1.

All of the following give rise to obligations without an agreement, except:

A. Law
B. Contract
C. Quasi-Contract
D. Quasi-Delict

2. Which of the following is not a conditional obligation?

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
C. D will pay C P10,000, after passing the 2021 October Licensure Exams for CPAs

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D. D will pay C P10,000, 10 days after he marries W

3. Michael Scott is the employer of Dwight Schrute. The latter, driving recklessly, hit a

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pedestrian in the course of the performance of his duties and caused serious injuries.
Dwight Schrute was charged criminally and was found guilty of reckless imprudence
resulting to serious physical injuries and was made to pay civil damages. In this case,

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A. Michael Scott can be made vicariously liable for the civil damages
B. Michael Scott can be made vicariously liable for the civil damages but can raise the
defense of diligence in the selection and supervision of employees if he is made liable
C. Michael Scott can be made subsidiarily liable for civil damages and cannot raise the
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defense of diligence in the selection and supervision of employees
D. Michael Scott cannot be made liable
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4. Jake Peralta and Amy Rodrigues are co-workers. Amy filed for a loan in B99 Bank where
Jake was a co-signatory solidarily liable for the loan but did not receive any proceeds
therefrom. Jake executed a real estate mortgage over his own real property to secure
said loan. Amy not being able to pay, B99 Bank foreclosed the mortgage. In this case,
A. B99 cannot foreclose the mortgage since Jake, the mortgagor, did not receive any of
C

the proceeds of the loan.

B. In case the proceeds of the foreclosure is not sufficient to pay off the balance, Jake
can be made liable for the deficiency.
C. Only Amy can be made liable for the unpaid loan being the sole recipient of the
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proceeds.
D. Jake can no longer be made liable for any deficiency.

5. 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
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Z is insolvent. How much is W required to pay C?

A. P40,000 C. P20,000
B. P30,000 D. P10,000

6. 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 C. Culpa
B. Dolo D. Mora
7. 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?
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 collect P50,000

8. Jessica Day rented an apartment unit from Nick Miller. They agreed that Jess would pay
for a one-month deposit and one-month advance and would shoulder all utility costs

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during the length of her possession. Jess, without notice, left the apartment unit and never
returned, leaving an unpaid electric bill of P4,800. From whom can the electric company
collect?

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A. Jess C. Both, equally
B. Nick D. Neither

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9. Voluntary 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
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D. Civil liability arising from a penal offense

10. Max owed Caroline P1 million due on May 1, 2021 but failed to pay her on due date.
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Caroline sent a demand letter to Max giving her 5 days from receipt within which to pay.
Two days after receipt of the letter, Max personally offered to pay Caroline 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?
A. Yes, since the refusal of Caroline has no basis resulting to the extinguishment of the
C

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 Max tendered payment of the full amount due.
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D. No, since a manager’s check is not considered legal tender.

11. The following are void contracts, except:

A. Contract of sale between the guardian and his ward concerning the property of the
latter.
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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
D. Contract of loan between the principal and an agent, where the latter was authorized
to borrow money.

12. The following are real contracts which require delivery for perfection, except:
A. Pledge C. Mutuum
 B. Mortgage D. Deposit

13. Which of the following is a preparatory contract?

A. Lease C. Mortgage
B. Partnership D. Loan

14. Yuji Itadori, who is indebted to Satoru Gojo for P100,000, sold his only remaining
property to Megumi Fushiguro. There would be a presumption that the sale was in fraud
of Gojo:
A. If Yuji did not reserve sufficient properties to pay all debts contracted before the sale.

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B. If Yuji did not reserve sufficient properties to pay all debts contracted before and after
the sale.
C. When there has been some judgment obtained by Gojo issued against Yuji before the

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sale.
D. When there has been some judgment issued against Yuji before the sale even if not
obtained by Gojo.

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15. Which of the following can validly give consent to a contract:
A. Insane persons
B. Demented persons
C. Minors
D. Deaf-mutes
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16. 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
C

17. An action for annulment of a sale of land on the ground of fraud would prescribe in 4
years from:
A. Date of sale
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B. Discovery thereof
C. Registration of the sale
D. Delivery

18. Lucifer Morningstar rented out an condo unit to Chloe Decker for an 18 month period.
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The agreement was not embodied in any written contract. As agreed upon by the parties,
Chloe provided a check for 2 months deposit and 18 post-dated checks to cover the 18
month term of the lease. What is the status of the contract?
A. Valid and enforceable C. Void
B. Rescissible D. Unenforceable

19. Cameron Tucker obliged himself to deliver one of his five cars to Gloria Delgado-Pritchett
but 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 interests
C. The contract is void
D. They would need to undergo reformation to clarify which car.

