Multiple Choice Questions Flashcards by Queenie Rose Mariano

It refers to a person who is intended by the originator to receive the electronic data message or electronic document.

a. Addressee
b. Recipient
c. Intermediary
d. Provider

a. Addressee

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It refers to a person by whom, or on whose behalf, the electronic document purports to have been created, generated and/or sent.

a. Addressor
b. Sender
c. Originator
d. Provider

c. Originator

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It refers to any distinctive mark, characteristic and/or sound in electronic from, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.

a. Electronic key
b. Electronic ID
c. Electronic mark
d. Electronic signature

d. Electronic signature

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Statement 1: An audio can be a form of electronic signature.
Statement 2: Without a right established or an obligation extinguished, an information cannot be considered as an electronic document.

a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

c. Both statements are true.

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A service provider has the authority to:

I. Modify or alter the content of the electronic document received
II. Make any entry therein on behalf of the originator

a. I only.
b. Il only.
c. Both I and II.
d. Neither I nor II.

d. Neither I nor II.

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Under the Civil Code, a contract of sale of goods priced not less than P500 is covered by the Statute of Frauds. If the contract of sale of goods was entered into in electronic form, what is the status of the contract?

a. Perfectly valid.
b. Voidable, for failure to comply with the requirement of the Statute of Frauds.
c. Unenforceable, for failure to comply with the requirement of the Statute of Frauds.
d. Void

a. Perfectly valid.

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Where the law requires that a document be presented or retained in its original form, that requirement is met by an electronic document if:

a. The integrity of the document can be definitely traced from the time when it was first generated in its final form
b. There exists a reliable assurance as to the integrity of the document from the time when it was first generated in its final form
c. There exists an electronic signature which ensures the integrity of the document from the time when it was first generated in its final form
d. The originator employed security features such as the use of electronic keys at the onset of the document which still exists in the final form of the document

b. There exists a reliable assurance as to the integrity of the document from the time when it was first generated in its final form

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Statement 1: For evidentiary purposes, an electronic document does not satisfy the requirement of an original document.
Statement 2: An electronic signature cannot be considered as equivalent to the signature of a person in a written document.

a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

d. Both statements are not true.

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In proving that an electronic signature is equivalent to the signature of a person in a written document, there must also be proof that a prescribed procedure was followed, under all of the following, except:

a. A method is used to identify the party sought to be bound and to indicate said party’s access to the electronic document necessary for his consent or approval through the electronic signature;
b.Said method is reliable and appropriate for the purpose for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement;
c. It is necessary for the party sought to be bound, in order to proceed further with the transaction to have executed or provided the electronic signature; and
d. The other party can rely on the electronic signature as authentic for all intents and purposes.

d. The other party can rely on the electronic signature as authentic for all intents and purposes.

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Which of the following electronic data messages can be attributed to the originator?

I. Electronic data messages sent by a person who had the authority to act on behalf of the originator
II. Electronic data messages by an information system programmed by the originator
III. Electronic data messages by an information system programmed on behalf of the originator

a. I only.
b. land II only.
c. 1 and III only.
d. I, Il, and III.

d. I, Il, and III.

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If the addressee and the originator are both participants in the designated information system, the time of receipt of electronic data messages is:

a. Upon entry in the designated information system
b. Upon sending by the originator
c. Upon acknowledgment of receipt by the addressee
d. Upon retrieval by the addressee

d. Upon retrieval by the addressee

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Samantha obtained two electronic documents. the first electronic document was protected with a password. Samantha called Rose to ask for the password of the document, and Rose informed Samantha to download an application that provides a six-digit key which changes every 30 seconds. Upon use of the application, Samantha was able to gain access to the document. Upon browsing the document, Samantha saw that it was a promissory note payable to her electronically signed by Marie. On the due date, Samantha went to Marie to collect on the proceeds of the promissory note. Marie contends that the promissory note was not hers and that she should not be liable. Which of the following statements is true?

a. Samantha can regard the electronic document as that of Rose since it was the procedure given by Rose which gave access to the document.
b. Samantha can regard the electronic document as that of Marie since an electronic signature is the functional equivalent of a signature on a written instrument.
c. Samantha can regard the electronic document as that of both Rose and Marie since they were both instrumental on Samantha’s access to the document.
d. Samantha cannot regard the electronic document as that of both Rose and Marie considering that the electronic document is password-protected.

b. Samantha can regard the electronic document as that of Marie since an electronic signature is the functional equivalent of a signature on a written instrument.

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An electronic contract of sale of services was entered into between Patrick and Bob. Patrick is a resident of Marikina with the principal place of business in Quezon City while Bob is a resident of Pasig with principal place of business in Mandaluyong. While Patrick was on vacation at Cebu City, Bob sent a contract of sale to Patrick. Patrick, through his mobile phone, opened the document in Cebu City. Where is the electronic contract of sale received?

a. Marikina
b. Quezon City
c. Pasig
d. Cebu City

b. Quezon City

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Robin received two electronic non-negotiable promissory notes by email on January 15, 2021. The emails were received two seconds apart. The two electronic promissory notes were identical. The amounts involved were P2,000,000 each, and were electronically signed by Matt as the maker on the same date. Both promissory notes were due on March 15,
2021. On the said date, Robin sought to collect P4,000,000 from Matt.
However, Matt contended that he only undertook to pay P2,000,000 and that the second email he received was just an error of double sending. How much should Matt pay Robin?

a. P2,000,000. Duplicates of electronic documents cannot be regarded as separate electronic documents.
b. P4,000,000. Robin is entitled to regard each electronic document received as separate electronic documents.
c. P3,000,000. Duplicates of electronic documents are only given one half of its intended effectivity.
d. No liability. The apparent duplication of the electronic documents invalidates all that has been received.

a. P2,000,000. Duplicates of electronic documents cannot be regarded as separate electronic documents.

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Statement 1: Where the law requires that any action referred to in a contract of carriage of goods be carried out in writing or by using a paper document, that requirement is met if the action is carried out by using one or more electronic data messages or electronic documents.
Statement 2: Parties to any electronic transaction shall be free to determine the type of level of electronic data message or electronic document security needed.

a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

c. Both statements are true

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It refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.

a. Direct marketing
b. Direct communication
c. Direct advertising
d. Direct infringement

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It refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or her behalf

a. Personal information collector
b. Personal information controller
c. Personal information manager
d. Personal information repository

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It refers to an individual whose personal information is processed.

a. Personal information provider
b. Personal information holder
c. Data subject
d. Data person

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Anita obtains the addresses of her customers for her food business, so that she may be able to deliver her goods efficiently. Bonnie obtains the names and age of her students as part of her recordkeeping as adviser of the class. Cassie obtains emails and phone numbers of her friends to save on her phone. Who among them is a personal information controller?

a. Anita only.
b. Anita and Bonnie only.
c. Anita and Cassie only.
d. Bonnie and Cassie only.

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Winnie, a personal information processor, is charged with violation of the Data Privacy Act. The violation consists of two acts. First, Winnie revealed the salary range of Sally, an Administrative Officer Ill at the Department of Finance. Second, Winnie, in publishing her research, disclosed the ages and sexes of the respondents to her survey. Is Winnie liable for violation of the Data Privacy Act?

a. No.
b. Yes, but only as to the first act.
c. Yes, but only as to the second act.
d. Yes, on both acts.

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Which of the following statements is true regarding news sources of journalists?

a. Journalists are compelled to reveal the source of any news report.
b. Journalists, by order of a competent court, are compelled to reveal the source of any news report.
c. Journalists are compelled to reveal details regarding sources of any news report except those classified as sensitive personal information.
d. Journalists are not compelled to reveal the source of any news report.

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Which of the following is not included in the application of the Data
Privacy Act?

I. Information about an individual who is or was performing service under contract for a banking institution that relates to the services performed
II. Information necessary for banks and other financial institutions to comply with the Anti-Money Laundering Act

a. I only.
b. Il only.
c. I and II only.
d. Neither I nor II.

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Which of the following statements is true regarding a personal information controller outside of the Philippines?

a. A personal information controller outside of the Philippines is not covered by the Data Privacy Act even if the personal information pertains to Philippine citizens.
A personal information controller outside of the Philippines is not covered by the Data Privacy Act even if the personal information pertains to Philippine residents.
c. A personal information controller inside the Philippines is not covered by the Data Privacy Act if the personal information pertains to non-residents.
d. A personal information controller outside of the Philippines is covered by the Data Privacy Act even if the personal information pertains to Philippine residents or citizens

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The National Privacy Commission is an agency attached to:

a. Department of National Defense
b. Commission on Human Rights
c. Department of Information and Communications Technology
d. Department of Privacy

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All of the following are qualifications of the Privacy Commissioner, except: a. At least thirty-five (35) years of age b. A resident of the Philippines for at least two (2) years c. Of good moral character, unquestionable integrity and known probity d. A recognized expert in the field of information technology and data privacy

Which of the following acts performed upon personal information constitute processing? I. Collection II. Storage III. Retrieval IV. Erasure a. 1 and III only. b. Il and IV only. c. 1, 11, and III only. d. I, II, II, and IV.

his principle provides that the Processing of Personal data shall be adequate, relevant, suitable, necessary, and not excessive in relation to a declared and specified purpose. a. Principle of Proportionality b. Principle of Legitimate Purpose c. Principle of Relevance d. Principle of Reasonable Extent

This principle provides that the Data Subject must be aware of the nature, purpose, and extent of the Processing of his or her Personal Data by the Company, including the risks and safeguards involved, the identity of persons and entities involved in processing his or her Personal Data, his or her rights as a Data Subject, and how these can be exercised. a. Principle of Proportionality b. Principle of Informed Consent c. Principle of Awareness d. Principle of Transparency

This principle provides that the Processing of Personal Data by the Company shall be compatible with a declared and specified purpose which must not be contrary to law, morals, or public policy. a. Principle of Transparency b. Principle of Compatibility c. Principle of Legitimate Purpose d. Principle of Adherence

Kris joined the raffle draw of Barry's Supermarket in the hopes of winning a 42" Smart TV. Kris indicated her mobile phone number and email address in the form given for the raffle entry. The form looked simple for Kris. It just contained empty fields to be filled out, the logo of Barry's Supermarket, and the grand prizes to be won. However, to her surprise, Kris soon received multiple promotions from different brands asking her to buy products at a discount. Her email inbox soon became spammed as well with unwanted promotion. Is there a data privacy principle violated? a. None. b. Yes. The Principle of Proportionality was violated. c. Yes. The Principle of Legitimate Purpose was violated. d. Yes. The Principle of Transparency was violated.

