REGULATORY FRAMEWORK BUSINESS TRANSACTIONS MAY 2025 BATCH

FINAL PRE- BOARD EXAMINATION MAY 3, 2025; 4:00-7:00PM

INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only
one answer for each item by writing a SHADING corresponding to the letter of your choice on
the answer sheet.

1. Which of the following illustrates a correct prescriptive period?

A. The prescriptive period of the right to file an action based on quasi-delict is 6 years
from the time of the accident.
B. The prescriptive period of the right to file an action based on quasi-contract is 4 years
from the time somebody was unjustly enriched at the expense of another person
C. The right to sue for annulment of contract based on fraud in consent prescribes in 4
years from discovery of fraud.
D. The right to rescind contract on the ground of lesion of more than ¼ caused by the
guardian and suffered by the was prescribes in 4 years from perfection of the contact

2. Which of the following statements is correct?

A. The receipt of the interest of a loan by the creditor, shall give rise to conclusive
presumption that the creditor is paid as to the principal amount.
B. The receipt of the principal loan by the creditor, shall give rise to a disputable
presumption that all interests have been paid.
C. A bystander who was hurt in a vehicular accident caused by the driver of a public
utility bus may file a suit against the operator for damage for culpa contractual.
D. A bystander who help to return the purse of the old lady which fell when the lady
was boarding a jeepney is entitled to ask for reimbursement of expenses under the
principle of negotiorum gestio

3. Amy is indebted to Benny for Php10m and Cory for Php5m. Amy requested Donny to pay
Cory who voluntarily accepted the payment. Supposed Amy is insolvent and all her
remaining properties were sold in an auction at Php3m only. Which of the following is
correct?
A. Benny will get the Php3m
B. Donny will get the Php3m
C. Benny and Donny will get Php1.5m each
D. Benny will get Php2m and Donny will get Php1m

4. Charleston promised to give his dog ‘Bailey’ to Carlo to be delivered on May 31, 2025.
Which of the following is correct?
A. The diligence that should be observed in this case is extra-ordinary diligence
B. The place of delivery should either be in the residence or business of Carlo
C. Loss of ‘Bailey’ after May 31, 2025 but before delivery will make Charleston liable
regardless of the cause of loss.
D. Carlo cannot recover ‘Bailey’ from a third person who received the delivery of the
same in good faith from Charleston after the perfection of the contract between Carlo
and Charleston
CRC-ACE/RFBT: Final Pre-board Examinations – MAY 2025 batch Page 2

5. Amy, Benny, and Cory are joint debtors. They obliged themselves to deliver a specific dog
named “Spot” worth Php12,000 to Donny and Ely, joint creditors.

Assuming Cory is the only one who does not want to comply with the obligation, how
much is the total amount that can be collected from him by the creditors?
A. Php12,000 C. Php12,000 plus damages
B. Php4,000 D. Php4,000 plus damages

6. Amy promised a pig named “Peggy” to Benny. No condition or period was contemplated.
After the perfection of the contract but before the delivery, “Peggy” gave birth to 6 piglets.
Who is entitled to the 6 piglets?
A. Amy C. Amy and Benny jointly
B. Benny D. Amy and Benny solidarily

7. Amy owes Benny Php1M due on May 14, 2025. Amy mortgaged her car by way of a
registered chattel mortgage to Benny as guaranty for the debt. On May 1, 2025, the car was
completely destroyed by an accidental fire. Three days after, Benny demanded payment
from Amy. Is the demand valid?
A. Yes, the debt becomes demandable because the mortgage established is for the
benefit of the creditor.
B. Yes, the debt becomes demandable because the collateral was lost
C. No, because the obligation is one with a definite period and the demand would be
prejudicial to the rights of the debtor.
D. No, the obligation is extinguished because the object of the obligation is lost thru a
fortuitous event.

8. Amy borrowed P1m from Benny. Benny filed an action to collect a sum of money against
Amy which resulted to the issuance of writ of attachment. The car of Amy was the first to
be attached by the sheriff but the obligation was not yet fully satisfied. Afterwards, Amy
sold and delivered her Yamaha grand piano to Cory.

What is the status of contract between AMy and Cory.

