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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS
FINAL PREBOARDS – OCTOBER 2024 BATCH

1. Which of the following statements is false?

a. If the period depends upon the will of the debtor, the courts shall fix the
duration of the period
b. Obligations with a resolutory period take effect at once, but terminate upon
arrival of the day certain.
c. If the thing is lost due to the debtor’s fault before the arrival of the day
certain, the debtor is liable for damages
d. If the guaranties or securities furnished were lost due to fortuitous event,
the debtor can still enjoy the right to make use of the period

2. Maloi by mistake delivered to Aiah and Mikha Php100,000 by mistake, which should
have been delivered to Sheena and Jhoanna. Maloi now demands the return of the
money from Aiah and Mikha. The liability of Aiah and Mikha to return the money is:
a. Joint
b. Solidary
c. They are not liable to return

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d. Mario and Justin has the right to recover, not Rihanna

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3. John, Mark, and Lee are solidary debtors of Peter and Enzo, joint creditors in the
amount of Php30,000. John was insane at the time the obligation was constituted.
Subsequently, Lee became insolvent. On the due date, how much can Enzo collect
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from Mark?
a. 30,000
b. 20,000
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c. 15,000
d. 10,000
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4. Which of the following statements is true?

a. The parties can stipulate that in addition to the penalty clause, damages and
interest will be imposed in case of non-compliance
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b. Proof of actual damages suffered by the creditor is necessary in order that the
penalty may be demanded.
c. The nullity of the penalty clause nullifies the principal obligation
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d. As a rule, the debtor can just pay for the penalty instead of the performance
of the obligation

5. Which of the following statements is false?

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a. When the obligee accepts the performance, knowing its incompleteness or

irregularity, and without expressing any protest or objection, the obligation
is deemed fully complied with
b. Payment means not only the delivery of money but also the performance, in any
other manner, of an obligation.
c. If the obligation has been substantially performed in good faith, the obligor
may recover the entire amount due as though there had been a strict and complete
fulfillment
d. The creditor is not bound to accept payment or performance by a third person
who has no interest in the fulfillment of the obligation

6. Consignation alone will extinguish the obligation in the following cases, except:
a. When, without just cause, the creditor refuses to give a receipt
b. When the creditor is unknown
c. When the debtor is incapacitated at the time the payment is due
d. When the title of the obligation has been lost

7. Ms. Aligaga recklessly drove her car and injured Mr. Araykobeh who was then
crossing the street. If the incident happened on September 8, 2024, until what is
the prescriptive period for Mr. Araykobeh to file a case in court against Ms.
Aligaga?
a. 6 years
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b. 4 years
c. 5 years
d. 10 years

8. On August 10, 2024, John sent an email to Rissa offering to sell his condominium
unit in BGC for 10,000,000. Rissa read the email on August 11, 2024. The following
day, August 12, 2024, Rissa replied to John accepting his offer. John read Rissa’s
email on August 15, 2024. When was the contract of sale perfected?
a. August 10, 2024
b. August 11, 2024
c. August 12, 2024
d. August 15, 2024

9. A, while drunk, sold his land verbally to X Corporation, whose shares is 50% owned
by Filipinos and the remaining 50% owned by aliens. The sale is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void

10. Allan orally authorized Paul to sell his condominium. Paul sold Allan’s
condominium to Biboy in writing. The sale is:

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a. Valid
b. Unenforceable
c. Void
d. Voidable ie
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11. Rona, 17 years old, sold her sister’s laptop valued at Php60,000 for only Php30,000
to Josef, without consent. What is the status of the sale?
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a. Rescissible
b. Voidable
c. Unenforceable
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d. Void

12. On August 23, 2024, Aaron coerced Enzo to sell his properties to him through
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threats and intimidation for a grossly low price of Php550,000. After that day,
Enzo never heard of Aaron again. Subsequently, Enzo learned that the sale was
fraudulently registered on August 31, 2024. Enzo may ask for the annulment of the
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contract of sale:
a. Five years from August 23, 2024
b. Five years from August 23, 2024
c. Four years from August 23, 2024
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d. Four years from August 31, 2024

13. Lucy is a lessee of a store in a shopping mall. She orally sells/assigns her
right to Salome. She then allows Salome to occupy the stall. The delivery here
is called:
a. quasi-traditio
b. actual delivery
c. traditio longa manu
d. traditio brevi manu

14. Delivery by giving of the keys of the place or depository where the movable is
stored or kept is called:
a. Traditio clavium
b. Constitutum possesorium
c. Traditio longa manu
d. Traditio brevi manu

15. In which of the following cases is the seller not obliged to make any payment to
the buyer for breach of warranty against eviction?
a. When such warranty has not been agreed upon.
b. When there was no stipulation exempting the seller from liability.
c. When there was a stipulation exempting the seller (who was in good faith) from
breach of warranty and the waiver was made by the buyer without the knowledge
of the risks of eviction.