Which of the following best defines the term "personal information"? a. Those which the data subject would normally and reasonably regard as private in nature. b. Those from which the identity of an individual is apparent or can be reasonably and directly ascertained c. Those from which the identity of an individual can be subject to identity theft d. Those which the personal information controller would regard as having economic value

Statement 1: There can be no lawful processing of personal information without the consent of the data subject. Statement 2: If the processing is necessary for compliance with a legal obligation to which the personal information controller is subject, then such is considered as lawful processing by the Data Privacy Act. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

All of the following are privileged information, except: a. Attorney-client privileged information b. Doctor-patient privileged information c. Priest-confessor privileged information d. Bank-client privileged information

Which of the following is classified as sensitive personal information? a. List of Facebook friends b. Tax returns c. Credit card information d. Passwords

Which of the following is not classified as sensitive personal information? a. Bidding documents b. Political affiliation c. High school grades d. Social security numbers

Mr. X was admitted to a hospital. He is suffering from difficulty in breathing, high fever, and fatigue. His symptoms are quickly worsening. The doctor asked his wife as to previous admissions, but the wife had no idea. Instead, the wife informed the doctor that he was previously admitted at BCD Hospital, and they have the health records of Mr. X. The doctor called at BCD Hospital, and BCD Hospital disclosed the health records to the doctor. Is there any breach of the Data Privacy Act with the disclosure? a. Yes, because Mr. X did not give her consent. b. No, because Mr. X's wife, as his duly authorized representative, gave her consent for the disclosure. c. Yes, because health records are considered as sensitive personal information. d. No, because the processing of the personal information is necessary for purposes of medical treatment.

Which of the following information can a business organization obtain without violating the Data Privacy Act? I. Tax Identification Number of its employees II.. Medical records for employees who have signified that they wish to avail of the health insurance benefit of the company III. Names of customers for purposes of issuing invoices and official receipts a. I only. b. I and Ill only. c. I and II only. d. I, II, and I.

Statement 1: A data subject shall have the right to be informed of the purpose for which his personal information is being taken. Statement 2: A data subject shall have the right to be informed of the duration for which his personal information will be stored by the personal information controller. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is false regarding the rights of a data subject? a. A data subject shall have the right to object to the processing of his or her personal data, including processing for direct marketing, automated processing or profiling b. A data subject can no longer object to the processing of his data once he has given it to a personal information processor. A data subject can choose which personal information will be subject to processing, withholding from processing those which he chooses otherwise. d. If a personal information controller changes the purpose for which the personal information of the data subject is to be processed, the data subject may withhold consent.

A data subject has the right to access: I. The address of the personal information controller II. Sources from which his personal information were obtained. a. I only. b. Il only. c. Both I and II. d. Neither I nor II.

A data subject has the right to data portability. This means that: a. A data subject can transfer his data from one personal information controller to another. b. A data subject can obtain a copy of his personal information. c. A data subject can change the purpose for which his personal information will be processed d. A data subject can dictate the format in which his personal information will be stored.

Which of the following is true regarding the data subject's right to correction? a. The personal information controller shall ensure the accessibility of both the new and the retracted information. b. The data subject can exercise this right only once. c. The personal information controller has no obligation to inform third persons who may have obtained the data prior to correction of the correction made by the data subject. d. The personal information controller is obligated to delete the retracted information.

In the event that the personal information controller reasonably believes that sensitive personal information has been acquired by an unauthorized person, the personal information controller has the obligation to: a. Notify the affected data subjects b. Notify the National Privacy Commission c. Notify all data subjects which the personal information controller handles d. Notify both the affected data subjects and the National Privacy Commission

Which of the following statements is true about a fixer? a. A fixer is necessarily a person who is involved in the operation of a government office. b. Without pecuniary gain, a person cannot be considered as a fixer. c. Collusion with people working in a government office is indispensable to become a fixer. d. A fixer facilitates speedy completion of transactions

It is a single common site or location, or a single online website or portal designated for the Business Permits and Licensing System (BPLS) of an LGU to receive and process applications, receive payments, and issue approved licenses, clearances, permits, or authorizations. a. Business One Stop Shop b. Business Permit and Licensing Shop c. Business Operational Stationary Shop d. Business Omnibus Security System

It is defined as any regulation, rule, or administrative procedure or system that is ineffective or detrimental in achieving its intended objectives and, as a result, produces slow, suboptimal, and undesirable social outcomes. a. Blue tape b. Red tape c. Green tape d. Black tape

What is the agency principally designated to implement the Ease of Doing Business Act? a. Department of Trade and Industry b. Securities and Exchange Commission c. Anti-Red Tape Authority d. Philippine Competition Commission

Which of the following is a mandate of the Ease of Doing Business Act to Local Government Units and National Government Agencies? a. All LGUs and NGAs are required to create an Anti-Red Tape SubUnit within their respective local governments and agencies. b. All LGUs and NGAs undertake to hold themselves solidarily liable with government employees who engage in red tape activities c. All LGUs and NGAs are required to designate an Anti-Red Tape Officer who shall be primarily responsible for the investigation and prosecution of fixers. d.All LGUs and NGAs are directed to initiate review of existing policies and operations and commence with the reengineering of their systems and procedures.

The Zero-Contact Policy provides that: a. No government officer or employee shall be able to receive any money or gift from any requesting party concerning an application or request b. No government officer or employee shall have any contact, in any manner, unless strictly necessary, with any requesting party concerning an application or request No government officer or employee shall provide their personal contact numbers to any requesting party d. No government officer or employee shall be contacted by LGUs or NGAs if they have been previously convicted of a violation of Ease of Doing Business Act.

Which of the following is not part of the process of acceptance of applications or requests? a. All officers or employees shall accept written applications, requests, and/or documents being submitted by applicants or requesting parties of the offices or agencies. b. The receiving officer or employee shall perform a final assessment of the application or request c. The receiving officer or employee shall assign a unique identification number to an application or request d. The receiving officer or employee shall issue an acknowledgement receipt

All of the following must be contained on the acknowledgment receipt to be issued by the receiving officer, except: a. Seal of the agency b. Unit and designation of the responsible officer or employee c. Name and designation of the approving officer d. Date and time of receipt of the application or request

A complex transaction is required to be transferred for a period of not longer than: a. Five (5) working days from date of receipt b. Seven (7) working days from date of receipt c. Ten (10) working days from date of receipt d. Fourteen (14) working days from date of receipt

For purposes of the Ease of Doing Business Act, a transaction is considered simple if: a. It only requires ministerial actions. b. It only requires discretionary actions. c. It presents consequential issues d. It requires the use of technical knowledge.

If the application or request for license, clearance, permit, certification or authorization shall require the approval of the local Sanggunian, how many days is given to the Sanggunian to act on the application or request? a. Ten (10) working days b. Twenty (20) working days c. Thirty (30) working days d. Forty-five (45) working days

Which of the following statements is true in case that a government office or agency fails to approve or disapprove an original application or request for issuance of license, clearance, permit, certification or authorization within the prescribed processing time? a. The application or request is deemed denied. b. The application or request is deemed approved. c. The application or request is deemed approved only if all required documents have been submitted and all required fees and charges have been paid. d. The application or request is deemed to be held in abeyance and shall continue until a final resolution has been made by the concerned LGU or NGA.

Which of the following statements is false in relation to denials of application or request for access to government service? a.The denial shall be fully explained in writing. b. The denial shall state the name of the person making the denial. c. The denial shall be dated. d. The grounds upon which such denial is based shall be stated.

Under the Ease of Doing Business Act, the number of signatories in any document shall be limited to a maximum of: a. Two signatures b. Three signatures c. Four signatures d. Five signatures

Business permits shall be valid for a period of: a. One year b. Two years c. Three years d. Four years

The labor standards under the Labor Code applies to all employees, except: a. Domestic helpers b. Office employees c. Rank and file employees d. Project employees

Normal hours of work: a. Is exactly 8 hours b. Shall not exceed 8 hours c. Is at least 8 hours d. Depends on the type of employment

How long is the required time-off for an employee's regular meals? a. At least 15 minutes b. At least 30 minutes c. At least 45 minutes d. At least 60 minutes

An employee takes a coffee break for 15 minutes. Is that break considered as part of such employee's hours worked? a. Yes, rest periods of short duration during working hours shall be counted as hours worked. b. Yes, provided that the employee is multitasking during her coffee break c. No, because a coffee break is assumed to be part of unproductive hours. d. No, such should be included in the computation of the required time off for the employee's regular meals.

The additional compensation pertaining to night shift differential should be at least: a. 5% of an employee's regular wage b. 10% of an employee's regular wage c. 15% of an employee's regular wage d. 20% of an employee's regular wage

Night shift differential pertains to work done between: a. 7:00 PM and 3:00 AM b. 8:00 PM and 4:00 AM c. 9:00 PM and 5:00 AM d. 10:00 PM and 6:00 AM

Additional compensation for work performed beyond 8 hours on a regular working day should be at least: a. 10% b. 20% c. 25% d. 30%

Additional compensation for work performed beyond 8 hours on a holiday should be at least: a. 10% b. 20% c. 25% d. 30%

Additional compensation for work performed beyond 8 hours on a rest day should be at least: a. 10% b. 20% c. 25% d. 30%

Statement 1: A compressed work week may be allowed if the arrangement is of a temporary duration only. Statement 2: If an employee renders overtime work on Monday for an hour, and works one hour short of the required time on a Tuesday, the employer is not required to provide overtime pay to the employee for the extra hour rendered on Monday. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

In which of the following instances may an employer require its employee to render emergency overtime work? I. When the country is at war. II. When the work is necessary to prevent loss to perishable goods a. I only. b. Il only. c. Both I and II. d. Neither I nor II.

Any employee required to render emergency overtime work: a. Need not be paid with an overtime premium b. Is to be paid half the required overtime premium c. Is to be paid the regular required overtime premium d. Is to be paid double the required overtime premium

Which of the following is true regarding the mandated weekly rest day? a. For every five (5) consecutive normal work days, the rest period should not be less than 24 hours. b. For every five (6) consecutive normal work days, the rest period should not be less than 24 hours. c. For every five (5) consecutive normal work days, the rest period should not be less than 48 hours. d. For every five (6) consecutive normal work days, the rest period should not be less than 48 hours.

Woozi's rest day is every Saturday. If Woozi is asked to work on a Saturday, he shall be paid an additional compensation of at least: a. 10% of his regular wage. b. 20% of his regular wage. c. 25% of his regular wage. d. 30% of his regular wage.

Chinese New Year is a special non-working holiday. If an employee is required to work during the Chinese New Year, he shall be paid an additional compensation of at least: a. 10% of his regular wage. b. 20% of his regular wage. c. 25% of his regular wage. d. 30% of his regular wage.

Rizal Day is a regular holiday. If an employee is required to work during Rizal Day, then he shall be paid an additional compensation of at least: a. 30% of his regular wage. b. 50% of his regular wage. c. 100% of his regular wage. d. 200% of his regular wage.

Seungkwan's rest day is every Sunday. All Saints' Day is a special non-working holiday. If All Saints' Day happened to fall on a Sunday, and Seungkwan was required to work, he shall be paid an additional compensation of at least: a. 30% of his regular wage. b. 50% of his regular wage. c. 100% of his regular wage. d. 200% of his regular wage.

The following are details regarding the attendance records of certain employees during the Holy Week. I.Momo was not present on Holy Wednesday. Her designated rest day is Tuesday. II. Jihyo was not present on Holy Wednesday. Her application for paid leave for that day was granted. Her designated rest day is Monday. III.Sana was not present on Holy Tuesday and Holy Wednesday. Her designated rest day is Wednesday. Who among them is entitled to the holiday pay for Maundy Thursday and Good Friday? a. Jihyo only. b. Jihyo and Momo only. c. Jihyo and Sana only. d. Jihyo, Momo, and Sana.

If unworked, which of the following day is compensable? I. Araw ng Kagitingan, a regular holiday II. People Power Revolution Day, a special holiday a. I only. b. Il only. c. Both I and II. d. Neither I nor II.

Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of: a. Five days with pay b. Ten days with pay c. Twelve days with pay d. Fifteen days with pay

Statement 1: Vacation leaves are mandated by law./ Vo) unfaly Statement 2: Sick leaves are mandated by law. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Statement 1: Part-time workers are also entitled to service incentive leave Statement 2: The service incentive leave is commutable to cash. a. Only Statement 1 is true. b.Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

A father may claim paternity leave for how many days? a. Seven b.Ten c. Thirty d. Sixty

A solo parent is entitled to solo parent's leave of: a. Five days b. Seven days c. Ten days d. Fifteen days

Under the Expanded Maternity Leave Law, a female worker is entitled to how many days of leave with full pay, assuming that the female worker is not a solo parent? a. 60 days b. 78 days c. 105 days d. 120 days

If a female employee suffers miscarriage, is she entitled to maternity leave? a. Yes, up to 60 days leave with pay Yes, up to 105 days leave with pay c. Yes, up to 120 days leave without pay d. No.

t any time during the application of any protection order, investigation, prosecution and/or trial of the criminal case, a victim of Violence Against Women and Children (VAWC) who is employed shall be entitled to a paid leave of: a. 5 days b. 7 days c. 10 days d. 15 days

These are items of expense necessary for the laborer's and his family's existence and subsistence. It is part of the wage and is deductible from it. a. Supplements b. Compensation c. Deductions d.Facilities

The 13th month pay is payable: a. Anytime of the year b. Every December c. Anytime not later than December 24 d. From November to December

The concept simply means that if there is no work performed by the employee, there can be no wage or pay unless the laborer was able, willing, and ready to work but was prevented by management or was illegally locked out, suspended or dismissed. a. No ID No Entry b. Fair Day's Wage for a Fair Day's Labor c. Once You Break It, Consider It Sold d. Love Ain't A Science Don't Need a License

For purposes of the Social Security Act, which of the following may be considered as a dependent? I. Legally adopted child Illegitimate child a. I only. b. II only. c. Both I and II. d. Neither I nor II.

Under the Social Security Act, a sole proprietor is considered as: a. An employer b. An employee c. Both an employer and an employee d. Neither an employer nor an employee

Assuming that the child is not permanently incapacitated and incapable of self-support, what is the age limit within which a child may be considered as a dependent? a. Fifteen (15) years old b. Sixteen (16) years old c. Eighteen (18) years old d. Twenty-one (21) years old

For purposes of the Social Security Act, employment does not include: a. Service performed in the employ of the Philippine Government or instrumentality or agency b. Services where there is employer-employee relationship c. Services performed by probationary employees whose employment d have not reached six (6) months Services performed by employees in the top management.

The dependent illegitimate children shall be entitled to a. One hundred percent (100%) of the share of the legitimate children. b. Seventy five percent (75%) of the share of the legitimate children. Fifty percent (50%) of the share of the legitimate children. d. Twenty five percent (25%) of the share of the legitimate children.

The dependent legally adopted children shall be entitled to a. One hundred percent (100%) of the share of the legitimate children. b. Seventy five percent (75%) of the share of the legitimate children. c. Fifty percent (50%) of the share of the legitimate children. d. Twenty five percent (25%) of the share of the legitimate children.

How many months are taken into account in the computation of the average monthly salary credit? a. 6 months b. 12 months c. 24 months d. 60 months

Who among the following are compulsorily covered by SSS? I. Individual farmers II. Actors and actresses III. Partners in a partnership a. I and II only. b. land Ill only. c. Il and Ill only. d. I, II, and III.

Once separated from employment, can an employee continue paying contributions to the SSS? a. Yes, provided that such is consented by the employee's former employer. b. Yes, in all instances. c. No, an existing employer-employee relationship is required. d. No, since that would have the effect of likewise requiring the employer to make additional contributions.

Members with twenty (20) credited years of service are entitled to a minimum pension amounting to: a. P1,000 b. P1,200 с. P2,000 d. P2,400

On account of death of a person covered by SSS, may the dependents instead claim pension? a. No, in all instances. b. No, unless such dependent is likewise covered by SSS. c. Yes, but only legitimate children are entitled to the pension. d. Yes, but only up to a maximum of five children.

Who among the following retirees is entitled to a monthly pension? I. Babylyn, a member who has paid 100 monthly contributions and has reached the age of 60. II. Princess, a member who has paid 80 monthly contributions and has reached the age of 65. a. Babylyn only. b. Princess only. c. Both Babylyn and Princess. d. Neither Babylyn nor Princess.

If a deceased member has not paid the required thirty-six (36) monthly contributions, his primary or secondary beneficiaries shall be entitled to the higher between twelve times the monthly pension or: a. discounted reimbursable amount to be paid to the deceased member in accordance with actuarial computation b. lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS c. actual amount of contributions paid to the SSS made during the lifetime of the deceased member d. the monthly pension at the time the member dies.

Which of the following is not considered as a permanent total disability a. Complete loss of sight of both eyes b. Complete loss of hearing of both ears c. Brain injury resulting to incurable insanity d. Permanent complete paralysis of the legs

Compensable confinement shall be for a minimum period of: a. At least three days b. At least one week c. More than three days d. More than one week

Statement 1: A female employee giving birth to an illegitimate child is not entitled to claim maternity leave benefit. Statement 2: A solo parent is entitled to an additional 15 days unpaid maternity leave. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

In order for a female worker in the private sector to be entitled to maternity leave, she should have paid at least how many monthly maternity contributions? a. Three b. Six c. Nine d. Twelve

Can a female employee extend her maternity leave beyond the 105 days allowed by law? a. Yes, by up to 15 days with full pay, upon notification to the employer. b. Yes, by up to 30 days with full pay, upon notification to the employer. c. Yes, by up to 30 days without pay d. No, the maternity leave is non-extendible

A female employee suffered a miscarriage ten (10) days after the effectivity date of her resignation. Is she entitled to maternity leave benefits? a. No, miscarriage is an event which will trigger entitlement to maternity leave. b. No, considering that she has already resigned. c. Yes, considering that the miscarriage happened within 15 calendar days after the termination of her employment. d. Yes, considering that the miscarriage happened within 30 calendar days after the termination of her employment.

Remittance to the SSS shall be made: a. Within five days of each calendar month b. Within ten days of each calendar month c. Within fifteen days of each calendar month d. Within twenty days of each calendar month

It means any visible sign designated as such in the application for registration and capable of distinguishing the origin or any other common characteristic. a. Collective mark b. Trade name c. Collective name d. Collective trade

Generally, how are rights over a mark acquired? a. Through registration b. Through continuous use c. Through prior use d. Through prescription

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 widow d. Marks consisting of a name of a deceased individual during the life of his widow

Statement 1: The coat of arms of the Philippines cannot be registered as a trademark Statement 2: The coat of arms of Malaysia cannot be registered as a trademark in the Philippines a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is true regarding internationally well-known marks? a. A mark that is well-known internationally needs to be registered in identical or similar goods. the Philippines in order to be protected against infringement by b.A mark that is well-known internationally need not be registered in the Philippines in order to be protected against infringement by identical or similar goods. c. A mark that is well-known internationally need not be registered in the Philippines in order to be protected against infringement by goods regardless of the fact that identity or similarity may not exist. d. A mark that is well-known internationally needs to be registered in the Philippines in order to be protected against infringement by goods regardless of the fact that identity or similarity may not exist.

Which of the following is legally protectable? I. Generic terms II. Descriptive terms III. Arbitrary terms a. I only. b. Il only. c. I only. d. I, II, and III.

Under this doctrine, a word or phrase originally incapable of exclusive appropriation with reference to an article in the market, because geographical or otherwise descriptive might nevertheless have been used so long and so exclusively by one producer with reference to this article that, in that trade and to that group of the purchasing public, the word or phrase has come to mean that the article was his produce. a. Doctrine of Prior and Consistent Use b. Doctrine of Secondary Meaning c. Doctrine of Public Reference d. Doctrine of Trademark Prescription

How long does rights to a trademark last? a. 5 years from registration b. 10 years from registration c. 15 years from registration d. 20 years from registration

Lady Gaga filed a trademark application for her diving apparel which she calls "Lady Goggles". Four years after, Lady Gaga discovered that a certain Lady Garcia is selling diving apparel under the same name, i.e, "Lady Goggles". Lady Gaga filed with the IPO an administrative case for trademark infringement. Lady Garcia contended that Lady Gaga failed to file a Declaration of Actual Use, and therefore, she cannot be sued for trademark infringement. Decide. a. I will rule in favor of Lady Gaga since the deadline for the filing of the Declaration of Actual Use is five (5) years from the date of registration. b. I will rule in favor of Lady Gaga since the non-filing of the Declaration of Actual Use does not affect the status of trademark registration but merely gives rise to penalties. c. I will rule in favor of Lady Garcia since the non-filing of the Declaration of Actual Use within three (3) years from application date gives rise to the cancellation of registration. d. I will rule in favor of Lady Garcia since the non-filing of the Declaration of Actual Use bars Lady Gaga from pursuing any remedies with the IPO.

Which of the following most accurately describes the dominancy test? a. Confusing similarity is determined on the prevalent features of the marks. b. Confusing similarity is determined on the entirety of the marks in question. c. Confusing similarity is determined only through visual comparisons. d. Confusing similarity is determined only through aural and connotative comparisons.

Statement 1: Fraudulent intent is necessary in order for one to be held liable of trademark infringement. Statement 2: Fraudulent intent is necessary in order for one to be held liable of unfair competition. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is true regarding unfair competition? a. If a trademark is not registered, then there is no unfair competition. b. To determine whether there is unfair competition, it must be determined if there is likelihood of confusion. c. The essence of unfair competition is the act of passing off goods as that of another. d. Unfair competition may exist even without the sale of the goods whose marks are in issue.

What is the effect of the presence of an intent to mislead the public in a case of trademark infringement? a. No effect. In order for conviction of trademark infringement to lie, there is no need to prove intent to mislead the public. b. Damages that may be recovered by the trademark owner may be doubled. c. Aside from injunction, the trademark owner may seek the destruction of infringing materials. d. There arises a prima facie presumption that the infringer is likewise guilty of unfair competition.

Which of the following is covered by the protection granted to copyrights? I. Computer programs II. Photographic works III. Musical compositions a. Ill only. b. land Ill only. c. Il and Ill only. d. I, II, and III.

For copyrightable works, when does protection commence? a. From the moment of creation b. From the moment of application c. From the moment of registration with the IPO d. From the moment of first commercial sale

Johann wrote a poem for his girlfriend Yna. Johanna bought a scented parchment paper and wrote the 12-stanza poem by hand. Johann then sent the poem to Yna. Unfortunately, things went sour between Johann and Yna and they eventually broke up. Johann is now seeking to recover the handwritten poem contending that the copyright is his. Can Johann recover the handwritten poem? a. No. Yna is the owner of the physical manifestation of the poem. b. No. Yna is the owner of the copyright. c. Yes. Johann is the owner of the physical manifestation of the poem. d. Yes. Johann is the owner of the copyright.