A. Voidable B. Rescissible C. Perfectly valid D. Unenforceable

9. Which of the following is void?

A. Donation of a car worth Php200k written only in Ilocano dialect
B. Partnership contract orally constituted where all partners contributed cash
C. Stipulation in an oral contract of loan to pay a monthly interest of 1% of the
principal amount until the loan is paid in full
D. Contract of sale between two insane persons embodied in a public instrument

10. These contracts are presented to you:

I. A written contract of lease for two years constituted over a house and lot
II. A notarized deed of donation over a house and lot entered into by a person after he has
taken an alcoholic drink.
III. An oral contract of sale of a piece of furniture for Php500 entered into by an insane
person during lucid interval

What is the status of the foregoing contracts?

A. I, valid; II, voidable; III, void
B. I, valid; II, valid; III, unenforceable.
C. I, voidable; II unenforceable; III voidable.
D. I, voidable; II, voidable; III, void

11. Linda and Nilda agreed on a certain contract of sale, but Linda fraudulently made a
document reciting a contract of donation. Later both Linda and Nilda died. Which is
correct?
A. The heirs of Linda may bring an action to reform the instrument but not the heirs of
Nilda
CRC-ACE/RFBT: Final Pre-board Examinations – MAY 2025 batch Page 3

B. The heirs of Nilda may bring an action to reform the instrument but not the heirs of
Linda
C. Either the heirs of Linda or Nilda may bring an action to reform the instrument
D. Nobody’s heirs can ask for reformation because the contract was deemed void upon
death of Linda and Nilda

12. Before acceptance of an offer, the offeree suffered insanity. What will be the status of the
contract?
A. Still valid
B. Unenforceable
C. Void or inexistent
D. Voidable because of incapacity to give consent

13. Which of the following can be extinguished by annulment of contract?

A. Amy and Benny who are both unemancipated minors entered into a contract of sale
in writing.
B. Amy to defraud her creditor Benny pretended to sell her house and lot to Cory.
C. Amy and Benny entered into a written contract of sale involving Mayon volcano
D. Amy intimidated Benny to marry Amy’s daughter, Dolly.

14. Benny had Donny kidnapped and tortured for refusing to sell his land to the former.
Donny who could no longer bear the physical pains inflicted upon him signed a document
of sale in favor of Benny. In this case:
A. The sale is void because Benny committed a crime
B. The sale is voidable because of intimidation which is a vice of consent
C. The sale may be annulled within four years from the time the vice of consent ceased
or ended
D. The sale is valid but unenforceable.

15. Amy sold her dog ‘Peaches’ to Benny on March 31, 2025 to be paid and delivered on May
31, 2005. Which of the following is correct?
A. Amy is obligated to take care of ‘Peaches’ with extra-ordinary diligence
B. The place of delivery of ‘Peaches’ will be at either the home or office of Benny
C. Amy is obligated to get an insurance over the dog to protect Benny
D. If ‘Peaches’ gives birth to puppies after March 31, 2025 and Amy delivered the
puppies to a third person who has no knowledge that Amy is obligated to Benny, such
third person’s right over the dog will prevail as against Benny.

16. Donny bought a brand-new Yamaha NMAX motorcycle and the same was subjected to a
chattel mortgage. The Selling price is Php150k and Donny paid Php50k as down payment
and the balance of Php100k is payable 30 days after delivery. Upon failure of Donny to pay
the balance, the seller sold in a public auction the motorcycle to the highest bidder for
Php60k. In This case:
A. The seller can still collect the deficiency of Php40k.
B. The seller cannot collect the deficiency of Php40k unless stipulated
C. The seller cannot collect the deficiency of Php40k even if stipulated.
D. It was improper to collect the deficiency after foreclosure of the chattel mortgage
because it will be unconscionable.

17. Which of the following is not a characteristic of a contract of pledge?

A. Real C. Unilateral
B. Accessory D. Consensual

18. Cory sold to Amy an Apple Pro Mac Book for Php120,000 payable in 6 equal monthly
installments beginning October 1, 2024 and every 1st day of each month thereafter. The
contract provides that upon failure to pay any installment due, the whole balance becomes
due and demandable. To secure the obligation, a chattel mortgage over the laptop was
executed. Amy defaulted on the 3rd and 4th installments.
CRC-ACE/RFBT: Final Pre-board Examinations – MAY 2025 batch Page 4

Which of the following is not correct?