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d. When there was a stipulation exempting the seller (who was in good faith) from
breach of warranty and the waiver was made by the buyer with knowledge of the
risks of eviction.

16. Jonah bought a 1000-square meters lot from Victor for Php5,000 per square meter.
Upon delivery, it was found out that the area of the lot is actually 950 square
meters only. Which of the following are the rights available to Jonah under the
law?
a. Oblige the vendor to deliver all that is stated in the contract
b. Jonah can demand for the proportionate reduction of the price
c. Either a or b
d. Jonah can ask for rescission of the contract and ask for damages

17. Statement I. In case of the failure of both the manufacturer and distributor to
honor the warranty, the retailer shall be secondarily liable
Statement II. The retailer cannot claim for reimbursement from the manufacturer
and distributor in case he honors for the warranty
a. Both statements are true
b. Both statements are false
c. Only Statement I is true
d. Only Statement II is true

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18. X sold a specific car to Y for PHP 1,000,000. The contract stipulated that ownership
would transfer upon full payment. Y paid PHP 500,000 and took possession of the

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car. Before Y could pay the remaining balance, the car was destroyed in a fire not
due to Y’s fault. Who bears the risk of loss and what are the legal consequences?
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a. X bears the risk of loss, and Y is not liable for the remaining balance
b. Y bears the risk of loss, and Y must still pay for the remaining balance
c. X bears the risk of loss, but Y must still pay the remaining balance
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d. Y bears the risk of loss, but X must refund the PHP500,000.

19. The minimum repair attempts in order for the Lemon Law to apply is:
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a. Four
b. Five
c. Six
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d. Two

20. D mortgaged his parcel of land to C as security for a loan. Fearing foreclosure
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of the mortgage due to his inability to pay the loan, D sold the land to X without
the consent of C. is the sale valid?
a. No, unless there was prior consent of the mortgage.
b. Yes, stipulation prohibiting the sale without the consent of the mortgagee
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shall be void.
c. Yes, provided the mortgagee was notified before the sale.
d. No, of there was stipulation requiring prior consent.

21. The following applies to BP 22, except:

a. BP 22 is mala prohibita
b. BP 22 is a cime against property
c. The drawer of a dishonored check may be convicted even if he had issued the
same for a pre-existing obligation
d. Deceit is not required

22. If the check was dishonored for the reason that there was a “stop-payment order”,
there will be a violation of BP 22 if:
a. The stop payment order was without any valid reason
b. The payee was not informed of the stop payment order
c. The check would have been dishonored due to insufficiency of funds had not the
drawer ordered the bank to stop payment
d. The stop payment order was made after the check was presented for payment

23. Which of the following statements relative to R.A. No. 1508, as amended, otherwise
known as the Chattel Mortgage Law, is FALSE?
a. Aside from the Chattel Mortgage Registry of the Register of Deeds where the
property if located, registration shall also be made where the mortgagor resides
if he resides in a place other than where the property is located.

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b. Where the parties executed a chattel mortgage on a building, they shall be bound
to the chattel mortgage contract.
c. Failure to execute the Affidavit of Good Faith and to register the chattel
mortgage contract shall invalidate the mortgage.
d. Registration of the chattel mortgage is made in the Chattel Mortgage Registry
of the Register of Deeds where the property is located.

24. One of the following may not be the object of a real mortgage:
a. Land, buildings, roads and construction of all kinds adhered to the soil
b. Fertilizer actually used on a piece of land.
c. Animal houses, pigeon houses or other breeding places intended by the owner to
be permanently attached to the land, including the animals therein.
d. Growing fruits that have been gathered from trees planted on land.

