lOMoARcPSD|11099384

FRIA - mcqs

BS Accountancy (University of Baguio)

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AN # STATEMENTS AND CHOICES

S
D 1 It is known as the act of providing for the
rehabilitation or liquidation of financially
distressed enterprises and individuals.
A. FINANCIAL REHABILITATION AND LIQUIDATION ACT
(FRLA) OF 2010
B. FINANCIAL REHABILITATION AND SOLVENCY ACT
(FRSA) OF 2010
C. FINANCIAL REHABILITATION OR LIQUIDATION ACT
(FRLA) OF 2010
D. FINANCIAL REHABILITATION AND INSOLVENCY ACT
(FRIA) OF 2010
A 2 Who are encouraged by the State to collectively
and realistically resolve and adjust competing
claims and property rights?
A. DEBTORS, BOTH JURIDICAL AND NATURAL PERSON,
AND THEIR CREDITOR
B. DEBTOR, ONLY JURIDICAL PERSON, AND THEIR
CREDITOR
C. DEBTOR, ONLY NATURAL PERSON, AND THEIR
CREDITOR
D. CREDITOR, ONLY NATURAL PERSON, AND THEIR
DEBTOR
C 3 Who may promulgate the rules of procedures in a
proceeding that will be conducted in a summary
and non-adversarial manner?
A. THE STATE
B. THE RPESIDENT
C. THE SUPREME COURT
D. THE CONGRESS
B 4 It refers to a corporation that directly or
indirectly, through one or more intermediaries is
controlled by another corporation.
A. ADMINISTRATION
B. AFFILIATE
C. PARENT
D. SUBSIDIARY
D 5 It refers to any corporation authorized/licensed
to sell or offer to sell pre-need plans.
A. REHABILITATION PLAN
B. INSURANCE COMPANY
C. BANK
D. PRE-NEED COMPANY
A 6 Who shall designate the court or courts that will

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hear and resolve cases brought under this

rehabilitation and insolvency act?
A. SUPREME COURTS
B. CONGRESS
C. CHIEF OF JSUTICE
D. PRESIDENT
C 7 The following may allow the commingling or
aggregation of assets and liabilities of the
debtor with those of a related enterprise,
except;
A. THE DEBTOR AND THE RELATED ENTERPRISE HAVE
COMMON CREDITORS AND IT WILL BE MORE
CONVENIENT TO TREAT THEM TOGETHER RAHTER
THAN SEPARATELY\
B. THE RELATED ENTERPRISE VOLUNTARILY ACCEDES
TO JOIN THE DEBTOR AS PARTY PRACTITIONER
C. THE LIQUIDATION OF ASSETS AND LIABILITIES OF
THE CREDITOR AND THE RELATED ENTERPRISE IS
BENEFICIAL TO ALL CONCERNED AND PROMOTES THE
OBJECTIVE OF REHABILITATION
D. THERE WAS COMMINGLING IN FACT OF ASSETS AND
LIABILITIES OF THE DEBTOR AND THE RELATED
ENTERPRISE PRIOR TO COMMENCEMENT OF THE
PROCEEDINGS
B 8 Whose decision shall be made according to the
relevant provisions of the Corporation Code in
the case of stock corporation or nonstock
corporation?
A. DEBTOR
B. CREDITOR
C. AGENT
D. DIRECTOR
B 9 When creditors have designated representatives,
what does the representative gains?
A. RIGHT FOR DIVIDENDS
B. RIGHT TO VOTE
C. FILING A REPORT OF SUCH REPRESENTATIONS
D. A COPY ON THE REHABILITATION LIQUIDATOR
D 10 The court shall determine the liability of the
following, except;
A. OWNER
B. PARTNER
C. DIRECTOR
D. MANAGEMENT
A 11 Who may acquire and hold an equity interest or
investment in a debtor or its subsidiaries?
A. BANKS

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B. SUPREME COURT
C. CREDITOR
D. OWNER
D 12 A petition filed for rehabilitation with the
court by an insolvent debtor shall include the
following, except;
A. IDENTIFICATION OF THE DEBTOR, ITS PRINCIPAL
ACTIVITIES AND ITS ADDRESS
B. THE GROUNDS UPON WHICH THE PETITION IS BASED
C. AN INVENTORY OF ALL ITS ASSETS INCLUDING
RECEIVABLES AGAINST THIRD PARTIES
D. A LIQUIDATION PLAN
C 13 Who can initiate involuntary proceeding against
the debtor by filing a petition for
rehabilitation with the court if there is no
genuine issue of fact on the claims of the
petitioner?
A. INSOLVENT PARTNER
B. OWNER
C. CREDITOR
D. MANAGEMENT
B 14 The creditor’s petition to initiate involuntary
proceeding shall verified and include the
following, except;
A. REHABILITATION PLAN
B. THE NAME OF ATLEAST 2 NOMINEES TO THE
POSITION OF REHABILITATION RECEIVER
C. IDENTIFACTION OF THE DEBTOR ITS PRINCIPAL
ACTIVITIES AND ITS ADDRESS
D. OTHER DOCUMENTS REQUIRED TO BE FILED WITH
THE PETITION PURSUANT TO THE RULES OF
PROCEDURES AS MAY BE PROMULGATED BY THE
SUPREME COURT
D 15 What will the court issue if they find the
petition for rehabilitation to be sufficient in
form and substance?
A. COURT ORDER
B. EXECUTIVE ORDER
C. ADMINISTRATIVE ISSUANCE
D. COMMENCEMENT ORDER
D 16 When shall the rehabilitation proceedings
commence?
A. AFTER THE ISSUANCE OF THE COMMENCEMENT OREDR
B. BEFORE THE ISSUANCE OF THE COMMENCEMENT
ORDER
C. BEFORE AND AFTER THE ISSUANCE OF THE
COMMENCEMENT ORDER

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D. UPON THE ISSUANCE OF THE COMMENCEMENT ORDER

B 17 The following shall be included in the court’s
issuance of a commencement order, except;
A. SERVE AS THE LEGAL BASIS FOR RENDERING NULL
AND VOID THE PERFECTION OF ANY LIEN AGAINST
THE DEBTOR’S PROPERTY AFTER THE COMMENCEMENT
DATE
B. PROHIBIT THE DEBTOR FROM MAKING ANY PAYMENT
OF ITS LIABILITIES OUTSTANDING AS OF THE
COMMENCEMENT DATE
C. CONSOLIDATE THE RESOLUTION OF ALL LEGAL
PROCEEDINGS BY AND AGAINST THE DEBTOR TO THE
COURT
D. VEST THE REHABILITATIPN WITH ALL THE POWERS
AND FUNCTIONS SUCH AS THE RIGHT TO REVIEW
THE RECORDS WHICH THE DEBTOR’S MANAGEMENT
AND DIRECTORS HAVE ACCESS
D 18 The stay or suspension order shall not apply to
the following, except;
A. TO CASES ALREADY PENDING APPEAL IN THE
SUPREME COURT AS OF COMMENCEMENT DATE
B. SUBJECT TO DISCRETION OF THE COURT, TO CASES
PENDING OR FILED AT A SPECIALIXED COURT OR
QUASI-JUDICIAL AGENCY
C. TO ENFORCEMENT OF CLAIMS AGAINST THE
SURETIES AND OTHER PERSONS SOLIDARILY LIABLE
WITH THE DEBTOR
D. ANY CRIMINAL ACTION AGAINST INDIVIDUAL
CREDITOR OR OWNER, PARTNER, DIRECTOR OR
OFFICER OF A DEBTOR SHALL NOT BE AFFECTED BY
ANY PROCEEDING
C 19 Upon the issuance of the commencement order by
the court, what happens to all the taxes and fees
including penalties, interest and charges due to
the national government or local government unit?
A. THE TOTAL AMOUNT SHOULD STILL BE PAID
B. THE AMOUNT TO BE PAID IS COURT’S DISCRETION
C. IMPOSITION OF TAXES ARE WAIVED
D. HALF OF THE TOTAL AMOUN IS STILL PAYABLE
D 20 The application of stay or suspension order and
effects of the commencement order shall apply to
what institution?
A. BANK
B. CORPORATION
C. FINANCIAL INSTITUTIONS
D. GOVERNMENT FINANCIAL ISNTITUTION
D 21 The following are the minimum requirement that

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should be met to ensure that the debtor will be

successfully rehabilitated, except;
A. THERE IS SUFFICIENT MONITORING BY THE
REHABILITATION RECEIVER OF THE DEBTOR’S
BUSINESS FOR THE PROTECTION OF CREDITORS
B. THE PETITION, THE REHABILITATION PLAN AND
THE ATTACHMENTS DO NOT CONTAIN ANY
MATERIALLY FALSE OR MISLEADING STATEMENT
C. THE DEBTOR HAD NOT COMMITTED ACTS
MISREPRESENTATION OR IN FRAUD OF ITS
CREDITOR OR A GROUP OF CREDITORS
D. IF THE PETITIONER IS THE CREDITOR, THAT THE
CREDITOR HAS MET WITH ITS DEBTOR AT LEAST ¾
OF ITS TOTAL OBLIGATION
A 22 The court shall do the following at the initial
hearing, except;
A. DETERMINE THE DEBTORS WHO HAVE MADE TIMELY
AND PROPER FILING OF THEIR NOTICE
B. HEAR AND DETERMINE ANY OBJECTION TO THE
QUALIFICATIONS OF THE APPOINTMENT OF THE
REHABILITATION RECEIVER
C. DIRECT THE CREDITORS TO COMMENT ON THE
PETITION AND THE REHABILITATION PLAN
D. DIRECT THE REHABILITAION RECEIVER TO
EVALUATE THE FINANCIAL CONDITION OF THE
DEBTOR
A 23 What is the effect of failure to file a notice of
claim in accordance with the commencement order
by the creditor but subsequently files a belated
claim?
A. SHALL NOT BE ENTITLED TO PARTICIPATE IN THE
REHABILITATION PROCEEDINGS BUT SHALL RECEIVE
DISTRIBUTIONS ARISING THEREFROM
B. SHALL BE ENTITLED TO PARTICIAPTE IN THE
REHABILITATION PLAN BUT SHALL NOT RECEIVE
DISTRIBUTIONS ARISING THEREFROM
C. SHALL BE ENTITLED TO PARTICIPATE IN THE
REHABILITATION PROCEEDINGS AND SHALL RECEIVE
DISTRIBUTIONS ARISING THEREFROM
D. SHALL NOT BE ENTITLED TO PARTICIPATE IN THE
REHABILITATION PROCEEDINGS AND SHALL NOT
RECEIVE DISTRIBUTIONS ARISING THEREFROM
C 24 Who shall submit a report to the court stating
his preliminary findings and recommendations
whether the debtor should be dissolved or
liquidated, with or without the comments of the
creditor?