20. Which of the following is false with regards the person who can institute annulment of a
contract?
A. Only the incapacitated or injured party or his guardian can ask for annulment.
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 contracting party

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D. Answer not given

21. Sheldon offered to sell his house and lot to Penny for P1,500,000. Penny was convinced

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and accepted the same. Penny gave P500 and was given 30 days to make good the balance
of the price. Before the expiration of the 30 days, Sheldon withdrew and returned Penny’s
P500 because he found a new buyer who would pay twice. In this case,

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A. Sheldon validly withdrew the offer since it is within the 30 day period.
B. Sheldon cannot validly withdraw the offer since there was an option money of P500
that was given.
C. Sheldon validly withdrew the offer since he is still the owner thereof pending delivery.
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D. Sheldon cannot validly withdraw the offer since there was already a perfected contract
of sale.
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22. In this kind of contract of sale, upon happening of the condition, the buyer will have the
right to compel the seller to transfer ownership via the execution of a deed of absolute
sale:
A. Absolute sale
B. Conditional sale
C

C. Contract to sell
D. None of the choices

23. The following are the available remedies of a buyer of movables where the delivered
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quantity is more than that which is agreed upon, except:

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.
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24. In this right of an unpaid seller, possessory lien or stoppage in transit is required:
A. Right of Resale
B. Rescission
C. Both A and B
D. Neither A nor B
25. Any affirmation of fact or any promise by the seller relating to the thing, if the natural
tendency of such affirmation or promise is to induce the buyer to purchase the same,
and if the buyer purchased the thing relying thereon.
A. Condition C. Advertisement
B. Express Warranty D. Marketing Disclosure

26. Monica Bing sold her land to Ross Geller with a right to repurchase the same within 10
years. Monica died, leaving Phoebe and Ursula as heirs, prior to the expiration of the 10
year period. Which of the following is incorrect?
A. Phoebe can demand the exercise of the right of redemption only as to half the land.

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B. Ursula can demand the exercise of the right of redemption as to the whole land.
C. Ross can compel the heirs to redeem jointly and cannot be compelled to consent to
a partial redemption.

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D. Ross can allow partial redemption of Ursula of half only

27. A buyer of real estate in installment was able to pay 6 years worth of installment prior to

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defaulting. The following are the rights the buyer is entitled to under the Maceda Law,
except:
A. Grace Period of 180 days
B. Cash Surrender Value of 55% of all payments made
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C. Notice of Rescission at least 60 days before its effectivity
D. None of the choices is an exception
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28. Amy Sosa sold to Dina Fox a truck for P2,000,000 secured by a chattel mortgage on the
truck. For added security, Dina’s friend Jonah Simms, executed a mortgage over his land
in favor of Amy. Amy and Dina agreed that the latter would pay 10% downpayment and
the balance to be paid in monthly installments of P100,000. Dina eventually defaulted twice
and left a balance of the purchase price amounting to P1,200,000. Amy then foreclosed
C

the mortgage over the land and sold it in a public sale for P1,500,000. In this case, who is
entitled to the excess?
A. Amy
B. Dina
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C. Jonah
D. All of them, equally

29. 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:
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A. Pledge
B. Chattel Mortgage
C. Real Estate Mortgage
D. None of the choices

30. In a chattel mortgage, the disposal of the thing given as security during the pendency of
the contract of mortgage is:
A. Allowed if there is consent from the creditor-mortgagee but possession remains with
the creditor-mortgagee
 B. Allowed always and any stipulation to the contrary would be void
C. A criminal act punished under the Revised Penal Code
D. Not allowed under any circumstance

31. The period to redeem the foreclosed real property if the creditor is a juridical person
and the debtor is a bank would be:
A. 1 year
B. 3 months
C. Until the certificate of sale is registered
D. 3 months or until registration of the certificate of sale, whichever is earlier

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32. Which of the following is a negotiable instrument?
A. Pay P or his authorized representative P10,000 on October 15, 2021 sgd. D to DR

