P5,000 ev Luffy obliged himself to deliver the Wado Ichimonji to Zoro. If Luffy R fails to perform his obligation, what is/are the remedies of Zoro? A. Specific Performance B. Substitute Performance PA C. Both A and B D. Neither A nor B 42. Which of the following is not a conditional obligation? C A. D will pay C P10,000, 15 days after the former’s graduation B. D will pay C P10,000, as soon as his financial means permit him to do so EO C. D will pay C P10,000, after passing the 2024 October CPA Board Exams D. D will pay C P10,000, 10 days after he marries X 43. Chopper, while driving recklessly the cab of his employer Usopp, hit a R Meralco post and caused injury to Nami, a passenger. Nami can sue Chopper under: I. Contract II. Quasi-Contract III. Delict IV. Quasi-Delict A. All of the above C. III and IV only B. All except II D. I and IV only 44. The defense that the employer exercised due diligence in the selection and supervision of the employee is valid against which liability? I. Vicarious liability under Quasi-Delict II. Subsidiary liability under Delict A. Both I and II C. II only B. I only D. Neither I nor II  Page 8 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 45. Robin promised to deliver to Franky the Radical Beam, a laser machine subject to the condition that the latter would have to complete the construction of the Thousand Sunny. During the pendency of the condition, however, the Radical Beam was damaged without the fault of Robin. In this case, A. Robin is liable for damages B. Franky can choose to have the delivery still and ask for damages C. Franky can choose to cancel the delivery and ask for damages D. Franky suffers the impairment 46. W, X, Y, Z are solidarily indebted to C for P40,000. When C demanded payment from W, the latter refused claiming that X is a minor, Y’s share was already condoned and that Z is insolvent. How much is W required to pay C? A. P40,000 C. P20,000 w B. P30,000 D. P10,000 ie 47. The omission of that diligence required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. A. Violatio B. Dolo C. Culpa D. Mora ev R 48. D is indebted to C for P100,000 secured by a mortgage executed by M on his lot and a guaranty by G. Which of the following is false if M offers to pay the loan? PA A. C can be compelled to accept the payment B. M will be subrogated to the rights of C C. M can later on collect from G if D fails to pay M D. If it turns out that D already paid half of the loan, M can only C collect P50,000 49. Ms. Lessee rented an apartment unit from Mr. Lessor. They agreed that Ms. EO Lessee would pay for a one-month deposit and one-month advance and would shoulder all utility costs during the length of her possession. Ms. Lessee, without notice, left the apartment unit and never returned, leaving an unpaid electric bill of P4,800. From whom can the electric company collect? R A. Ms. Lessee C. Both, equally B. Mr. Lessor D. Neither 50. Compensation is not proper in all of the following cases, except: A. Deposit on the part of the depositary B. Bail as to the bailor C. Support as to the one obliged to give support D. Civil liability arising from a penal offense 51. Anne owed Bessy P1 million due on October 1, 2011 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, which was fully funded and debited already from her account, but the latter refused to accept the same. After the lapse of the 5 days, is the obligation considered extinguished?  Page 9 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS A. Yes, since the refusal of Bessy has no basis resulting to the extinguishment of the obligation. B. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court. C. Yes, since Anne tendered payment of the full amount due. D. No, since a manager’s check is not considered legal tender in the Philippines. 52. The following are void contracts, except: A. Contract of sale between the guardian and his ward concerning the property of the latter. B. Contract of lease between the executors and administrators and the estate concerning the property of the estate under administration. C. Contract of sale where the buyer is a government official entrusted with the administration of the subject property w D. Contract of loan between the principal and an agent, where the latter was authorized to borrow money. ie 53. The following are real contracts which require delivery for perfection, except: A. Pledge B. Chattel mortgage C. Mutuum D. Deposit ev R 54. Which of the following is a preparatory contract? A. Lease C. Mortgage B. Partnership D. Loan PA 55. Juan, who is indebted to Pedro for P100,000, sold his only remaining property to Jose. There would be a presumption that the sale was in fraud of Pedro: C A. If Juan did not reserve sufficient properties to pay all debts contracted before the sale. B. If Juan did not reserve sufficient properties to pay all debts EO contracted before and after the sale. C. When there has been some judgment obtained by Pedro issued against Juan before the sale. D. When there has been some judgment issued against Juan before the sale R even if not obtained by Pedro. 