FAR EASTERN UNIVERSITY – MANILA

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTION (RFBT)

COMPREHENSIVE EXAMINATION NO. 3

NAME: SECTION: DATE:

SELECT THE BEST ANSWER:

1. The following are modes of extinguishing an obligation, except?
a. Rescission
b. Annulment
c. Arrival of resolutory period
d. Arrival of suspensive period

2. Consignation alone is sufficient or even without a previous tender of payment, except?

A. When Creditor is absent or does not appear at the place of payment
B. When the Creditor is incapacitated to receive payment at the time it is due
C. When the Creditor refuses to give a receipt with a just cause
D. When the title of the Obligation has been lost

3. Mr. Lover boy gave her sweetheart, Ms. Play girl, a gift containing a brand new cellphone
worth P 50,000 on June 15, 2019. After 15 days, Ms. Play girl dumped Mr. Lover boy.
Very sad and angry, Mr. Lover Boy seek your legal advice. What is the remedy of Mr.
Lover boy?
A. None because he must bear the loss of taking the risk of loving a play girl
B. He can cry and beg for forgiveness
C. He can recall his gift because the donation is void
D. None because the gift given orally is valid

4. This novation is when the initiative or the change does not come from debtor and even be
made without his knowledge or against his will?
A. Delegacion
B. Subrogation
C. Expromision
D. Accion PAuliana

5. Mae U. Tang borrowed P100,000 cash from Maya Man on January 1, 2008 evidenced by
a promissory note due on January 1, 2009. Maya Man demanded payment on January 2,
2009 but Mae U. Tang was unable to pay at that time. On June 15, 2019, Maya Man tried
to collect the amount from Mae U. Tang but the latter contends that the obligation has
already prescribed. Can Maya Man enforce her right of action against Mae U. Tang to
collect?
A. Yes, because the obligation has not yet prescribed
B. Yes, because the previous civil obligation is converted to natural obligation
C. No, because the obligation has already prescribed
D. No, because the previous natural obligation is converted to civil obligation

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6. During the state of drunkenness, Gina signed a contract of service with Karen for the latter
to be part of her security personnel. The contract is?
a. Void
b. Perfectly valid
c. Unenforceable
d. Voidable

7. Papa, the father of a six-month-old infant, entered a deed of sale of the said infant with
Mr. Bayer for P 1,000,000, and then the contract of sale was Notarized by Atty. Ross.
The contract is?
a. Void
b. Perfectly Valid
c. Voidable
d. Rescissible

8. Kardo tortured Carding to secure the latter to sign an agreement to be part of the cast of
Batang Lacson Series. The contarct is?

a. Void
b. Perfectly Valid
c. Voidable
d. Rescissible

9. Verbal Contract of sale of a piece of land located in Tondo, Manila City between the seller-
owner, Henry who paid P 500,000, and the buyer Micky, on December 5, 2023. The
contract is?
a. Void
b. Perfectly valid
c. Voidable
d. Unenforceable

10. Kristy, the ward, sold the car of her guardian Imelda for P 500,000 only to Fred but the
market value of said car was P 900,000. The contract is?
a. Void
b. Perfectly valid
c. Voidable
d. Unenforceable

11. Contract of sale as oppose to contract to sell is?

a. A personal obligation
b. A real obligation
c. Neither personal nor real obligation
d. Both real and personal obligation

12. The following are essential requisites of contract of sale, except?

a. Consent
b. Object
c. Price
d. Delivery

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 13. The following are the stages in life of a contract of sale, except?
a. Negotiation stage
b. Perfection stage
c. Consummation stage
d. Extinguishment stage

14. Which of the following contract describes a barter?

a. If the consideration consists party in money and partly by thing and the intention of the
parties is to sell
b. If the consideration consists party in money and partly by thing and the intention of the
parties is not clear
c. If the consideration consists party in money and partly by thing and the value of thing
is equal or less than amount of money while their intention is unclear
d. If the consideration consists party in money and partly by thing and the value of
thing is more than amount of money while their intention is unclear

15. This is a constructive delivery of thing by mere agreement as when vendor points to the
property without need of actually delivering it?
a. Traditio Longa Manu
b. Traditio Brevi Manu
c. Symbolic Delivery
d. Constitutum Possessorium