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B. I promise to pay X or bearer P200,000 in two equal installments sgd. M
C. I promise to pay X or order P50,000 or deliver 50 sacks of rice upon the death of X
sgd. D

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D. Pay to bearer P20,000 sgd. M to D

33. Which of the following is a real defense that can be raised even against a holder in due
course?

B. Breach of authority given

C. Fraud in factum
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A. Complete but undelivered instrument
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D. Post dating of a check

34. Which of the following statements render an instrument not payable in sum certain for
money and hence non-negotiable?
A. Option of the drawee to pay in kind
C

B. Cognovit actionem
C. Stipulation to pay interest
D. Indication of the value for which the instrument is issued
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35. M made a promissory note payable to P and left the amount in blank. P was authorized to
fill-up the note for P10,000. However, P indicated P100,000 as the amount and negotiated
the same to H. Which of the following is correct?
A. If H is not a holder in due course, he can only collect P10,000
B. H can collect P100,000, regardless if he is a holder in due course or not
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C. If H is a holder in due course, he can collect the entire P100,000

D. H cannot collect anything from M, regardless if a he is a holder in due course or not

36. In order to be liable for violating BP Blg 22, or the Anti-Bouncing Checks Law, the accused
must be
A. The drawer
B. The issuer
C. Both A and B
D. Either of A or B
37. Whicih of the following pertains to the violation of BP Blg 22 and not estafa?
A. Good faith is a defense
B. Deceit is a necessary element
C. Notice requirement is 3 days from the time the check was dishonored
D. Presumption of knowledge of insufficiency of funds is 90 days from the check date

38. A, B and C are partner of ABC Partnership, Ltd., with equal contributions. However, B is
a limited partner. After 10 years of operations, the partnership now has debts to third
persons amounting to P9,000,000 and their total assets amounted to P6,000,000. Who

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among the partners shall be liable with their separate property in favor of creditors?
A. A, B and C for P1M each
B. A and C for P1.5M each

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C. A and B for P1.5M each
D. None can be made liable with their separate properties

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39. 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.

constitution of the partnership.

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B. Any profits derive from properties belonging to each partner at the time of the

C. Any after-acquired property from a donation, legacy, inheritance including the profits
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thereof.
D. All of the above are included in the partnership

40. On September 30, 2022, Eleanor, Chidi and Janet agreed to form a partnership where
Eleanor promised to contribute money to be delivered on October 5, 2022. Eleanor failed
C

to deliver the same and Chidi made a demand therefor on October 15, 2022. Eleanor was
only able to give the promised money on October 31, 2022. Eleanor would:
A. Not be liable for damages since he is not yet in delay.
B. Be liable for interest and damages from October 5, 2022
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C. Be liable for interest and damages from October 15, 2022

D. Be liable for interest only from the time demand was made.

41. First statement: a partner is deemed to be a co-owner of his co-partners of specific

partnership property.
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Second statement: A partner’s right in specific partnership property is assignable provided

there is consent from the other partners.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct

42. A capitalist partner:

 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 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 the partners

43. A, B, C and D contributed P25,000 each to the partnership and agreed to distribute losses
1:1:2:2. For the year, the partnership earned a profit of P12,000. How much would be the

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share of C?
A. P2,000 C. P4,000
B. P3,000 D. P6,000

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44. Multiple managing partners were appointed in the partnership with no specification of
duties and no stipulation requiring the consent of all. Which of the following would be an

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incorrect statement relative to such set-up of management?
A. Any one of the managing partners may exercise authority to perform acts of
administration
B. Any one of the managing partners may oppose the decisions of the others
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C. In case of opposition between managing partners, such will be resolved by a vote of
the controlling interest of the managing partners
D. In case of a tie in the votes of the managing partners, the controlling interest of all the
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partners will be considered.

45. C1, C2 and IP are partners. They have agreed to exempt IP, an industrial partner, from
sharing on any and all losses of the partnership.
C

At the end of the year, the partnership assets were P10,000 only while its liabilities are
P100,000. In this case,
A. The P100,000 liabilities can be directly charged by the creditors to the partners,
including IP.
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B. The stipulation exempting IP from liability is void entirely.

C. If IP is made to pay, he can seek reimbursement of whatever he paid from C1 and C2.
D. The creditors can only go after C1 and C2, the capitalist partners at P45,000 each.