A. If Cory foreclosed the mortgage and sold at a public sale to recover the balance, she
can no longer recover any deficiency if there is any.
B. Cory can cancel the sale and forfeit the installments paid
C. Cory can sue Amy and demand payment of the total unpaid balance
D. Cory may rescind the contract

19. The following statements are presented to you.

I. The guarantor is solidarily liable with the debtor
II. The guarantor is jointly liable with the debtor
III. The guarantor is subsidiarily liable with the debtor
IV. The surety is solidarily obligation with the debtor
A. I and II are correct
B. II and III are correct
C. III and IV are correct
D. I and IV are correct

20. Benny pledged his gold bracelet to Donny for Php10,000. On due date, Benny failed to
redeem his bracelet. Donny sold the bracelet at a public auction to the highest bidder at
Php9,000. In this case:
A. Donny can recover the deficiency of Php1,000 and run after Benny’s properties.
B. Donny cannot recover the deficiency of Php1,000 unless there is a stipulation to the
contrary.
C. Donny cannot recover the deficiency of Php1,000. Any stipulation to the contrary is
void.
D. Donny can recover the deficiency of Php1,000 as a matter of right.

21. Which the following brand-new motor vehicles are covered by the Philippine Lemon Law?
A. E-bikes C. Coupes
B. Forklifts D. Dump trucks

22. This is the right of the consumer to be compensated for misinterpretation, shoddy goods,
or unsatisfactory services:
A. Right to Information
B. Right to Redress
C. Right to Consumer Education
D. Right to Representation

23. Which of the following is true?

A. There must be criminal intent on the part of the issuer of the check to be liable under
B.P. 22
B. What is being penalized under B.P. 22 is not the non-payment of the monetary
obligation
C. Fraud is an element common to a violation of B.P. 22 and Estafa
D. Good faith is a valid defense under B.P. 22 but not in Estafa

24. Under R.A. 3765 or the Truth in Lending Act According to the Truth in Lending Act, prior
to the consummation of the transaction, the creditor shall furnish all the following
information except:
A. Service charges incident to the extension of credit
B. Down payment to be credited
C. Percentage that the finance charges bear to the amount to be financed.
D. The manner how payment should be made by the borrower.

25. The simple annual interest charged on Amy’s loan is 3%. If her outstanding balance is
Php1,500,how much shall she be entitled to if the creditor had failed to disclose any
information in violation of the Truth in Lending Act?
A. Php90 C. Php100
B. Php2000 D. Php3,000
CRC-ACE/RFBT: Final Pre-board Examinations – MAY 2025 batch Page 5

26. Under the Philippine Competition Act, mergers or acquisition covered by compulsory
notification are prohibited from consummating their agreement within how many days
after providing notice of such merger or acquisition to the Philippine Competition
Commission?
A. 60 days
B. 6 months
C. 3 months
D. 30 days

27. Under R.A. 7394 or the Consumer Act of the Philippines, this word should be indicated on
products and substances which are extremely flammable:
A. Caveat
B. Keep out of reach of children
C. Danger
D. Caution flammable

28. Under the Consumer Protection Act, Service Firms shall guarantee workmanship and
replacement of spare parts for a period:
A. Not less than 60 days
B. Not less than 90 days
C. Not less than 60 days nor more than 90 days
D. Not less than 90 days nor more than 120 days

29. Under the Government procurement Act, a prospective bidder is required to submit a
sworn affidavit that he/she is not related to the Head of the Procuring Entity within the
_____ degree of consanguinity or affinity:
A. 2nd C. 4th
B. 3rd D. 5th

30. This comprises the area in which the entity concerned is involved in the supply and
demand of goods and services, in which the conditions of competition are sufficiently
homogenous, and which can be distinguished from neighboring areas because the
conditions of competition are different in those areas.
A. Relevant market
B. Relevant product market
C. Relevant geographic market
D. Relevant conditional market

31. It Refers to the acquisition of goods, consulting services, and the contracting for
infrastructure projects by the Procuring Entity. In case of projects involving mixed
procurements, the nature of the procurement, i.e. Goods, Infrastructure Projects or
Consulting Services, shall be determined based on the primary purpose of the contract. It
shall also include the lease of goods and real estate.