16. The following are implied warranties of the seller, except?

a. warranty that seller has a right to sell
b. warranty against eviction
c. warranty against hidden defect
d. warranty against patent defect

17. Jamilca already paid 4 years installment for the purchase of a residential lot from Ayali
Land Development Corporation. Since December 31, 2023, Jamilca failed to pay the
installment payment. Which of the following is true?
a. Jamilca can claim 40% of the total payments made as cash surrender value
b. Jamilca can still pay without interest until May 30, 2024
c. Jamilca can still pay without interest until April 30, 2024 without interest
d. Jamilca can still pay but with interest until April 30, 2024

18. In case of double sale under Article 1544 of the NCC of the immovable property, who owns
the said property?
a. First registrant in good faith
b. First possessor in good faith
c. Person who presents oldest title in good faith
d. First registrant in bad faith

19. Which of the following are true regarding legal redemption of rural land, except?
a. where piece of rural land has an area not exceeding 1 hectare, adjoining owner has right
to redeem unless grantee does not own a rural land
b. if 2 or more adjacent lot owners desire to exercise right to redeem, owner of adjoining
lot with smaller area shall be preferred
c. if 2 or more adjacent lit owners desire to exercise right to redeem & both have same lot
area, one who first requested shall be granted
d. if 2 or more adjacent lot owners desire to exercise right to redeem, owner of
adjoining lot with greater area shall be preferred

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 20. Johnny purchased a motor vehicle from Marti for P 100,000 and subject the said vehicle
to chattel mortgage. The former paid 10% down payment and the balance is payable in 36
equal monthly payments. After 10 installments, Johnny defaulted payment, then Marti
patiently postponed the specific performance. After four deafault, Marti foreclosed the
motor vehicle and was able to sell at auction for P60,000 only. Which of the following is
correct?
A. Marti can still collect the balance from Johnny despite foreclosure of chattel
mortage
B. Marti cannot collect the balance from Johnny after foreclosure
C. Marti is obliged to share half of the proceeds to Johnny
D. None of the above

21. In case of pledge, who will receive the excess amount if the auction price is more than the
balance of the loan as a rule?
a. Pledgor-debtor
b. Pledgee-creditor
c. Pledgor-creditor
d. Pledgee-debtor

22. In case of chattel mortgage, who will receive the excess amount if the auction price is more
than the balance of the loan as a rule?
a. mortgagor-debtor
b. mortgagee-creditor
c. mortgagor-creditor
d. mortgagee-debtor

23. Which of the following credit transactions requires delivery as an essential requirement?
a. chattel mortgage
b. pledge
c. real mortgage
d. none of the above

24. This is one which, although it lacks the proper formalities of a mortgage, show the intention
of the parties to make the property as a security for a debt?
a. pacto de retro sale b. conventional redemption
c. legal redemption d. equitable mortgage

25. In case of foreclosure of chattel mortgage under recto law, which of the following is
correct?
A. The excess amount of proceeds over the loan will be shared proportionately
between creditor and debtor
B. The deficiency shall be shouldered by the debtor
C. The deficiency shall be shouldered by the creditor
D. None of the above

26. Which of the following is covered by BP 22?

a. Issuance of a promissory note without sufficient fund
b. Issuance of a check with sufficient fund
c. Issuance of a check with sufficient fund but failed to maintain for a period of 60 days
d. Issuance of a check without sufficient fund

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27. Which of the following is covered by BP 22?
a. Issuance of a bill of exchange other than a check without sufficient funds
b. Issuance of a check with sufficient funds
c. Issuance of a check with sufficient funds but failed to maintain for a period of 90 days
from issuance.
d. Issuance of a check with sufficient funds but failed to maintain for a period of 90
days from the due date.

28. What is the penalty for violating BP 22?

a. Imprisonment of less than 30 days
b. Imprisonment of not less than 30 days and not more than 1 year
c. Penalty for an amount not more than double the value and not more than 250,000
d. Imprisonment of not less than 30 days but not more than 1 year OR Fine for an
amount equivalent to double the value of the check but not more than 200,000, or
Both at the discretion of the court

29. This law criminalizes the issuance of a check without sufficient funds or failure to maintain
the said sufficient funds within a reasonable time from its issuance.
a. RA 11232
b. BP 68
c. BP 22
d. RA 9184