56. Which of the following can validly give consent to a contract: A. Insane persons B. Demented persons C. Minors D. Deaf-mutes 57. The following contracts are unenforceable if not in writing, except A. Sale of land as to authority of the agent to sell land B. Sale of personal property at least P500 C. Lease of real property with a term of more than 1 year D. Contract for a piece of work not to be performed within a year 58. An action for rescission of a sale of land on the ground of fraud would prescribe in 4 years from: A. Date of sale  Page 10 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS B. Discovery thereof C. Registration of the sale D. Delivery 59. A orally sold his cellphone to B for P15,000, where the latter paid P499 down-payment and the balance to be paid 30 days after. The contract entered into is: A. Valid and enforceable C. Void B. Rescissible D. Unenforceable 60. Juan obliged himself to deliver one of his five cars to Pedro, it was not specified which car. In this case, A. The contract would be interpreted following the least transmission of rights B. The contract would be interpreted following the greatest reciprocity of w interests C. The contract is void ie D. They would need to undergo reformation to clarify which car. 61. Which of the following is false with regards the person who can institute annulment of a contract? ev A. Only the incapacitated or injured party or his guardian can ask for annulment. R B. Creditors of the incapacitated party can ask for the annulment of the contract entered into by their incapacitated debtor C. Those who are capacitated cannot allege the incapacity of the other PA contracting party D. Answer not given 62. Juan offered to sell his house and lot to Pedro for P1,500,000. Pedro was C convinced and accepted the same. Pedro gave P500 and was given 30 days to make good the balance of the price. Before the expiration of the 30 days, Juan withdrew and returned Pedro’s P500 because he found a new buyer who EO would pay twice. In this case, A. Juan validly withdrew the offer since it is within the 30 day period. B. Juan cannot validly withdraw the offer since there was an option money of P500 that was given. R C. Juan validly withdrew the offer since he is still the owner thereof pending delivery. D. Juan cannot validly withdraw the offer since there was already a perfected contract of sale. 63. S sold to B 1,000 sacks of rice for P1,000 per sack. On delivery date, however, S delivered 1,100 sacks. In this case, which of the following is not an available remedy for B? A. Accept the quantity agreed upon and reject the rest. B. Accept the quantity delivered and pay at the contract rate. C. Reject the whole if the contract is indivisible. D. Reject the whole and ask for damages. 64. Insolvency is a requisite in which rights of an unpaid seller? A. Possessory Lien B. Stoppage in Transitu C. Right of Resale  Page 11 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS D. All of the above 65. A sold his land to B with a right to repurchase the same within 10 years. A died, leaving A1 and A2 as heirs, prior to the expiration of the 10 year period. Which of the following is incorrect? A. A1 can demand the exercise of the right of redemption only as to half the land. B. A2 can demand the exercise of the right of redemption as to the whole land. C. B can compel the heirs to redeem jointly and cannot be compelled to consent to a partial redemption. D. B can allow partial redemption of A2 of half only 66. Juan bought a condominium unit from Bellagio Development Corporation (BDC) for P15,000,000 paying P3,000,000 as down-payment and the balance payable in w monthly installments of P100,000. It was agreed that should the buyer fail to pay 2 or more installments, the contract shall automatically be cancelled ie and that all payments shall be forfeited in favor of BDC by way of rent. After paying 26 months’ worth of installments, Juan failed to pay the 27th and 28th installment and BDC deemed the contract rescinded. In this case (which is incorrect)? ev A. The rescission is not valid since the provision providing for automatic cancellation is void. R B. Juan is entitled to 90 days grace period C. Juan is entitled to P2,800,000 cash surrender value D. The stipulation providing for forfeiture of the payments is void PA 67. S sold a motorcycle to B for P80,000, payable in 8 monthly installments of P10,000 each. The same motorcycle was subject of a chattel mortgage to secure the payment of the monthly installments. B failed to pay the 3rd and C 4th installments. Accordingly, S foreclosed the mortgage on the motorcycle. In this case, A. If the proceeds from the foreclosure sale amounted to P50,000, S would EO be entitled to the deficiency. B. If the proceeds from the foreclosure sale amounted to P80,000, B would be entitled to the excess. C. There can be no foreclosure since the non-payment covers only 2 R installments. D. The proper remedy of S would be to collect the balance or cancel the contract. For the next three questions: I. Real Estate Mortgage II. Chattel Mortgage III. Pledge 68. In this accessory