ReSA B44 RFBT First PB Exam Questions and Answers

ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY
CPA Review Batch 44  Oct 2022 CPALE  30 July 2022  3:00 - 5:00 PM
REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS FIRST PRE-BOARD EXAMINATION
INSTRUCTIONS: Select the correct answer for each of the questions. Mark only one
answer for each item by shading the box corresponding to the letter of your choice on
the answer sheet provided. STRICTLY NO ERASURES ALLOWED. Use pencil no. 2 only.
1. Holders of nonvoting shares shall nevertheless be entitled to vote on the following

matters, except
D a. Amendment of the articles of incorporation
b. Adoption and amendment of bylaws;
c. Sale, lease, exchange, mortgage, pledge, or other disposition of all
or substantially all of the corporate property
d. None of the choices is an exception
2. For founders’ shares, where the exclusive right to vote and be voted for in the
election of directors is granted, it must be for a limited period not to exceed
____ year/s from the date of incorporation
C a. One
b. Two
c. Five
d. Ten
3. These are shares of stock which are issued at less than its par value or issue
price.
C a. Redeemable shares
b. Treasury shares
c. Watered stocks
d. Nominal shares
4. Under the Revised Corporation Code, a corporate term for a specific period may be
extended or shortened by amending the articles of incorporation: Provided, That
no extension may be made earlier than ________ years prior to the original or
subsequent expiry date(s) unless there are justifiable reasons for an earlier
extension as may be determined by the Commission:
B a. Two
b. Three
c. Five
d. Ten
5. Any provision or matter stated in the articles of incorporation may be amended by
a majority vote of the board of directors or trustees and the vote or written
assent of the stockholders representing at least _______ of the outstanding capital
stock.
C a. 1/3
b. 1/2
c. 2/3
d. 3/4
6. The due incorporation of any corporation claiming in good faith to be a corporation
under this Code, and its right to exercise corporate powers, shall not be inquired
into collaterally in any private suit to which such corporation may be a party.
Such inquiry may be made by the Solicitor General in a ____________ proceeding.
B a. Impeachment
b. Quo warranto
c. Both A & B
d. None of the above
7. If a corporation does not formally organize and commence its business within _____
years from the date of its incorporation, its certificate of incorporation shall
be deemed revoked as of the day following the end of such period.
C a. Two
b. Three
c. Five
d. Ten
8. If a corporation has commenced its business but subsequently becomes inoperative
for a period of at least ________ consecutive years, the Commission may, after
due notice and hearing, place the corporation under delinquent status.
B a. Three
b. Five
c. Ten
d. Twenty
Page 1 of 13 0915-2303213  resacpareview@gmail.com

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 44 – October 2022 CPALE Batch
30 July 2022  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
9. A delinquent corporation shall have a period of __________ year/s to resume
operations and comply with all requirements that the Commission shall prescribe.
B a. One
b. Two
c. Three
d. Five
10. Any director or trustee of a corporation may be removed from office by a vote of
the stockholders holding or representing at least ___________ of the outstanding
capital stock.
B a. 1/2
b. 2/3
c. 3/4
d. All
11. Directors or trustees who willfully and knowingly vote for or assent to patently
unlawful acts of the corporation or who are guilty of gross negligence or bad
faith in directing the affairs of the corporation or acquire any personal or
pecuniary interest in conflict with their duty as such directors or trustees
shall be liable ______________ for all damages resulting therefrom suffered by
the corporation, its stockholders or members and other persons.
B a. Jointly
b. Solidarily
c. In the alternative
d. For their respective share
12. No management contract shall be entered into for a period longer than _______
years for any one (1) term.
A a. Five
b. Ten
c. Twenty
d. Fifty
13. The owners of _________ of the outstanding capital stock may delegate to the
board of directors the power to amend or repeal the bylaws or adopt new bylaws.
C a. 1/2
b. Majority
c. 2/3
d. 3/4
14. The owners of _________ of the outstanding capital stock may revoke the delegated
power of the board of directors to amend or repeal the by-laws.
B a. 1/2
b. Majority
c. 2/3
d. 3/4
15. Regular meetings of stockholders or members shall be held annually on a date

fixed in the bylaws, or if not so fixed, on any date after ______ of every year
as determined by the board of directors or trustees.
C a. January 15
b. March 15
c. April 15
d. December 15
16. Special meetings of stockholders or members shall be held at any time deemed
necessary or as provided in the bylaws: Provided, however, That at least ______
week/s written notice shall be sent to all stockholders or members, unless a
different period is provided in the bylaws, law or regulation.
A a. One
b. Two
c. Three
d. Ten

