RFBT Questions

1. Which of the following statements is the best description of a “Renunciation”?

2. The difference between solidary and indivisibility is that solidary ____

3.

4.
5.

6.
7.

8.
9. Which of the following circumstances will payment of lesser amount fail to discharge a debt,
despite a creditor’s promise to accept the lesser amount in full satisfaction of the debt?
a. Where the creditor has requested that the debtor pay the lesser amount on an earlier date.
 b. Where the creditor has requested that the debtor pay the lesser amount at a different
place.
c. When the creditor has requested that the debtor pay the lesser amount by cheque
instead of cash.
d. Where the creditor has requested that the debtor accompany payment of the lesser
amount with some

other act, they were not originally bound by the contract to perform.

10. Mr. S sold his land to Mr. B with a right to repurchase within ten years from the date of sale.
Despite the lapse of the period of redemption, no such redemption was made.
a. Ownership of the land was consolidated on Mr. by virtue of the failure to redeem by Mr.
S.
b. Ownership of the land will be consolidated only upon the registration of the sale with the
registry of deeds.
c. Ownership of the land will be consolidated only upon a judicial order.
d. Ownership will be consolidated only with the consent of Mr. S.

11. A, B, and C are co-owner of an undivided parcel of land. A sold his 1/3 interest to B absolutely.
Which is correct?
a. C may exercise his right of redemption on the interest sold by A to B.
b. C cannot exercise the right of redemption because the sale was made in favor of a
co-owner.
c. The sale made by A to B is void because it was not made in favor of a stranger.
d. C may redeem only 1/2 of the interest sold by A to B.

12. Under RA 6426, also known as Foreign Currency Deposit Act of the Philippines, what is the only
exception provided by such law from the absolute confidentiality of foreign currency deposit?
a. Upon oral permission or consent in writing by the depositor.
b. In cases of impeachment of the President, Vice President, members of the Supreme
Court, members of the Constitutional Commission (Commission on Elections, Civil
Service Commission and Commission on Audit) and the Ombudsman for culpable
violation of the Constitution, treason, bribery, graft and corruption, other high crimes or
betrayal of public trust.
c. Upon order of a competent court in cases of bribery or dereliction of duty of public
officials.
d. In cases where the money deposited or invested is the subject matter of the litigation.

13. Under the Intellectual Property Code, which of the following cases will result into the
cancellation of a mark?
a. Lack of funds.
b. Abandonment due to government order.
c. Abandonment due to voluntary cessation of business operations.
 d. None of the foregoing.

14. According to the Data Privacy Act of 2012, which of the following is the definition of
“processing of personal data”?
a. Any operation that can be performed on personal data except erasing and destroying.
b. Any operation that can be performed on personal data.
c. Only operations in which the data is being shared on social media or transferred by email
or otherwise through the internet.
d. Only operations in which the personal data is used for the purposes for which it was
collected.

15. An electronic data message or electronic document is any electronic file providing information
that is generated, sent, received, or stored by electronic, optical or similar means. Which of the
following is an example of electronic file providing information that is “sent or received by
electronic means”?
a. Short message service (SMS)
b. Word processing.
c. Telegram
d. Electronic mail

16. About Quality in Data Privacy Act

A. Relevance
B. Archive
C. Index
D. None of the Above

17. What RA is about AMLA and Terrorism Financing?

18. About Financial Intelligence Unit in AMLA

19. BP 22 uses the phrases “any check” and “a check” in defining the offenses sought to be punished
by it. Which of the following types of checks is not within the purview of the punitive provisions
of BP 22?
a. Personal check
b. Corporate check
 c. Manager’s check
d. Accommodation check

20. Which of the following statements is false?

a. A "dealer" is a person who is casually engaged in the buying and selling of securities
for his own account.
b. A "broker" is a person who is engaged in the buying and selling of securities for the
account of others.
c. An "associated person of a broker or dealer" does not include his salesmen performing
non-discretionary functions.
d. An "associated person of a broker or dealer" does not include the employees of the broker
or dealer whose functions are solely clerical or ministerial.