25. Billie and Olivia agreed to form a partnership to sell RTW clothes. Billie will
contribute industry, while Olivia agreed to contribute Php500,000 payable on or
before September 10, 2024. On September 10, 2024, Olivia failed to deliver the
contribution promised. Consequently:
a. Billie must make a demand to Olivia for the delivery of her contribution
b. The partnership is void
c. Olivia is liable for interest and damages, without need of demand
d. The contract of partnership is not perfected until Olivia delivers her

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contribution

26. Which of the following statements is FALSE?

a. An oral partnership is valid ie
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b. A public instrument is necessary to constitute a partnership
c. A limited partner is not liable beyond the amount of their investment
d. A contract of partnership is bilateral
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27. Julia is the managing partner of JMV Partnership. Bettina is the common debtor of
Julia and JMV Partnership, in the amounts of PHP100,000 and PHP200,000
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respectively. Both debts are already due and demandable. Bettina paid Julia
PHP75,000. Julia issued her receipt to Bettina to acknowledge the payment. How
much are the outstanding obligations to Julia and JMV Partnership after Bettina’s
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payment?
a. 25,000; 200,000
b. 100,000; 125,000
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c. 75,000; 150,000
d. 62,500; 162,500

28. Which of the following statements is false?

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a. A managing partner appointed in the articles of partnership may perform all

acts of administration despite opposition of partners if he acts in good faith
b. A stipulation exempting an industrial partner from sharing in the losses is
valid
c. A partner’s interest in the partnership is his share of the profits and surplus
d. If an industrial partner refuses to contribute capital in case of imminent loss
of the business of the partnership, he shall be obliged to sell his interest to
the other partners

29. The partnership is liable in the following instances, except:

a. Loss or injury is caused to a third person by a partner acting in the ordinary
course of the business of the partnership
b. Where one partner acting within the scope of his apparent authority receives
money or property of a third person and misapplies it
c. Where the partnership in the course of its business receives money or property
of a third person and the money or property so received is misapplied by any
partner while it is in the custody of the partnership
d. When majority of the partners consent to the representation of a person that he
is a partner in an existing partnership

30. A newly-admitted partner is liable for:

a. All existing obligations of the partnership prior to his admission up to his
capital contribution
b. Obligations contracted after his admission only

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c. Both a and b
d. Neither a nor b

31. Josh, Pablo, and Stell formed JPS Partnership. John contributed Php200,000, Pablo
contributed 500,000, while Stell contributed his services. After two years of
operations, the assets of the partnership dwindled to 200,000. However, the total
obligations amount to 500,000. Due to financial losses, the partnership was
dissolved. How much will be the contributions of John, Pablo and Stell to satisfy
the partnership’s liabilities?
a. John - 120,000; Pablo – 180,000; Stell - zero
b. John – 100,000; Pablo – 100,000; Stell – 100,000
c. John – 166,667; Pablo – 166,667; Stell – 166,667
d. John - 200,000; Pablo – 100,000; Stell - zero

32. Mar was appointed as director of ARN, Inc. on February 5, 2023. A year after, or
on February 5, 2024, Mar’s term expired. However, Mar continued to hold his
position as a director in a holdover capacity since his replacement has not been
elected yet. Two months after, Mar resigned. If there is still a quorum in the
remaining directors, who shall elect Mar’s replacement?
a. Remaining directors
b. Majority of the outstanding capital stock
c. 2/3 of the outstanding capital stock

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d. Majority of the board of directors and 2/3 o the outstanding capital stock

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33. The corporation must notify the SEC within __ days from the creation of the
emergency board, stating therein the reason for its creation.
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a. Seven
b. Three
c. Five
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d. Six

34. In case of material contracts entered by a corporation vested with public interest
PA

with its own director, in addition to the requirements in Section 31 of the Revised
Corporation Code, it must also be approved by:
a. At least 2/3 of the outstanding capital stock
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b. Majority of the board of directors and 2/3 of the outstanding capital stock
c. At least 2/3 of the entire membership of the board with at least a majority of
the independent directors voting to approve the material contract
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d. All of the board of directors

35. Which of the following acts could be ratified by a vote representing 2/3 of the
outstanding capital stock?
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a. Acts of directors constituting patently unlawful acts

b. Acts of directors or trustees who are guilty of gross negligence or bad faith
in directing the affairs of the corporation
c. Acquisition of a business opportunity which should belong to the corporation
thereby acquiring profit which should belong to the corporation
d. An attempt by a director to acquire an actual acquisition of any interest
adverse to that of the corporation in respect of any matter reposed upon in
confidence

36. The majority vote of the quorum of the board of directors and at least 2/3 votes
of the outstanding capital stock or members, as the case may be, shall be necessary
for the approval of
a. Amendment of bylaws
b. Issuance of stock dividends
c. Amendment of articles of incorporation
d. None of the choices

37. ABC Corp. increased its capital stocks from Php10 Million to Php15 Million and,
in the process, issued 1,000 new shares divided into Common Shares "B" and Common
Shares "C." T, a stockholder owning 500 shares, insists on buying the newly issued
shares through a right of pre-emption. The company claims, however, that its By-
laws deny T any right of pre-emption. Is the corporation correct?
a. No, since the By-Laws cannot deny a shareholder his right of pre-emption.
b. Yes, but the denial of his pre-emptive right extends only to 500 shares.