17. Holders of nonvoting shares shall not be entitled to vote on any corporate
matter.
Banks, trust, insurance, and preneed companies, public utilities, building and
loan associations, and other corporations authorized to obtain or access funds
from the public, whether publicly listed or not, shall be permitted to issue no-
par value shares of stock.
D a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.
18. The same person may hold two (2) or more positions concurrently, except that no
one shall act as president and secretary or as president and treasurer at the
same time, unless otherwise allowed in the Corporation Code.
A person shall be disqualified from being a director, trustee or officer of any

corporation if, within three (3) years prior to the election or appointment as
such, the person was convicted by final judgment of an offense punishable by
imprisonment for a period exceeding six (6) years.
A a. Only the first statement is correct.
19. For the adoption of bylaws by the corporation, the affirmative vote of the
stockholders representing at least a majority of the outstanding capital stock,
or of at least a majority of the members in case of nonstock corporations, shall
be necessary.
Under the Revised Corporation Code, stockholders’ or members’ meetings, whether
regular or special, shall be held in the city or municipality where the principal
office of the corporation is located.
A a. Only the first statement is correct.
20. Every contract of partnership having a capital of two thousand pesos or more, in
money or property, shall appear in a public instrument, which must be recorded
in the Office of the Securities and Exchange Commission.
A contract of partnership is voidable, 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.
21. In all cases, a partnership begins from the moment of the execution of the
contract.
Every partner is a creditor of the partnership for whatever he may have promised
to contribute thereto.
22. In all cases, an industrial partner cannot engage in business for himself.
A capitalist partner may prohibit an industrial partner from engaging in the same
kind of business as the partnership.
B a. Only the first statement is correct.

23. The courts may equitably lessen the responsibility of a partner if through that
partner's ordinary efforts in other activities of the partnership, unusual
profits have been realized.
In the absence of stipulation, the share of each partner in the profits and
losses shall be in proportion to what he may have contributed at the start of
the partnership.
B a. Only the first statement is correct.
24. Every partner must account to the partnership for any benefit, and hold as
trustee for it any profits derived by him without the consent of the other
partners from any transaction connected with the formation, conduct, or
liquidation of the partnership or from any use by him of its property.
The capitalist partners cannot engage for their own account in any operation
which is of the kind of business in which the partnership is engaged, unless
there is a stipulation to the contrary.
C a. Only the first statement is correct.
25. Articles of universal partnership, entered into without specification of its
nature, only constitute a_______________.
B a. Universal partnership of all present property
b. Universal partnership of profits
c. Limited partnership
d. General partnership
26. Cheska personally owe P20,000 to Mr. A, the managing partner in charge for
collection of ABC Partnership. On the other hand, Cheska owes P30,000 to the
partnership. When both debts are due, Cheska paid P10,000 to Mr. A, with the
latter issuing a receipt under his name. How much of the P10,000 should go to
Mr. A, if any?
C a. P8,000
b. P6,000
c. P4,000
d. 0
27. Dilek personally owe P10,000 to Mr. A, the managing partner in charge for
collection of ABC Partnership. On the other hand, Dilek owe P30,000 to the
partnership. When both debts are due, Dilek paid P8,000 to Mr. A, with the latter
issuing a receipt under the name of the partnership. How much of the P8,000
should go to Mr. A, if any?
D a. P8,000
b. P6,000
c. P2,000
d. 0
28. A (60% ownership interest), B (15%), C (15%), and D (10%) are partners in ABCD.
All of them were designated as managing partners in the firm. During a meeting
of the partnership, they were discussing a possible expansion of the business.
A chose Batanes as the next expansion area of the business, while B, C and D
chose Samar. Applying the rules of Article 1801, which would prevail as the next
expansion site of the business?
B a. Batanes
b. Samar
c. Both A & B
29. Howard, Ivan and Jacob are joint debtors. They obliged themselves to deliver a
specific cat (worth P9,000) to Peter and Quiroz, joint creditors. Assuming Howard
is the only one who does not want to comply with the obligation, how much is the
total amount that can be collected from him by the creditors?
C a. P9,000
b. P9,000 plus damages
c. P3,000 plus damages
d. None. He is not forced to comply.
30. Alex, Bryan and Cesar are solidary debtors for the amount of P45,000 from Felix.
Bryan has already paid P20,000 to Felix. How much can Felix further collect from
Bryan?
A a. P25,000
b. None. It has already exceeded the share of B.
c. Another P20,000
d. P5,000
31. One peso coins are considered to be legal tender up to
A a. One thousand pesos
b. One hundred pesos
c. One million pesos
d. Up to any amount
32. One centavo coins are considered to be legal tender up to