Johann wrote a poem for his girlfriend Yna. Johanna bought a scented parchment paper and wrote the 12-stanza poem by hand. Johann then sent the poem to Yna. Unfortunately, things went sour between Johann and Yna and they eventually broke up. Yna, appreciating the talent Johann poured into writing the poem, sold Johann's poem for profit. Johann got mad, considering that the words were personal. Johann sued Yna for copyright infringement. Is Yna liable for copyright infringement? a. No. Yna is the owner of the physical manifestation of the poem. b. No. Yna is the owner of the copyright. c. Yes. Johann is the owner of the physical manifestation of the poem. d. Yes. Johann is the owner of the copyright.

Kristy received a tip from an anonymous person that the President, along with an unidentified woman, checked in at a five-star hotel in a prestigious resort town. Kristy called her friend who is living nearby to confirm with the receptionists if there was indeed such booking from the President. The friend confirmed the news. Jobert was able to eavesdrop on the phone call between Kristy and her friend, and Jobert also made investigations of his own. Kristy, thinking that it was exclusive, quickly drafted an article and published it in her news site. Jobert followed in a minute with his own article, but complete with photographic evidence which Kristy does not have. Kristy contended that it was her scoop, and Jobert committed copyright infringement. Did Jobert commit copyright infringement? a. No. Jobert's article has a picture while Kristy's article does not have pictures. b. No. News of the day is a non-copyrightable work. c. Yes. Jobert obtained the information by eavesdropping on Kristy's call. d. Yes. Jobert's article came a minute after Kristy's article was published.

Which of the following is copyrightable? a. The Pythagorean theorem, which is a formula for the computation of the hypotenuse of a triangle b. The Kaizen method, a method of business operations c. The discovery of the COVID-19 vaccine which elicits chemical reactions from cells. The discovery was made by Pfizer. d. A Sunday Afternoon on the Island of La Grande Jatte by Georges Seurat, which famously used pointillism in paintings.

Atty. X made a book on Obligations and Contracts. However, readers noticed that 80% of the content is just lifted verbatim from the Civil Code and Supreme Court decisions. Atty. Y, who is working with the government, sued Atty. X for copyright infringement. Is Atty. X guilty of copyright infringement. a. No. Eighty percent is not considered as substantial reproduction b. Yes. The commercial sale of the books for profit makes Atty. X guilty for copyright infringement. c. No. There can be no copyright infringement from lifting laws and jurisprudence. d. Yes. The mere reproduction of the books, even without the sale, makes Atty. X liable for copyright infringement.

Minda is a receptionist at a hotel. Due to an ongoing pandemic, visitors in the hotel plunged to an all-time low. Thus, Minda had a lot of spare time. While sitting in the front desk, facing the computer installed, she was narrating her experiences as a receptionist whose life is severely affected by the pandemic. She uploaded her stories in her social media accounts, and it went viral. She was able to seal a book deal for her story. The hotel management is now complaining that it should have a part of the proceeds of the book, considering that it should be the owner of the copyright over the book. Is the hotel management correct? a. Yes. The book was done during Minda's official working hours. b. No. Writing a book is not part of Minda's regular function. c. Yes. The book was done using the hotel's computer. d. No. The hotel is merely a co-owner of the copyright together with Minda.

Annie commissioned Louie to paint a portrait of her for a fee. Which of the following statements is correct? a. Annie owns the painting and the copyright over the painting. b. Louie owns the painting and the copyright over the painting. C. Annie owns the painting and Louie owns the copyright over the painting. d. Louie owns the painting and Annie owns the copyright over the painting.

Which of the following does not constitute copyright infringement? I. The reproduction or distribution of published articles or materials in a specialized format exclusively for the use of the blind, visually and reading-impaired persons on a for-profit basis. Il. Use made of a work for the purpose of any judicial proceedings or for the giving of professional advice by a legal practitioner. a. I only. b. Il only. c. Both I and II d. Neither I nor II.

All of the following are factors to be considered in determining whether use of a copyrighted material falls under fair use, except: a. The prestige of the author or the specific copyrighted work. b. The amount and substantiality of the portion used in relation to the copyrighted work as a whole. c. The effect of the use upon the potential market for or value of the copyrighted work. d. The purpose and character of the use

Statement 1: The term of protection over moral rights is fifty (50) years. Statement 2: The heirs of a copyright owner may fully deprive themselves of the right to participate in the gross proceeds of the sale or lease of a copyrighted work. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Works of applied art has a term of protection of: a. Ten (10) years b. Twenty-five (25) years c. Thirty (30) years d. Fifty (50) years

Which of the following is not a requisite for an invention to be patented? a. Novelty b. Inventive Step c. Ornamentality d. Industrial Applicability

Archimedes, through his study, had come up with the formula for the area of circles, which he writes as A=πr². On the other hand, James Naismith invented the game of basketball. Assuming that Archimedes and Naismith are both applying for a patent over what they have come up with, who is entitled to a patent? a. Archimedes only. b. Naismith only. c. Both Archimedes and Naismith. d. Neither Archimedes nor Naismith.

Lex, in his laboratory, invented a microchip with transistors that are just 3 nanometers in size, resulting in the fastest microchip ever invented. He tried placing the microchip in a laptop, and it ran faster than expected. He had a tech expert see the laptop, and the tech expert was likewise amazed at the unprecedented performance of the microchip. The tech expert asked for the details of the transistors, which Lex willingly provided. The tech expert then told Mosley of Lex's invention. Seven months later, Lex filed his patent application over the microchip with the Intellectual Property Office. Mosley opposed the application considering that he is already in the making of the patent and that the disclosure to him removed the element of novelty from Lex's microchip. Is Lex entitled to a patent? a. Yes. The disclosure was made by Lex himself and Mosley who obtained the information directly from Lex. b. No. The disclosure was made by Mosley, who is not an inventor. c. No. There is a lapse of more than six months from the time Lex made the disclosure to Mosley up to the time of patent application. d. Yes. Novelty is not an element of a patent over an invention.

An invention involves an inventive step if, having regard to prior art: a. It is not replicable by a person skilled in the art. b. It is not replicable by any person. c. It is not obvious to a person skilled in the art. d. It is not obvious to any person

Statement 1: If two or more persons separately made the same invention, priority is given to one who filed first, notwithstanding the fact that the late filer may have actually invented first. Statement 2: A patent application need not specifically lay down its claims, i.e., matters for which protection is sought. Otherwise, disclosure of the claims may lead to unnecessary leak of the patented invention. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

How long is the term of protection for patents? a. 10 years b. 20 years c. 25 years d. 50 years

Under this doctrine, there is patent infringement if the principle or mode of operation is the same or substantially the same. a. Literal infringement b. Substantial infringement c. Doctrine of operational comparability d. Doctrine of equivalents

Which of the following is not a ground for compulsory licensing? a. National emergency/circumstances of extreme urgency b. Invention is not being worked in the Philippines on a commercial scale without satisfactory reasons c. Competitive use d. Demand for patented drugs and medicine is not being met to an adequate extent

Melanie, an employee of ABC Bank, saw the bank account details of her archenemy, Brittany. Melanie revealed to her friend Hannah that Brittany: has been depositing P450,000 weekly and now has an account balance of P92 million. Hannah, having this knowledge, informed Brittany's husband, Jeremy, of the bank balances. Jeremy was shocked, considering that he does not know of the huge amounts. Jeremy confronted Brittany in a public place, said out loud her bank balance resulting to seven (7) other people hearing information about Brittany's bank account. Who is liable for the violation of RA No. 1405?. a. Melanie only. b. Melanie and Hannah only. c. Melanie and Jeremy only. a. Melanie, Hannah, and Jeremy

Statement 1: Trust accounts are not covered by bank secrecy laws. Statement 2: Investments in government bonds are not covered by bank secrecy laws. a. Only Statement 1 is true. with bank/ banking inburon b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Marites is a director in XYZ Bank. She intends to obtain a P4,000,000 housing loan from XYZ Bank. With this: a. Marites has impliedly waived the secrecy of her bank deposits. b. Marites is required to execute a written waiver of secrecy of bank deposits. c. No waiver is required of Marites considering there is no showing that the loan exceeded 10% of the cash position of XYZ Bank. d. No waiver is required of Marites if Marites will be able to secure the approval of the Board of Directors without her vote.

Which of the following is not an exception to the secrecy of bank deposits? a. Impeachment cases of the Vice President b. Crime of plunder born c. Cases involving unexplained wealth under the Anti-Graft and Corrupt Practices Act d. Crime of theft where it is unknown where the funds were deposited

The Commissioner of Internal Revenue may inquire into the bank balance of a taxpayer in the following cases, except: a. When taxpayer applies for compromise on the ground of financial incapacity b. Pursuant to a request for tax information of specific taxpayers made by a foreign tax authority pursuant to a tax treaty c. When taxpayer applies for abatement of taxes on the ground that it is a jeopardy assessment → echome anen go been tha d. For purposes of determining the gross estate of a deceased depositor

Which of the following statements is true regarding the examination of law enforcement officers of bank accounts in terrorism cases? a. It must be upon order of the trial court b. It must be upon order of the Court of Appeals c. It must be upon order of the Supreme Court d. Law enforcement officers cannot examine bank accounts in terrorism cases.

Which of the following is a common exception on the secrecy of bank deposits for both peso deposits and foreign currency deposits? I. Anti-Money Laundering Act II. Human Security Act III. PDIC Law a. I only. b. I and Il only. c. I and III only. d. I, II, and III.

Statement 1: Foreign currency deposits are generally exempt from garnishment. Statement 2: Garnishment is a violation of the bank secrecy law. a. Only Statement 1 is true. Linot aviolation b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

In order for a deposit to be considered as covered by the Unclaimed Balances Act, the person must be known to be dead or has not made further deposits or withdrawals for a period of: a. At least 3 years b. At least 5 years c. At least 10 years d. At least 20 years

Statement 1: The PDIC is empowered to examine and investigate banks. Statement 2: The PDIC shall act as insurers of deposits. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Who is considered as the receiver of banks? a. Courts b. Philippine Deposit Insurance Corporation c. Bangko Sentral ng Pilipinas d. Securities and Exchange Commission

The amount of insured deposits for each legitimate deposit shall not exceed: а. P500,000 b. P1,000,000 c. P2,000,000 d. P5,000,000

Which of the following may be considered as an insured deposit? I. Savings deposit II. Certificates of time deposit III. Foreign currency deposit a. I only. b. I and Il only. c. I and III only. d. I, Il, and III.