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c. Yes, since the denial of the right under the By-laws is binding on T.
d. No, since pre-emptive rights are governed by the articles of incorporation.

38. The rule is that no stock dividend shall be issued without the approval of
stockholders representing at least 2/3 of the outstanding capital stock at a
regular or special meeting called for the purpose. As to other forms of dividends:
a. a mere majority of the entire Board of Directors applies.
b. a mere majority of the quorum of the Board of Directors applies.
c. a mere majority of the votes of stockholders representing the outstanding
capital stock applies.
d. the same rule of 2/3 votes applies.

39. Written notice for regular meetings of stockholders should be sent to all
stockholders within how many days before the date of the meeting?
a. 28 days
b. 21 days
c. 1 week
d. 2 weeks

40. Which is false about a corporation?

a. A corporation has a legal personality distinct and separate from its
stockholders.

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b. A corporation may be entitled to an award of moral damages where its good
reputation is besmirched resulting into social humiliation.

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c. The interest of shareholders in corporate property is purely inchoate.
d. A corporation is not within the protection of the Constitution regarding the
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right to be secure against unreasonable searches and seizures.

41. Which of the following is an element of the doctrine of piercing the veil of
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corporate entity?
a. Complete control over the business
b. Control is used to commit fraud or wrong
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c. Control and breach of duty are the proximate cause of the injury or loss
d. All of the above
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42. In which of the following cases is piercing the veil of corporate entity not
applicable?
a. The corporation operates for the benefit of a single individual who exercises
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complete control over its funds.

b. The corporation controls the majority stock of another corporation.
c. The corporation is a mere alter ego of another corporation.
d. The corporation is organized to evade an outstanding legal obligation.
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43. Statement I: Redeemable shares may be issued by a corporation even if there is no

provision in its articles of incorporation for such purpose
Statement II: Redeemable shares may be redeemed by a corporation only if the
corporation has unrestricted retained earnings
a. Both statements are true
b. Both statements are false
c. Only Statement I is true
d. Only Statement II is true

44. Which of the following statements is false?

a. A partnership and a corporation may form a corporation
b. A stockholder who dissents from the decision of the corporation formed prior to
the Revised Corporation Code to retain its specific corporate term may exercise
his appraisal right
c. Corporations with certificates of incorporation issued prior to the effectivity
of the Revised Corporation Code and which continue to exist, shall have perpetual
existence, unless the corporation, upon a vote of its stockholders representing
2/3 of its outstanding capital stock, notifies the SEC that it elects to retain
its specific corporate term
d. An educational institution does not need a favorable recommendation from the
appropriate government agency for the revival of its certificate of
incorporation

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

46. Which of the following statements about fractional shares is false?

a. A fractional share is a share that is less than one share of stock which may
arise when the corporation declares stock dividend to its stockholders.
b. A fractional share has no voting right.
c. A fractional scrip certificate may be negotiated with another fractional scrip
certificate to convert them into one full share.
d. None of the above.

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47. Which of the following is FALSE about treasury shares?

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a. The acquisition of treasury shares does not reduce the number of issued shares
or the amount of stated capital.
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b. The sale of treasury shares do not increase the number of issued shares or the
amount of stated capital.
c. The re-issuance of the treasury shares may not be exempted from registration
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requirement.
d. Treasury shares do not revert back to the issuance shares of the corporation,
they do not lose their status as “issued shares”.
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48. Preferred shares cannot vote on the proposal to _____.

a. To include other corporate officers in the corporation by-laws.
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b. To issue corporate bonds.

c. To shorten the corporate term.
d. None of the above.
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49. Which of the following statements is true about corporate officers?

a. The term of office of the corporate President is coterminous with his term as
a board director.
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b. The corporate President may simultaneously serve as the corporate treasurer or

corporate secretary.
c. The corporate treasurer must be a citizen of the Philippines.
d. The corporate secretary must also be a director or trustee of a corporation.