30. Bouncing checks law is?

a. Mala inse
b. Mala prohibita
c. Malas sya
d. None of the above

31. This is a partnership in which the partners contribute all the property which actually
belongs to them to a common fund, with the intention of dividing the same among
themselves, as well as all the profits which they may acquire therewith?
A. General partnership
B. Limited partnership
C. Universal partnership of all present property
D. Universal partnership of all profits

32. What is the remedy of the capitalist partner if an industrial partner engages in business for
himself without express permission by the partnership?
A. The capitalist partner may exclude him from the partnership
B. The capitalist partners may avail of the benefits obtained by the industrial partner
C. The capitalist may exclude the industrial partner and avail the benefits obtained by the
latter, with right to damages in both cases
D. The capitalist may exclude the industrial partner or avail the benefits obtained by
the latter, with right to damages in either case

33. May a capitalist partner engage for his own account in any operation of business?
A. Yes, even if of same kind of business in which the partnership is engaged
B. No, if he engage in the same kind of business which the partnership is engaged
C. No, if he engage in the same kind of business which the partnership is engaged
unless there is stipulation to the contrary
D. Yes, even if of same kind of business in which the partnership is engaged unless there
is stipulation to the contrary

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34. This is the change in the relation of the partners caused by any partner ceasing to be
associated in the carrying on as distinguished from the winding up of the business?
A. Formation
B. Operation
C. Dissolution
D. Liquidation

35. Which of the following is true regarding partnership?

a. The owners are known as partners
b. The liability characteristic of partnership is unlimited
c. Both A and B
d. Neither A nor B

36. Which of the following is true?

a. The life of a partnership is unlimited
b. The liability of the partnership is limited
c. The general professional partnership is subject to regular corporate income tax
d. The general professional partnership is not subject to regular corporate
income tax

37. A partnership contract is. , whenever immovable property is contributed thereto,

if an inventory of said property is not made, signed by the parties, and attached to the
public instrument.
a. Valid
b. Voidable
c. Void
d. Unenforceable

38. Statement 1: A limited partnership is one formed by two or more persons under the
provisions of the following article, having as members composed of all limited partners.
Statement 2: A general partnership is one formed by two or more persons under the
provision of the following articles, having as members composed of all general partners.

a. True: True
b. False; True
c. True: False
d. False; False

39. The following are correct, except?

a. The consequence in case a partner refuses to contribute additional capital to save
the partnership from imminent loss is that the partner, excluding industrial partner,
shall be obliged to sell his interest to the other partners.
b. The industrial partner shall not share in losses if there is no agreement as to Profit
or loss sharing
c. The industrial partner shall not share in loss even if there is profit or loss
sharing agreement.
d. The managing partner’s designation in the article of partnership is irrevocable

40. What is the effect if a person who is a general partner is also at the same time a limited
partner?

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 A. He shall have all the rights and powers and be subject to all the restrictions of a general
partner
B. He shall have all the rights and powers and be subject to all the restrictions of a limited
partner
C. In respect to his contribution, he shall have the rights against the other members as if
he were not a general partner
D. Both A and C

41. He is a partner who is known and does not take an active participation in the partnership
affairs?
a. Silent partner
b. Secret partner
c. Dormant partner
d. Ostensible partner

42. May partners intrust to a third person the designation of the share of each one in profits
and losses?
A. No, because a third person is not privy to the contract of partnership
B. Yes, and the designation will be final and cannot be impugned
C. Yes, the designation may be impugned only when it is manifestly equitable within a
period of three (3) months from knowledge
D. Yes, and the designation may be impugned only when it is manifestly inequitable
Within a period of three (3) months from knowledge

43. Can a husband and wife form a universal partnership?

a. Persons who cannot give donation to each other cannot form a universal
partnership, hence, husband and wife are absolutely prohibited to form a universal
partnership
b. Yes, if they are already annulled
c. Yes, if they agreed on separation of property regime
d. Both B and C

44. This is formed by two or more persons, having as members one or more general partners
and one or more limited partners.
A. General Partnership
B. Limited Partnership
C. Universal Partnership
D. Particular Partnership

45. He is a partner who is not known as a partner by the public and does not takes an active
participation in the affairs of partnership?
a. Dormant
b. Secret
c. Silent
d. Ostensible