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A. LIQUIDATION RECEIVER
B. BANK
C. REHABILITATION RECEIVER
D. FINANCIAL INVESTIGATOR
C 25 The following are the possible court actions
after receiving the report of the rehabilitation
receiver, except;
A. GIVE DUE COURSE TO THE PETITION UPON FINDING
THAT THE DEBTOR IS INSOLVENT
B. DISMISS THE PETITION UPON FINDING THAT THE
PETITION IS A SHAMINTENDED ONLY TO DELAY THE
ENFORCEMENT OF THE RIGHTS OF THE CREDITOR
C. CONVERT THE PROCEEDINGS INTO ONE FOR THE
LIQUIDATION OF THE DEBTOR UPON FINDING THAT
THE DEBTOR IS SOLVENT
D. DISMISS THE PETITION UPON FINDING THAT THE
DEBTOR HAS COMMITTED ACTS OF
MISINTERPRETATION OR IN FRAUD OF ITS
CREDITOR
D 26 If the petition is given due care, who can direct
the rehabilitation receiver to review, revise
and/or recommend action on the rehabilitation
plan?
A. THE STATE
B. THE DEBTOR
C. THE CREDITOR
D. THE COURT
B 27 If a petition was dismissed, the court in its
discretion, order the ______ to pay damages to
any person who may have been injured by the
filing of the petition
A. DEBTOR
B. PETITIONER
C. CREDITOR
D. REHABILITATION RECEIVER
D 28 If the rehabilitation receiver is a juridical
entity, it must designate a natural person who
possess all the qualifications. In case
obligations arises who will be liable?
A. THE JURIDICAL ENTITY
B. THE NATURAL PERSON
C. JURIDICAL ENTITY AND THE REPRESENTATIVE ARE
JOINTLY LIABLE
D. JURIDICAL ENTITY AND THE REPRESENTATIVE ARE
SOLIDARILY LIABLE
B 29 The following are the qualifications of
rehabilitation receiver, except;

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A. OF GOOD MORAL CHARACTER AND WITH ACKNOWLEDGE

INTEGRITY, IMPARTIALITY AND INDEPENDENCE
B. HAS THE REQUISITE KNOWLEDGE OF SOVLENCY AND
OTHER RELEVANT COMMERCIAL LAWS, RULES AND
PROCEDURES
C. A CITIZEN OF THE PHILIPPINES OR A RESIDENT
OF THE PHILIPPINES IN THE SIX MONTHS
IMEEDIATELY PRECEEDING HIS NOMINATION
D. HAS NO CONFLICT OF INTEREST
A 30 In the initial hearing for the appointment of
rehabilitation receiver, who may nominate other
person to the position?
A. THE CREDITOR AND DEBTOR WHO ARE NOT
PETITIONERS
B. THE COURT
C. THE CREDITOR WHO IS A NOMINEE
D. THE DEBTOR WHO IS A NOMINEE
D 31 Its principal duty is to preserve and maximize
the value of the assets of the debtor during the
rehabilitation proceedings
A. OFFICER
B. CREDITOR
C. COURT
D. REHABILITATION RECEIVER
B 32 The following are the grounds for the removal of
the rehabilitation receiver, except;
A. INCOMPETENCE, GROSS NEGLIGENCE, FAILURE TO
EXERCISE THE PROPER DEGREE OF CARE
B. LEGAL ACTS OR CONDUCT IN THE PERFORMANCE OF
HIS DUTIES AND POWERS
C. LACK OF A PARTICULAR OR SPECIALIZED
COMPETENCY REQUIRED BY THE CASE
D. LACK OF QUALIFICATIONS OR PRESENCE OF ANY
DISQUALIFICATION
B 33 The following are entitled to compensation for
reasonable fees and expenses from the debtor
according to the terms approved by the court
after notice and hearing, except;
A. REHABILITAION RECEIVER
B. CREDITORS
C. INDEPENDENT CONTRACTORS
D. REHABILITATION RECEVIER’S DIRECT EMPLOOYEES
A 34 What shall the rehabilitation receiver do prior
to entering upon his powers, duties and
responsibilities?
A. TAKE AN OATH AND FILE A BOND
B. TAKE AN OATH

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C. FILE A BOND
D. CREATE A MEMORANDUM OF AGREEMENT
A 35 If there is vacancy on the rehabilitation
receiver position, who shall the court direct to
submit names of their nominees?
A. DEBTOR AND CREDITOR
B. DEBTOR
C. CREDITOR
D. PETITIONER
D 36 The court can appoint a ________ that will
undertake the management of the debtor.
A. FINANCE COMMITTEE
B. OFFICE COMMITTEE
C. ORGANIZATIONAL COMMITTEE
D. MANAGEMENT COMMITTEE
C 37 Statement 1: When appointed, the management
committee shall take the place of the management
of the debtor and assume their rights and
responsibilities
Statement 2: When appointed, the finance
committee shall take the place of the governing
body of the creditor and assume their rights
A. BOTH STATEMENT ARE TRUE
B. BOTH STATEMENT ARE FALSE
C. ONLY STATEMENT ONE IS TRUE
D. ONLY STATEMENT ONE IS FALSE
B 38 What should be taken into consideration in the
qualification and disqualification of the members
of the management committee?
A. THE NATURE OF THE BUSINESS OF THE DEBTOR
B. THE NATURE OF THE BUSINESS OF THE DEBTOR AND
THE NEED TO PROTECT THE INTEREST OF ALL
STAKEHOLDERS CONCERNED
C. THE NATURE OF THE BUSINESS OF THE DEBTOR AND
THE NEED TO PROTECT THE INTEREST OF ALL
SHAREHOLDERS CONCERNED
D. THE PROTECTION OF THE INTEREST OF ALL THE
SHAREHOLDERS CONCERNED
C 39 The rehabilitation receiver may employ
professionals and other experts and shall
consider them as his?
A. OFFICERS AND EMPLOYEES
B. INDEPENDENT CONTRACTORS AND OFFICERS
C. EMPLOYEES AND INDEPENDENT CONTRACTORS
D. OFFICERS AND MANAGEMENT COMMITTEE
D 40 An individual’s exercise of judgment was
materially influenced and/or is against any party

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to the proceedings.
A. PROFESSIONAL SKEPTICISM
B. PRODESSIONAL JUDGMENT
C. PROFESIONAL INTEREST
D. CONFLICT OF ITNEREST
D 41 The following shall not be subject to any action,
claim or demand in connection with any act done
or omitted to be done by them in good faith,
except;
A. MEMBERS OF THE MANAGEMENT COMMITTEE
B. ALL PERSONS EMPLOYED BY THE REHABILITATION
RECEIVER
C. REHABILITATION RECEIVER
D. CREDITOR
C 42 It is composed of a representative from each
class of creditor, such as secured creditors,
unsecured creditors, trade creditors and
suppliers and employees of the debtor.
A. CREDITORS’ ASSOCIATION
B. CREDITORS’ ORGANIZATION
C. CREDITORS’ COMMITTEE
D. CREDITORS’ GOVERNING BODY
B 43 Who shall the creditor’s committee assist in
communicating with the creditors and shall be the
primary liaison between the rehabilitation
receiver and the creditor?
A. DEBTOR’S MANAGEMENT
B. REHABILITATION RECEIVER
C. THE COURT
D. CREDITOR
B 44 The rehabilitation receiver shall establish a
preliminary registry of claims within 20 days
from his assumption into office and shall make
the registry for,
A. PRIVATE INSPECTION
B. PUBLIC INSPECTION
C. INTERNAL INSPECTION
D. THIRD PARTY INSPECTION
A 45 The following can submit a challenge to claim to
the court, serving a certified copy on the
rehabilitation receiver and the creditor holding
the challenged claims, except;
A. MANAGEMENT COMMITTEE
B. DEBTOR
C. CREDITOR
D. STAKEHOLDERS
C 46 Who can appeal any decision of the rehabilitation

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receiver regarding a claim?