With respect to real property, its procurement shall be governed by the provisions of R.A.
10752 and other applicable laws, rules and regulations.
A. Procuring Entity C. Procurement
B. Portal D. Buy and sell

32. Under the Truth in Lending Act, finance charges shall be expressed:
A. in terms of pesos and centavos
B. in a simple annual rate
C. in a compounded annual rate
D. in any currency

33. Under the Lemon Law, how many repair attempts should the consumer allow the seller?
A. No maximum number of attempts but must be within 12 months from delivery
B. At least 1 repair attempt for the first 20,000 km.
C. At least 4 separate repair attempts
CRC-ACE/RFBT: Final Pre-board Examinations – MAY 2025 batch Page 6

D. At least 3 separate repair attempts

34. Under Batas Pambansa Blg. 22 punishing the act of issuing worthless checks, it is
presumed that the issuer of a check knew about the insufficiency of funds if he fails to pay
or make arrangement for the payment of the check within
A. 3 days from dishonor
B. 5 days from dishonor
C. 3 days from notice of dishonor
D. 5 days from notice of dishonor

35. Who has no right to inspect the books of the partnership?

A. Ostensible partner
B. Silent partner
C. Dormant partner
D. Nominal partner

36. This is first in the order of preference in the liquidation of a General Partnership:
A. Outside creditors
B. Partners as creditors
C. Partners’ capital
D. Partners’ profits

37. Amy, Benny and Corry formed a partnership. Amy and Benny contributed Php1m each
while Cory is the industrial partner. There is no stipulation regarding profits and losses.
The partnership suffered a Php300k loss. The loss shall be shared by the partners as
follows:
A. Amy – Php150k Benny – Php150k Cory – Php0
B. Amy – Php100k Benny – Php100k Cory – Php100k
C. Amy – Php200k Benny – Php100k Cory – Php0
D. Amy – Php100k Benny – Php200k Cory – Php0

38. Amy, Benny and Corry formed a partnership. Amy and Benny contributed Php1m each
while Cory is the industrial partner. There is no stipulation regarding profits and losses.
The partnership was dissolved after suffering from severe losses. Donny is a creditor of the
partnership who is now running after the separate properties of the partners. How should
the credit of Donny in the amount of Php300k be distributed between the partners?
A. Amy – Php150k Benny – Php150k Cory – Php0
B. Amy – Php100k Benny – Php100k Cory – Php100k
C. Amy – Php200k Benny – Php100k Cory – Php0
D. Amy – Php100k Benny – Php200k Cory – Php0

39. Amy, Benny and Corry formed a partnership. Amy contributed Php2m, Benny
contributed Php1m while Cory is the industrial partner. There is no stipulation regarding
profits and losses. The partnership earnedPhp300k profit. The profit shall be shared by the
partners as follows:
A. Amy – Php150k Benny – Php150k Cory – Php0
B. Amy – Php100k Benny – Php100k Cory – Php100k
C. Amy – Php150k Benny – Php75k Cory – Php75k
D. Amy – Php112.5k Benny – Php112.5k Cory – Php75k

40. Amy, Benny, Cory and Donny formed a limited partnership. Amy, Benny and Cory were
capitalist partners who contributed Php1m each. Cory is a limited partner while Donny is
the industrial partner. In 2024, the partnership incurred a net loss of Php1.5m. In 2025,
the partners dissolved the partnership. The proceeds of the sale of partnership assets were
insufficient to settle its obligation. After liquidation, the partnership had an unpaid liability
of Php600k. The creditors are now running after the separate properties of the partners.
How much will be the liability of Cory and Donny?
A. Cory = Php0 Donny = Php0
B. Cory = Php200k Donny = Php0
C. Cory = Php150k Donny = Php150k
 D. Cory =Php0 Donny= Php200k

41. 1st statement - A partnership begins from the moment of the execution of the contract,
unless it is otherwise stipulated.
2nd Statement - Persons who are prohibited from giving each other any donation or
advantage cannot enter into universal partnership
A. Correct,correct
B. Correct,wrong
C. Wrong, correct
D. Wrong, wrong

42. 1st Statement - Shareholders who shall receive the dividends are those who are registered
as such in the stock and transfer book as of the date of declaration
2nd Statement - The majority of the outstanding capital stock or members entitled to vote
shall be necessary for the approval of the act to remove directors or trustees
A. Correct, correct
B. Correct, wrong
C. Wrong, correct
D. Wrong, wrong