There is splitting of deposits when a deposit account with an outstanding balance more than P500,000 is broken down and transferred to two or more accounts in the name of persons or entities who have no beneficial ownership in the transferred deposits in their names within: a. 120 days immediately preceding or during a bank-declared bank holiday or immediately preceding a closure order issued by the Monetary Board b. 180 days immediately preceding or during a bank-declared bank holiday or immediately preceding a closure order issued by the Monetary Board c. 240 days immediately preceding or during a bank receivership or immediately preceding a closure order issued by the Monetary Board d. 300 days immediately preceding or during a bank receivership or immediately preceding a closure order issued by the Monetary Board

Statement 1: Foreign currency deposits are considered as insured deposits under the PDIC Law. Statement 2: Deposits payable outside the Philippines are considered as insured deposits under the PDIC Law. within only a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Belinda had the following deposits with DEF Bank: I. Savings account #001 under her name, P100,000 II. Savings account #002 under her name, P80,000 III. Savings account #003 named after Belinda for the account of Minerva, P65,000 IV. Savings account #004 under both Belinda and Minerva as co- depositors, P44,000 How much is the insured deposit of Belinda? a. P202,000 b. P224,000 c. P267,000 d. P289,000

A depositor is not required to file claims with the PDIC if his accounts have a balance: a. of less than P100,000 b. not exceeding P100,000 c. of less than P50,000 d. not exceeding P50,000

depositor must file his claim within: a. 6 months from actual takeover of the closed bank b. 1 year from actual takeover of the closed bank c. 2 years from actual takeover of the closed bank d. 3 years from actual takeover of the closed bank

All of the following are covered entities/persons, except: a. Offshore banking units b. Internet-based casinos c. Lawyers acting as independent legal professionals d. Register of Deeds

For a transaction in a casino to be included as a covered transaction, the single cash transaction must be in excess of: a. P500,000 b. P1,000,000 c. P5,000,000 d. P10,000,000

need for update

Statement 1: All records of all transactions of covered institutions shall be maintained and safely stored for 10 years from the date of transactions under the AMLA. Statement 2: If the report of a covered institution does not result to any criminal prosecution under the AMLA, the person reported may file a suit against the reporting institution for violation of the law on secrecy of bank deposits. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true. culing 500K

MNO Bank received a deposit of P600,000 from Mr. X in a single day. Is MNO Bank required to report the deposit to the AMLC? a. Yes, since the amount exceeded P500,000. b. No, since there is no probable cause that the money came from predicate crimes enumerated under the AMLA. c. No, since Mr. X has not yet been accused of a crime enumerated under the AMLA. d. No, since Mr. X has not yet been convicted of a crime enumerated under the AMLA.

Covered institutions shall report to the AMLC all covered transactions: a. Within 5 working days from occurrence thereof b.Within 10 working days from occurrence thereof c. Within 15 working days from occurrence thereof d. Within 20 working days from occurrence thereof

Who is the chairman of the Anti-Money Laundering Council? a. The President of the Philippines b. The Chairman of the Securities and Exchange Commission c. The Governor of the Bangko Sentral ng Pilipinas d. The Secretary of Finance

Statement 1: A cooperative has the right of succession Statement 2: A cooperative can sue and be sued. a. Only Statement 1 is true b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is correct in relation to the characteristics of cooperatives? a. Members of a cooperative have unlimited liability b. The cooperative is a person separate and distinct from its members c. A cooperative has an indefinite life. d. A cooperative cannot enter into a merger or consolidation

What is the governing body for cooperatives? a. Cooperative Development Authority b. Securities and Exchange Commission c. Cooperative Regulatory Commission d. Cooperative Registration Board

Which of the following is not contained in the Articles of Cooperation? a. Name of the cooperative b. Common bond of membership c. Area of operation d. Qualifications for admission to membership

Statement 1: A cooperative may or may not adopt bylaws Statement 2: The minimum subscription requirement for cooperatives is equivalent to 25% of the authorized share capital. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Generally, the minimum paid-up share capital of a cooperative should be 25% of the total subscription but: a. Not less than P5,000 b. Not less than P10,000 c. Not less than P15,000 d. Not less than P20,000

In organizing a primary cooperative, how many persons are required? a. At least five b. At least seven c. At least ten d. At least fifteen

A single-purpose cooperative may transform into a multi-purpose or may create subsidiaries only after: a. At least one year of operations b. At least two years of operations c. At least three years of operations d. At least four years of operations

Where should an appeal be filed in case an appellant wants to question the denial of the application for registration of a cooperative? a. Court of Appeals b. Securities and Exchange Commission c. Cooperative Development Authority d. Office of the President

All applications for registration shall be finally disposed of by the Cooperative Development Authority within a period of sixty (60) days from the filing. Upon the lapse of 60 days, and there is inaction on the part of the CDA, then : a. The period to decide is deemed extended for 60 days. b. The period to decide is deemed extended indefinitely. c. The application is deemed denied. d. The application is deemed approved.

It refers to the full membership of the cooperative duly assembled for the purpose of exercising the rights and performing all the obligations pertaining to cooperatives and is considered the highest policy-making body of the cooperative. a. Outstanding members b. Full assembly c. General assembly d. Members' congress

A special meeting may be called through a written request by: a. At least 10% of the total members b. At least 25% of the total members c. At least 1/3 of the total members d. A majority of the total members

In order to constitute a quorum, a meeting shall be attended by: a. At least 10% of the total members entitled to vote. b. At least 25% of the total members entitled to vote. c. At least 1/3 of the total members entitled to vote. d. A majority of the total members entitled to vote.

What is the maximum term allowed for members of the Board of Directors of a cooperative? a. One year b. Two years c. Three years d. Four years

Which of the following causes of vacancy will require a general assembly to be filled up? a. Resignation of the member of the Board b. Civil interdiction c. Death of a member of the Board d. Expiration of the term

It is one who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the by-laws may provide. a. A regular member b. An irregular member c. An associate member d. A provisional member

Statement 1: Any officer or employee of the Cooperative Development Authority shall be disqualified to be elected or appointed to any position in a cooperative. Statement 2: All elective officials of the Government shall be ineligible to become officers and directors of cooperatives. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Joe is a member of X Cooperative. X Cooperative had assets of P100 million and liabilities of P60,000,000. As a member, Joe's contribution to the cooperative is P150,000. Joe withdraws from the cooperative. Assuming the by-laws of the cooperative is silent on the matter, can Joe withdraw his P150,000 contribution? a. Yes, considering that there is no express prohibition on the by-laws on the matter. b. Yes, but only 40% may be given to Joe. The remaining portion shall be retained by the cooperative in payment of liabilities. c. No, it will violate the trust fund doctrine. d. No, the entire portion shall be retained by the cooperative in payment of liabilities.

Which of the following causes of termination of membership requires a vote of the majority of all the members of the cooperative? a. Death of a member in a primary cooperative b. Member not patronizing any of the services of the primary cooperative he is a member of c. Insanity of a member in a primary cooperative d. Dissolution of a member in a secondary cooperative

The notice of withdrawal must be given by a member to the Board of Directors within: a. 15 days from effectivity date of withdrawal b. 30 days from effectivity date of withdrawal c. 45 days from effectivity date of withdrawal d. 60 days from effectivity date of withdrawal

What is the limit of ownership that a member in a primary cooperative may own? a. Not more than 10% b. Not more than 20% c. Not more than 30% d. Not more than 50%

Statement 1: Members may transfer their shares or interest even without the approval of the Board of Directors Statement 2: Generally, where a member of a cooperative dies, his heir shall be entitled to the shares of the decedent. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Under the Cooperative Code, how long should documents or books pertaining to financial and nonfinancial operations be kept for: a. Three (3) years b. Five (5) years c. Seven (7) years d. Ten (10) years

Every cooperative shall draw up regular reports of its program of activities, including those in pursuance of their socio-civic undertakings, showing their progress and achievements at the end of every fiscal year. These reports shall be: a. Filed with the CDA within 90 days from the end of the calendar year b. Filed with the CDA within 120 days from the end of the calendar year c. Filed with the CDA and SEC within 90 days from the end of the calendar year d. Filed with the CDA and SEC within 120 days from the end of the calendar year

In this kind of cooperative, membership is terminated upon reaching the age of 18. a. Service cooperative b. Laboratory cooperative c. School cooperative d. Youth cooperative

A cooperative whose members are secondary cooperatives is called a/n: a. Tertiary cooperative b. Union c. Federation d. Multicooperative

In the case of a federation, what is the minimum number of members under the Cooperative Code? a. 5 primary cooperatives b. 10 primary cooperatives c. 15 primary cooperatives d. 20 primary cooperatives

In order for a merger or consolidation to be valid, it must be approved by: a. A majority of all members with voting rights b. 1/3 of all members with voting rights c. 2/3 of all members with voting rights d. 3/4 of all members with voting rights

Statement 1: Dissenting members to a merger or consolidation are required to be members of the merged or consolidated cooperative in case the required vote was secured. Statement 2: Mergers and consolidations of cooperatives require the approval of the Cooperative Development Authority. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Any registered cooperative may resolve to divide itself into the two (2) or more cooperatives upon securing the approval of: a. A majority of all members with voting rights b. 1/3 of all members with voting rights c. 2/3 of all members with voting rights d. ¾ of all members with voting rights

Which of the following is not a requisite of an investment contract? a. It must invoive an investment of money b. The investment of money is made in a common enterprise c. The investor must have an expectation of profits d. The profit will be derived exclusively from the efforts of others

Which government agency governs the registration of securities? a. Securities and Exchange Commission b. Securities Registration Commission c. Securities Regulatory Board d. Securities Registration Board

It is a contract between a buyer and a seller whereby the buyer is obligated to take delivery and the seller is obliged to deliver a fixed amount of an underlying commodity at a pre-determined price and date. a. Futures b. Warrant c. Forward d. Options

Statement 1: If the issuer of securities has filed for a judicial declaration of insolvency, then the SEC may revoke the registration of such securities. Statement 2: If the issuer of securities has been convicted by final judgment of an offense involving moral turpitude, then the SEC may revoke the registration of such securities. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is not required to be registered with the SEC under the SRRC? a. Shares of stock b. Voting trust certificates c. Certificates of deposit d. Contract of real estate mortgage

Which of the following is required to be registered with the SEC under the SRC? a. Treasury bills b. Bonds of the Government of Japan c. Membership certificates in non-stock corporations d. Bonds issued by banks

BC Corporation is a close corporation. It applied for an increase in authorized share capital on January 5, 2021, which was approved by the Securities and Exchange Commission. Pursuant to the increase, ABC Corporation issued 10,000 shares of stock exclusively to its existing shareholders. No broker's commission was paid in the transaction. Is the transaction required to be registered under the SRC? a. No. Because the sale is only exclusive to its own stockholders only. b. Yes. Because the object of the sale is shares covered by the SRC c. Yes. Because no broker's commission was paid. d. No. Because the sale did not exceed 100,000 shares.

On the requirement to register securities under the SRC, which of the following is generally an exempt transaction? a. Pre-incorporation subscription b. Reissuance of treasury shares c. Flotation of bonds d. Sale of shares with warrants

The deadline for the filing of the general information sheet is: a. April 15 of the following year b. 30 days following the date of the annual stockholder's meeting c. 60 days following the date stated in the by-laws of the corporation d. 90 days following the date of the filing of the audited financial statements with the SEC.

A material non-public information includes: a. Information that concerns the internal management of the entity issuing securities b. Information involving market studies and analyses c. Information that will affect the price of the security d. Information that constitutes falsity and manipulations

Who among the following is not an insider? a. The issuer b. Director of the issuer c. Officer of a clearing agency d. Relative within the fourth degree of consanguinity of the director of the issuer

Gryffindor Corporation is engaged in the manufacturing of smartphones. In the product development stage is a top-secret smartphone which has four (4) back cameras, waterproof, no bezel, 5G technology, and tested to withstand a drop from a height of 100 feet. The Vice President for Research, Ginny, informed her husband, Neville, that such phone is in the works and is nearing the finishing stage. Ginny intimated that the phone will be a game-changer. Neville asks that Ginny email the details of the phone, which Ginny did. After viewing the email, Neville went to the restroom and inadvertently left his laptop and email open. Ron passed by Neville's desk and saw the email. Curious, Ron read the contents of the email and saw the planned development and launch of the smartphone. Who is an insider? a. Ginny only. b. Ginny and Neville only. c. Neville and Ron only. d. Ginny, Neville, and Ron.