21. Night differential is differentiated from overtime pay in that

a. while overtime pay is for work done beyond eight hours, night differential is
added to the overtime pay if the overtime work is done between 6:00 p.m.
and 12 midnight.
b. while overtime pay is given for overtime work done during day or night,
night differential is given only for work done between 10:00 p.m. and
6:00 a.m.
c. while overtime pay is paid to an employee whether on day shift or night
shift, night shift differential is only for employees regularly assigned to night
work.
d. while overtime pay is 25% additional to the employee's hourly regular wage,
night differential is 10% of such hourly wage without overtime pay

22. Which of the following is NOT the requirement under Solo Parent Act?

23. The following are prohibited acts under the abuse of dominant position, except:
a. Imposing barriers to entry or committing acts that prevent competitors
from growing within the market in an anti-competitive manner;
b. Making a transaction subject to acceptance by the other parties of other
obligations which have no connection with the transaction;
c. Socialized pricing for the less fortunate sector of the economy;
d. Imposing restrictions on the lease or contract for sale or trade of goods or
services, such as fixing prices, giving preferential discounts or rebate
upon such price, or imposing conditions not to deal with competing
entities, the object or effect of the restrictions is to prevent, restrict or
lessen competition substantially.

24. Which of the following Department/s is/are under Consumer Act of the Philippines
 i. Department of Health

ii. Department of Agriculture

iii. Department of Agrarian Reform

iv. Department of Trade and Industry

a. I, II, III
b. I, II, and IV
c. II, III, and IV
d. None of the above

25. Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, a creditor
has adequate protection over the property securing its claim where:
a. The debtor fails or refuses to honor a pre-existing agreement with the
creditor to keep the property insured.
b. The debtor fails or refuses to take commercially reasonable steps to
maintain the property.
c. The property has depreciated to an extent that the creditor is
undersecured.
d. None of the foregoing.

26. It is the restoration of the debtor to a condition of successful operation and

solvency.

a. Solvency

b. Recovery
c. Restoration
d. Rehabilitation

27. It is a principle expressly embodied in the New Code of Corporate Governance

for Publicly Listed Companies wherein the Code does not in any way prescribed
a “one size fits all” and it is designed to allow boards some flexibility
inestablishing their corporate governance arrangements.

a. Sustainability

b. Equity
c. Proportionality

d. Subsidiarity
 28. One of the following is not a feature of "authorized capital stock”

a. It may include retained earnings.

b. It applies only to par value stock.
c. It may include subscribed capital stock.
d. It represents the maximum stock that may be issued by the corporation.

29. Which of the following statements relative to corporate officers is true?

a. The corporate Treasurer must be a citizen of the Philippines.

b. The corporate Secretary must also be a director or trustee of the corporation.
c. The term of office of the corporate President is coterminous with his term
as a board director.
d. The corporate President may simultaneously serve as the corporate Treasurer
or Secretary.

30. One of the following is among the difference between Revised Corporation Code
and the Old Corporation Code

a. Succession
b. To sue and be sued
c. To have perpetual existence unless the by-laws provide otherwise
d. Establishment of retirement and other benefit plans for its directors,
trustees, officers and employees

31. Which of the following distinctions between a cash dividend and a stock dividend
is false?

a. Cash dividend has the effect of distributing the accumulated profits to the
stockholders’ whereas stock dividend has the effect of capitalizing such
accumulated profits thereby increasing the corporation's capital.
b. Cash dividend, once declared, belongs to the stockholder and cannot be
transferred to any surplus account of the corporation; whereas the declaration
of stock dividend may be rescinded before its actual issuance.
c. The declaration of cash dividend requires only a majority of the quorum of
the board of directors; whereas the declaration of stock dividend requires
the approval of at least 2/3 of the members of the board of directors.
d. A delinquent stockholder is still entitled to receive cash dividend but it must
first be applied to his unpaid subscription balance; whereas stock dividend
shall be withheld until the delinquent stockholder pays his subscription in full.