contract, the excess of the proceeds in the foreclosure sale over the unpaid obligation would, as a rule, go to the creditor: A. All C. II and III only B. I and II only D. III only 69. In this accessory contract, the sale of the thing given by way of security, may result in criminal liability. A. All C. II only  Page 12 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS B. I and II only D. III only 70. There is a right of redemption: A. All C. I and II only B. I only D. II and III only 71. In order for the knowledge of insufficiency of funds to be presumed, to prosecute for the violation of BP Blg. 22, the check must be presented within __ days from its date: A. 30 B. 60 C. 90 D. 100 72. On October 9, 2024, Juan purchased from Pedro P10,000 worth of goods and w the latter agreed to deliver since Juan issued a post-dated check for them claiming it to be a good check. Juan believed his brother would put in the ie money 2 days after and informed Pedro of this, hence the post-dating of the check. Later on, however, Juan’s brother called and informed him that he would not be able to make the deposit until 5 days after the date indicated ev in the check. Juan then called Pedro and informed him of the said delay. Pedro nevertheless deposited the check and it bounced. In this case, A. Juan is guilty of estafa since Pedro only parted with his goods on the R expectation that the check will be funded. B. Juan is not guilty of estafa since he was in good faith and he informed Pedro of the circumstances. PA C. Good faith is not a valid defense for estafa. D. Juan is not guilty of estafa since the check was given in payment of a pre-existing obligation. C 73. A drew a check for P100,000 and issued the same to B for the payment of a pre-existing obligation. B then issued said check to C representing the same to be a good check which the former believed in good faith and agreed EO to enter the transaction. However, the check was later on dishonored for insufficient funds. Assuming that the notice requirements were complied with and both A and B were not able to make any payment, is A guilty of violating BP Blg 22 and estafa? R BP Blg Estafa 22 A. Yes Yes B. No No C. Yes No D. No Yes 74. The following are characteristics of a contract of partnership, except: A. Consensual C. Onerous B. Unilateral D. Preparatory 75. In a universal partnership of all present property, all of the following becomes common property, except: A. Properties which belong to the partners at the time of the constitution of the partnership. B. Any profits derive from properties belonging to each partner at the time of the constitution of the partnership.  Page 13 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS C. Any after-acquired property from a donation, legacy, inheritance including the profits thereof. D. All of the above are included in the partnership 76. On September 30, 2024, A, B and C agreed to form a partnership where C promised to contribute money to be delivered on October 5, 2024. C failed to deliver the same and B made a demand therefor on October 15, 2024. C was only able to give the promised money on October 31, 2024. C would: A. Not be liable for damages since he is not yet in delay. B. Be liable for interest and damages from October 5, 2018 C. Be liable for interest and damages from October 15, 2018 D. Be liable for interest only from the time demand was made. 77. First statement: a partner is deemed to be a co-owner of his co-partners of specific partnership property. w Second statement: A partner’s right in specific partnership property is assignable provided there is consent from the other partners. ie A. Both statements are correct B. Both statements are incorrect C. Only the first statement is correct 78. A capitalist partner: ev D. Only the second statement is correct R A. Cannot engage in business for himself of whatever industry except if with consent of the partners. B. Can engage in business of the same industry as that of the partnership PA even against the will of the other partners. C. Can engage in business for himself in an industry different from that of the partnership even without the consent of the partners D. Can engage in business of whatever industry even without the consent of C the partners 79. A, B, C and D contributed P25,000 each to the partnership and agreed to EO distribute losses 1:1:2:2. For the year, the partnership earned a profit of P12,000. How much would be the share of C? A. P2,000 C. P4,000 B. P3,000 D. P6,000 R 80. V, W, X, Y and Z are partners with 5%, 10%, 15%, 30%, 40% interest, respectively. V, W and Y were appointed as managing partners without specification as to their duties. V wanted to purchase raw materials from a particular supplier to which Y opposed. Which of the following is correct? A. Y’s opposition would prevail since he has more interest than that of V. B. Y’s opposition would prevail even if W agrees with V, since their combined interest is smaller than that of Y. C. If W agrees with V, V’s decision would prevail. D. X and Z would have to intervene and vote also, to determine whose decision will prevail. 