43. 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. Plan of merger or consolidation
C. Management contract
D. Fixing of issued price of no-par stock

44. An amendment in the articles of incorporation that would shorten the corporate term
requires the approval of the:
A. Majority vote of the board of directors/trustees and majority vote or written assent of
the outstanding capital stock/members
B. Majority vote of the board of directors/trustees and 2/3 vote or written assent of the
outstanding capital stock/members
C. Majority vote of the board of directors/trustees and 2/3 vote of the outstanding capital
stock/members.
D. 2/3 vote of the board of directors/trustees and 2/3 vote of the outstanding capital
stock /members

45. Vote of the Board of Directors upon approval of stockholders representing not less than
two-thirds of all stock then outstanding and entitled to vote is required:
A. For declaration of stock dividends
B. For amendment of by-laws
C. To incur, create, or increase any bonded indebtedness
D. To amend the articles of incorporation

46. Vote of the stockholders representing a majority of all the subscribed capital stock of the
corporation, whether paid or unpaid:
A. For declaration of stock dividends
B. For adoption of any by-law or by-laws
C. To invest its corporate funds in any corporation or business, of for any purpose other
than the main purpose for which it was organized
D. To amend the articles of incorporation

47. Which of the following transactions does not require the adequacy of unrestricted retained
earnings?
A. Redemption of redeemable shares
B. Dividend on common stock
C. Reacquisition of treasury shares
D. Dividend on preferred stock
48. A non-voting preferred stock cannot vote in:
A. Filing of vacancy in the board
B. Amendment of the articles of incorporation
C. Increase or decrease in capital stock
D. Dissolution of the corporation

49. Which of the following statements does not characterize a treasury share?
A. It is an issued share but it is not classified as an outstanding share.
B. It has no voting right.
C. It may be sold at less than the par value.
D. It may be distributed as a stock dividend.

50. 1st statement- Shares issued without par value shall be deemed fully paid and non-
assessable and the holder of such shares shall not be liable to the corporation or its
creditors in respect thereto.
2nd Statement - When par value shares are issued with premium or excess in
consideration, such excess may be distributed as dividends
A. Correct, correct
B. Correct, wrong
C. Wrong, correct
D. Wrong, wrong

51. Which of the following right is still available to delinquent subscribed stock?
A. Appraisal right
B. Right to dividends
C. Preemptive right
D. Right to vote in election of directors

52. Which of the following corporate act may be delegated to the executive committee?
A. Removal of directors
B. Investment of corporate funds to other business
C. Amendment, repeal or adoption of corporate by-laws
D. Approval of compensation scheme of managerial and supervisory level employees

53. What vote is needed to consider every decision of the Board of Directors to be a valid
corporate act?
A. At least a majority of the directors present at the meeting.
B. Two-thirds of the directors present at the meeting at which there is a quorum.
C. At least majority of the directors present at the meeting which there is a quorum.
D. Two-thirds of the directors present at the meeting.

54. Which of the following corporations can be close corporation?

A. Mining corporations
B. Public utilities
C. Industrial corporations
D. Banks

55. Corporations which are organized for profit but doing governmental functions.
A. public corporation C. non stock corporation
B. quasi - corporation D. quasi - public corporation

56. Corporations which are organized for charitable purposes

A. quasi corporation C. ecclesiastical corporation
B. eleemosynary corporation D. lay corporation

57. The corporation has a 15-member board. Five of the members of the Board died. To have
a quorum, this number is required:
A. Five B. Eight C. Seven D. Six

58. The subscriber of unpaid shares which are not delinquent shall be entitled to the following
rights, except the right to:
 A. Vote.
B. Inspect corporate books.
C. A stock certificate.
D. Dividends.