B a. One thousand pesos
d. Up to any amount
33. Twenty peso-bills are considered to be legal tender up to

D a. One thousand pesos
d. Up to any amount
34. On January 1, Dominic borrowed P20,000 from Carmina. On February 1, the former
borrowed another P10,000 from the latter, evidenced by an interest bearing
promissory note. Both debts are now due. Upon demand by Carmina, Dominic paid
P6,000 without designating the liability on which it would be applied. How will
the P6,000 be applied?
B a. It will be considered as payment for the January 1 debt only
b. It will be considered as payment for the February 1 debt only
c. It will be considered as payment for both debts, in the ratio of 1:1
d. It will be considered as payment for both debts, in the ratio of 2:1
respectively
35. What is the translation of the innominate contract “Facio ut des”?
C a. I give that you may give
b. I give that you may do
c. I do that you may give
d. I do that you may do
36. What is the translation of the innominate contract “Do ut des”?
A a. I give that you may give
b. I give that you may do
c. I do that you may give
d. I do that you may do
37. Which among the following is considered to be the most defective?

B a. Voidable
b. Void
c. Rescissible
d. Unenforceable
38. Under a contract, Robert obligated himself to build a house for Rina. In this
example, the object or the prestation is
D a. Mr. Robert
b. The house itself
c. Ms. Rina
d. The construction of the house
39. During a strong typhoon, Blessy saved the horses of Rose, who is currently out
of town. Blessy incurred expenses amounting to P20,000. This can be reimbursed
because of
B a. Solutio indebiti
b. Negotiorum gestio
c. Fortuitous event
d. Natural obligation

40. Juan received P400,000 from Sean because the latter thought that Juan is his
creditor Juancho. Juan should return the money because of
B a. Contract
b. Solutio indebiti
c. Negotiorum gestio
d. Public policy
41. After the strong storm, Kerri did not remove the broken branches of her mango
tree. A few days after, a passerby was hit by a branch that fell. Is Kerri
liable?
D a. No, it is a fortuitous event.
b. Yes, he is liable for a crime.
c. No, it s a mere accident.
d. Yes, he is liable for a quasi-delict.
42. Susan sold a pig named Peachy to Betty for P15,000. No condition or period was
contemplated. After the perfection of the contract but before the delivery of
the pig, Peachy the pig gave birth to 3 piglets. Who is entitled to the 3 piglets?
B a. Susan
b. Betty
c. Peachy, because she is the mother of the piglets
43. On December 1, 2022, Solomon agreed to sell a car worth P2,000,000 to Bartolome.
The car will be delivered to Bartolome on December 31, 2022. Prior to December
31, 2022, what kind of right does Bartolome possess?
A a. Personal right
b. Real right
c. Both a and b
44. On December 1, 2022, Solomon agreed to sell a car worth P2,000,000 to Bartolome.
The car will be delivered to Bartolome on December 31, 2022. After December 31,
2022, what kind of right does Bartolome possess?
B a. Personal right
b. Real right
c. Both a and b
45. Ownership over a property is transferred upon