A. CREDITORS’ COMMITTEE
B. SHAREHOLDERS
C. COURT
D. MANAGEMENT COMMITTEE
D 47 Statement 1: The management of the juridical
debtor shall remain with the existing management
the existing management subject to the applicable
laws and agreements.
Statement 2: All disbursement, payments or sale,
disposal, assignment, transfer or encumbrance of
property shall be subject to the approval of the
rehabilitation receiver and/or the court.
A. ONLY STATEMENT ONE IS CORRECT
B. ONLY STATEMENT TWO IS CORRECT
C. BOTH STATEMENT ARE INCORRECT
D. BOTH STATEMENT ARE CORRECT
C 48 No funds or property of the debtor shall be used
or disposed of except in the ordinary course of
business of the debtor or unless necessary,
A. TO FINANCE THE ADMINISTRATIVE EXPENSES OF
THE CREDITOR
B. TO FINANCE THE OPERATING EXPENSES OF THE
REHABILITATION RECEIVER
C. TO FINANCE THE ADMINISTRATIVE EXPENSES OF
THE REHABILITATION RECEIVER
D. TO FINANCE THE OPERATING EXPENSES OF THE
CREDITOR
A 49 Who can authorize the sale of unencumbered
property of the debtor outside the ordinary
course of the business upon showing that the
property is perishable?
A. COURT
B. REHABILITATION RECEIVER
C. CREDITOR
D. DEBTOR’S MANAGEMENT
D 50 It shall not give rise to any criminal liability
under applicable laws.
A. DONATION OF THE ENCUMBERED PROPERTY OF THE
DEBTOR
B. LIQUIDATION OF THE ASSETS OF THIRD PARTIES
HELD BY THE DEBTOR
C. SALE OF THE ASSETS OF THE CREDITOR HELD BY
THE DEBTOR
D. SALE OR DISPOSAL OF THE ENCUMBERED PROPERTY
OF THE DEBTOR
B 51 WHEN THE ASSETS OF DEBTOR ARE HELD BY THIRD

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PARTIES, THE REHABILITATION RECEIVER CAN DO THE

FOLLOWING, EXCEPT;
A. DEMAND THE SURRENDER OR THE TRANSFER OF THE
POSSESSION OR CONTROL OF SUCH PROPERTY TO
THE REHABILITATION RECEIVER OR ANY OTHER
PERSON
B. ALLOW THE ENCUMBERED PROPERTY TO BE
FORECLOSED UPON BY THE SECURED CREDITOR
ACCORDING TO THE RELEVANT AGREEMENT BETWEEN
THE DEBTOR AND THE SECURED CREDITOR
C. ALLOW SAID THIRD PARTIES TO RETAIN
POSSESSION OR CONTROL, IF SUCH AN
ARRANGEMENT WOULD MORE LIKELY PRESERVE OR
INCREASE THE VALUE OF THE PROPERTY IN
QUESTION OR THE TOTAL VALUE OF THE ASSETS OF
THE DEBTOR
D. UNDERTAKE ANY OTI1ER DISPOSITION OF THE SAID
PROPERTY AS MAY BE BENEFICIAL FOR THE
REHABILITATION OF THE DEBTOR, AFTER NOTICE
AND HEARING, AND APPROVAL OF THE COURT
B 52 Who can rescind or declare as null and void any
sale, payment, transfer or conveyance of the
debtor's unencumbered property or any
encumbering?
A. CREDITOR
B. COURT
C. REHABILITATION RECEIVER
D. DEBTOR’S COMMITTEE
A 53 What shall the court do if the asset held by the
debtor is subject to rapid obsolescence, and
depreciation cannot be avoided which jeopardizes
the property interest of the secured creditor?
A. ORDER THE CONVEYANCE TO THE SECURED CREDITOR
OR HOLDER OF AN OWNERSHIP INTEREST OF A LIEN
ON THE RESIDUAL FUNDS FROM THE SALE OF
ENCUMBERED PROPERTY DURING THE PROCEEDINGS;
B. ALLOW THE SALE OR DISPOSITION OF THE
PROPERTY: PROVIDED. THAT THE SALE OR
DISPOSITION WILL MINIMIZE THE VALUE OF THE
PROPERTY FOR THE BENEFIT OF THE SECURED
CREDITOR AND THE DEBTOR
C. WITH THE CONSENT OF THE AFFECTED SECURED
DEBTOR OR INTEREST OWNER. THEY SHOULD ORDER
THE CONVEYANCE OF A LIEN AGAINST OR
OWNERSHIP INTEREST IN SUBSTITUTE PROPERTY OF
THE CREDITOR TO THE SECURED DEBTOR
D. ALLOW THE ENCUMBERED PROPERTY TO BE

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FORECLOSED UPON BY THE SECURED CREDITOR

ACCORDING TO THE RELEVANT AGREEMENT BETWEEN
THE COURT AND THE SECURED DEBTOR
D 54 The rate and term of interest, if any, on secured
and unsecured claims shall be determined and
provided for in the approved ______.
A. CONTRACT AGREEMENT
B. ACTION PLAN
C. POST-COMMENCEMENT OBLIGATIONS
D. REHABILITATION PLAN
B 55 In order for the debtor to enhance its
rehabilitation, he\she may do the following with
the approval of the court, except;
A. ENTER INTO CREDIT ARRANGEMENTS
B. FOR PAYMENTS MADE TO REPURCHASE PROPERTY OF
THE DEBTOR THAT IS AUCTIONED OFF IN A
JUDICIAL OR EXTRAJUDICIAL SALE UNDER.
C. INCUR OTHER OBLIGATIONS AS MAY BE ESSENTIAL
FOR ITS REHABILITATION
D. ENTER INTO CREDIT ARRANGEMENTS, SECURED BY
MORTGAGES OF ITS UNENCUMBERED PROPERTY
C 56 What expense shall be included in the pre-
commencement claim?
A. COMPENSATION OF EMPLOYEES REQUIRED TO CARRY
ON THE BUSINESS
B. CLAIMS FOR SALARY AND SEPARATION PAY FOR
WORK PERFORMED AFTER THE COMMENCEMENT DATE
C. CLAIMS OF SEPARATION PAY FOR MONTHS WORKED
PRIOR TO THE COMMENCEMENT DATE
D. CLAIMS OF SEPARATION PAY FOR MONTHS WORKED
AFTER THE COMMENCEMENT DATE
C 57 Statement 1: All valid and subsisting contracts
of the debtor with creditors and other third
parties as at the commencement date shall
continue in force, unless cancelled by virtue of
a final judgment of a court of competent
jurisdiction issued prior to the issuance of the
Commencement Order
Statement 2: within ninety (90) days following
the commencement of proceedings, the debtor, with
the consent of the rehabilitation receiver, shall
notify each contractual counter-party of
whether it is confirming the particular contract.
A. ONLY STATEMENT 1 IS CORRECT
B. ONLY STATEMENT 2 IS CORRECT
C. BOTH STATEMENT ARE CORRECT
D. BOTH STATEMENT ARE INCORRECT

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B 58 This certain pre-commencement transactions can be

rescinded or declared null and void on the ground
that the was executed with intent to defraud.
A. ANY TRANSACTIONS OCCURRING AFTER THE
COMMENCEMENT DATE ENTERED INTO BY THE DEBTOR
B. ANY TRANSACTIONS OCCURRING PRIOR TO
COMMENCEMENT DATE ENTERED INTO BY THE DEBTOR
C. ANY TRANSACTIONS OCCURRING DURING THE
COMMENCEMENT DATE ENTERED INTO BY THE DEBTOR
D. ALL TRANSACTIONS OCCURRING PRIOR AND AFTER
THE COMMENCEMENT DATE ENTERED INTO BY THE
DEBTOR
A 59 The of the following is included in the actions
for rescission or nullity?
A. THE REHABILITATION RECEIVER OR, WITH HIS
CONFORMITY, ANY CREDITOR MAY INITIATE AND
PROSECUTE ANY ACTION TO RESCIND, OR DECLARE
NULL AND VOID ANY TRANSACTION
B. IF LEAVE OF COURT IS GRANTED, THE
REHABILITATION MANAGER SHALL ASSIGN AND
TRANSFER TO THE CREDITOR ALL RIGHTS, TITLE
AND INTEREST
C. ANY BENEFIT DERIVED FROM A PROCEEDING TAKEN
PURSUANT TO THE REHABILITATION RECEIVER
ORDER, TO THE EXTENT OF HIS CLAIM AND THE
COSTS, BELONGS EXCLUSIVELY TO THE CREDITOR
D. THE BENEFIT DERIVED FROM THE PROCEEDING, IF
INSTITUTED WITHIN THE TIME LIMITS SO FIXED,
BELONGS TO THE COURT
A 60 Statement 1: The issuance of the Commencement
Order and the Suspension or Stay Order shall not
be deemed in any way to diminish or impair the
security or lien of a secured creditor.
Statement 2: The secured creditor and/or the
other lien holders shall be admitted to the
rehabilitation proceedings more than the balance
of his claim, if any.
A. ONLY STATEMENT ONE IS TRUE
B. ONLY STATEMENT TWO IS TRUE
C. BOTH STATEMENT ARE TRUE
D. BOTH STATEMENT ARE FALSE
C 61 The following can show that a creditor shall be
deemed to lack adequate protection, except;
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