81. X, Y and Z are partners of XYZ partnership. X, acting within the scope of his authority, received P20,000 from C, a creditor of the partnership, and misapplied the same. From whom can C collect the P20,000? A. X only B. X, Y and Z, solidarily  Page 14 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS C. X, Y and Z, jointly D. X, Y, Z and XYZ partnership, solidarily 82. Where a partner has become insolvent, the claims against his separate property shall be satisfied in the following order: A. Those owing to partnership creditors; Those owing to separate creditors; Those owing to partners by way of contribution. B. Those owing to partners by way of contribution; Those owing to partnership creditors; Those owing to separate creditors. C. Those owing to separate creditors; Those owing to partnership creditors; Those owing to partners by way of contribution. D. Those owing to separate creditors; Those owing to partners by way of contribution; Those owing to partnership creditors. 83. As to whether it has authority to openly accept outsiders as stockholders w or investors, a corporation can be classified as: A. De jure or de facto C. Open or close ie B. Private or public D. Ecclesiastical or lay 84. Which of the following corporations acquire juridical personality from a Certificate of Registration? A. Aggregate corporation ev the filing of the verified application with the SEC and not the issuance of C. Ecclesiastical Corporation R B. Eleemosynary corporation D. Corporation Sole 85. In corporations, minors are allowed to become: PA A. Corporators C. Both B. Incorporators D. Neither 86. A, B, C, D and E is organizing a corporation whose Authorized Capital C Stock is P10,000,000. Each of them subscribed to P500,000 or equivalent to 5%. A, B and C paid 50% of their subscribed capital but D and E did not. In this case, EO A. D and E must pay at least 25% of their subscribed capital to comply with the requirements of the law. B. There can still be valid incorporation, provided that D and E pay within 30 days from submission to the SEC. R C. The requirement that 25% of the authorized capital stock has not been met. D. D and E need not pay at least 25% of their subscription and there is still a valid incorporation 87. If the corporation was able to commence business but became inoperative for __ years, it will result to ____: A. 2 years; automatic dissolution. B. 5 years; the corporation being placed under a delinquent status C. 5 years; a ground for suspension or revocation. D. 5 years; automatic dissolution. 88. ABC Corporation, through Mr. X its general manager, entered into a contract of sale with WYZ Corporation. Later on, ABC Corporation unilaterally rescinded the said contract. In this case, Mr. X cannot be sued on his personal capacity under which principle? A. Piercing the Veil of Corporate Entity  Page 15 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS B. Doctrine of Limited Liability C. Corporate Entity Doctrine D. Presumption of Good Faith 89. A corporation’s assets is P500,000 while its liabilities amounted to P15,000,000. In this case, the stockholders cannot be made liable beyond their investment under which principle? A. Piercing the Veil of Corporate Entity B. Doctrine of Limited Liability C. Corporate Entity Doctrine D. Presumption of Good Faith 90. Which of the following is NOT a requirement to become a director? A. They must own at least 1% share. B. Majority must be residents of the Philippines. w C. They do not possess any of the disqualifications under the Corporation Code. ie D. None of the above. 91. As a rule, directors are not entitled to receive any compensation. Except in A. B. Reasonable per diems As provided in the by-laws ev the following cases (choose which is not an exception): R C. Upon a majority vote of the stockholders D. None of the above is not an exception PA 92. A preferred shareholder is not entitled to vote in this corporate act: A. Amendment of the articles of incorporation B. Adoption and amendment of by-laws C. Sale of all or substantially all of the corporate’s inventories C D. Incurring, creating or increasing bonded indebtedness 93. Which of the following, as a general rule, is regarded as voidable at the EO instance of the corporation ? A. Transaction of a self-dealing director B. Transaction of an interlocking director C. Transaction of a director in violation of confidentiality of information R D. Transaction of a director in violation of his duty of loyalty 94. Which of the following corporate officers is required to be a member of the Board of Directors? A. The President C. The Secretary B. The Treasurer D. The Compliance Officer 95. A, B, C, D, E, F, G, H, I are members of the Board of Directors. In the meeting to appoint corporate officers, only A, B, C, D and E are present. How many votes are required to elect corporate officers? A. 2 C. 4 B. 3 D. 5 96. Which of the following is false with regards preferred shares? A. A preferred share is a stock that gives the holder preference over the holder of common stocks with respect to the payment of dividends and/or with respect to distribution of capital upon liquidation.  