50. When is the contract entered into by a self-dealing director, trustee or officer
with his corporation perfectly valid even without ratification of at least 2/3 of
the outstanding capital stock?
a. The presence of the director, trustee or officer in the board meeting in which
the contract was approved was necessary to constitute a quorum for such meeting.
b. The vote of such director, trustee, or officer was necessary for the approval
of the contract.
c. Both A and B
d. Neither A nor B.

51. If a corporation is adopted and filed prior to incorporation it must be approved

and signed by:
a. All of the directors
b. All of the incorporators
c. Majority of the directors and majority of the outstanding capital stock
d. Majority of the incorporators

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52. The capital stock of ABC Corporation is divided into common shares and preferred
shares. Preferred shares are preferred as to dividends and common shares are those
shares which have the regular and ordinary attributes of a share of a corporation.
Which statement is most accurate?
a. This kind of classification may not be allowed or else it will violate the
Doctrine of Equality of shares.
b. Classifications of shares may be allowed for as long as it is clearly stated as
such in the Articles of Incorporation of the Corporation.
c. Classifications of shares is mainly for business purpose to attract investors.
d. Classifications of shares may be allowed with the approval of the stockholders
and the Board of Directors.

53. The remaining directors, still constituting a quorum may fill a vacancy in the
board when the cause of vacancy is:
a. Removal of director
b. Increase in the number of director
c. Expiration of term
d. Resignation of director

54. The determination of whether or not the sale involves all or substantially all of
the corporation’s properties and assets must be compute based on:
a. Fair value

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b. Book value
c. Net asset value
d. Current value
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55. ABC Corporation, a manufacturing corporation, would like to sell a piece of land
located in Bulacan. The piece of land is the corporation’s biggest asset. The sale
must be approved by:
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a. Majority of the quorum of the board of directors

b. Majority of the board of directors
c. Majority of the board of directors and 2/3 of the outstanding capital stock
PA

d. Majority of the quorum of the board of directors and 2/3 of the outstanding
capital stock
C

56. A management contract must be approved by:

a. Majority of the quorum of the board of directors
b. Majority of the outstanding capital stock
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c. Both a and b
d. Majority of the board of directors and majority of the outstanding capital stock

57. The threshold for small and medium sized entities under SRC Rule 68:
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a. Total assets and liabilities are below Php 3 million

b. Assets are between Php 3 million to 100 million or total liabilities of between
Php 3 million to Php 100 million
c. Assets are between Php 3 million to 350 million or total liabilities of between
Php 3 million to Php 250 million
d. Assets are between Php 100 million to 350 million or total liabilities of
between Php 100 million to Php 250 million

58. According to the Code of Corporate Governance for Publicly Listed Companies, this
is a director who does not perform any work related to the operations of the
corporation
a. Independent director
b. Executive director
c. Non-executive director
d. Chairman of the Board

59. A, B, C, D, E, F, and G, are the members of the board of directors of cooperative.

Unfortunately, E, F and G resigned for personal reasons. How shall the vacancies
be filled-up?
a. Vacancies shall be filled-up by the vote of at least a majority of the remaining
directors, if still constituting a quorum.
b. By the vote of at least ¾ of all the members with voting rights.
c. Vacancies shall be filled-up by the vote of all the remaining directions in a
special meeting.

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d. By the majority vote of the general assembly in a regular or special meeting

duly called for the purpose.

60. All cooperatives registered with the Cooperative Development Authority (CDA) shall
be required to submit annually Cooperative Annual Progress Report (CAPR) with
supporting documents with the CDA. Which of the following is NOT a supporting
document to be attached to the CAPR?
a. Social Audit report including its program of activities pursuant to its socio-
civic goals
b. Report on the total compensation of each of the directors and officers.
c. List of officers and trainings undertaken / completed.
d. Audited financial statements.

61. Notwithstanding the provisions in the Cooperative Code to the contrary, the quorum
requirement for amendments of Articles of Cooperation and by laws of Cooperative
Banks shall be ______________.
a. three-fourths (3/4) vote of all the members with voting rights, present and
constituting a quorum
b. twenty percent (20%) of all the members in good standing, present and
constituting a quorum
c. two-thirds (2/3) vote of all members with voting rights, present and
constituting a quorum

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d. one-half plus one of the number of voting shares of all members in good standing

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62. The following statements relative to merger or consolidation of cooperatives are
presented to you for evaluation.
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I. Cooperatives belonging to the different category can be parties to the merger
or Consolidation.
II. The affirmative vote of at least three-fourths (3/4) of all members with
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voting rights, present and constituting a quorum from each of the constituent
cooperatives, at separate general approval representative assembly meetings
shall be necessary for the approval of the Plan of Merger or Consolidation.
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III. In case of merger O consolidation of the cooperatives, the constituent

cooperatives shall become a single cooperative which, in case of merger,
shall be the survivor cooperative, and in the case of consolidation, shall
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be the consolidated cooperative.