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COMMERCIALLY REASONABLE STEPS TO MAINTAIN

THE PROPERTY
C. THE PROPERTY HAD DIMINISHED VALUE LESS THAN
THE DEBTOR HAVE SECURED
D. THE PROPERTY HAS DEPRECIATED TO AN EXTENT
THAT THE CREDITOR IS UNDER SECURED
D 62 The following should be included in the contents
of the rehabilitation plan, except;
A. SPECIFY THE UNDERLYING ASSUMPTIONS, THE
FINANCIAL GOALS AND THE PROCEDURES PROPOSED
TO ACCOMPLISH SUCH GOALS
B. ESTABLISH SUBCLASSES OF VOTING CREDITORS IF
PRIOR APPROVAL HAS BEEN GRANTED BY THE COURT
C. ESTABLISH CLASSES OF VOTING CREDITORS
D. PROVIDE UNEQUAL TREATMENT OF ALL CLAIMS
WITHIN THE SAME CLASS OR SUBCLASS
C 63 If the court gives due course to the petition,
who shall the rehabilitation receiver confer
with, and may consider their views and proposals
ill the review, revision or preparation of a new
Rehabilitation Plan?
A. DEBTOR
B. SELECTED CLASSES OF CREDITORS
C. DEBTOR AND ALL THE CLASSES OF CREDITORS
D. MANAGEMENT COMMITTEE
D 64 Notwithstanding the rejection of the
Rehabilitation Plan, the court may confirm the
Rehabilitation Plan if all of the following
circumstances are present, except;
A. THE REHABILITATION RECEIVER RECOMMENDS THE
CONFIRMATION OF THE REHABILITATION PLAN
B. THE SHAREHOLDERS, OWNERS OR PARTNERS OF THE
JURIDICAL DEBTOR LOSE AT LEAST THEIR
CONTROLLING INTEREST AS A RESULT OF THE
REHABILITATION PLAN
C. THE REHABILITATION PLAN WOULD LIKELY PROVIDE
THE OBJECTING CLASS OF CREDITORS WITH
COMPENSATION WHICH HAS A NET PRESENT VALUE
GREATER THAN THAT WHICH THEY WOULD HAVE
RECEIVED IF THE DEBTOR WERE UNDER
LIQUIDATION
D. THE REHABILITATION PLAN NON-COMPLIANCE WITH
THE REQUIREMENTS
A 65 Statement 1: If the Rehabilitation Plan is
approved, the rehabilitation receiver shall
submit the same to the creditors for
confirmation.

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Statement 2: Within five (5) days from receipt

of the Rehabilitation Plan, the court shall
notify the debtors that the
Rehabilitation Plan has been submitted for
confirmation, and that any debtor may file an
objection.
A. BOTH STATEMENT ARE FALSE
B. BOTH STATEMENT ARE TRUE
C. ONLY STATEMENT ONE IS FALSE
D. ONLY STATATEMENT TWO IS FALSE
B 66 Who can file an objection to the Rehabilitation
Plan within twenty (20) days from receipt of
notice from the court that the Rehabilitation
Plan has been submitted for confirmation?
A. DEBTOR
B. CREDITOR
C. REHABILITATION RECEVIER
D. DEBTOR’S REPRESENTATIVE
C 67 Who shall the court order to cure the defect,
whenever feasible, if the court finds merit in
the objection of the rehabilitation plan?
A. ALL CLASSES OF CREDITOR
B. DEBTOR
C. REHABILITATION RECEIVER
D. CREDITOR’S REPRESENTATIVE
B 68 Who may confirm the Rehabilitation Plan
notwithstanding unresolved disputes over claims
if the Rehabilitation Plan has made adequate
provisions for paying such claims?
A. STOCKHODLERS
B. COURT
C. PARTNERS
D. OWNERS
B 69 The following are the effects of confirmation of
the rehabilitation plan except;
A. THE DEBTOR SHALL COMPLY WITH THE PROVISIONS
OF THE REHABILITATION PLAN AND SHALL TAKE
ALL ACTIONS NECESSARY TO CARRY OUT THE PLAN
B. PAYMENTS SHALL BE MADE TO THE CREDITORS IN
ACCORDANCE WITH THE DECISION OF THE CREDITOR
C. CLAIMS ARISING AFTER APPROVAL OF THE PLAN
THAT ARE OTHERWISE NOT TREATED BY THE PLAN
ARE NOT SUBJECT TO ANY SUSPENSION ORDER
D. ANY COMPROMISES ON AMOUNTS OR RESCHEDULING
OF TIMING OF PAYMENTS BY THE DEBTOR SHALL BE
BINDING ON CREDITORS REGARDLESS OF WHETHER
OR NOT THE PLAN IS SUCCESSFULLY IMPLEMENT

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A 70 What right of the creditor shall not be affected

when the court has approved the rehabilitation
plan?
A. RIGHT TO PURSUE ACTIONS AGAINST THE GENERAL
PARTNERS OF A PARTNERSHIP
B. RIGHT TO PURSUE ACTIONS AGAINST THE MEMBERS
OF A COOPERATIVE
C. RIGHT TO PURSUE ACTIONS AGAINST THE
SHAREHOLDERS OF A CORPORATION
D. RIGHT TO PURSUE ACTION AGIANST STAKEHOLDERS
OF A CORPORATION
A 71 What shall be the treatment of amounts for
indebtedness or obligations forgiven or reduced
in connection with the rehabilitation plan’s
approval?
A. SHALL NOT BE SUBJECT TO ANY TAX
B. FORGIVENESS OF DEBTS SHALL BE NULL AND VOID
C. SHALL BE SUBJECT TO TRANSFER TAX
D. FORGIVENESS OF INDEBTEDNESS BECAUSE OF
GRATUITOUS ACT SHALL BE VALID
D 72 Statement 1: - The court shall have a maximum
period of one (1) year from the date of the
filing of the petition to confirm a
Rehabilitation Plan.
Statement 2: If no Rehabilitation Plan is
confirmed within 2 years, the proceedings may
upon motion or motu propio, be converted into one
for the liquidation of the debtor.
A. BOTH STATEMENT ARE INCORRECT
B. BOTH STATEMENT ARE CORRECT
C. ONLY STATEMENT TWO IS CORRECT
D. ONLY STATEMENT ONE IS CORRECT
C 73 What shall the rehabilitation receiver provide to
the court, upon the confirmation of the
rehabilitation plan?
A. A WRITTEN REPORT
B. LIQUIDATION REPORT
C. FINAL REPORT AND ACCOUNTING
D. AUDIT AND ACCOUNTING REPORT
D 74 The following cases shows that there is a failure
of rehabilitation, except;
A. DISMISSAL OF THE PETITION BY THE COURT
B. THE DEBTOR FAILS TO SUBMIT A REHABILITATION
PLAN
C. THERE IS NO SUBSTANTIAL LIKELIHOOD THAT THE
DEBTOR CAN BE REHABILITATED WITHIN A
REASONABLE PERIOD

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D. THERE IS NO SUBSTANTIAL LIKELIHOOD THAT THE

CREDITOR CAN BE REHABILITATED WITHIN A
REASONABLE PERIOD
B 75 Statement 1: Termination of the proceedings
shall result in the discharge of the
rehabilitation receiver subject to his submission
of a final accounting.
Statement 2: Termination of the proceedings
shall result in the lifting of the Stay Order and
any other court order holding in abeyance any
action for the enforcement of a claim against the
debtor.
A. BOTH STATEMENT ARE FALSE
B. BOTH STATEMENT ARE TRUE
C. ONLY STATEMENT ONE IS FALSE
D. ONLY STATEMENT TWO IS FALSE
A 76 A petition from an insolvent debtor with the
court for the approval of a pre-negotiated
rehabilitation plan shall include the following,
except;
A. THE LIQUIDATION OF THE DEBTOR’S ASSETS
B. A SCHEDULE OF THE DEBTOR'S DEBTS AND
LIABILITIES
C. AN INVENTORY OF THE DEBTOR'S ASSETS
D. A SUMMARY OF DISPUTED CLAIMS AGAINST THE
DEBTOR AND A REPORT ON THE PROVISIONING OF
FUNDS TO ACCOUNT FOR APPROPRIATE PAYMENTS
SHOULD ANY SUCH CLAIMS BE RULED VALID OR
THEIR AMOUNTS ADJUSTED
A 77 The court shall issue an order which contains the
following within five working days, and after
determination that the petition is sufficient in
form and substance, except;
A. DECLARE THAT THE CREDITOR IS UNDER
REHABILITATION
B. IDENTIFY THE DEBTOR, ITS PRINCIPAL BUSINESS
OF ACTIVITY/IES AND ITS PRINCIPAL PLACE OF
BUSINESS
C. SUMMARIZE THE GROUND/S FOR THE FILLING OF
THE PETITION
D. STATE THAT COPIES OF THE PETITION AND THE
REHABILITATION PLAN ARE AVAILABLE FOR
EXAMINATION AND COPYING BY ANY INTERESTED
PARTY
D 78 Within ten days from the date of the _____ of the
Order, the court shall approve the Rehabilitation
Plan unless a creditor or other interested party