Page 16 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS B. A preferred share can be issued without a par value provided it is not issued for less than P5. C. The preference must be stated in the Articles of Incorporation and the Certificate of Stock. D. None of the above 97. X Co. has P10M Authorized Capital Stock a part of which is 1M no par value shares with issued value at P5.00. A acquired 100,000 no par value shares at P4.00. In this case, A. There is no issuance of watered stocks B. A and the directors of X Co. are solidarily liable for the P1.00 per share difference. C. Only A is liable for the P1.00 per share difference. D. Only the directors of X Co. are liable for the P1.00 per share difference. w 98. To delegate the power to amend by-laws to the Board of Directors, the ie required number of votes from the stockholders is ___; to revoke the same, the required number of votes is __. A. Majority; Majority B. Majority; 2/3 C. 2/3; Majority D. 2/3; 2/3 ev R 99. A non-stock corporation differs from a stock corporation in the following, except: PA A. Cumulative voting is generally allowed B. The number of directors may be more than 15 C. The Articles or the by-laws can provide that the officers are directly appointed by members C D. The meeting of members can be held anywhere in the Philippines 100. To qualify as a foreign corporation, the consideration is EO A. Citizenship of the owners of the shares B. Appointment of a resident agent C. Agreement of the parties D. Under what country’s law it was incorporated R 101. Which meeting is required to be at the principal office of the corporation? A. Board of Directors of a stock corporation and Board of Trustees of a non-stock corporation B. Stockholders of a stock corporation and Members of a non-stock corporation C. Board of Directors of a stock corporation and its stockholders D. Board of Trustees of a non-stock corporation and its members 102. Which of the following is considered a ground for temporary disqualification of a member of the Board of Directors under the Revised Code of Corporate Governance? A. Conviction by final judgment or order of a crime involving the purchase of securities as defined under the Securities Regulations Code B. For an independent director, becoming an officer, employee or consultant of the corporation  Page 17 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS C. Conviction of a final judgment of a crime involving moral turpitude D. Absence of more than 50% of all regular and special meetings of the Board of Directors 103. The committee tasked to assist the Board in the performance of its oversight function for the financial reporting process, system of internal control, audit process, and monitoring of compliance with applicable laws, rules and regulations. A. Audit Committee B. Nomination Committee C. Management Committee D. Compensation and Remuneration Committee 104. Which officer is required to be a Filipino Citizen? A. CEO/President C. Corporate Secretary w B. CFO/Treasurer D. Compliance Officer ie 105. Juan delivered to Pedro, treasurer of the Corporation, P180,000 as a loan with 6% interest. In return, Pedro issued a post-dated check in behalf of the corporation which was later on found to be drawn against insufficient funds. In this case, ev A. Pedro cannot be held personally liable since he merely signed the check in his capacity as Treasurer. R B. Pedro can be held personally liable since he is made, by specific provision of law, personally liable for his corporate action. PA C. Pedro cannot be held personally liable since it is not shown that he had no personal knowledge of the fact of insufficiency of funds. D. Pedro can be held personally liable if the assets of the Corporation are insufficient to cover the amount of the loan C 106. Which of the following is not covered by the Mandatory Tender Offer Rule as to X Corporation stockholders: EO A. A, B and C plans to acquire 49% of the shares of X corporation B. D, who owns 20% of the shares of X corporation plans to acquire an additional 32% C. E, who owns 18% of X corporation, plans to acquire 50% of Y corporation R which in turn owns 68% of X corporation D. None of the above 107. Trafalgar Law is the lawyer of The 4 Emperors Corporation, who in the course of his work acquired material non-public information. In a drinking session, he informed his friend Shanks of the material non-public information. Shanks, in turn informed Ace, his friend. All three of them acquired shares of stock of ABC Corporation and in turn made profits when the price of the shares shoot up when the information was made public. Which of the following is true? A. Only Trafalgar Law may be guilty of insider trading B. Only Trafalgar Law and Shanks may be guilty of insider trading C. All are guilty of insider trading D. None are guilty of insider trading  Page 18 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 108. A group of individuals desired to organize as a cooperative with an Authorized Share Capital (ASC) of P200,000. How much is the minimum