46. Lady owned a condominium unit worth P 5,000,000 while Ram owned fleet of Taxis worth
P 10,000,000. They agreed to form a universal partnership of all present properties on
January 31, 2024. Which of the following is correct?
a. The partnership owned both the condominium unit and the fleet of taxis; hence the
assets of P15,000,000
b. Lady still own the condominium while Ram owns the Taxis, however only the
rental fees and the revenue generated from taxi operation will belong to the
partnership
c. The partnership owned both the condominium unit and the fleet of taxis as
well as all the fruits such as rental fees and revenue generated from taxi
operations

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 d. None of the above

47. Which of the following is true regarding the power of a managing partner appointed in the
articles of partnership?
A. He may execute acts of administration only if there is no opposition from his partners
B. He may execute acts of administration despite opposition of his partners, even if he
acted in bad faith
C. His power may be revoked at any time
D. He may execute acts of administration despite opposition of his partners, as long
as he acted in good faith

48. What will be the effect if the authorized managing partner collects a demandable sum
which is owed to him in his own name, from a person who owed the partnership another
sum also demandable, but the manager issued partnership receipt?
A. Sum collected shall be applied to the account of the partnership only
B. Sum collected shall be applied to the account of the managing partner only
C. Sum collected shall be applied to the two credits in proportion to their amounts, even
though the managing partner may have given receipt for the account of partnership
D. None of the above

49. Emma and Clara were appointed in the articles of partnership of Emma, Clara, Jenna, and
Nena's partnership. They have equal interest in the partnership. Emma suggested
purchasing a brand new delivery van to boost the sales and marketing of the business,
while Clara suggested instead to enter into an advertising contract to boost the sales. Jenna
and Nena agreed with Clara. Which of the following is correct?
A. Emma’s decision shall prosper
B. Clara’s decision shall prosper
C. Neither Emma nor Clara’s suggestion will prosper
D. Jenna and Nena, not being managing partners, are not to be considered in deciding
what proper action to do

50. Emma, Clara, Nena and Dennis were appointed in the articles of partnership of Emma
(15%), Clara(25%%), Jenna(10%), Dennis (40%) and Nena( 10%) partnership.. Emma
suggested purchasing a brand new delivery van to boost the sales and marketing of the
business. In contrast, Clara suggested entering into an advertising contract to boost sales.
Jenna and Nena agreed with Emma while Dennis agreed with Clara Which of the
following is correct?
A. Emma’s decision shall prosper
B. Clara’s decision shall prosper
C. Neither Emma nor Clara’s suggestion will prosper
D. Jenna, not being managing partners, is not to be considered in deciding what proper
action to do

51. This is formed by two or more persons, having as members one or more general partners and
one or more limited partners.
A. General Partnership
B. Limited Partnership
C. Universal Partnership
D. Particular Partnership

52. The following are correct regarding limited partnership, except?

a. The limited partners shall not be bound by the obligations of the partnership.
b. Two or more persons desiring to form a limited partnership shall add word “Limited”
c. The contributions of a limited partner may be cash or property, but not services.
d. The contributions of a limited partner may be cash, property or services.

53. The surname of a limited partner shall not appear in the partnership name unless?
a. It is also the surname of a general partner

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 b. Prior to the time when the limited partner became such, the business has been carried
on under a name in which his surname appeared
c. Both A and B
d. None of the above

54. Anna, Bea and Carla are partners establishing a universal partnership of all present property, they
agreed with a stipulation of common enjoyment of any other profits. Before the partnership, Bea
acquired Land worth P 5,000,000 while Anna inherited a building worth P10,000,000. On the
other hand, Carla received P100,000 cash donation from John subsequent to the constitution of
partnership. Which of the following is owned by the universal partnership?
a. Land only
b. Land, and Building only
c. Land, building and Cash
d. Building and cash only

55. The general partnership of Jim and Henry incurred liability amounting to P 5,000,000 to
Clark Corporation. Jim and Henry agreed to profit or loss sharing of 80:20, respectively.
Unfortunately, the said partnership turned bankrupt. Which of the following is correct?

a. Clark Corporation cannot claim payment from partners Jim and Henry due to
doctrine of separation of juridical personality
b. Clark Corporation can claim from Jim but not from Henry considering that the
profit or loss sharing is 80:20
c. Clark Corporation can claim all the assets of the pertnership and may still go
after the personal assets of the partners Jim and Henry
d. Clark Corporation can claim all the assets of the partnership but not the personal
assets of Jim and Henry