What is the correct evaluation?
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a. Statement I, True; Statement II, False; Statement III, False.

b. All statements are false
c. Statement I, False; Statement II, True; Statement III, True
d. All statements are true
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63. Which of the following statements is not true about the compensation of directors
of a cooperative?
a. As a rule, directors are not entitled to additional compensation except for
reasonable per diems
b. During the first year of existence of the cooperative, directors will not
receive any compensation including per diems
c. The bylaws may provide for compensation of the directors
d. Directors are not entitled to per diems if in the preceding calendar year, the
cooperative reported a net loss

64. Which of the following acts is within the ambit of a stay or suspension order
under the FRIA?
a. Cases pending appeal before the Supreme Court as of commencement date of the
stay or suspension order
b. Claims against issuers of letters of credit where the property is not necessary
to the rehabilitation of the debtor
c. Both a and b
d. Neither a nor b

65. To initiate an involuntary rehabilitation, the claim of a creditor or group of

creditors must at least be:
a. 1,000,000
b. 25% of the subscribed capital stock or partners’ contribution
c. Higher of a or b
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d. 1,000,000 or at least 25% of the outstanding capital stock or partners’

contribution, whichever is higher

66. Under FRIA, any transaction occurring prior to commencement date entered into by
the debtor or involving its funds or assets may be rescinded or declared null and
void on the ground that the same was executed with intent to defraud a creditor
or creditors or which constitute undue preference of creditors. A disputable
presumption of such design shall arise if the transaction:
a. The transaction involves an accelerated payment of a claim to a creditor within
ninety (90) days prior to the commencement date
b. The transaction provides security or additional security executed within ninety
(90) days prior to the commencement date
c. The transaction involves creditors, where a creditor obtained, or received the
benefit of, more than its pro rata share in the assets of the debtor, executed
at a time when the debtor was insolvent
d. All of the above

67. Which of the following statements is false about the rules on the time of receipt
of electronic data messages or electronic documents under the E-Commerce Act?
a. If the addressee has designated an information system for the purpose of
receiving electronic data message or electronic document, receipt occurs at the
time when the electronic data message or electronic document enters the

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designated information system: Provided, however, that if the originator and
the addressee are both participants in the designated information system,

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receipt occurs at the time when the electronic data message or electronic
document is retrieved by the addressee.
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b. If the electronic data message or electronic document is sent to an information
system of the addressee that is not the designated information system, receipt
occurs at the time when the electronic data message or electronic document is
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retrieved by the addressee.

c. If the addressee has not designated an information system, receipt occurs when
the electronic data message or electronic document is retrieved by the addressee
PA

d. None of the above

68. Under the Ease of Doing Business Act, if an application or request for license,
C

clearance permit, certification or authorization shall require the approval of the

local Sanggunian, it shall be acted upon within a period of:
a. 30 working days, extendible for another 30 working days
EO

b. 60 non-extendible working days

c. 45 working days, extendible for another 20 working days
d. 20 working days, extendible for another 20 working days
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69. Zarah, a famous author, collaborated with Toby, a novice illustrator, to create a
children’s book entitled ‘Isang Kaibigan’. Toby offered his services for free.
Zarah gave Toby the manuscript and discussed with him the inspiration for the
characters. Zarah envisioned a story about two best friends who had a huge fight
but later realized the value of forgiveness. Toby drew the characters based on
Zarah’s specifications and instructions. Zarah then published the book and claimed
sole copyright ownership. Zarah argued that she is the author not only of the text
but also the images in the book since Toby exactly adopted her idea. Who is the
copyright owner of the images or drawings in the book?
A. Zarah
B. Toby
C. Neither Zarah nor Toby
D. Both Zarah and Toby

70. Duke is a resident of an exclusive subdivision. Duke always heard loud cars and
motorcycles passing through the neighborhood at night. Duke then set up a closed-
circuit television (CCTV) at his gate and recorded the rowdy vehicles and their
plate numbers. Thereafter, Duke requested from the Land Transportation Office
(LTO) the names and addresses of the registered owners of the vehicles. Duke
explained that he will use the CCTV footage as supporting evidence in his complaint
for damages against the vehicle owners.. May the LTO approve the request?
A. No, because the names and addresses are personal information which cannot be
disclosed
B. Yes, because Duke is pursuing a legitimate interest
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C. Yes, because LTO is a government agency, excluded from the coverage of the Data
Privacy Act
D. Yes, if the data subjects give their written consent