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submits an objection.
A. THIRD PUBLICATION
B. FOURTH PUBLICATION
C. FIRST PUBLICATION
D. SECOND PUBLICATION
B 79 Any creditor may submit to the court a verified
objection to the petition not later than eight
days from the date of the second publication.
The objection shall be limited to the following,
except;
A. THE ALLEGATIONS IN THE PETITION OR THE
REHABILITATION PLAN OR THE ATTACHMENTS
THERETO ARE MATERIALLY FALSE OR MISLEADING
B. THE SUPPORT OF THE DEBTOR AND CREDITOR, OR
ANY OF THEM WAS INDUCED BY FRAUD
C. THE REHABILITATION PLAN FAILS TO ACCURATELY
ACCOUNT FOR A CLAIM AGAINST THE DEBTOR AND
THE CLAIM IN NOT CATEGORICALLY DECLARED AS A
CONTESTED CLAIM
D. THE MAJORITY OF ANY CLASS OF CREDITORS DO
NOT IN FACT SUPPORT THE REHABILITATION PLAN
C 80 Statement 1: After receipt of an objection, the
court shall set the same for hearing. The date of
the hearing shall be no earlier than twenty (20)
days and no later than thirty (30) days from the
date of the second publication.
Statement 2: If the court finds merit in the
hearing on the objection, it shall direct the
debtor, when feasible to cure the detect within a
reasonable period.
A. ONLY STATEMENT ONE IS CORRECT
B. ONLY STATEMENT TWO IS CORRECT
C. BOTH STATEMENT ARE CORRECT
D. BOTH STATEMENT ARE INCORRECT
C 81 The court is given a maximum period of 120 days
from the date of the filing of the petition for
approval of rehabilitation plan. If the court
fails to act within the period given, what
happens to the rehabilitation plan?
A. NULL AND VOID
B. INVALID
C. DEEMED APPROVED
D. PERIOD IS EXTENDED
B 82 Statement 1: If during the approval of the
rehabilitation plan, there are no objections
filed within the relevant period or, if
objections are filed, the court finds them

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lacking in merit, or determines that the debtor

has complied with an order to cure the objection,
the court shall issue an order confirming the
Rehabilitation Plan.
Statement 2: For the avoidance of doubt, the
provisions of other laws to the contrary
notwithstanding, the court shall have the power
to approve or implement the Rehabilitation Plan
despite the lack of approval, or objection from
the owners, partners or stockholders of the
insolvent debtor.
A. BOTH STATEMENT ARE FALSE
B. BOTH STATEMENT ARE TRUE
C. ONLY STATEMENT ONE IS TRUE
D. ONLY STATEMENT TWO IS TRUE
C 83 An out-of-court or ________ or Rehabilitation
Plan that meets the minimum requirements is
hereby recognized as consistent with the
objectives of the act that provides for the
rehabilitation or liquidation of financially
distressed enterprises and individuals.
A. FORMAL RESTRUCTURING AGREEMENT
B. INFORMAL REFINANCING AGREEMENT
C. INFORMAL RESTRUCTURING AGREEMENT
D. FORMAL REFINANCING AGREEMENT
C 84 The following are the minimum requirements of
out-of-court or informal restructuring agreements
and rehabilitation plans, except;
A. IT MUST BE APPROVED BY CREDITORS
REPRESENTING AT LEAST SIXTY-SEVEN OF THE
SECURED OBLIGATIONS OF THE DEBTOR
B. IT MUST BE APPROVED BY CREDITORS
REPRESENTING AT LEAST SEVENTY-FIVE PERCENT
OF THE UNSECURED OBLIGATIONS OF THE DEBTOR
C. THE CREDITOR MUST AGREE TO THE OUT-OF-COURT
OR INFORMAL RESTRUCTURING/WORKOUT AGREEMENT
OR REHABILITATION PLAN
D. IT MUST BE APPROVED BY CREDITORS HOLDING AT
LEAST EIGHTY-FIVE PERCENT OF THE TOTAL
LIABILITIES, SECURED AND UNSECURED, OF THE
DEBTOR
D 85 It may be agreed upon by the parties pending
negotiation and finalization of the out-of-
court or informal restructuring/workout agreement
or Rehabilitation Plan.
A. AGREEMENT PERIOD
B. NOTICE PERIOD

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C. APRROVAL PERIOD
D. STANDSTILL PERIOD
D 86 Statement 1: The notice of the Rehabilitation
Plan or restructuring agreement or Plan shall be
published once a week for at least three (3)
consecutive weeks in a newspaper of general
circulation in the Philippines.
Statement 2: The Rehabilitation Plan or
restructuring agreement shall take effect prior
the lapse of fifteen (15) days from the date of
the last publication of the notice thereof.
A. BOTH STATEMENT ARE CORRECT
B. BOTH STATEMENT ARE INCORRECT
C. ONLY STATEMENT ONE IS INCORRECT
D. ONLY STATEMENT TWO IS INCORRECT
A 87 Any amendment or modification of an out-of-
court restructuring/workout agreement must be
made in accordance with the terms of the
agreement and with due notice to who?
A. ALL CREDITORS
B. DEBTOR
C. REHABILITATION RECEIVER
D. REHABILITATION RECEIVER AND THE COURT
C 88 Any court action arising from, or relating to,
Rehabilitation Plan shall not stay its
implementation, unless the relevant party is able
to secure a temporary restraining order or
injunctive relief from?
A. SUPREME COURT
B. THE COURT
C. THE COURT OF APPEALS
D. THE CHIEF JUSTICE
D 89 Who may seek court assistance for the execution
or implementation of a Rehabilitation Plan under
the out-of-court or informal restructuring
agreements or rehabilitation plans?
A. INSOLVENT DEBTOR
B. CREDITOR
C. INSOLVENT CREDITOR
D. INSOLVENT DEBTOR AND/OR CREDITOR
B 90 An insolvent debtor may apply for liquidation by
filing a petition for liquidation with the court.
The petition shall include the following, except;
A. A SCHEDULE OF THE DEBTOR'S DEBTS AND
LIABILITIES INCLUDING A LIST OF CREDITORS
WITH THEIR ADDRESSES, AMOUNTS OF CLAIMS AND
COLLATERALS, OR SECURITIES, IF ANY

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B. THE ESTATE OF THE DEBTOR

C. AN INVENTORY OF ALL ITS ASSETS INCLUDING
RECEIVABLES AND CLAIMS AGAINST THIRD PARTIES
D. THE NAMES OF AT LEAST THREE NOMINEES TO THE
POSITION OF LIQUIDATOR
D 91 Statement 1: Three (3) or more creditors the
aggregate of whose claims is at least either One
million pesos may apply for and seek the
liquidation of an insolvent debtor by filing a
petition for liquidation of the debtor with the
court.
Statement 2: At any time during the pendency of
or after a rehabilitation court-supervised or
pre-negotiated rehabilitation proceedings any
creditor may also initiate liquidation
proceedings.
A. BOTH STATEMENT ARE TRUE
B. BOTH STATEMENT ARE FALSE
C. ONLY STATEMENT ONE IS FALSE
D. ONLY STATEMENT TWO IS FALSE
B 92 During the pendency of court-supervised or pre-
negotiated rehabilitation proceedings, the court
may order ______.
A. THE DETERMINATION OF THE PETITION IF IT IS
MERITORIOUS, THEN COURT SHALL THE
LIQUIDATION ORDER
B. THE CONVERSION OF REHABILITATION PROCEEDINGS
TO LIQUIDATION PROCEEDINGS
C. DIRECTING THE DEBTOR AND ALL CREDITORS WHO
ARE NOT THE PETITIONERS TO FILE THEIR
COMMENT ON THE PETITION OR MOTION
D. DIRECTING THE PUBLICATION OF THE PETITION OR
MOTION IN A NEWSPAPER OF GENERAL CIRCULATION
ONCE A WEEK FOR TWO CONSECUTIVE WEEKS
C 93 The provisions provided on the liquidation of
insolvent juridical debtors shall not affect the
powers of what regulatory body of the government?
A. CENTRAL BANK OF THE PHILIPPINES
B. TARIFF COMMISSION
C. SECURITIES AND EXCHANGE COMMISSION
D. PROFESSIONAL REGULATION COMMISSION
A 94 Who may file a verified petition that he be
declared in the state of suspension of payments,
considering that he possesses a sufficient
property to cover all his debts but foreseeing
the impossibility of meeting them when they
respectively fall due?

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A. INDIVIDUAL DEBTOR
B. ALL CLASSES OF CREDITOR
C. REHABILITATION RECEIVER
D. SHAREHOLDERS
D 95 The court shall issue the following order, if the
petition was sufficient in form and substance,
except;
A. DIRECTING SUCH CREDITORS TO PREPARE AND
PRESENT WRITTEN EVIDENCE OF THEIR CLAIMS
BEFORE THE SCHEDULED CREDITORS' MEETING
B. APPOINTING A COMMISSIONER TO PRESIDE OVER
THE CREDITORS' MEETING
C. DIRECTING THE PUBLICATION OF THE SAID ORDER
IN A NEWSPAPER OF GENERAL CIRCULATION
PUBLISHED IN THE PROVINCE OR CITY IN WHICH
THE PETITION IS FILED
D. DIRECTING THE SECRETARY OF COURT TO CAUSE
THE SENDING OF A COPY OF THE ORDER BY
REGISTERED MAIL, POSTAGE PREPAID, TO ALL
CREDITORS NAMED IN THE SCHEDULE OF DEBTS AND
LIABILITIES
C 96 No creditor shall sue or institute proceedings to
collect his claim from the debtor from the time
of the filing of the petition for suspension of
payments and for as long as proceedings remain
pending except;
A. THOSE INDIVIDUAL DEBTORS HAVING CLAIMS FOR
PERSONAL LABOR, MAINTENANCE, EXPENSE OF LAST
ILLNESS
B. THOSE SHAREHOLDERS HAVING CLAIMS ON THE
FUNERAL OF THE WIFE OR CHILDREN OF THE
DEBTOR INCURRED IN THE SIXTY DAYS
IMMEDIATELY PRIOR TO THE FILING OF THE
PETITION
C. SECURED CREDITORS.
D. UNSECURED INDIVIDUAL DEBTORS
B 97 During a creditor’s meeting, if the clerk of
court will act as the secretary, then who shall
preside over the meeting?
A. COMMISSIONER APPOINTED BY THE CREDITOR
B. COMMISSIONER APPOINTED BY THE COURT
C. COMMISSIONER APPOINTED BY THE DEBTOR
D. COMMISSIONER APPOINTED BY THE REHABILITAION
RECEIVER
B 98 Who is the person that may refrain from attending
meeting and from voting, and shall not be bound
by any agreement determined upon at such meeting?