If there is a purchase or sale of a security of the issuer made by an insider or such insider's spouse or relatives by affinity or consanguinity within the 2nd degree, legitimate or common-law after such information came into existence, but prior to the dissemination of such information to the public and the lapse of a reasonable time for the market to absorb such information: a. There is a presumption that the transaction is entered into fraudulently b. There is a presumption that the transaction has been effected while in possession of material non-public information c. There is a presumption that the transaction requires a tender offer d. There is a presumption that the transaction was entered into regularly

This is done by placing of purchase or sale order, at or near the close of the trading period in order to affect the closing price likewise affecting the opening price the following day. a. Securing the close b. Drawing the open c. Marking the close d. Bringing the open

In this transaction, a part or portion of the issue/security which is outstanding but intentionally held by dealers or other persons with a view of reselling them later for profit thereby affecting supply of the security or its availability while demand remains the same or increases, driving the prices up. a. Squeezing the float b. Painting the tape c. Pushing the line d. Washing the sink

Included in the application of the mandatory tender offer rule are corporations: a. Having at least 200 shareholders who each have at least 20o shares b. Having at least 100 shareholders who each have at least 20o shares c. Having at least 200 shareholders who each have at least 10o shares d. Having at least 100 shareholders who each have at least 10o shares

The mandatory tender offer applies to any person who intends to acquire shares of listed corporations amounting to: a. At least 20% b. At least 25% c. At least 30% d. At least 35%

ABCDEF Corporation is 20% owned by A, 10% owned by B, 25% owned by C, and the remainder are owned by the other stockholders. C plans to acquire all the shares of A and B. Is the transaction covered by the amounting to P75 million? mandatory tender offer rule assuming ABCDEF Corporation has assets a. No, since the corporation is not a listed corporation b. No, since the purchase does not involve at least 30% of the corporation's shares c. Yes, since the purchase involves at least 30% of the corporation's shares d. Yes, since C will gain control of the corporation after the transaction

Statement 1: Mergers and consolidations are not exempt from the mandatory tender offer requirement if the threshold percentage of shares acquired is reached. Statement 2: Purchases in connection with privatization undertaken by the government are not exempt from the mandatory tender offer requirement if the threshold percentage of shares acquired is reached. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

The process of tender offer involves: a. Executing the deed of assignment of shares in a public instrument b. Sending letters of notices to each shareholder on record c. Making an announcement in a newspaper of general circulation d. Listing the shares with the local stock exchange

Statement 1: As a general rule, a corporation is entitled to moral damages Statement 2: A corporation is entitled to the constitutional right against self-incrimination a. Only Statement 1 is true b. Only Statement 2 is true c. Both statements are true d. Both statements are not true

ABC Corporation borrowed P3,000,000 from DEF Bank. Mr. Benito is the controlling stockholder, owning eighty percent (80%) of the outstanding capital stock of ABC Corporation. DEF Bank seeks to collect the P3,000,000 debt of ABC Corporation, but it discovered that the corporation has no more assets. DEF Bank is now going after Mr. Benito to collect the debt. Is Mr. Benito liable to pay the P3,000,000 debt of ABC Corporation? a. No. Mr. Benito can only be held liable for P2,400,000, or 80% of P3,000,000. b. No. The liability of ABC Corporation is separate from the liability of Mr. Benito. c. Yes. Under the doctrine of piercing the veil of corporate fiction, Mr. Benito is liable for the debts of the corporation. d. Yes. Under the doctrine of unlimited liability, Mr. Benito's personal assets serve as security for the debts of the corporation.

A corporation: a. Has a non-renewable term of existence of fifty (50) years b. Has a term of existence of fifty 50) years, renewable three times c. Has a term of existence of fifty (50) years, renewable for an indefinite number of times d. Has a perpetual existence unless its articles of incorporation provide otherwise

The doctrine of piercing the veil of corporate fiction applies when the corporate fiction is being used to do the following, except: a. Defeat public convenience b. Pursue a business interest c. Protect fraud d. Justify wrong

Which of the following is not an advantage of forming a corporation as distinguished from other forms of business ownership? a. Continuity of existence b. Limited liability c. Low cost of formation d. Ease in transferability of ownership interest

The shares of stock of a close corporation are held by: a. Not more than 20 persons b. At most 20 persons c. Not more than 50 persons d. At most 50 persons

In order to determine whether a corporation is a domestic or a foreign corporation, the main point of query is: a. The place of incorporation b. The nationality of incorporators c. The nationality of the controlling shareholders d. The nationality of majority of the members of the Board of Directors

An eleemosynary corporation is: a. A lay corporation created for the benefit of persons composing it b. A lay corporation created for charitable purposes c. An ecclesiastical corporation created for the benefit of persons composing it d. An ecclesiastical corporation created for charitable purposes

J, K, L, M, and N wanted to form a corporation. They signed a "contract of incorporation" whereby all five of them obligated themselves to contribute P2,000,000 each as share capital of the proposed corporation. All of the persons have contributed P2,000,000 each within a month from the signing of the "contract of incorporation". Is there a corporation? a. Yes, from the time of the signing of the contract of incorporation b. Yes, from the time that J, K, L, M, and N have all contributed P2,000,000 c. No, since there is no Certificate of Incorporation d. No, since the facts did not show that the contract of incorporation was entered into in a public instrument

The corporate existence of a corporation sole commences from: a. Filing of the verified articles. b. Issuance of Certificate of Incorporation c. Initial contribution d. First transaction

After verifying that their name is unique and allowed, the incorporators of OPQ Corporation filed its Articles of Incorporation and Treasurer's Affidavit with the Securities and Exchange Commission. The Certificate of Incorporation was issued. However, nine months had passed and OPQ Corporation did not submit its Corporate By-Laws with the SEC. Numerous board resolutions have been issued and corporate transactions have been entered into. What is the status of the corporation? a. An inexistent corporation b. A de facto corporation c. A de jure corporation d. A corporation by estoppel

Statement 1: The existence of a de facto corporation can be attacked collaterally Statement 2: The existence of a corporation by estoppel can be attacked directly a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Statement 1: Once an incorporator ceases to be a shareholder, an amendment of the Articles of Incorporation is necessary. Statement 2: Not all shareholders are incorporators. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which among the following institutions are allowed to incorporate as a one-person corporation? a. Quasi-banks b. Publicly-listed companies c. Natural persons exercising their profession d. Export enterprises

Statement 1: A foreign corporation cannot make donations to partisan political activity Statement 2: A domestic corporation can make donations to partisan political activity a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Which of the following is not an express power of a corporation under the Corporation Code? a. To sue in its corporate name b. To convey and sell real and personal property c. To hire personnel d. To amend its articles of incorporation

These are powers that attaches to a corporation at the moment of its creation without regard to its expressed powers or particular primary purpose and may be said to necessarily arise from its being a juridical person engaged in business a. Inherent powers b. Express powers c. Implied powers d. Collateral powers

In the Articles of Incorporation, Blackpink Corporation's primary purpose is the manufacture, distribution, and sale of hammers. Blackpink Corporation wants to enter into the business of rendering carpentry services. The Board of Directors of Blackpink Corporation met, and they decided to venture into the carpentry services industry. What is the status of contracts entered into by Blackpink Corporation involving carpentry services? a. The contracts are voidable since it is an ultra vires act. b. The contracts are unenforceable since they were entered into without authority. c. The contracts are valid since they were authorized by the Board of Directors. d. The contracts are void for being outside the primary purpose of the corporation.

All of the following are true statements regarding the qualifications of an incorporator, except: a. An incorporator may be any juridical person b. A person eighteen (18) years of age may be an incorporator c. An incorporator must own or subscribe to at least one (1) share d. A person who is not a resident of the Philippines may not qualify as an incorporator.

Corporations vested with public interest shall have independent directors constituting: a. At least 10% of such Board. b. At least 20% of such Board. c. At least 30% of such Board. d. At least 40% of such Board.

All of the following are true statements regarding the qualifications of a director, except: a. A director must own at least one share in their own names b. Majority of the Board of Directors must be residents of the Philippines c. A director must not be convicted by final judgment of a violation of the Securities Regulations Code within five (5) years prior to election or appointment d. A director must not be convicted by final judgment of a violation of an offense punishable by imprisonment for a period exceeding three (3) years within five (5) years prior to election or appointment

Bubbles is a member of the Board of Directors of Buttercup Corporation. Through a Board Resolution of the members of the Board present during the board meeting, Bubbles was authorized to enter into a contract with Mojo Corporation, involving the provision of services by Buttercup Corporation in exchange for the payment of P20,000,000 by Mojo Corporation. However, events did not turn out well for Mojo Corporation as it soon filed for bankruptcy. Notwithstanding Buttercup Corporation being able to render all the services required under the contract, Mojo Corporation was only able to pay P3,000,000 of the contract price. One of the shareholders, Buttercup, is particularly worried as to how it will affect the financial position of Buttercup Corporation. She went to court and sought to annul the contract entered into by Bubbles. Is the contract entered into by Bubbles annullable? a. Yes. Considering that Buttercup is a shareholder and would be directly affected by the decision of the Board, Buttercup can seek for the annulment of the contract. b. Yes. The contract constitutes an ultra vires act for being entered into in bad faith c. No. As a general rule, matters of management are subject to the discretion and judgment of the Board of Directors. d. No. Buttercup must first obtain the vote of at least 2/3 of the outstanding capital stock before the contract may be annulled

Statement 1: The manner of voting for the members of the Board of Directors is always by ballot. Statement 2: In order to be seated as a member of the Board of Directors, a director must obtain at least one-third (1/3) of the total number of votes cast. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Courage owns 5,000 shares of stock of Muriel Corporation. Three members of the Board of Directors will be elected. Which of the following is true under cumulative voting? a. Courage has 5,000 votes. He may pool all 5,000 votes in favor of one candidate. b. Courage has 5,000 votes. He must distribute his votes to three candidates. c. Courage has 15,000 votes. He may pool all 5,000 votes in favor of one candidate. d. Courage has 15,000 votes. He must distribute his votes to three candidates.

Under which of the following causes of vacancy in the Board of Directors is the vote of stockholders required? a. Death b. Expiration of the term c. Resignation d. Abandonment

Mr. X, a member of the Board of Directors of XYZ Corporation, died during his term as a director on March 5, 2020. Up to when shall the remaining directors fill the vacancy caused by Mr. X's death? a. March 20, 2020 b. April 4, 2020 c. April 19, 2020 d. May 4, 2020

ABC Corporation is planning to enter into a contract with one of its directors, Barry. There were seven members of the Board of Directors: Agatha, Barry, Chandra, Demi, Emil, Farrah, and Gem. In the meeting where part of the agenda is the proposed contract with Barry, the following members of the Board of Directors were present: Agatha, Barry, Demi, and Emil are present. When the vote for the contract with Barry is being counted, the Corporate Secretary noted that Barry abstained from voting. Agatha, Demi, and Emil all voted in favor of the contract. What is the status of the contract? a. Voidable at the option of Barry b. Voidable at the option of the corporation c. Void d. Perfectly valid

What is the limit as to the amount of the total yearly compensation of the directors? a. It should not exceed 10% of the net income before tax of the corporation during the preceding year. b. It should not exceed 20% of the net income before tax of the corporation during the preceding year. c. It should not exceed 10% of the net income after tax of the corporation during the preceding year. d. It should not exceed 20% of the net income after tax of the corporation during the preceding year.