46. Elsa, Sam and Casey are partners of Penguin Partnership. Elsa, acting within the scope of
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her authority, received P20,000 from Doug, a creditor of the partnership, and misapplied
the same. From whom can Doug collect the P20,000?
A. Elsa only
B. Elsa, Sam and Casey, solidarily
C. Elsa, Sam and Casey, jointly
D. Elsa, Sam, Casey and Penguin Partnership, solidarily

47. Which of the following is incorrect in relation to a partnership?

A. The partnership comes into existence by mutual agreement of the parties
 B. The true test of a partnership is mutual agency, i.e., agency relationship among
partners
C. A person who received the profits from a partnership is always a partner
D. None of the choices is incorrect

48. As to whether it has authority to openly accept outsiders as stockholders or investors, a

corporation can be classified as:
A. De jure or de facto C. Open or close
B. Private or public D. Ecclesiastical or lay

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49. Which of the following is not a responsibility of the Audit Committee of a publicly-listed
company?
A. Compensation of the management

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B. Monitoring management
C. Review corporate reporting procedures
D. Relations with the independent auditor

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50. In corporations, minors are allowed to become:
A. Corporators C. Both
B. Incorporators D. Neither
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51. A, B, C, D and E is organizing a corporation whose Authorized Capital Stock is
P10,000,000. Each of them subscribed to P500,000 or equivalent to 5%. In this case,
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applying the Revised Corporation Code,
A. Any of A, B, C, D or E can pay the 25% of the subscription
B. Each of A, B, C, D or E must pay at least P125,000 each
C. The requirement that 25% of the authorized capital stock has not been met.
D. There is no need to pay at least 25% of the subscription
C

52. If the corporation was able to commence business but became inoperative for __ years,
it will result to ____:
A. 2 years; automatic dissolution.
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B. 5 years; the corporation being placed under a delinquent status

C. 2 years; the corporation being placed under a delinquent status
D. 5 years; automatic dissolution.

53. Unbreakable KS Corporation, through Kimmy Schmidt, its general manager, entered into
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a contract of sale with Titus Andromedon Corporation. Later on, Unbreakable KS

Corporation unilaterally rescinded the said contract. In this case, Kimmy Schmidt cannot
be sued on her personal capacity under which principle?
A. Piercing the Veil of Corporate Entity
B. Doctrine of Limited Liability
C. Corporate Entity Doctrine
D. Presumption of Good Faith
54. The following statements pertaining to the express powers of a corporation, under the
Revised Corporation Code, are presented to you for evaluation:
I. A domestic corporation may make donations for the benefit of a political party or
candidate or for purposes of partisan political activity
II. A corporation may enter into a partnership, joint venture, merger or consolidation,
or any other commercial agreement with natural and juridical persons
A. Both statements are true
B. Both statements are false
C. Only statement I is correct
D. Only statement II is correct

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55. Which of the following is a requirement to become a director?
A. They must own at least 1% share.

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B. They must be residents of the Philippines.
C. They do not possess any of the disqualifications under the Corporation Code.
D. None of the above.

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56. As a rule, directors are not entitled to receive any compensation. Except in the following
cases (choose which is an incorrect exception):
A. Reasonable per diems
B. As provided in the by-laws R
C. Upon a 2/3 vote of the stockholders
D. None of the choices is incorrect
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57. 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

58. Which of the following is regarded as voidable at the instance of the corporation?
A. Transactions of a self-dealing director
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B. Transactions of an interlocking director

C. Transactions of a director in violation of confidentiality of information
D. Transactions of a director in violation of his duty of loyalty

59. Stockholders, as owners of the corporaiton, have the following rights expressly
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recognized by the corporation law, except: the right

A. To elect and remove directors
B. As co-owners of the corporate property
C. To inspect corporate books and records
D. To receive dividends when declared

60. Colt Bennett is a director of the Ranch Corporation whose term already expired. For
lack of quorum, the stockholders failed to elect a replacement director and Colt
 continued on a hold-over capacity before resigning 3 months later. The vacancy will be
filled-up by:
A. Stockholders
B. Board of Directors if they constitute a quorum
C. Board of Directors regardless if they constitute a quorum or not
D. Colt’s choosing

61. Which of the following corporate officers is required to be a member of the Board of
Directors?
A. The President C. The Secretary

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B. The Treasurer D. The Compliance Officer