32. Which of the following statements relative to corporate board meetings is true?

a. It is held on a monthly basis or upon the discretionary of the Board.

b. It may be held within or outside the Philippines.
c. It may be attended by means of proxy.
d. It cannot be done through teleconferencing or videoconferencing.
33. The majority vote of the quorum of the board of directors and at least 2/3 vote of
the outstanding capital stock or members, as the case may be, shall be necessary for
the approval of:

a. Amendment of by-laws
b. Issuance of stock dividends
c. Amendment of articles of incorporation
d. Declaration of Cash Dividends

34. A corporation organized under the Corporation Code commences to have corporate
existence and juridical personality and is deemed incorporated:

a. From the date the application for incorporation is filed with the Securities and
Exchange Commission (SEC)

b. From the date the SEC issues a certificate of incorporation under its
official seal
c. thirty (30) days after the date the application for incorporation is filed with the
SEC
d. thirty (30) days after the date the SEC issues a certificate of incorporation
under its official seal

35. What vote is needed to consider every decision to be a valid corporate act?

a. a majority of the directors present at the meeting

b. two-thirds of the directors present at the meeting
c. a majority of the directors present at the meeting at which there is a
quorum
d. two-thirds of the directors present at the meeting at which there is a quorum

36. The majority vote of the board of directors or trustees, and at least 2/3 vote of the
outstanding capital stock or members, as the case may be, shall be necessary for the
approval of:

a. Adoption of by-laws
b. Management contract
c. Plan of merger or consolidation
d. Fixing of issued price of no-par stock

37. Which of the following statements relative to subscriptions of stocks is true?

a. The Statute of Frauds is not applicable to subscription contracts.

b. A subscription contract cannot provide that the subscriber shall pay the
shares subscribed out of the dividends that may be declared thereon until
the subscription shall have been fully paid.
c. A subscript ion contract is for the acquisition or purchase of original shares but
not of additional new shares resulting from a capital increase.
 d. A pre-incorporation subscription contract is irrevocable for a period of one (1)
year from the date of the subscription.

38. Which of the following is incorrect as regards the effects of merger or

consolidation?
a. The surviving or consolidated corporation shall possess all the rights, privileges,
immunities and powers of a corporation organized under the Revised Corporation
Code.

b. The surviving or consolidated corporation shall possess all the rights,

privileges, immunities and franchises of the constituent corporation/s.
c. The surviving or consolidated corporation shall be responsible for all. the
liabilities and obligations of each constituent corporation.
d. All the real and personal property of the constituent corporations
shall be transferred to the surviving or consolidated corporation
after the execution of a deed of transfer.

39. One of the following is not an attribute of a close corporation:

a. The pre-emptive right of stockholders does not extend to treasury shares.

b. The holders of each class of stock may elect the allocated number of directors
coming from their own class as provided in the articles of incorporation.
c. Any amendment to the articles of incorporation must be approved by at least
2/3 of the outstanding capital stock, with or without voting rights (mere assent
is not sufficient).
d. The officers or employees may be elected or appointed by the stockholders
themselves rather than by the board of directors as may be provided in the
articles of incorporation.

40. One of the following is not an attribute of a close corporation:

A. A corporation vested with public interest cannot be organized as a close

corporation.
B. Any stockholder may petition the SEC for the dissolution of the corporation by
reason of illegal, fraudulent, dishonest, oppressive or unfair acts of directors or
officers, or misapplication of corporate assets.
C. Notwithstanding the presence of the foregoing characteristics of a close
corporation, a corporation is deemed not a close corporation when at least 2/3
of its voting stock is owned or controlled by another corporation which is not a
close corporation.
D. A stockholder may not, for any reason, withdraw from the corporation and
demand that the corporation buy his shares at their fair value which shall
not be less than the par or issued value thereof; provided, that the
corporation has sufficient assets to cover its liabilities.