59. In case the members of the board of directors of a corporation still constitute a quorum,
and there are vacancies, who will fill up such vacancies?
Removal Resignation Expiration of Increase in the number of
term Directors
A. Stockholders Board Stockholders Board
B. Board Board Stockholders Stockholders
C. Stockholders Board Stockholders Stockholders
D. Stockholders Stockholders Board Stockholders

60. One of the following entities cannot be organized as a stock corporation:

A. Bank
B. Close corporation
C. Religious corporation
D. Educational corporation

61. What is the term of corporate existence?

A. The term as specified in the articles of incorporation which must not be less than
fifty (50) years.
B. The term as specified in the articles of incorporation which must not be more than
fifty (50) years.
C. Fifty (50) years.
D. Indefinite number of years unless a specified term is specified in the Articles of
Incorporation

62. In no case shall the total yearly compensation of directors, exceed:

A. 10% of the net income before income tax during the succeeding year
B. 10% of the net income before income tax during the preceding year
C. 10% of the net income after income tax during the preceding year
D. 10% of the net income before income tax during the current year

63. The nationality of the corporation is determined by the laws of its domicile or place of
principal business. This test is known as:
A. The control theory C. The incorporation theory
B. The full absorption theory D. The management theory

64. The corporation shall be deemed dissolved and its corporate powers cease, if from
the date of its incorporation, it does not formally organize and commence the
transaction of its business or the construction of its works within
A. 4 years B. 3 years C. 2 years D. 5 years

65. Which of the following qualifications is necessary in order that one may be a director of a
corporation?
A. He must be a citizen and a resident of the Philippines.
B. He must not be a stockholder or director of a competitor corporation.
C. He must not be an officer of the government
D. He must own at least one (1) share of stock of the corporation.

66. Which of the following qualifications is necessary in order that one may be elected
secretary of the corporation?
A. He must be a citizen and a resident of the Philippines.
B. He must be a director of the corporation.
C. He must be a stockholder of the corporation.
D. He must not be a treasurer of any other corporation.

67. A private corporation commences to have juridical personality from the date:
 A. The officers of the corporation are elected by the stockholders.
B. The incorporators sign the articles of incorporation.
C. The articles of incorporation and by-laws are presented to the SEC.
D. The SEC issues a certificate of incorporation under its official seal.

68. The articles of incorporation were prepared, signed and filed with the Securities and
Exchange Commission. After some time, the corresponding certificate of incorporation
was issued. Later, it was discovered that the corporation failed to submit one requirement
for registration. What is the status of the corporation?
A. Corporation by estoppel C. De jure corporation
B. Open corporation D. De facto corporation

69. Which of the following statements relative to corporate stockholders’ or members’

meetings is true?
A. It may be attended by means of proxy
B. It is always held on any day of April each year
C. It can be conducted anywhere in the Philippines
D. It cannot be called on a special basis

70. Which of the following is not a characteristic of a de facto corporation?

A. There is a bona fide attempt to comply with the requirements of the law in
organizing the corporation.
B. There is an actual exercise of corporate powers in good faith.
C. Non issuance of Certificate of Incorporation
D. Good faith

71. Which of the following statements relative to the board of directors of a stock corporation
is true?
A. The number of directors must not be more than fifteen (15).
B. The majority of the directors must be citizens of the Philippines.
C. Each director must own at least 10 shares of the capital stock registered in his name
in the corporate books
D. The majority of the directors must be residents of the Philippines.

72. Which of the following statements relative to the board of directors of a stock corporation
is false?
A. A director must not have been convicted by final judgment of an offense punishable
by more than six (6) years imprisonment, or committed a violation of the
Corporation Code within five (5) years prior to the date of election or appointment.
B. A director may be removed from office by a vote of the majority of the outstanding
capital with or without cause.
C. No director shall receive any compensation (other than per diems) as such, unless
the same is granted under the by-laws or by a vote of at least 2/3 of the outstanding
capital stock; provided; that the total yearly compensation (excluding per diems and
compensation as officers) shall not exceed ten (10%) percent of the net income
before income tax of the corporation during the preceding year.
D. Additional qualification for the election of directors may be provided in the by-laws

73. The vacancy in the board of directors of a cooperative may be filled by the board of
directors if the remaining directors still constitute a quorum except:
A. Death of a director
B. Disqualification of a director
C. Resignation of a director
D. Expiration of the term of a director

74. Which of the following acts does not require ¾ votes of the General Assembly?
A. Voluntary dissolution of the cooperative where no creditor is affected
B. Ratification of contracts or acts of Directors
C. Amendment of the Articles of Cooperation except in the case of a cooperative bank
 D. Approval of Plan of Merger

75. The residents of Barangay Pag-ibig would like to organize themselves as a Cooperative.
Which of the following is correct?
Authorized Share Capital Subscribed Share Capital Paid Up Share Capital
A. Php500,000 Php500,000 Php200,000
B. Php600,000 Php400,000 Php100,000
C. Php60,000 Php15,000 Php3,750
D. Php100,000 Php25,000 Php6,250