62. A, B, C, D, E, F, G, H, I are members of the Board of Directors. In the meeting to appoint

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corporate officers, only A, B, C, D and E are present. How many votes are required to
elect corporate officers?
A. 2 C. 4

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B. 3 D. 5

63. 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
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common stocks with respect to the payment of dividends and/or with respect to
distribution of capital upon liquidation
B. A preferred share can be issued without a par value provided it is not issued for less
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than P5
C. The preference must be stated in the Articles of Incorporation and the Certificate of
Stock.
D. None of the choices is false
C

64. Dunder Mifflin Corporation has P10M Authorized Capital Stock a part of which is 1M no
par value shares with issued value at P5.00. Jim Halpert acquired 100,000 no par value
shares at P4.00. In this case,
A. There is no watering of stocks
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B. Jim and the directors of Dunder Mifflin are solidarily liable for the P1.00 per share
difference.
C. Only Jim is liable for the P1.00 per share difference.
D. Only the directors of Dunder Mifflin are liable for the P1.00 per share difference.
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65. Removal of directors by the stockholders may be done even without cause provided:
A. It will not affect the pre-emptive rights of all stockholders
B. It will not deprive the minority stockholders of their right of representation
C. It will not affect the right of stockholders to file a derivative suit
D. It will not deprive the minority stockholders of their appraisal right

66. Which of the following incorrectly pertains to a non-stock corporation?

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
D. None of the choices

67. To determine whether a corporation is domestic or foreign, we apply the

A. Control Test
B. Grandfather Rule
C. Incorporation Test
D. All of the choices

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68. Which meeting is required to be conducted at the principal office of the corporation?
A. Board of Directors of a stock corporation
B. Board of Trustees of a non-stock corporation

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C. Stockholders of a stock corporation
D. Members of a non-stock corporation

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69. 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

corporation
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B. For an independent director, becoming an officer, employee or consultant of the

C. Conviction of a final judgment of a crime involving moral turpitude

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D. Absence of more than 50% of all regular and special meetings of the Board of
Directors

70. Which of the following committees are required to have at least 3 directors, one of whom
shall be an independent director, under the Revised Code of Corporate Governance?
C

A. Audit Committee
B. Nomination Committee
C. Compensation and Remuneration Committee
D. All of the choices
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71. When the vacancy in the Board prevents the remaining directors from constituting a
quorum and emergency action is required to prevent grave, substantial, and irreparable
loss or damage to the corporation, the vacancy may be temporarily filled from among the
officers of the corporation by how many votes from the remaining directors/trustees?
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A. At least 50%
B. Majority
C. 2/3
D. 100%

72. Which officer is required to be a resident and a Filipino Citizen?

A. CEO/President C. Corporate Secretary
B. CFO/Treasurer D. Compliance Officer
73. Missy Cooper delivered to Georgy Cooper, treasurer of the Corporation, P180,000 as a
loan with 6% interest. In return, Georgy issued a post-dated check in behalf of the
corporation which was later on found to be drawn against insufficient funds. In this case,
A. Georgy cannot be held personally liable since he merely signed the check in his
capacity as Treasurer.
B. Georgy can be held personally liable since he is made, by specific provision of law, for
the corporate action.
C. Georgy cannot be held personally liable since it is not shown that he had no personal
knowledge of the fact of insufficiency of funds.
D. Georgy can be held personally liable if the assets of the Corporation are insufficient

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to cover the amount of the loan

74. Which of the following is not covered by the Mandatory Tender Offer Rule as to X

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Corporation stockholders:
A. A, who holds 30% of the shares of X Corporation, plans to acquire 25% more.
B. B, who holds 20% of the shares of X Corporation offered to buy from C, an existing

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shareholder, an equivalent of 14% of X Corporation’s shares
C. X, Y and Z plans to acquire 45% of X Corporation over a period of 10 months
D. None of the choices

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75. Piper Chapman is the lawyer of Orange Black Corporation, who in the course of her
work acquired material non-public information. In a drinking session, she informed her
friend Alex Vause of the material non-public information. Piper, in turn informed Joe
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Caputo, who she has a romantic affair with. All three of them acquired shares of stock of
Orange Black 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 Piper may be guilty of insider trading
B. Only Piper and Alex may be guilty of insider trading
C