It signifies the maximum amount of shares that a corporation may issue. a. Outstanding capital stock b. Issued capital stock c. Issuable capital stock d. Authorized capital stock

All of the following are valid considerations for shares, except: a. Promissory notes b. Intangible personal property c. Services rendered d. Previously incurred indebtedness

The exclusive right to vote and be voted for in the election of directors granted to holders of founders' shares shall not exceed a period of: a. Two (2) years b. Three (3) years c. Four (4) years d. Five (5) years

In which of the following acts may the right to vote of preference shareholders be withheld? a. Removal of member of the Board of Directors b. Increase or decrease of capital stock c. Amendment of by-laws d. Sale of substantially all of the corporate property

hich of the following statements is true in relation to no-par value shares? I. Preference shares can be issued as no-par value shares if the Articles of Incorporation so provides. II. Whatever is paid for no-par value shares constitutes paid-in capital and is covered by the trust fund doctrine regardless of the amount a. I only. b. Il only. c. Both I and II. d. Neither I nor II.

Treasury shares are: a. Issued and outstanding b. Issued but not outstanding c. Not issued and not outstanding d. Not issued but outstanding

Hanna subscribed for 2,000 shares with P50 par value for P60 each, or a total of P120,000. Hanna was able to pay P60,000 and was unable to pay the other half. Now, Hanna is demanding the issuance of half of the shares, i.e., 1,000 shares, since she was able to pay half of the subscription price. Can Hanna do so? a. Yes. Partial payment of subscription price gives rise to a right to demand issuance of a proportional number of shares. b. Yes. However, Hanna must first secure the vote of a majority of the Board of Directors constituting a quorum c. No. Hanna must be able to pay the entire par value of P100,000 (2,000 shares at a par value of P50 each) before the shares can be issued. d. No. Subscription contracts are considered as indivisible.

Jackie subscribed for 3,000 shares with P44 par value for P80 each. Jackie was only able to pay P160,000 of the subscription price, leaving an unpaid balance of P80,000. Subsequently, the shares became delinquent. Prior to the delinquency sale, the Board of Directors declared cash dividends and called for a stockholder's meeting to vote on the proposed corporate restructuring of the corporation. Which of the following statements is true? a. Jackie is entitled to the cash dividends, and she is likewise entitled to vote on the proposed corporate restructuring. b. Jackie is not entitled to the cash dividends, and she is likewise not entitled to vote on the proposed corporate restructuring. c. Jackie is not entitled to the cash dividends but is entitled to vote on the proposed corporate restructuring. d. Jackie is entitled to the cash dividends but is not entitled to vote on the proposed corporate restructuring.

This refers to a suit brought by one or more stockholders or members in the name and on behalf of the corporation to redress wrongs committed against it or to protect or vindicate corporate rights, whenever the officials of the corporation refuse to sue or are the ones to be sued or hold control of the corporation. a. Individual suit b. Personal suit c. Representative suit d. Derivative suit

Without board resolution, majority of the outstanding capital may: a. Declare stock dividends b. Revoke delegated power to amend by-laws c. Enter into a management contract d. Deny pre-emptive right

Without board resolution, 2/3 of the outstanding capital may: a. Remove a member of the Board of Directors b. Fix compensation of directors c. Extend or shorten the corporate term d. Invest in another corporation other than the primary purpose

In order for a voting trust agreement to be valid, which of the following are part of the requisites? I. It should be notarized. II. It should be filed before the Chairman of the Board of Directors. a. I only. b. Il only. c. Both I and II. d. Neither I nor II.

Under which of the following scenarios can the preemptive right not be exercised? I. Reissuance of treasury shares II. Issuance in compliance with minimum stock ownership by the public a. lonly. b. Il only. c. Both I and II. d. Neither I nor II.

The by-laws take effect upon: a. The issuance of the Certificate of Incorporation b. Approval by the Securities and Exchange Commission c. Approval of the stockholders by 2/3 vote d. Ratification of a majority of the Board of Directors

If the by-laws were made prior to incorporation, then: a. It must be approved by the majority of the stockholders b. It must be approved by at least 2/3 of the stockholders C. It must be approved by at least 3/4 of the stockholders d. It need not be approved by the stockholders

In order to constitute a quorum for the meeting of the directors: a. At least 1/3 must be present. b. Majority must be present. c. At least 2/3 must be present. d. At least 3/4 must be present.

Notice for the regular meeting of the stockholders must be received by the stockholders: a. 30 days before the meeting b. 21 days before the meeting c. 15 days before the meeting d. 14 days before the meeting

Statement 1: Proxy voting is allowed during the meeting of the Board of Directors Statement 2: Proxy voting is allowed during the meeting of the stockholders a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Sam Corporation wants to expand its operations and intends to set up its own delivery system. Smith Corporation is a trucking and logistics corporation. Sam Corporation purchased all of Smith Corporation's assets and liabilities. As a result of the transaction, Smith Corporation was dissolved. Which of the following statements is true? a. The transaction is a consolidation. Sam Corporation and Smith Corporation are called constituent corporations. b. The transaction is a merger. Sam Corporation and Smith Corporation are called constituent corporations. c. The transaction is a consolidation. Smith Corporation is called the absorbed corporation. d. The transaction is a merger. Smith Corporation is called the absorbed corporation

The plan of merger or consolidation must be approved by: a. The stockholders representing at least ½ of the outstanding capital stock b. The stockholders representing at least 2/3 of the outstanding capital stock c. The stockholders representing at least 3/4 of the outstanding capital stock d. The stockholders representing all of the outstanding capital stock

Which of the following non-stock corporations are required to have trustees in multiples of five? a. Charitable non-stock corporations b. Religious non-stock corporations C. Scientific non-stock corporations d. Educational non-stock corporations

Where no creditors are affected, how much vote is required to effect a voluntary dissolution? a. Majority of the outstanding capital stock b. At least 1/3 of the outstanding capital stock c. At least 2/3 of the outstanding capital stock d. At least ¾ of the outstanding capital stock

Generally, a contract of partnership is: a. A preparatory and a consensual contract b. An aleatory and a consensual contract c. A preparatory and a formal contract d. An aleatory and a formal contract

A, B, and C formed ABC Partnership. They are also the major stockholders of ABC Corporation. Which of the following statements is true? a. ABC Partnership is a person separate and distinct from A, B, and C This is not true with ABC Corporation. b. ABC Corporation is a person separate and distinct from A, B, and C. This is not true with ABC Partnership. c. ABC Corporation and ABC Partnership are considered as a person separate and distinct from A, B, and C, but the law treats ABC Corporation and ABC Partnership as one entity. d. ABC Corporation and ABC Partnership are considered as a person separate and distinct from A, B, and C. Further, the law treats ABC Corporation and ABC Partnership as separate from each other.

As distinguished from a partnership, a joint venture: a. Generally relates to a continuing business b. Is usually limited to a single transaction c. Does not allow corporations to become venturers d. Operates with legal personality

As distinguished from a corporation, a partnership: a. Is created by agreement of the parties and not by operation of law b. Is created by operation of law and not agreement of the parties c. Distributes its profits to those who contributed capital to the business d. Does not distribute its profits to those who contributed capital to the business

As distinguished from stockholders of a corporation, the partners of a partnership: a. Have limited liability b. Have unlimited liability c. Cannot generally exercise management of the partnership unless appointed as managing partners d. May transfer his interest without consent of the other partners

Statement 1: The partnership can exist even before the existence of a common fund. Statement 2: In order to constitute a partnership, there must be an actual profit to be divided. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

What is the primary purpose of establishing a partnership? a. To contribute money, property, or industry b. To establish a common fund c. To obtain profits and divide the same among the parties d. To conduct a business and practice a profession

Henry and lan are the heirs of Gary. Gary passed onto both Henry and lan an undivided parcel of land measuring 500 square meters. Pending the settlement of the estate, the parcel of land earned income amounting to P2,000,000, which Henry and lan split in half amongst themselves. Is there a partnership between Henry and lan? a. Yes. Co-ownership is a form of partnership. b. No. Co-ownership does not of itself establish a partnership. c. Yes. The fact that there is sharing of profits is the hallmark of a partnership. d. No. Such is not registered with the Securities and Exchange Commission

In which of the following cases is receipt by a person of a share in the profits prima facie evidence that he is a partner? a.Receipt as payment of debt by installment b. Receipt as one of the managing professionals of a professional firm c. Receipt by way of rent to a landlord d. Receipt of wages of an employee

In a universal partnership of all profits, which of the following is contributed? I. Ownership of all the property II. All that may be acquired by the partners by their industry or III. Usufruct over the property of the partners a. I and III only. b. Il only. c. I and II only. d. Il and III only.

Bobby and Teddy entered into a universal partnership of all present property. After the constitution of the partnership, Bobby inherited from her grandmother a parcel of land amounting to P20,000,000. Subsequently, the parcel of land earned P2,500,000 after being inherited by Bobby. Which of the following is true? a.Bobby and Teddy may stipulate that the parcel of land and the income from such property be included in the composition of the universal partnership. b.Bobby and Teddy may stipulate that the parcel of land be included in the composition of the universal partnership, but not the income from such. c. Bobby and Teddy may stipulate that the income from the parcel of land be included in the composition of the universal partnership, but not the parcel of land itself. d.Bobby and Teddy cannot stipulate that the parcel of land and the income from such property be included in the composition of the universal partnership

Jane, Karen, and Lucy formed a partnership for a fixed term of two (2) years. After two years, Jane, Karen, and Lucy continued the partnership without any express agreement. Which of the following statements is true? a. Any contract that the partners may enter into after the two-year period is unenforceable for being entered into with lack of authority. b. Any contract that the partners may enter into after the two-year period is voidable because of the defect in the consent of the partnership. c. Any contract that the partners may enter into after the two-year period is void since there is no more partnership to speak of. d. Any contract that the partners may enter into after the two-year period is valid since the continuation after the expiration of the term constitutes renewal.