56. The following are excluded in the coverage of FRIA, except?

a. Bank
b. Insurance
c. Local Government Unit
d. Publicly listed companies

57. This shall refer to the restoration of the debtors to a condition of successful operation and
solvency, if it is shown that its continuance of operation is economically feasible ?
a. Liquidation
b. Rehabilitation
c. Insolvency
d. Restoration

58. It is a rule indicating that the Rehabilitation plan confirmed by the Court shall be binding upon the
debtor and all persons who may be affected by it, including creditors whether or not such persons
have participated in the proceedings, opposed the plan or whether or not their claims have been
scheduled?
a. Clam down rule
b. Cram down rule
c. Doctrine of last clear chance
d. Doctrine of operative act
59. What will be the action of the court if the debtor is found not to be insolvent and that there is merely
sham filing on the part of the debtor?
a. Give due course

b. Convert the rehabilitation to liquidation

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 c. Dismiss

d. Involuntarily liquidate

60. The out of court rehabilitation must be approved by the following, except?
a. creditors with 67% of the secured obligations

b. 85 % of the Total Liabilities that are secured but not unsecured

c. 75% of the Unsecured obligation

d. 85% of the Total Liabilities whether secured or unsecured

61. The following are allowed proceedings for individual debtors except?
a. Voluntary liquidation

b. Involuntary liquidation

c. Rehabilitation

d. Suspension of payment

62. who will file the petition for involuntary rehabilitation?

a. the debtor who is insolvent

b. the creditor with aggregate claim of P 1,000,000

c. the creditor with aggregate claim of P 1,000,000 or 25% of the Subscribed capital stocks whichever is
higher

d. the creditor with aggregate claim of P 1,000,000 or 25% of the Outstanding capital stocks whichever is
higher

63. The pre negotiated rehabilitation plan shall be approved by?

a. 85% of the total creditors with security

b. Majority of the total liabilities 50% of which is secured and 50% is unsecured

c. 2/3 of the total liabilities more than 50% is secured and more than 50% is unsecured

d. Majority of the total liabilities more than 50% is secured and more than 50% is unsecured

64. The suspension of payment as opposed to liquidation?

a. applicable to both juridical person and insolvent debtor

b. no minimum amount of debt is required

c. 500,000 is the minimum amount of debt

d. the asset of the debtor is less than the liabilities

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65. The suspension of payment as opposed to rehabilitation?
a. applicable to both juridical person and insolvent debtor

b. the asset of the debtor is greater than the liabilities

c. 500,000 is the minimum amount of debt

d. the asset of the debtor is less than the liabilities

66. The three modes in rehabilitation are the following, except?

a. Court Supervised
b. Out of Court Rehabilitation
c. Pre-negotiated Rehabilitation
d. Suspension of Payment Rehabilitation

67. The voluntary proceedings may be initiated by an insolvent debtor through filing a
petition for rehabilitation with the court and on the grounds provided under the FRIA,
which of the following is true?

a. The filing of the petition for rehabilitation must be approved by the manager in
case of a sole proprietorship.
b. The filing of the petition for rehabilitation must be approved by 2/3 vote of the
partners in partnership
c. The filing of the petition for rehabilitation must be approved by majority vote of
the outstanding capital stocks in a corporation
d. The filing of the petition for rehabilitation must be approved by majority
of the partners in partnership

68. How many creditors is/are required to file a petition for voluntary liquidation of an insolvent
individual debtor?
a. None
b. One
c. Two
d. Three

69. How many creditors is/are required to file a petition for involuntary liquidation of an insolvent
juridical debtor?
a. None
b. One
c. Two
d. Three

70. How much is the minimum amount of debt for the court to grant involuntary liquidation of
individual debtor who is insolvent?
a. none
b. 400,000
c. 500,000
d. 1,000,000 or 25% of capital whichever is higher

71. Statement 1: The old corporation code of the Philippines is Batas Pambansa 86 while the
Revised Corporation Code of the Philippines is Republic Act No. 11232.
Statement 2: Corporation is artificial being created by operation of law, having the right of
succession and the powers, attributes, and properties expressly authorized by law or
incidental to its existence.