C. Piper, Alex and Joe are all guilty of insider trading

D. None are guilty of insider trading

76. An order or orders for the purchase or sale of security with the knowledge that a
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simultaneous order or orders of substantially the same size, time and price for the sale
or purchase of such security has, or will be entered by or for the same or different parties.
This is otherwise known as:
A. Wash Sale C. Hype and Dump
B. Matched Order D. Squeezing the float
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77. 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
78. 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 higher.
D. 15; P500,000

79. A cooperative that engages in the supply of production inputs to members and markets
their products:
A. Credit Cooperative C. Marketing Cooperative

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B. Consumers Cooperative D. Producers Cooperative

80. The quorum requirement of a General Assembly meeting of a cooperative is generally:

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A. 25% C. 2/3
B. Majority D. 3/4

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81. The following are disqualified from being officers of a cooperative, except:
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 or affinity
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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
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82. 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
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C. It transacts also with non-members and its accumulated reserves and undivided net
savings is more than P10M
D. None of the above
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83. In a cooperative, a member cannot own more than __% of the share capital
A. 5%
B. 10%
C. 20%
D. 50%
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84. 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

85. 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

86. The Community Development Fund shall be ___ of the Net Surplus:
A. At least 10% C. At least 5%
B. At least 7% D. At least 3%

87. Otis Milburn maintains joint deposit accounts - with Jean Milburn with a balance of
P500,000; with Eric Effiong with a balance of P300,000; and with Moordale Education

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Corporation for P1,000,000, all in the same bank. How much is Otis’s insured deposit
amount?
A. P400,000 C. P900,000

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B. P500,000 D P1,000,000

88. The uninsured portion of the deposits shall

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A. Be forfeited in favor of the bank.
B. Be forfeited in favor of the Government.
C. Become a claim against the asset of the closed bank.
D. Be claimed against the PDIC
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89. 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
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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
D. Disclosing details of a bank deposits to the Commissioner of Internal Revenue to
determine tax deficiencies
C

90. Unclaimed deposits shall be forfeited in favor of the

A. Local Government having jurisdiction over the residence of the depositor
B. Local Government having jurisdiction over the branch where the deposit was made
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C. National Government
D. Local Government and National Government equally

91. In case of a transaction is both reportable as “covered” and at the same time “suspicious”,
it shall be reported to the AMLC as
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A. A covered transaction
B. A suspicious transaction
C. Both a covered and suspicious transaction
D. A complaint for money laundering

92. A court order is not necessary for the AMLC to inquire into bank deposits when the
offense involved any of the following, except:
A. Hijacking
B. Conspiracy to Commit Terrorism
 C. Homicide
D. Destructive Arson

93. Which of the following “covered persons” under the AMLA, is supervised or regulated
by the Insurance Commission?
A. Investment houses
B. Pawnshops
C. Trust entities
D. Holding companies

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94. Which of the following is incorrect as to “covered transactions” under the AMLA, as
amended:
A. A transaction in cash or other equivalent monetary instrument involving a total

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amount in excess of P500,000 within one banking day.
B. For casinos, a single casino cash transaction in excess of P5,000,000 or its equivalent
in any other currency.

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C. For real estate developers/brokers, a single cash transaction involving an amount in
excess of P7,000,000 or its equivalent in any other currency.
D. None of the above is incorrect.

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95. 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
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B. Layering D. Preliminary

96. Jake Peralta works in B99 Corporation as an accountant. He later on invented a patentable
invention during his employment. In this case,
A. B99 Corporation owns the patent.
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B. Jake owns the patent even if the inventive activity is part of his regularly-assigned
duties.
C. B99 Corporation 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.
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D. Jake owns the patent if the inventive activity is not part of his regularly-assigned duties
and whether or not he used the time, facilities and materials of the company

97. The term of protection for a copyright is:

A. 10 years from issuance date and can be renewed indefinitely
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B. Lifetime of the author plus 50 years from death

C. 20 years from the date of filing of the application
D. None of the above

98. 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
C. Statements made by a Data Subject to his priest
D. A Data Subject’s Social Security Number
99. First statement: For evidentiary purposes, an electronic document shall be the functional
equivalent of a written document under existing laws.
Second statement: The Data Privacy Act modifies existing statutory rules relating to
admissibility of electronic data massages or electronic documents, including the rules
relating to authentication and best evidence.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct

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100. Under the Ease of Doing Business Act, the number of signatories in any document shall
be limited to:

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A. 1
B. 3
C. 5

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D. 7

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C
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