subscription and the minimum paid-up capital required? A. P50,000; P12,500 B. P50,000; P15,000 C. P100,000; P25,000 D. P100,000; P50,000 109. A tertiary cooperative which will organize as a Federation is required to have at least __ secondary cooperative members and a minimum paid-up capital of: A. 10; P500,000 B. 15; P5,000,000 or the feasibility study requirement, whichever is higher. C. 10; P5,000,000 or the feasibility study requirement, whichever is w higher. D. 15; P500,000 ie 110. A cooperative that engages in the supply of production inputs to members and markets their products: A. Credit Cooperative B. Consumers Cooperative ev C. Marketing Cooperative D. Producers Cooperative R 111. The quorum requirement of a General Assembly of a Cooperative Bank if the purpose of the meeting is to amend the Articles or the By-Laws: A. 25% C. 2/3 PA B. Majority D. 3/4 112. The following are disqualified from being officers of a cooperative, except: C A. The members of the board of directors. B. Committee members C. A person who has a relative within the third civil degree of consanguinity EO or affinity who is an officer of the cooperative. D. Any person engaged in a business similar to that of the cooperative or who in any other manner has interests in conflict with the cooperative R 113. A cooperative is exempt from income tax in all of the following cases, except: A. It transacts only with members B. It transacts also with non-members and its accumulated reserves and undivided net savings is not more than P10M C. It transacts also with non-members and its accumulated reserves and undivided net savings is more than P10M D. None of the above 114. Mr. X is a member of an agrarian reform cooperative who has a 6% share. His next of kin is his son and only heir, X Jr., who is also a member with 4% share. Mr. X died, as a consequence his share capital was inherited by X Jr.. In this case, A. The cooperative will be deemed dissolved with the death of Mr. X. B. X Jr. cannot inherit the share since he is not qualified to be a member. C. X Jr. cannot inherit more than the equivalent of 4% share capital. D. None of the above are correct statements  Page 19 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 115. An auditor, in his individual capacity or as a partner of the firm, cannot undertake the external audit of the same cooperative for more than ____ consecutive years A. Two C. Four B. Three D. Five 116. A portion of the net surplus of the cooperative shall be set aside in a fund used to acquire land and building and other necessary spending. This fund is known as: A. Reserve Fund B. Education and Training Fund C. Community Development Fund D. Optional Fund w 117. The Community Development Fund shall be ___ of the Net Surplus: A. At least 10% C. At least 5% ie B. At least 7% D. At least 3% 118. Juan maintains joint deposit accounts - with Maria with a balance of ev P500,000; with Pedro with a balance of P600,000; and with Jose Corporation for P1,000,000, all in the same bank. How much is Juan’s insured deposit amount? R A. P450,000 C. P550,000 B. P500,000 D P1,000,000 PA 119. The following accounts were found in the records of Salmon Bank: A in trust for B P100,000; A by B P100,000; A for the account of B, P100,000. How much is the insured deposit of A? A. P100,000 C B. P200,000 C. P300,000 D. P0 EO 120. Which of the following is a legal consequence of not complying with the Truth in Lending Act? A. The sale, if any, is considered unenforceable R B. The loan will be considered void C. The charges collected by the lending institution will be refunded D. The lending institution will be liable for civil penalties 121. The maximum amount of liability that can be imposed under the Truth in Lending Act A. P100 B. P200 C. P1,000 D. P2,000 122. Which of the following acts of the Bank is in violation of the Bank Secrecy Law? A. Disclosure to the AMLC of deposits more than P500,000 in one banking day B. Disclosure of the details of the bank deposit to the court, upon the latter’s order, in a case against a public officer concerning plunder C. Disclosing details of bank deposits in accordance with a BSP audit  Page 20 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS D. Disclosing details of a bank deposits to the Commissioner of Internal Revenue to determine income tax liability 123. Disclosure of the information of a bank account via subpoena issued by a court is necessary in cases involving: A. Plunder related to a public officer receiving Jueteng money B. When the subject of the case is the money deposited in the account C. A BIR officer receiving money in order not to conduct audit of a taxpayer D. Money laundering when the predicate crime is kidnapping for ransom 124. In case of a transaction is both reportable as “covered” and at the same time “suspicious”, it shall be reported to the AMLC as A. A covered transaction B. A suspicious transaction C. Both a covered and suspicious transaction w D. A complaint for money laundering ie 125. Which of the following powers of the AMLC can be done ex parte? I. Applying for a freeze order with the