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 Statement 3: Those Corporations which have capital stock divided into shares and are
authorized to distribute to the holders of such shares, dividends, or allotments of the surplus
profits on the basis of the shares held are called non-stock corporation.
A. True; True; True C. False; True; False
B. True; False; False D. False; False; False

72. Statement 1: Incorporators are stockholders or members mentioned in the articles of

incorporation as originally forming and composing the Corporation, and who are signatories
thereof.
Statement 2: The life of a partnership is limited, while a Corporation's is perpetual.
Statement 3: No share may be deprived of voting rights except those classified and issued as
“preferred” or “redeemable” shares.
A. True; True; True C. False; True; True
B. True; True; False D. False; True; False

73. Statement 1: The preferred shareholders are entitled to vote in case of merger or consolidation
of the corporation with another corporation or other corporations.
Statement 2: The redeemable shareholders are entitled to vote in case of an increase or
decrease in the authorized capital stock of a corporation.
Statement 3:Treasury share are entitled to vote in amendment or adoption of by-laws.
A. True; True; True C. False; True; True
B. True; True; False D. False; True; False

74. Statement 1: Banks and insurance companies are not permitted to issue no-par value shares of
stock.
Statement 2: Preferred shares are always issued with par value.
Statement 3: The no-par value shares must be issued for a consideration of at least five (P5.00)
peso per share.

A. True; True; True C. False; True; True

B. True; True; False D. False; True; False

75. Statement 1: Treasury shares are shares where the exclusive right to vote and be voted for in
the election of directors is granted.
Statement 2: Under the Revised Corporation Code, the minimum capital stock to incorporate
a regular corporation is five thousand pesos, unless otherwise provided in the article of
incorporation.
Statement 3: A One person corporation is a corporation with a single stockholder that can only
be organized by a natural person, trust, or estate only.

A. True; True; True C. False; False; True

B. False; True; False D. False; False; False

76. Statement 1: Under RCC, the A corporation shall have perpetual existence unless its articles
of incorporation provides otherwise.
Statement 2: To retain a specific corporate term pursuant to the article of incorporation, the
required vote is three-fourths (¾) of the outstanding capital stock.
Statement 3: In organizing one person corporation, the incorporator is required to submit the
Article of incorporation and its by-laws to the Securities and Exchange Commission.

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 A. True; False; True C. True; False; False
B. True; True; False D. False; False; False

77. The doctrine that corporation is a legal entity distinct from that person composing it but if the
said personality is used as a shield to perpetuate fraud, to defeat public convenience, justify
wrong or defend crime, this fiction shall be disregarded and the individual composing it will
be treated identically?
a. Trust fund doctrine
b. Piercing the veil of corporate fiction
c. Doctrine of individuality of subscription
d. None of the above

78. Statement 1: A private corporation organized under RCC commences its corporate existence
and juridical personality from date the Commission issues the certificate of incorporation
under its official seal.
Statement 2: The articles of incorporation may be filed either personally or electronically
with the Securities and Exchange Corporation.
Statement 3: A de facto corporation is a corporation in fact but not in law while a de jure
corporation is a corporation both in fact and in law.

A. True; False; True C. True; False; False

B. False; True; False D. False; True; True

79. Statement 1: If a corporation has commenced its business but subsequently becomes
inoperative for a period of at least five (5) consecutive years, the Securities and Exchange
Commission shall place the corporation under delinquent status.
Statement 2: If a corporation does not formally organize and commence its business within
three (3) years from the date of its incorporation, the certificate of incorporation be deemed
revoked.
Statement 3: If a corporation does not formally organize and commence its business within
five (5) years from the date of its incorporation, the certificate of incorporation be deemed
revoked.

A. True; False; True C. True; False; False

B. False; False; True D. True; True; False

80. Statement 1: Consideration for shares of stock may be promissory notes.

Statement 2: Consideration for share of stock may be future service.
Statement 3: Consideration for the issuance of stock may be actual cash paid to the
corporation.
A. True; True; True C. True; False; False
B. False; False; True D. False; True; True

81. Statement 1: Under the Revise Corporation Code, at least 25% of the authorized capital stock
must be subscribed and at least 25% of the said subscribed shares must be paid as shown in
the treasurer’s affidavit to organize a corporation.
Statement 2: Under the Revised Corporation Code, the life of a corporation is limited to 50
years, subject to renewal of another term.