41. A foreign corporation not doing business in the Philippines:

 A. must obtain a license before it may sue and be sued in Philippine courts.
B. need not obtain a license before it may sue and be sued in Philippine courts.
C. must obtain a license before it may sue in Philippine courts, but no such
license is required before it may be sued in Philippine courts.
D. need not obtain a license before it may sue, but such license is required before
it may be sued in Philippine courts.

42. As a rule, the vote required in the meetings of the board of directors of an ordinary
stock corporation for the validity of the corporate act taken should be at least:

a. a majority of the total number of directors fixed in the articles of incorporation.

b. a majority of the number of directors present provided there is a quorum.
c. a majority of the number of directors present even if there is no quorum.
d. two-thirds (2/3) of the total number of directors fixed in the articles of
incorporation.

43. An act or practice where the seller, distributor, producer or manufacturer

takes advantage of the consumer's physical or mental infirmity, ignorance,
illiteracy, lack of time or the general conditions of the environment or
surroundings, induces the consumer to enter into a sales or lease transaction
grossly inimical to the interests of the consumer or grossly one-sided in
favor of the producer, manufacturer, distributor, supplier or seller.

A. Deceptive Sales Act or Practice

B. Unconscionable Sales Act or Practice
C. Mislabelling
D. Prohibited Distribution Scheme

44. A obtained a loan of P100,000 from B. On due date, A tendered payment

amounting to P100,000 consisting 4 pieces of P20.00 bills and 4,000 P5.00 coins, but
B refused to accept. Which of the following is correct?

a. A’s payment is not in legal tender

b. A violated in the payment of the loan

c. Should B refuse to accept the payment, A may resort to consignation

d. B may demand that he be paid in bills only

45. Which of the following is not a valid consideration for the issuance of shares of stocks
of a corporation?

a. Future services

b. Intangible Property

c. Previously incurred indebtedness

d. Amounts transferred from unrestricted retained earnings

46. A will pay B when the payment of the estate expires. What is this kind of
obligation?

A. Conditional Obligation

B. Obligation with a Period

C. Indivisible Obligation

D. Reciprocal Obligation

47. Which of the following situations is the best example of “executory consideration”?

a. Antonio pays Gregorio ₱500.00 today in return for Gregorio giving Antonio, a basket of fruits
today.
b. Antonio promises to pay Gregorio ₱500.00 tomorrow in return for Gregorio giving Antonio
and a basket of fruits tomorrow.
c. Antonio promises to pay Gregorio ₱500.00 tomorrow in return for Gregorio giving Antonio, a
basket of fruits yesterday.
d. All of the foregoing.

48. Which of the following statements is the best description of “mutual mistake” that has arisen between
two parties to a contract?

a. One of the parties is mistaken as to the nature of document which they have signed.

b. Both parties are mistaken about a material fact that is important to the subject matter of the
contract.
c. Both parties have made the same mistake about the existence or identity of the subject matter of the
contract.

d. One of the parties is mistaken about a material fact regarding the subject matter of the contract, and the
other party takes advantage of this mistake.

49. Which of the following statements relative to contracts is incorrect?

a. If both parties are minors, the contract is unenforceable.

b. A contract entered into duress is void.
c. If one party is a minor and other is not, the contract is voidable.
d. A contract entered into while in state of drunkenness is voidable.
50. A entered into a contract with B to construct a gymnasium in 2020 but will estimate to
complete the construction in 2023. What is the status of the contract?

a. Valid

B. Voidable

C. Unenforceable

D. Void

51. S, a supplier of fresh fish from Lucena City, hired T, the owner of a trucking company, for a
feeof P3,000.000 to bring the fish catch of S to the Dampa Market in Paranaque City
whichordered the fish for a price of P20,000.00. In so far as S is concerned, his prestation in
hiscontract with T is:

a.the sale of the fish.

b.the transport of the fish.

c.the payment of P3,000.00.

d.the payment of P20,000.00.