76. Cooperatives duly registered under the Cooperative Code has what king of liability?
A. Infinite liability C. Unlimited liability
B. General liability D. Limited liability

77. Which of the following is not a cooperative principle?

A. Democratic Member Control
B. National comity
C. Autonomy and Independence
D. Voluntary Membership

78. The minimum par value of a share in a primary cooperative:

A. Php5 B. Php10 C. Php15 D. Php100

79. Which of the following matters in a cooperative is correct?

A. A single-line cooperatives may transform into a multi-purpose cooperative after at
least 2 years of operation without incurring losses.
B. A cooperative with net worth of at least Php10m and has been in operation for at
least 5 years may form a subsidiary cooperative
C. The board of directors of the cooperative shall have a term of 3 years
D. A cooperative may be dissolved if it has not commenced business and its operation
within 5 years after the issuance of its certificate of registration

80. What is the period of payment for claims for insured deposits by PDIC to insured
depositors of a closed bank?
A. Within 6 months from the date of filing of claims
B. Within 12 months from the date of filing of claims
C. Within 18 months from the date of filing of claims
D. Within 24 months from the date of filing of claims

81. Sarah Ang-Munting Prinsesa is a depositor of Banco De Numero Uno (BaNUno). She has
three (3) deposit accounts all under her name. One, in checking account, one in saving
account and another one in time deposit account. Each account has a balance of Php5m.
BaNUno became insolvent. PDIC took over and closed the Bank. Sarah therefore is
unable to withdraw from all of the accounts. She then filed her claims with the PDIC.
Which statement is most accurate?
A. Sarah cannot claim anything from any of the deposit accounts after 3 years or the
period within which the bank will be liquidated
B. Sarah can claim a total of Php1M for all the three (3) accounts.
C. Sarah can only claim from one (1) account
D. Sarah can claim a total of Php3M from all the three (3) accounts.

82. Cedie Ang-Munting Prinsipe, is the half brother of Sarah. Cedie and Sarah have three (3)
deposit accounts all under her name. One, in checking account, one in saving account and
another one in time deposit account. Each account has a balance of Php5m. BaNUno
became insolvent. PDIC took over and closed the Bank. Sarah therefore is unable to
withdraw from all of the accounts. She then filed her claims with the PDIC.
Which statement is most accurate?
A. Only Cedie will be eligible to claim the PDIC insurance
B. Sarah and Cedie can claim a total of Php3M for all the three (3) accounts.
C. Sarah and Cedie can claim a total of Php1M each from PDIC
 D. Sarah and Cedie need not file a claim as the PDIC will automatically process the
relese of the insurance proceeds in their favor

83. Marites, an employee of Tsismosa Bank, saw the bank account details of her archenemy,
Marisol. Marites revealed to her friend Maricon that Marisol has been depositing
Php500k weekly and now has an account balance of Php60M. Maricon, having this
knowledge, informed Marisol's husband, Totoy Bato, of the bank balances. Totoy was
shocked, considering that he does not know of the huge amounts. Totoy confronted
Marisol in a public place, said out loud her bank balance resulting to twenty (20) other
people hearing information about Marisol's bank account.

Who is liable for the violation of RA No. 1405?

A. Marites
B. Marites and Maricon
C. Maricon and Totoy Bato
D. Marites, Maricon, and Totoy Bato.

84. What is the penalty by law for violation of the Bank Secrecy Law
A. Imprisonment of not more than 5 years or fine of not more than Php200k or both
imprisonment and fine
B. Imprisonment of not more than 10 years or fine of not more than Php200k or both
imprisonment and fine
C. Imprisonment of not more than 5 years and fine of not more than Php200k
D. Imprisonment of not more than 5 years plus fine of not more than Php200k

85. Under AMLA, this involves sending money through various financial transactions to
change its form and make it more difficult to follow.
A. Placement C. Integration
B. Layering D. a & b

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

87. Statement 1: Prohibited Accounts under AMLA include Anonymous accounts and
Accounts under fictitious names
Statement 2: Prohibited Accounts under AMLA include Accounts under the name of a
person in trust of another person
A. Only Statement 1 is true.
B. Only Statement 2 is true.
C. Both statements are true.
D. Both statements are not true.