Court of Appeals II. Inspecting bank accounts with cases filed in a court of competent A. jurisdiction Both I and II ev R B. Neither I nor II C. I only D. II only PA 126. Covered persons shall report to the AMLC all covered transactions and suspicious transactions within: C Covered Transaction Suspicious Transaction A. 5 working days from occurrence 5 working days from occurrence thereof thereof EO B. next banking day from occurrence 5 working days from occurrence thereof thereof C. 5 working days from occurrence next banking day from occurrence thereof thereof R D. next banking day from occurrence next banking day from occurrence thereof thereof 127. Which of the following is not a predicate crime for money laundering involving the taking of personal property with intent to gain? A. Robbery B. Theft C. Qualified Theft D. Violation of the Anti-Fencing Law 128. That stage in money laundering which involves sending money through various financial transactions to change its form and make it more difficult to follow A. Placement C. Integration B. Layering D. Preliminary 129. This agency leads the global action to combat money laundering and  Page 21 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS terrorist financing A. World Bank B. Asian Development Bank C. Financial Action Task Force D. Money Laundering Watch Dogs 130. X is an inventor working for a private company and created a patentable invention during his employment. In this case, A. X’s employer owns the patent. B. X owns the patent even if the inventive activity is part of his regularly- assigned duties. C. X’s employer owns the patent if the inventive activity is not part of his regularly-assigned duties but he used the time, facilities and materials of the company. D. X owns the patent if the inventive activity is not part of his regularly- w assigned duties and whether or not he used the time, facilities and materials of the company ie 131. The term of protection for a copyright is: A. 10 years from issuance date and can be renewed indefinitely B. C. D. Lifetime of the author 20 years from the date None of the above ev plus 50 years from death of filing of the application R 132. A person’s photo with his/her face in it may be considered: A. Personal Information PA B. Sensitive Personal Information C. Privileged Information D. None of the chocies C 133. Which of the following will be considered privileged information? A. Health records of the Data Subject B. Disclosure of the Data Subject made in a tax return EO C. Statements made by a Data Subject to his priest D. A Data Subject’s Social Security Number 134. The processing of sensitive personal information and privileged R information shall be allowed in the following cases, except. A. The processing is necessary to protect the life and health of the data subject or another person. B. The data subject has not given his or her consent, specific to the purpose prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing. C. The processing is necessary for purposes of medical treatment. D. The processing is necessary to achieve the lawful and non-commercial objectives of public organizations and their associations. 135. It is a security incident that leads to accidental or unlawful destruction, loss, alteration, unauthorized disclosure or access of or unauthorized processing of personal data A. Data Breach B. Data Damage C. Data Compromise D. Data Destruction  Page 22 of 22 | Pre-Week OCTOBER 2024 BATCH REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS 136. Refers to any device or apparatus singly or interconnected which, by electronic, electro-mechanical, optical and/or magnetic impulse, or other means with the same function, can receive, record, transmit, store, process, correlate, analyze, projects, retrieve, and/or produce information, data, text, graphics, figures, voice, video, symbols or other modes of expression or perform any one or more of these functions. A. Computer B. Information and Communication System C. Data Processing System D. Electronic Data Message 137. Which of the following presumptions are generally true? I. The electronic signature is the signature of the person to whom it correlates w II. The electronic signature was affixed by that person with the intention of signing or approving the electronic document ie A. Both I and II B. I only C. D. II only Neither I nor II ev R 138. Statement I: The best evidence rule provides that the original documents must be provided as evidence, unless the original is lost, destroyed, or otherwise unobtainable. PA Statement II: The statute of frauds require the transactions enumerated therein to be in writing in order to be enforceable. Which of the above is complied with when using an electronic document or C electronic data message? A. I only EO B. II only C. Both I and II D. Neither 1 nor II R 139. A transaction requiring the approval of the local sanggunian shall be processed not later than: A. 3 working days B. 5 working days C. 7 working days D. 45 working days 140. The maximum number of signatories under the Ease of Doing Business Act: A. 1 B. 3 C. 5 D. None