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A. INDIVIDUAL DEBTOR
B. CREDITORS
C. UNSECURED CREDITOR
D. STAKEHOLDERS
D 99 What happens to the proposed agreement concerning
the insolvency of individual debtors, if the
number of creditors required for holding a
meeting do not attend?
A. PROPOSED AGREEMENT SHALL BE VALID
B. DECISION ON PROPOSED AGREEMENTS DEPENDS ON
THE DISCRETION OF THE COURT
C. PROPOSED AGREEMENT WILL BE REASSESSED
D. PROPSED AGREEMENT SHALL BE DEEMED REJECTED
A 100 Statement 1: If the proposal of the individual
debtor, or any amendment thereof made during the
creditors' meeting, is approved by
the majority of creditors hereof, any creditor
who attended the meeting and who dissented from
and protested against the vote of the majority
may file an objection with the court.
Statement 2: In case the decision of the majority
of creditors to approve the individual
debtor's proposal or any amendment thereof made
during the creditors' meeting is annulled by the
court, the court shall declare the proceedings
terminated.
A. BOTH STATEMENT ARE TRUE
B. BOTH STATEMENT ARE FALSE
C. ONLY STATEMENT ONE ISS FALSE
D. ONLY STATEMENT TWO IS FALSE
D 101 If the decision of the ______ to approve the
proposed agreement or any amendment thereof made
during the creditors' meeting is uphold by the
court, and the court shall order that the
agreement be carried out and all parties bound
thereby to comply with its terms.
A. MINORITY OF THE DEBTORS
B. COURT
C. REHABILITATION RECEIVER
D. MAJORITY OF THE CREDITORS
C 102 If the individual debtor fails, wholly or in
part, to perform the agreement decided upon at
the meeting of the creditors, what happens to all
the rights which the creditors had against the
individual debtor before the agreement?
A. RIGHTS SHALL REVEST IN THE THIRD PARTY
B. RIGHTS SHALL REVEST IN THE DEBTOR

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C. RIGHTS SHALL REVEST IN THE CREDITOR

D. RIGHTS SHALL REVEST IN THE CREDITOR AND
DEBTOR
B 103 It is an act wherein the individual debtor’s
property is not sufficient to cover his
liabilities which is why he applied to be
discharged from his debts by filing a verified
petition with the court.
A. SOLVENCY
B. INSOLVENCY
C. LIQUIDITY
D. LONG TERM OBLIGATION
D 104 What shall the court issue within five working
day, if they find the petition sufficient in form
and substance?
A. COURT ORDER
B. APRROVAL ORDER
C. DECISION ON THE REHABILITATION PLAN
D. LIQUIDATION ORDER
B 105 The following shall be considered acts of
insolvency, except;
A. THAT BEING ABSENT FROM THE REPUBLIC OF THE
PHILIPPINES, WITH INTENT TO DEFRAUD HIS
CREDITORS, HE REMAINS ABSENT
B. THAT BEING A MERCHANT OR TRADESMAN, HE WAS
ABLE TO PAY HIS CURRENT OBLIGATIONS FOR A
PERIOD OF THIRTY DAYS
C. THAT SUCH PERSON IS ABOUT TO DEPART OR HAS
DEPARTED FROM THE REPUBLIC OF THE
PHILIPPINES, WITH INTENT TO DEFRAUD HIS
CREDITORS
D. THAT HE CONCEALS, OR IS REMOVING, ANY OF HIS
PROPERTY TO AVOID ITS BEING ATTACHED OR
TAKEN ON LEGAL PROCESS
D 106 Upon the filing of creditor’s petition, what
shall the court issue to the individual debtor?
A. ISSUE AN ORDER REQUIRING THE CREDITORS TO
SHOW CAUSE
B. ISSUE AN ORDER FORBIDDING THE INDIVIDUAL
DEBTOR FROM MAKING PAYMENTS OF ANY OF HIS
DEBTS
C. ISSUE AN ORDER ALLOWING THE INDIVIDUAL
DEBTOR TO QUESTION THE CREDITOR’S PETITION
D. ISSUE AN ORDER REQUIRING THE INDIVIDUAL
DEBTOR TO SHOW CAUSE, WHY HE SHOULD NOT BE
ADJUDGED AN INSOLVENT
A 107 The court shall issue the liquidation order if

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the ________ defaults or if, after trial, the

issues are found in favor of the _________.
A. INDIVIDUAL DEBTOR, PETITIONING CREDITOR
B. CREDITOR, DEBTOR
C. REHABILITATION RECEIVER, CREDITOR
D. DEBTOR, THIRD PARTY
C 108 In the absence of an individual debtor, the
petitioning creditor after submitting the
affidavits requisite to procedure an order of
publication, who shall be directed by the court
to satisfy the demands of the petitioning
creditor and the costs of the proceeding?
A. SECURED CREDITOR
B. REHABILITATION RECEIVER
C. SHERIFF OF THE PROVINCE
D. RELATIVES OF THE DEBTOR
D 109 ALL PROPERTY TAKEN INTO CUSTODY BY THE SHERIFF BY
VIRTUE OF THE GIVING OF ANY BONDS SHALL BE HELD
BY THE SHERIFF FOR THE BENEFIT OF WHOM?
A. SELECTED CREDITORS OF THE INDIVIDUAL DEBTOR
B. INDIVIDUAL DEBTOR
C. THE SHERIFF
D. ALL CREDITORS OF THE INDIVIDUAL DEBTOR
A 110 What shall the court order concerning the
property of the debtor, if proper affidavits and
bonds are presented to the court, obtaining an
order of publication and thereafter, the
petitioner shall make it appear satisfactorily to
the court that the interest of the parties will
be subserved?
A. PROPERTY TO BE SOLD IN THE SAME MANNER AS
PROPERTY IS SOLD UNDER EXECUTION
B. PROPERTY TO BE SOLD ONLY IF THE DEBTOR
AGREED
C. PROPERTY TO BE SOLD IF THE SALE IS DIFFERENT
FROM THE PROPERTY SOLD UNDER EXECUTION
D. PROPERTY REMAINS ON THE HANDS OF THE
INDIVIDUAL DEBTOR
B 111 Refer to a natural person who is a resident and
citizen of the Philippines that has become
insolvent. Also, it shall refer to a sole
proprietorship duly registered with the
Department of Trade and Industry (DTI, a
partnership duly registered with the Securities
and Exchange Commission (SEC), a corporation duly
organized and existing under Philippine laws.
A. CREDITOR

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B. DEBTOR
C. GROUP OF DEBTORS
D. CLASSES OF CREDITORS
A 112 The liquidation order shall include the following
orders, except;
A. DECLARE THE DEBTOR SOLVENT
B. ORDER THE LIQUIDATION OF THE DEBTOR AND, IN
THE CASE OF A JURIDICAL DEBTOR, DECLARE IT
AS DISSOLVED
C. DIRECT PAYMENTS OF ANY CLAIMS AND CONVEYANCE
OF ANY PROPERTY DUE THE DEBTOR TO THE
LIQUIDATOR
D. PROHIBIT PAYMENTS BY THE DEBTOR AND THE
TRANSFER OF ANY PROPERTY BY THE DEBTOR
C 113 The following are effects of the liquidation
order upon its issuance, except;
A. THE JURIDICAL DEBTOR SHALL BE DEEMED
DISSOLVED AND ITS CORPORATE OR JURIDICAL
EXISTENCE TERMINATED
B. LEGAL TITLE TO AND CONTROL OF ALL THE ASSETS
OF THE DEBTOR, EXCEPT THOSE THAT MAY BE
EXEMPT FROM EXECUTION, SHALL BE DEEMED
VESTED IN THE LIQUIDATOR OR, PENDING HIS
ELECTION OR APPOINTMENT, WITH THE COURT
C. FORECLOSURE PROCEEDING SHALL BE ALLOWED FOR
A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS
D. ALL CONTRACTS OF THE DEBTOR SHALL BE DEEMED
TERMINATED AND/OR BREACHED, UNLESS THE
LIQUIDATOR, WITHIN NINETY (90) DAYS FROM THE
DATE OF HIS ASSUMPTION OF OFFICE, DECLARES
OTHERWISE AND THE CONTRACTING PARTY AGREES
D 114 The issuance of liquidation order shall not
affect the rights to enforce a lien in accordance
with the applicable contract or law, whose rights
shall not be affected?
A. INDIVIDUAL DEBTOR
B. THE COURT
C. UNSECURED DEBTOR
D. SECURED CREDITOR
C 115 Who are allowed to vote in the election of
liquidator?
A. ANY PARTY INCLUDING THE THIRD PARTY WHO HAS
A MAJORITY CLAIMS ON THE DEBTOR
B. REHABILITATION RECEIVER WHO HAD AN AGREEMENT
WITH THE COURT
C. ONLY CREDITORS WHO HAVE FILED THEIR CLAIMS
WITHIN THE PERIOD SET BY THE COURT, AND