88. Anti-Money Laundering Council is composed of the following except:

A. Chairman which is the BSP Governor
B. Commissioner of Insurance Commission
C. Chairman of SEC
D. Secretary of Department of Finance

89. A legally incorporated entity with minimal or no business operations, often used to hide
ownership or assets, and can be used for illicit activities like money laundering
A. Trusts
B. Shell companies
C. Offshore banks
D. Front companies

90. Which of the following marks can be registered?

A. Marks consisting of a name of a living individual
B. Marks consisting of a name of a living President
 C. Marks consisting of a name of a deceased President during the life of his/her spouse
D. Marks consisting of a name of a deceased individual during the life of his/her spouse

91. Under the Intellectual Property Code, lectures, sermons, addresses or dissertations
prepared for oral delivery, whether or not reduced in writing or other material forms, are
regarded as
A. Non-original works.
B. Original works.
C. Derivative works.
D. Not subject to protection

92. Under R.A. No. 11032 -Ease of doing busines law, it will act or serve as a repository of
information on all registered enterprises in the country that government agencies and
LGUs may use as a resource for verification purposes.
A. Civil Service Commission
B. Department of Trade and Industry
C. Philippine Business Data Bank
D. Department of Information and Communication Technology

93. 1st Statement - An insolvent bank may initiate voluntary proceedings by filing a petition
for rehabilitation under the Financial Rehabilitation and Insolvency Act
2nd Statement – If the Plan of Rehabilitation of an insolvent corporation is approved by
the court, a liquidator shall be immediately appointed upon the list of nominees
submitted to oversee the winding up of the corporation
A. Only I is true C. Only II is true
B. Both are true D. Both are false

94. In case a corporation will be under rehabilitation, which of the following will take the
place of the management and the governing body of the corporation and assume their
rights and responsibilities?
A. Liquidator
B. Management committee
C. Affiliate
D. Subsidiary

95. Which of the following is not one of the implementing agencies of the E-Commerce Law.
A. Securities and Exchange Commission
B. Department of Budget and Management
C. Department of Trade and Industry
D. Bangko Sentral ng Pilipinas

96. Complex transactions should be acted upon by the government or its officer within how
many days?
A. 3 days C. 7 days
B. 5 days D. 20 days

97. Senior Crisostomo Ibarra has a household helper, Sisa. Her husband also works for
Ibarra as a driver. Ibarra asks your advice about his plan to insure the lives of Sisa and
her husband and Ibarra as the beneficiary.
A. Ibarra can insure the lives of Sisa and her husband since Ibarra depends upon them
B. Ibarra cannot insure the lives of Sisa and her husband since he has no pecuniary
interest in the lives of Sisa and her husband arising from their employment with him
C. Ibarra cannot insure the lives of Sisa and her husband since they don’t have pecuniary
interest on the life of Ibarra arising from their employment with him.
D. Ibarra can insure the lives of Sisa and her husband since it is the obligation of the
employer under the Labor Code of the Philippines

98. Benny is a member of the Social Security System (SSS). He died on May 1, 2025. Prior to
the semester of his death, Benny had paid 48 monthly contributions. Benny married his
long-time girlfriend Amy a few days before his death. Benny was survived by his mother,
Cory, who had previously been receiving support from him, Ely the mother of Benny’s
 illegitimate child, Fely who is now 25 years old. In this case, the SSS death benefit of
Benny shall pertain to:
A. Amy C. Fely
B. Ely D. Cory

99. Marites, a coffee shop worker of 5 months, requested her employer for 5 days' leave with
pay to attend to the case that she filed against her husband Rigor for physical assault two
weeks earlier. May the employer deny her request for leave with pay?
A. Yes, the reason being purely personal, approval depends on the employer’s discretion
and is without pay.
B. No, as victim of physical violence of her husband, she is entitled to the five days paid
leave to attend to her action against him.
C. No, the employer must grant the request but the leave will be without pay.
D. Yes, since she is not yet a permanent employee.

100. If not used by the end of the year, the service incentive leave of domestic workers or
kasambahay shall be:
A. carried over to the next year.
B. converted to its money equivalent.
C. forfeited.
D. converted to cash and paid when the employee resigns or retires.

mrs/cde