71. This pertains to the data subject’s right to dispute inaccurate personal
information
a. Right to access
b. Right to object
c. Right to block
d. Right to rectification

72. A standstill period may be agreed upon by the parties pending negotiation and
finalization of the out-of-court or informal restructuring/workout agreement or
Rehabilitation Plan contemplated, provided:
a. such agreement is approved by creditors representing more than fifty percent
(50%) of the total liabilities of the debtor
b. notice thereof is published in a newspaper of general circulation in the
Philippines once a week for two (2) consecutive weeks
c. Both a and b
d. the standstill period does not exceed 180 days from the date of effectivity

73. To form a majority vote on any proposed agreement during the creditor’s meeting

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in suspension of payments, it is necessary:
a. That the ¾ of the creditors voting unite upon the same proposition
b.
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That the claim is represented by said majority vote amount to at least 4/5 of
the total liabilities of the debtor
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c. Both a and b
d. Neither a nor b
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74. Which of the following is NOT a predicate offense under the AMLA?
a. Kidnapping for ransom
b. Illegal recruitment
PA

c. Tax evasion
d. Cybercrime
C

75. The court which has the authority to issue an asset preservation order:
a. Court of Appeals
b. Supreme Court
EO

c. Regional Trial Court

d. Municipal Trial Court

76. Which is a designated non-financial businesses and professions?

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a. Mutual benefit associations

b. Investment houses
c. Formation agents of juridical persons
d. Close-end investment companies

77. This refers to the normal level of customer due diligence that is appropriate in
cases where there is medium risk of money laundering or terrorism financing.
a. Strict due diligence
b. Average due diligence
c. Normal due diligence
d. Customer due diligence

78. A bank received a large deposit of PHP 250,000 from a client. The client provided
all necessary identification documents, but the bank’s compliance officer noticed
that the client’s business activities were not consistent with the size of the
deposit. What steps should the bank take in accordance with the AMLA?
a. Accept the deposit without further action
b. File a suspicious transaction report with the AMLC
c. Freeze the account immediately
d. Conduct enhanced due diligence and monitor the account

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79. Should a transaction be determined to be both a covered and a suspicious

transaction:
a. The covered person shall conduct enhanced due diligence
b. The same shall be reported as both covered and suspicious transactions
c. The same shall be reported as a suspicious transaction
d. The covered person shall apply for a freeze order

80. Under what conditions can a bank legally disclose a depositor’s account information
without violating the Bank Secrecy Law?
a. If it is in response to a lawful court order
b. If it is requested by any government agency
c. If the depositor is suspected of any crime
d. The bank cannot disclose the information under any circumstance

81. A bank is placed under receivership by the PDIC. The bank’s assets are insufficient
to cover its liabilities. The PDIC decides to liquidate the bank. What is the
primary objective of the PDIC in liquidating the bank?
a. To maximize the recovery of assets for the benefit of the creditors
b. To ensure the bank’s shareholders receive their investments back
c. To provide financial assistance to the bank’s management
d. To protect the interests of the bank’s employees

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82. Reena has a joint account with her husband, Mark, with a total deposit of
PHP800,000. She also has an individual account with PHP400,000 in the same bank.

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The bank was declared insolvent. How much can Reena and Mark claim from the PDIC?
a. Reena: PHP500,000; Mark: PHP 500,000
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b. Reena: PHP900,000; Mark: PHP 500,000
c. Reena: PHP650,000; Mark: PHP 250,000
d. Reena: PHP800,000; Mark: PHP 250,000
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83. The Truth in Lending Act applies to:

a. Pawnshops
PA

b. Small-loan money lenders

c. Both a and b
d. Neither a nor b
C

84. Which of the following is not a requirement to be entitled to the sickness benefit
under the SSS Law?
EO

a. The member must have paid at least 6 months of contributions within the 12-
month period immediately before the semester of sickness or injury
b. The member is unable to work due to sickness or injury and is confined either
in a hospital or at home for at least 4 days
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c. The member must have used up all company sick leaves with pay for the year and
has duly notified his employer
d. The member filed a sickness benefit application with the SSS

85. Ruth has been contributing to the SSS for 15 years and is now 60 years old. She
decides to retire. What is the minimum number of monthly contributions required
for the employee to qualify for a retirement pension?
a. 100
b. 60
c. 80
d. 120