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WHOSE CLAIMS ARE NOT BARRED BY THE STATUTE

OF LIMITATIONS
D. ONLY DEBTORS WHO HAVE FILED THEIR CLAIMS
WITHIN THE PERIOD SET BY THE COURT, AND
WHOSE CLAIMS ARE NOT BARRED BY THE STATUTE
OF LIMITATIONS
A 116 The court has the power to appoint the liquidator
if:
A. THE CREDITORS WHO ATTEND, FAILED OR REFUSE
TO ELECT A LIQUIDATOR
B. AFTER BEING ELECTED, THE LIQUIDATOR IS
QUALIFIED
C. ON THE DATE SET FOR THE ELECTION OF THE
LIQUIDATOR, THE INDIVIDUAL DEBTOR DO NOT
ATTEND
D. THERE IS NO VACANCY ON THE LIQUIDATOR
POSITION
D 117 What shall the liquidator do prior to entering
upon his powers, duties and responsibilities?
A. FILE A REPORT REGARDING ALL THE ASSETS OF
THE DEBTOR
B. SELECT HIS ASSISTANT LIQUIDATOR
C. ADMINISTER THE LIABILITIES OF THE INDIVIDUAL
DEBTOR
D. TAKE AN OATH AND FILE A BOND
D 118 What happens to the elected liquidator if it came
to the mind of creditor’s that he doesn’t have
the qualifications to become one?
A. STAYS AS LIQUIDATOR UP TO THE AGREED PERIOD
OF HIS WORK
B. TRANSFERRED TO ANOTHER ORGANIZATION BUT WITH
SIMILAR POSITION
C. CONTINUES TO BE THE LIQUIDATOR ONLY UNTIL
THE DISCRETION OF THE CREDITOR AND DEBTOR
D. BE REMOVED IN HIS POSITION AT ANY TIME BY
THE COURT
B 119 Whose work is to preserve and maximize the value
and the recovery of assets of the debtor, with
the end of liquidating them and discharging to
the extent possible all the claims against the
debtor?
A. REHABILITATION RECEIVER
B. LIQUIDATOR
C. CREDITOR
D. SHERIFF
A 120 The liquidator and other people engaged to assist
him in his exercise of power is entitled with

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reasonable compensation as may be determined by

the liquidation court which shall not exceed the
maximum amount prescribed. Who prescribes the
maximum amount to be received by the liquidator?
A. SUPREME COURT
B. COURT OF APPELAS
C. CHIEF JUSTICE
D. CREDITOR
D 121 The following are reporting requirements given by
the liquidator, except;
A. SHALL MAKE AND KEEP A RECORD OF ALL MONEYS
RECEIVED AND ALL DISBURSEMENTS MAD BY HIM OR
UNDER HIS AUTHORITY AS LIQUIDATOR
B. RENDER A QUARTERLY REPORT THEREOF TO THE
COURT, WHICH REPORT SHALL BE MADE AVAILABLE
TO ALL INTERESTED PARTIES
C. LIQUIDATOR SHALL ALSO SUBMIT SUCH REPORTS AS
MAY BE REQUIRED BY THE COURT FROM TIME TO
TIME AS WELL AS A FINAL REPORT AT THE END OF
THE LIQUIDATION PROCEEDINGS
D. REPORTS ON THE PAYMENTS GIVEN TO CREDITORS
AND STOCKHOLDERS, AND TO TERMINATE THE
DEBTOR'S LEGAL EXISTENCE
B 122 Who shall the liquidator notify, either by
publication in a newspaper of general circulation
or other mode as the court may direct or allow,
in preparation for the final settlement of all
the claims against the debtor?
A. DEBTOR’S MANAGEMENT
B. ALL CREDITORS
C. MANAGEMENT COMMITTEE
D. SUPREME COURT
B 123 Statement 1: Within twenty (20) days from his
assumption into office the liquidator shall
prepare a preliminary registry of claims of
secured and unsecured creditors.
Statement 2: Secured creditors who have
waived their security or lien, or have fixed the
value of the property subject of their security
or lien by agreement with the liquidator and is
admitted as a creditor for the balance, shall be
considered as is-secured creditors.
A. ONLY STATEMENT ONE IS FALSE
B. ONLY STATEMENT TWO IS FALSE
C. BOTH STATEMENT ARE FALSE
D. BOTH STATEMENT ARE TRUE
C 124 What is the condition for the creditor and debtor

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be given the right of set-off on the debts?

A. SET-OFF IS NEVER ALLOWED
B. ALL CREDITORS HAVE AGREED ON THE SET-OFF OF
ONE DEBT AGINST THE OTHER
C. IF THE DEBTOR AND CREDITOR ARE MUTUALLY
DEBTOR AND CREDITOR OF EACH OTHER
D. IF THE DEBTOR ALLOWED THE SET-OFF
A 125 Statement 1: Within thirty (30) days from the
expiration of the period for filing of
applications for recognition of claims, concerned
parties may submit a challenge to claim or claims
to the court, serving a certified copy on the
liquidator and the creditor holding the
challenged claim.
Statement 2: Upon the expiration of the (30) day
period, the rehabilitation receiver shall submit
to the court the registry of claims containing
the undisputed claims that have not been subject
to challenge.
A. BOTH STATEMENT ARE TRUE
B. BOTH STATEMENT ARE FALSE
C. ONLY STATEMENT ONE IS FALSE
D. ONLY STATEMENT 2 IS FALSE
D 126 In case of disputed claims, who shall resolve the
dispute and submit his findings to the court for
final approval?
A. LIQUIDATOR
B. DEBTOR
C. CREDITOR
D. REPRESENTATIVE OF BOTH PARTY
C 127 What happens to transactions that occurred prior
to the issuance of the liquidation order, entered
into by the debtor involving its assets?
A. VALID TRANSACTIONS
B. VOIDABLE TRANSCATION
C. NULL AND VOID TRANSACTIONS
D. REASSESSED BY THE COURT
A 128 The following are actions for rescission or
nullity, except;
A. THE LIQUIDATOR SHALL ASSIGN AND TRANSFER TO
THE DEBTOR ALL RIGHTS, TITLE AND INTEREST IN
THE CHOSE IN ACTION OR SUBJECT MATTER OF THE
PROCEEDING, INCLUDING ANY DOCUMENT IN
SUPPORT THEREOF
B. THE LIQUIDATOR OR, WITH HIS CONFORMITY, A
CREDITOR MAY INITIATE AND PROSECUTE ANY
ACTION TO RESCIND, OR DECLARE NULL AND VOID

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ANY TRANSACTION
C. WHERE, BEFORE AN ORDER CONCERNING THE ACTION
OF RESCISSION, THE LIQUIDATOR SIGNIFIES TO
THE COURT HIS READINESS TO THE INSTITUTE THE
PROCEEDING FOR THE BENEFIT OF THE CREDITORS
D. ANY BENEFIT DERIVED FROM THE RESCISSION OF
ANY TRANSACTION, TO THE EXTENT OF HIS CLAIM
AND THE COSTS, BELONGS EXCLUSIVELY TO THE
CREDITOR INSTITUTING THE PROCEEDING, AND THE
SURPLUS, IF ANY, BELONGS TO THE ESTATE
D 129 Within three (3) months from the liquidator’s
assumption into office, what shall he submit to
the court, wherein as a minimum it shall
enumerate all the assets of the debtor and a
schedule of liquidation of the assets and payment
of the claims?
A. REHABALITATION PLAN
B. INSOLVENCY PLAN
C. AGREEMENT PLAN
D. LIQUIDATION PLAN
D 130 Statement 1: It shall be the duty of the
liquidator, upon petition and after hearing, to
exempt and set apart, for the use and benefit of
the said insolvent, such real and personal
property as is by law exempt from execution, and
also a homestead.
Statement 2: No petition shall be heard as
aforesaid until it is first proved that notice of
the hearing of the application therefor has been
duly given by the clerk, by causing such notice
to be posted it at least three public places in
the province or city at least ten days prior to
the time of such hearing.
A. BOTH STATEMENT ARE INCORRECT
B. BOTH STATEMENT ARE CORRECT
C. ONLY STATEMENT ONE IS CORRECT
D. ONLY STATEMENT TWO IS CORRECT
B 131 What asset of the debtor shall the liquidator
sell to convert it into money, and can also be
conveyed to a creditor in satisfaction of his
claim or part?
A. ENCUMBERED ASSET
B. UNENCUMBERED ASSET
C. ALL LIQUID ASSETS
D. ALL NONCURRENT ASSETS
A 132 Who shall approve the liquidation plan that will
be implemented by the liquidator?