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Statement 3: Under the Revised Corporation Code, it is allowed to organized a corporation for
the exercise of profession.

A. True; True; True C. True; False; False

B. True True; False D. False; False False

82. What is the required vote of shareholders to approve the extension or shortening of the
Corporate Term?
a. Majority of the outstanding common stock
b. Majority of the outstanding capital stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

83. What is the required vote of shareholders to approve the sale of all or substantially all of
the corporation’s properties and assets, including its goodwill?

a. Majority of the outstanding common stock

b. Majority of the outstanding capital stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

84. What is the required vote of the shareholders to delegate the power to adopt/ amend or
repeal the by laws to the Board of Directors?
a. Majority of the outstanding common stock
b. Majority of the outstanding capital stock
c. 2/3 of the outstanding capital stock
d. 2/3 of the outstanding common stock

85. What is the required vote of the shareholders to approve the issuance of stock dividends?
a. Majority of the outstanding capital stock
b. 2/3 of the outstanding common stock
c. 2/3 of the outstanding capital stock
d. None of the above

86. What is the required vote of the shareholders to approve the management contract to be
entered into between the managing and managed corporation?
a. Majority of the outstanding common stock
b. Majority of the outstanding capital stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

87. What is the required vote of the shareholders to ratify the increase or decrease in capital
stock?
a. Majority of the outstanding common stock
b. Majority of the outstanding capital stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

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88. What is the required vote of the shareholders for the adoption of bylaws by the
corporation?
a. Majority of the outstanding capital stock
b. Majority of the outstanding common stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

89. What is the required vote of the shareholders for the amendment of article of
incorporation?
a. Majority of the outstanding capital stock
b. Majority of the outstanding common stock
c. 2/3 of the outstanding common stock
d. 2/3 of the outstanding capital stock

90. What is the required vote of the shareholders in declaring cash dividends?
a. Majority of the outstanding capital stock
b. Majority of the outstanding common stock
c. 2/3 of the outstanding capital stock
d. None of the above

91. What is the required vote of shareholders in approving the paln of merger or consolidation?
a. Majority of the outstanding capital stock
b. 2/3 of the outstanding capital stock
c. Majority of the outstanding common stock
d. 2/3 of the outstanding common stock

92. Those Corporations which have capital stock divided into shares and are authorized to distribute to the
holders of such shares, dividends, or allotments of the surplus profits on the basis of the shares held
are called?
A. Stock corporations
B. Proprietary Corporation
C. Non-Stock Corporation
D. Domestic Corporation

93. These are stock holders or members mentioned in the articles of incorporation as originally forming
and composing the corporation and who are signatories thereof?
A. Corporators
B. Members
C. Stockholders
D. D. Incorporators

94. Which of the following matters may preferred shares entitled to vote?
A. Merger or consolidation of the corporation with another corporation or other corporations
B. Declaration of Cash dividends
C. Both A and B
D. None of the above

95. Which of the following matter may redeemable shares entitled to vote?
A. Sale, lease, exchange, mortgage, pledge, or other disposition of all or substantially all of the corporate
property
B. Incurring, creating, or increasing bonded indebtedness
C. Both A and B

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 D. None of the above

96. As per RCC, the following corporations are not permitted to issue no-par value shares of stock, except?
A. Banks
B. Insurance
C. Educational Institution
D. Public Utilities

97. The entire consideration received by the corporation for its no-par value shares shall be treated as?
A. Capital only
B. Available for distribution as dividends
C. Capital and available for distribution as dividends
D. Capital and shall not be available for distribution as dividends

98. This is a share where exclusive right to vote and be voted for in the election of directors is granted?
A. Redeemable Share
B. Founders’ Share
C. Common Share
D. Treasury Share

99. These are shares of stock which have been issued and fully paid for, but subsequently reacquired by
the issuing corporation through purchase, redemption, donation, or some other lawful means?
A. Redeeamable Shares
B. Founders’ Shares
C. Treasury Shares
D. Common Shares

100. Who may organize a corporation?

A. Any person, partnership, association or corporation, singly or jointly with others more than fifteen (15)
in number
B. Any person, partnership, association or corporation, singly or jointly with others but not more
than fifteen (15) in number
C. Natural persons who are licensed to practice a profession
D. Partnerships or associations organized for the purpose of practicing a profession

That in all persons and things, GOD may be glorified!

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