86. If a permanent total disability pensioner dies, what will happen to the monthly
pension?
a. It will be paid as a funeral benefit
b. It will be paid lump-sum to the primary beneficiaries
c. The primary beneficiaries are entitled to receive it
d. The secondary beneficiaries will be entitled to a lump sump benefit

87. If a member of the SSS suffers from a permanent partial disability due to the
permanent loss of the use of one foot and he has paid at least 36 monthly
contributions prior to the semester of disability, the monthly disability pension
shall be paid no longer than:
a. 39 months

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b. 46 months
c. 25 months
d. 31 months

88. following are excluded from the coverage of Labor Standards except:
a. Field personnel;
b. Supervisors;
c. Managers;
d. Employees of government-owned and controlled corporations.

89. Involuntary separation benefits under the SSS Law is equivalent to:
a. 50% average monthly salary credit for a maximum of three months
b. 50% average monthly salary credit for a maximum of two months
c. 60% average monthly salary credit for a maximum of two months
d. 60% average monthly salary credit for a maximum of four months

90. Bini Colet worked from 8:00 AM to 8:00 PM on April 9, 2024, which is also her rest
day. Compute Bini Colet’s total pay if her hourly rate is PHP150.00.
a. 3,570
b. 4,641
c. 3,600
d. 5,148

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91. The failure of the employer to remit the contributions to SSS will have the

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following consequences, which is the exception?
a. The employer will be liable for a penalty of 2% per month from the date the
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contribution falls due until paid
b. The covered employee cannot claim any benefits under SSS
c. The employer may be held criminally liable
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d. The SSS may issue a Warrant of Levy against the employer

92. If a worker works on a day when there are two holidays in one day, the worker is
PA

entitled to:
a. 100% pay
b. 200% pay
C

c. 300% pay
d. 400% pay
EO

93. Statement I: A concealment should be intentional in order to entitle the injured

party to rescind a contract of insurance.
Statement II: Each party to a contract of insurance must communicate to the other,
in good faith, all facts within his knowledge which are material to the contract
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and as to which he makes no warranty, and which the other has not the means of
ascertaining.
a. Both statements are true
b. Both statements are false
c. Only Statement I is true
d. Only Statement II is true

94. In which of the following cases is the insurer liable?

a. The insured concealed the fact that he is diagnosed with tuberculosis. He died
from a vehicular accident 6 months later.
b. The insured unintentionally omitted in his application form the fact that he
was suffering from a heart ailment.
c. The insured mentioned in his application form that he is not smoking when in
fact he is a chain smoker
d. The insured concealed the fact that he was suffering from Stage 4 lung cancer.
He died 4 years later

95. Which of the following statements about insurable interest is false?

a. An employer has insurable interest over the life of its President, being a key
employee
b. A partner has insurable interest in the life of his co-partner
c. The principal has insurable interest in the life of his surety
d. None of the foregoing

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96. This is the primary source of information on all government procurement.

a. Bids and Awards Committee
b. Annual Procurement Plan
c. PhilGEPS
d. Bidding documents

97. From receipt by the winning bidder of the Notice of Award, which the following
will happen within 10 calendar days from receipt of the Notice of Award?
a. Post the required performance security
b. Enter into contract with the procuring entity
c. Both a and b
d. The Procuring Entity will issue the Notice to Proceed

98. This is an undertaking which states, among others, that the bidder shall enter
into contract with the Procuring Entity and furnish the required performance
security within ten (10) calendar days, as indicated in the Bidding Documents,
from receipt of the Notice of Award, and commits to pay the corresponding amount
as fine and be automatically disqualified from bidding of any procurement contract
of any Procuring Entity for a period of time, upon receipt of the Blacklisting
Order, in the event it violates any of the conditions stated therein as required
in the guidelines issued by the GPPB.
a. Bid security

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b. Bid securing declaration
c. Bidding documents
d. Performance security
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99. What is the maximum penalty for entities found guilty of anti-competitive practices
under the Philippine Competition Act?
a. PHP10 million
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b. PHP 50 million
c. PHP 100 million
d. PHP 250 million
PA

100. Which of the following statements about consumer product and service warranties
is false?
C

a. Express warranties are operative from the moment of sale

b. The seller and the consumer may stipulate the period within which the express
warranty shall be enforceable.
EO

c. If the implied warranty on merchantability accompanies an express warranty,

both will be of equal duration.
d. None of the above
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- END OF EXAMINATION -

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