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A. COURT OR JDUGE
B. CREDITOR
C. DEBTOR
D. REHABILITATIONR RECEIVER
B 133 The Liquidation Plan and its Implementation shall
ensure that the concurrence and preference of
credits as enumerated in the Civil Code of the
Philippines and other relevant laws shall be
observed, unless _____.
A. AN INDIVIDUAL DEBTOR VOLUNTARILY WAIVES HIS
PREFERRED RIGHT
B. A PREFERRED CREDITOR VOLUNTARILY WAIVES HIS
PREFERRED RIGHT
C. A PREFERRED CREDITOR VOLUNTARILY WAIVES HIS
ORDINARY RIGHT
D. AN INDIVIDUAL DEBTOR CREDITOR VOLUNTARILY
WAIVES HIS ORDINARY RIGHT
A 134 If the liquidation has been completed and proven
to be in accordance with the laws, who shall the
court order to remove the debtor from the
registry of legal entities?
A. SECURITIES AND EXCHANGE COMMISSION
B. DEPARTMENT OF TRADE AND INDUSTRY
C. BUREAU OF INTERNAL REVENUE
D. DEPARTMENT OF FINANCE
D 135 What shall the court order if upon the receipt of
evidence, it shows that the debtor has been
removed from the registry of legal entities at
the Securities and Exchange Commission?
A. BEGINNING OF THE PROCEEDINGS
B. ORDER A MEETING FOR CREDITORS AND DEBTOR
C. COLLECTION OF MORE SUFFICIENT AND
APPROPRIATE EVIDENCE
D. TERMINATION OF PROCEEDINGS
C 136 It includes cash, securities, trading right and
other owned and used by the securities market
participant in the ordinary course of the
business.
A. ASSETS
B. FINANCE-RELATED ASSETS
C. TRADE-RELATED ASSETS
D. CURRENT ASSETS
B 137 The court shall issue orders, adjudicate claims
and provide other relief necessary to assist in
the liquidation of a financial under
rehabilitation receivership established by ____.
A. AN ESTATE-FUNDED OR ESTATE-MANDATED

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INSURANCE SYSTEM
B. A STATE-FUNDED OR STATE-MANDATED INSURANCE
SYSTEM
C. A TRUST-FUNDED OR TRUST-MANDATED INSURANCE
SYSTEM
D. AN EXTRAJUDICIALLY STATE-FUNDED OR
JUDICIALLY STATE-MANDATED INSURANCE SYSTEM
D 138 What shall determine the liquidation of bank,
financial institutions, insurance companies and
pre-need companies?
A. COURT DECISION
B. CONCERNED PARTIES
C. LIQUIDATOR
D. RELEVANT LEGISLATION
A 139 It is designed to assist States in reforming and
modernizing their laws on arbitral procedure so
as to take into account the particular features
and needs of international commercial
arbitration.
A. UNCITRAL MODEL LAW
B. CROSS-BORDER INSOLVENCY
C. INSOLVENCY MODEL
D. ARBITRAL MODEL LAW
D 140 Statement 1: The court shall set a hearing in
connection with an insolvency or rehabilitation
proceeding taking place in a foreign
jurisdiction.
Statement 2: the representative of the foreign
entity is responsible for the submission of a
petition which is considered as the subject of
the foreign proceeding
A. ONLY STATEMENT ONE IS TRUE
B. ONLY STATEMENT TWO IS TRUE
C. BOTH STATEMENT ARE FALSE
D. BOTH STATEMENT ARE TRUE
C 141 In the provision of relief, the court may issue
the following orders, except;
A. SUSPENDING ANY ACTION TO ENFORCE CLAIMS
AGAINST THE ENTITY OR OTHERWISE SEIZE OR
FORECLOSE ON PROPERTY OF THE FOREIGN ENTITY
LOCATED IN THE PHILIPPINES
B. REQUIRING THE SURRENDER PROPERTY OF THE
FOREIGN ENTITY TO THE FOREIGN REPRESENTATIVE
C. THE PROTECTION OF CREDITORS IN THE
PHILIPPINES AND THE INCONVENIENCE IN
PURSUING THEIR CLAIM IN A FOREIGN PROCEEDING
D. PROVIDING OTHER NECESSARY RELIEF

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D 142 The following are the factors that will be

considered by the court in granting a relief,
except;
A. THE EXTENT THAT THE FOREIGN PROCEEDING HAS
RECOGNIZED AND SHOWN DEFERENCE TO
PROCEEDINGS UNDER THIS ACT AND PREVIOUS
LEGISLATION
B. WHETHER OTHER JURISDICTIONS HAVE GIVEN
RECOGNITION TO THE FOREIGN PROCEEDING
C. THE JUST TREATMENT OF ALL CREDITORS THROUGH
RESORT TO A UNIFIED INSOLVENCY OR
REHABILITATION PROCEEDINGS
D. WHETHER TO PROVIDE UNNECESSARY RELIEF
A 143 What government agency shall promulgate the rules
and for the use and release of funds for
rehabilitation of government-owned and controlled
corporations?
A. DEPARTMENT OF FINANCE, IN COLLABORATION WITH
THE DEPARTMENT OF BUDGET AND MANAGEMENT
B. DEPARTMENT OF TRADE AND INDUSTRY, IN
COLLABORATION WITH THE DEPARTMENT OF FINANCE
C. DEPARTMENT OF BUDGET AND MANAGEMENT, IN
COLLABORATION WITH THE CORPORATION
D. DEPARTMENT OF FINANCE, IN COLLABORATION WITH
THE MANAGEMENT COMMITTEE
D 144 Statement 1: The provisions about court-
supervised rehabilitation, insofar as they are
applicable, shall likewise apply to proceedings
regarding pre-negotiated rehabilitation.
statement 2: The provisions about court-
supervised rehabilitation, insofar as they are
applicable, shall likewise apply to proceedings
concerning the out-of-court or informal
restructuring agreements or rehabilitation plans.
A. ONLY STATEMENT ONE IS INCORRECT
B. ONLY STATEMENT TWO IS INCORRECT
C. BOTH STATEMENT ARE INCORRECT
D. BOTH STATEMENT ARE CORRECT
B 145 The following acts committed by owners, partners,
directors or other employee of the debtor is
punishable upon conviction, except;
A. IF HE SHALL KNOWINGLY VIOLATE A PROHIBITION
OR KNOWINGLY FAIL TO UNDERTAKE AN OBLIGATION
ESTABLISHED BY THIS ACT, THE ACT PROVIDING
FOR THE REHABILITATION OR LIQUIDATION OF
FINANCIALLY DISTRESSED ENTERPRISES AND
INDIVIDUALS

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B. IF HE SHALL, WITHOUT KNOWLEDGE BELIEF OF ANY

PERSON HAVING PROVED A FALSE OR FICTITIOUS
CLAIM AGAINST THE DEBTOR, FAIL TO DISCLOSE
THE SAME TO THE REHABILITATION RECEIVER OF
LIQUIDATOR
C. IF HE SHALL, HAVING NOTICE OF THE
COMMENCEMENT OF THE PROCEEDINGS, OR HAVING
REASON TO BELIEVE THAT PROCEEDINGS ARE ABOUT
TO BE COMMENTED, OR IN CONTEMPLATION OF THE
PROCEEDINGS HIDE OR CONCEAL
D. IF HE SHALL, HAVING KNOWLEDGE BELIEF OF ANY
PERSON HAVING PROVED A FALSE OR FICTITIOUS
CLAIM AGAINST THE DEBTOR, FAIL TO DISCLOSE
THE SAME TO THE REHABILITATION RECEIVER OF
LIQUIDATOR
D 146 This act providing for the rehabilitation or
liquidation of financially distressed enterprises
and individuals shall govern all petitions filed
after it has taken effect. All further
proceedings in insolvency, suspension of payments
and rehabilitation cases then pending, except;
A. TO THE EXTENT THAT IN OPINION OF THE COURT
THEIR APPLICATION WOULD NOT BE FEASIBLE OR
WOULD WORK INJUSTICE, IN HERE PRIOR LAWS
SHALL APPLY
B. TO THE EXTENT THAT IN OPINION OF THE COURT
THEIR APPLICATION BE FEASIBLE OR WOULD WORK
JUSTICE
C. IF HE SHALL ATTEMPT TO ACCOUNT FOR ANY OF
THE DEBTOR’S PROPERTY BY FICTITIOUS LOSSES
OR EXPENSE
D. IF HE SHALL, WITH INTENT TO DEFRAUD THE
CREDITORS OF THE DEBTOR, MAKE ANY PAYMENT
SALE, ASSIGNMENT, TRANSFER OR CONVEYANCE OF
ANY PROPERTY BELONGINGS TO THE DEBTOR
B 147 This act of providing for the rehabilitation or
liquidation of financially distressed enterprises
and individuals shall apply to ____ of the debtor
regardless of the date of perfection.
A. LIMITED CONTRACTS
B. ALL CONTRACTS
C. MAJORITY CONTRACTS
D. SELECTED CONTRACTS
A 148 It is a clause in a statute repealing a previous
enactment. For example, the insolvency law as
amended is hereby repealed.
A. REPEALING CLAUSE

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B. REPEATING CLAUSE
C. AMENDING CLAUSE
D. PROVISIONAL CLAUSE
D 149 If any provision of the documents shall be
invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining
provisions shall not in any way be affected or
impaired thereby, this process is called?
A. UNSEPARABLE CLAUSE
B. RELATED PROVISIONS
C. SEVERABILITY CLAUSE
D. SEPARABILITY CLAUSE
B 150 Statement 1: This Act shall take effect fifteen
days after its incomplete publication in the
Official Gazette.
Statement 2: This Act shall take effect fifteen
days after its complete publication in at least
two national newspaper of general circulation.
A. ONLY STATEMENT ONE IS TRUE
B. ONLY STATEMENT TWO IS TRUE
C. BOTH STATEMENT ARE TRUE
D. BOTH STATEMENT ARE FALSE

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