Which of the following partnerships has complied with all the requisites for its lawful establishment? a. Partnership de facto b. Partnership de jure c. Open partnership d. Universal partnership

It is a partner who does not take active part in the business of the partnership, but may be known to be a partner by third persons a. Secret partner b. Silent partner c. Dormant partner d. Ostensible partner

When immovable property or real rights are contributed, the partnership contract: a. May be entered into orally b. Must be in writing c. Must appear in a public instrument d. Must appear in a public instrument with an affidavit of good faith

The partnership contract must appear in a public instrument where the capital is: a. At least P3,000 b. More than P3,000 c. At least P5,000 d. More than P5,000

Generally, a contract of partnership: a. Can be entered into in any form b. Is required to be in writing c. Is required to be in a public instrument d. Requires delivery of the money and property to be contributed for its perfection

Failure to comply with the requirement for a partnership contract to appear in a public instrument where the amount of capital is at least P3,000: a. Will result to the invalidation of the contract of partnership b. Will not affect the liability of the partnership and the partners with third persons c. Will not be able to produce any legal effect with respect to the contracts of the partnership with third persons d. Will make the managing partner liable for damages to the partners in good faith

the managing partners may be appointed: a. Only in the articles of partnership b. Only after constitution of the partnership c. Either in the articles of partnership or after constitution of the partnership d. In the articles of partnership and after constitution of the partnership

Severus, Albus, and Harry entered into a contract of partnership for the establishment of a wizardry shop. The articles of partnership did not specify who the managing partners are. Subsequent to the constitution of the partnership, Severus was appointed by the partners as the managing partner. Subsequently, Harry wanted to take over the management of the business. Albus agrees. Harry and Albus holds the controlling interest in the partnership. Can Harry and Albus remove Severus as the managing partner? a. No. The facts do not show in any just or lawful cause b. Yes. The partners may do so at any time and for any cause c. No. Severus has a vested right over the management of the partnership d. Yes. The removal is subject to approval by the Securities and Exchange Commission

Paul, Peter, John, and Lucas formed a partnership. Paul owns 10% interest in the partnership, Peter owns 60%, John owns 15% and Lucas owns 15%. Paul and John were delegated as managing partners without a stipulation as to their specific duties. Paul seeks to bind the partnership by entering into a contract of sale of merchandise. John opposed. For the sale to be allowed, a. Paul and Lucas must vote in favor of the contract. b. Peter must vote in favor of the contract. c. All of the partners must vote in favor of the contract. d. No vote required. Paul is authorized to bind the partnership.

In case there is a stipulation that none of the managing partners shall act without the consent of others: a. The concurrence of all is necessary for the validity of the acts: b. The concurrence of majority of the number of partners is necessary for the validity of the acts c. The concurrence of the controlling interest in the partnership is necessary for the validity of the acts. d. The stipulation is void.

When the manner of management is not agreed upon: a. The party who has the controlling interest will be considered as the agent of the partnership. b. All capitalist partners will be considered as agents of the partnership c. All industrial partners will be considered as agents of the partnership d. All partners will be considered as agents of the partnership

Felix, George, and Heidi are partners of FGH Partnership. FGH Partnership, through Felix, entered into a service contract with JKL Accounting Firm whereby JKL Accounting Firm will provide payroll services to the partnership. The service contract provides a stipulation that no party shall terminate the contract without a 30-day prior notice. Subsequently, a letter from JKL Accounting Firm was received by Heidi, stating that the service contract is being terminated 30 days after the date of receipt of the letter. Thirty days have passed and JKL Accounting Firm effectively stopped rendering accounting services to FGH Partnership Shocked, Felix questioned the cessation of the required work as it is seriously hampering the giving out of salaries of the employees of FGH Partnership. Felix sued JKL Accounting Firm for damages for failure to comply with the 30-day notice rule. Is JKL Accounting Firm liable? a. Yes. The notice should have been sent to all the partners. b. Yes. The notice should have been sent to Felix, the person who has contracted with JKL Accounting Firm. c. No. Notice to Heidi is notice to the entire partnership. d. No. Even without a 30-day prior notice, rescission is a remedy in contracts of sale of services.

Which of the following should first be considered in determining how profits and losses shall be distributed? a. Agreement b. Whether the partners are capitalist or industrial c. Amount of capital contribution d. Amount of interest in the partnership

When an unlawful partnership is dissolved by a judicial decree, the profits: a. Shall be confiscated in favor of the State b. Shall be given to the partner who did not know of the illegality c. Shall be distributed to each of the partners less payment of penalties d. Shall be distributed to each of the partners

Who among the following is not liable for losses? a. Capitalist partner b. Industrial partner c. General partner d. Limited partner

Statement 1: A stipulation excluding one or more partners from any share in the profits or losses is void. Statement 2: If only the share in the losses has been stipulated, the share in the profits shall be in the same proportion. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Upon exhaustion of the partnership assets in a partnership with all general partners: a. All partners are liable pro rata and subsidiarily with their personal property b. All partners are liable pro rata and primarily with their personal property c. All partners, except industrial partners are liable pro rata and primarily with their personal property d. All partners, except industrial partners are liable pro rata and subsidiarily with their personal property

Ned, Ophelia,and Patrick are partners in NOP Partnership, Subsequently, Quincy was admitted to the partnership. At the time of her admission, NOP Partnership already had a debt of P200,000 to Randy. Subsequently, the partnership was dissolved and liquidated, and the partnership's debt to Randy ballooned to P500,000. After the partnership's assets were exhausted, the remaining amount due to Randy was P350,000. Can Randy collect from the personal assets of Quincy. a. Yes, but only to satisfy the P150,000 debt incurred after Quincy's admission. b. Yes, to satisfy the P350,000 debt to Randy c. No, since there is no stipulation allowing Randy to collect from Quincy d. No, Quincy's capital contribution and her personal assets shall not be used to satisfy the debt to Randy

Statement 1: Any stipulation against individual liability of the partners is valid against third persons. Statement 2: Any stipulation against individual liability of the partners is void among the partners. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Mario, Luigi, and Peach are partners in MLP Partnership. The partnership was established for the purpose of carrying a furniture business. The managing partner designated is Mario. Luigi, representing himself as a partner in MLP Partnership, contacted Xavier, who is an operator of a dormitory. He was able to convince Xavier to purchase 1,000 pieces of furniture at a discounted price. Mario, noting that the contract Luigi entered into is prejudicial to the partnership, seeks to not bind the partnership on the contract. Is MLP Partnership bound by the contract entered into by Luigi? a. Yes, considering that what Luigi did is merely an act of dominion which is covered by his authority as a partner b. Yes, considering that this is apparently for the carrying on of the usual business of the partnership c. No, considering that Luigi is not a managing partner. d. No, considering that Luigi exceeded his authority by entering into a contract prejudicial to the interest of the partnership and the partners.

Statement 1: Partners representing the controlling interest are authorized to enter into a compromise concerning a partnership claim or liability. Statement 2: Partners representing the controlling interest are authorized to dispose of the goodwill of the business. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

The partnership can recover real property conveyed by any partner in the name of partnership when: a. the grantee does not have knowledge that the partner exceed his authority and the rgantee is a holder for value. b. the partner has authority to carry out the usual business partnership. c. The real property has been conveyed by the grantee to a holder for value d. The person claiming the right under the grantee does not know that the partner has exceeded his authority.

Melissa, Hero, and Sandara are partners of MHS Partnership. MHS Partnership had a long-time supplier named Direk. Direk made his payment for the merchandise he brought to Sandara for P300,000, considering that for years, it was Sandara who had collected the amounts with no problems. However, Sandara used the funds for her European tour. Can the partnership recover from Direk? a. No. The partnership is liable for loss because Sandara was acting within the scope of her apparent authority b. Yes. Direk is liable for loss because Sandara was acting within the scope of her apparent authority c. No. The partnership is liable for loss because there was no showing that Sandara was not authorized to collect from Direk. d. Yes. Direk is liable for loss because Derek should have known that Sandara was not authorized to collect from Direk.

or wrongful acts of a partner in the ordinary course of the business of the partnership which causes loss or injury to any person a. Only the erring partner is liable. b. Only the partnership is liable. c. Both the erring partner and the partnership is liable, jointly. d. Both the erring partner and the partnership is liable, solidarily.

Brienne, Charlie, and Dina are friends. Brienne and Charlie are known to Dina as coming from wealthy families, so Dina, misrepresenting herself to be partners of Brienne and Charlie, approached Elise and told Elise that they are engaged in the buying and selling of ivory statues. Elise called Charlie, and Charlie confirmed that he, together with Brienne and Dina, is indeed engaged in such business. Elise, interested in interior decorations, gave P320,000 to Dina for the latter to purchase ivory statues. Subsequently, Dina failed to deliver. From the facts, who is liable for the contract with Elise? a.No one. b. Dina only. c. Charlie and Dina only. d. Brienne, Charlie, and Dina.

Statement 1: Partnership creditors are preferred on partnership property. Statement 2: Partner's individual creditors are preferred on partner's individual property. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d.Both statements are not true.

It is the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the business. a. Winding up b. Liquidation c. Termination d. Dissolution

Which of the following losses would dissolve a partnership by operation of law? a.Loss of a generic thing which a partner had promised to contribute before delivery b. Loss of a specific thing which a partner had promised to contribute before delivery c. Loss of a generic thing which a partner had promised to contribute after delivery d. Loss of a specific thing which a partner had promised to contribute after delivery

Which of the following does not dissolve a partnership by operation of law? a. Death of any partner b. Insolvency of a partner c. Civil interdiction of a partner d. Absence of a partner

Statement 1: The courts can declare a partnership dissolved. Statement 2: A partner acting in good faith may unilaterally cause the dissolution of a partnership a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Aside from the partner designated in the agreement or those who have not wrongfully dissolved the partnership, who else can wind up the partnership affairs? a. The partner owning controlling interest b. The legal representative of the last surviving solvent partner c. The spouse of the partner who has not wrongfully dissolved the partnership d. The industrial partners who must also be managing partner

ndres, Jose, and Marcelo are partners of AJM Partnership. One of their long-time suppliers is Emilio. On October 30, 2020, the partners decided to discontinue the partnership. Days after the dissolution, Jose entered into a contract with Emilio for the purchase of supplies. Emilio did not have personal notice of the dissolution of the partnership, but two days before, Andres had caused the dissolution to be advertised in a newspaper of general circulation. Does the contract with Emilio bind the partnership? a. Yes, because Emilio did not have personal notice of the dissolution. b.Yes, because the law requires that the dissolution be advertised in a newspaper of general circulation thrice. c. No, because the dissolution was already advertised in a newspaper of general circulation d. No, because even without the publication, the partnership has no longer juridical and legal existence.

The limited partners: a. Shall not be bound by the obligations of the partnership. Their personal assets and capital contributions shall not be used to satisfy partnership debts. b. Shall not be bound by the obligations of the partnership. Their personal assets shall not be used to satisfy partnership debts. However, their capital contribution may be used to satisfy partnership debts. c. Shall not be bound by the obligations of the partnership. Their capital contribution shall not be used to satisfy partnership debts. However, their personal assets may be used to satisfy partnership debts. d. Shall be bound by the obligations of the partnership.

A limited partnership: a. Shall have no general partners. b. Shall have two or more limited partners. c. Shall have one or more limited partners. d. Shall have an equal number of general and limited partners.

Statement 1: A limited partner has no right to participate in the management of the partnership. Statement 2: A limited partner cannot become an industrial partner. a. Only Statement 1 is true. b. Only Statement 2 is true. c. Both statements are true. d. Both statements are not true.

Failure to file the certificate required for a limited partnership with the Securities and Exchange Commission: a. The partnership becomes a general partnership. b. The partnership becomes a general partnership, but only with respect to third persons. c. The partnership becomes a general partnership, but only with respect to the partners themselves. d. The partnership does not obtain legal existence.

Which of the following acts may not be done by a limited partner? a. Loan money to the partnership b. Inspect and copy the partnership books at a reasonable time c. Assign a substituted limited partner d. Receive or hold as collateral security any partnership property

In the settlement of accounts of a limited partnership upon dissolution, which of the following is the correct order of payment after satisfaction of creditors' claims? I. Those to general partners, in respect to their share of the profits II. Those to general partners, in respect to their capital contribution I. Those to limited partners, in respect to their share of the profits IV. Those to limited partners, in respect to their capital contribution a. II, IV, I, II b. II, I, IV, II c. I, II, I, IV d. I, I, II, IV

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