52. What is the rationale of having formal contract?

53. Which of the following is true regarding the Partnership Property?

54. Unless the by-laws provides otherwise, written notice of regular meeting shall be
sent to all stockholders of record at least

A. (2) weeks prior to the meeting

B. (14) days prior to the meeting.

C. (21) days prior to the meeting

D. (1) week prior to the meeting

54. It refers to any act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties thereto. It also includes
any movement of funds by any means with a covered institution.
 A. Transaction
B. Unlawful Activity
C. Money Laundering
D. Activity

55. Mr. Angelito Ramos maintained the following deposits at ABC Bank.

Angelito Ramos (maintained in the Head Office) P600,000

Angelito Ramos & Pedro Gil P800,000

Angelito Ramos & Angel Company P200,000

How much is the UNINSURED deposits of Angelito Ramos?

A. P100,000
B. P250,000
C. P400,000
D. P500,000

56. What department or agency held the Anti-Red Tape Act?

A. Ease of Doing Business Agency

B. Securities and Exchange Commission
C. Anti-Red Tape Authority
D. Anti Money Laundering Council

57. What department or agency held FRIA?

A. Department of Trade and Industry

B. Securities and Exchange Commission
C. Department of Finance
D. Supreme Court

58. Under the Data Privacy Act of 2012, Personal information shall relate among the following,
except:
a. Collected for specified and legitimate purposes
b. Processed fairly and lawfully
c. Adequate and excessive in relation to the purposes for which they are collected and
processed
d. Retained only for as long as necessary for the fulfillment of the purposes for which the
data was obtained

59. Which of the following “covered persons” under the AMLA, is supervised or regulated by the
Insurance Commission?
a. Investment houses.
b. Trust entities
 c. Stocks
d. Pawnshops

60. What would be the prescription period of the violation of BP 22?

a. (4) years from the discovery of the offense or from knowledge by the
payee
b. (1) year from the discovery of the offense or from knowledge by the payee
c. (6) years from the discovery of the offense or from knowledge by the
payee
d. (8) years from the discovery of the offense or from knowledge by the
payee

61. Which of the following can use the word “Organization/Association?”

a. Professional Organization
b. Holding Companies
c. Trust Companies
d. Banks

62. Which of the following is NOT copyrightable?

a. Drawings
b. Computer program
c. Lectures or sermons
d. Trademark

63. Which of the following is not a characteristic of Financial Service Cooperative?

a. The Net Worth of the Financial Service Cooperate shall, at all times, not be less than an
amount equal to eight percent (8%) of its risk assets.
b. Financial Service Cooperative shall maintain a Liquidity Reserve Fund that will be restricted in
nature equivalent to at least two percent (2%) of their savings and time deposit liabilities.
c. Only those cooperatives with minimum Paid-up capital of at least Ten Million pesos
(P10,000,000.00) shall qualify to register as Financial Service Cooperative.

d. An Elective Officer may be removed by 2/3 vote of the regular members present and
constituting a quorum in a regular or special general assembly meeting called for the
purpose.

64. Which of the following liabilities is prohibited from being paid by the debtor during its rehabilitation?

a. Payment of secured loan where security is about to be foreclosed.

b. Payment to suppliers for goods or services supplied after issuance of the stay order.
 c. Payment in full of the fees of the Rehabilitation Receiver and all persons employed by
him.
d. Payment of new loans obtained for the rehabilitation of the debtor with prior court
approval.

65. Essential elements of real estate mortgage include all of he following, except

a. The thing mortgaged must be delivered to the creditor

b. In case of foreclosure sale, the mortgagor is entitled to the excess
c. The mortgagor can sell even without the consent of the mortgagee
d. To bind third persons it must be recorded in the Registry of Property

66. Automatic cause of dissolution in a corporation?

a. Expiration of corporate term

b. Continuous inoperation for a period of at least 5 years

c. De Facto

d. Dissolution by SEC on grounds under existing laws

67. Dissolution of partnership upon court EXCEPT

a. Insanity

b. Willful neglect

c. Operation at a loss

d. Abandonment of business