B a. Perfection of the contract
b. Delivery of the subject matter
c. Payment of the price
d. All of the above
46. What principle is the basis of the rule that an indeterminate thing cannot be
the object of destruction?
C a. Force majeure
b. Negotiorum gestio
c. Genus nunquam perit
d. Compensatio morae
47. Kirsten agreed to deliver a specific horse on August 30, 2022 to Berta. Today is
September 2, 2022 and Kirsten has not yet delivered the specific horse. Kirsten
is now said to be in
B a. Legal delay
b. Ordinary delay
c. Both a & b
48. Sevie promised to deliver a wedding dress to Beth for her upcoming wedding on
September 30, 2022. Sevie was not able to comply with his obligation on time.
There was no demand on the part of Beth. In this scenario,
B a. Sevie is not in legal delay because there is no demand.
b. Sevie is in legal delay because time is of the essence.
c. Sevie is in legal delay because the law so provides.
d. Sevie is in legal delay because it is stipulated by the parties.

49. A fire destroyed the house of Christian. He is now asking reimbursement from his
insurance company. Is the insurance company liable?
C a. No, because fire is a fortuitous event.
b. No, because fire is an act of man and not an act of God.
c. Yes, because the nature of the obligation requires the assumption of
risk.
d. Yes, because they are negligent.
50. An obligation may arise in all of the following instances even without an
agreement, except:
B a. Law
b. Contract
c. Quasi-contract
d. Delict
e. Quasi-Delict
51. A student was stabbed inside the campus by a stranger. Will there be a liability
or obligation on the part of the school?
C a. No, there will only be a criminal liability on the part of the
stranger.
b. Yes, the school is liable due to quasi-delict.
c. Yes, the school is liable due to a contract.
d. No, no one should be liable because the student deserved it.
52. An overspeeding jeepney (that was carrying several passengers) turned turtle
because one of its tires blew out. One of the passengers died. The heirs filed
a suit for damages. The owner of the jeep filed an answer contending that the
cause of the accident was a fortuitous event because the tires were not yet old
and overused. Who is liable, if any?
B a. No one is liable because it was just an accident. No one wanted it
to happen.
b. The owner of the jeep is liable.
c. The tire company is liable.
d. Both B and C.
53. Which among the following is not a requisite for a fortuitous event?
B a. The cause of the breach of the obligation must be independent of the
will of the debtor
b. The event must be foreseeable or avoidable
c. The event must be such as to render it impossible for the debtor to
fulfill his obligation in a normal manner
d. The debtor must be free from any participation in, or aggravation of
the injury to the creditor.
54. X is indebted to Y in the amount of P1,000,000 payable in 10 monthly installments

and with interest at 15% per year. What is the effect if Y would be receiving
payment of the principal without receiving first the interest?
B a. None. The liability for the interest would still remain.
b. It presupposes that there has already been payment of the interest.
c. The interest would now be doubled.
d. This amounts to a condonation of the interest.
55. An obligation by Mr. X is payable from January 2022 to October 2022. X did not
pay the installment for June 2022. But when he paid in July 2022, the creditor
issue a receipt for July 2022. What is the effect of this?
B a. The liability for the June 2022 amortization would still subsist.
b. There is now a disputable presumption that the June 2022 installment
has been paid.
c. Additional interest can now be collected for the unpaid amortization.
d. There is now a conclusive presumption that the June 2022 installment
has been paid.
56. Arnold promised to deliver a specific car to his son Benny once the latter passes
the CPA Board Exam. In this case,
B a. The obligation is void since it is based on a potestative condition
solely dependent on the will of Jeremy
b. If Arnold voluntarily prevented Benny from passing the exam, the
condition is deemed fulfilled
c. The obligation is void since it is based on an impossible condition
d. Benny cannot validly demand the car yet since the obligation is one
with a period
57. There is no extinguishment of the obligation:

C a. In a facultative obligation, where the thing lost was the principal
object prior to substitution
b. In an alternative obligation, where all the things were lost due to
fortuitous event and the creditor had the right to choose
c. In a joint obligation, where one of the joint creditors condoned the
obligation of all the joint debtors
d. In an indivisible obligation, where the thing has been lost without
the fault of the solidary debtors
58. A and B entered into a contract of loan, providing that B shall pay when his
means permit him to do so. What is the remedy of A in case of non-payment by B?
B a. There is none because the obligation is one with a condition. It is
not guaranteed.
b. Since the obligation is deemed to be one with a period, the remedy
of A is to go to court and ask the court to fix the period.
c. The remedy of A is to file a case of quo warranto with the Court of
Appeals.
d. Both B and C.
59. This kind of fraud vitiates consent and makes the contract voidable:
A a. Dolo causante
b. Dolo incidente
c. Dolo revilla
60. X, Y and Z are solidary co-debtors of A. X obtained remission of the total amount
of the obligation from A. Can X ask for reimbursement of Y’s and Z’s shares?
C a. Yes, because there was an effort on the of Mr. X to obtain the
remission.
b. Yes, he is entitled to reimbursement under the concept of solutio
indebiti
c. No, because the remission of whole obligation, obtained by one of the
solidary debtors, does not entitle him to reimbursement from his co-
debtors.
d. No, because remission made by a creditor for the benefit of one debtor
benefits that debtor only
61. A special form of payment where property is alienated to the creditor in

satisfaction of a debt in money:
A a. Dation in payment
b. Cession
c. Application of Payments
d. Consignation
62. Who has the right of choice in an alternative obligation?

C a. The right of choice belongs to the debtor, in all cases.
b. The right of choice belongs to the creditor, in all cases.
c. The right of choice belongs to the debtor, unless it has been
expressly granted to the creditor.
d. The right of choice belongs to the creditor, unless it has been
expressly granted to the debtor.
63. The nullity of the penal clause does not carry with it that of the principal
obligation.
The nullity of the principal obligation carries with it that of the penal clause.
C a. Only the first statement is correct.
64. What is the effect if the check which was used as payment was a manager’s check?
Is it going to constitute payment?
D a. Yes, a manager’s check is good as cash.
b. Yes, a manager’s check has the assurance of the issuing bank.
c. Both A and B.
d. No, because a manager’s check is a not a legal tender.

65. What is the basis of payment of an obligation in case of extraordinary inflation

or deflation?
A a. In case of extraordinary inflation or deflation of the currency
stipulated should supervene, the value of the currency at the time
of the establishment of the obligation shall be the basis of payment,
unless there is an agreement to the contrary.
b. In case of extraordinary inflation or deflation of the currency
of the establishment of the obligation shall be the basis of payment,
in all cases.
c. In case of extraordinary inflation or deflation of the currency
of maturity of the obligation shall be the basis of payment, unless
there is an agreement to the contrary.
d. In case of extraordinary inflation or deflation of the currency
of maturity of the obligation shall be the basis of payment, in all
cases.
66. X promised to deliver a car to B provided that he passes the CPA board examination.
The car was lost because of a fortuitous event without his fault. If B passed
the board exam, can he compel X to deliver the car?
C a. No, because the obligation to deliver has already been extinguished
by the loss of the car due to a fortuitous event.
b. No, because the obligation to deliver has already been extinguished
by the loss of the car and it is without his fault.
c. Yes, the loss nor destruction of the car does not extinguish the
obligation.
d. Yes, because X is liable even in case of loss or destruction of the
car through fortuitous event
67. X owns a house and lot. He sent a letter to Y and offered it for sale. Two days
after the receipt, Y sent X a letter accepting the offer. But when the letter of
acceptance reached X’s residence, he was already dead. Which of the following is
correct?
D a. The contract was perfected on the day the offer was sent by X to Y.
b. The contract was perfected on the day the acceptance was sent by X
to Y.
c. The contract was perfected on the day the letter of acceptance reached
X’s residence.
d. None of the choices.
68. Within what period should an action for annulment of a contract entered into by
minors or other incapacitated persons be brought?
C a. It should be brought within 2 years from the time the
guardianship/incapacity ceases.
b. It should be brought within 4 years from the time of the perfection
of the contract.
c. It should be brought within 4 years from the time the
guardianship/incapacity ceases.
d. It should be brought within 10 years from the time of the perfection
of the contract.
69. It means the right of the parties to enter into such stipulations or terms and
conditions in their contracts
C a. Mutuality of contracts
b. Relativity of contracts
c. Liberty of contracts
d. Effectivity of contracts
70. A contract entered into by a minor and an insane person is:

D a. Valid
b. Voidable
c. Rescissible
d. Unenforceable

71. The following contracts require delivery for perfection, except:
B a. Pledge
b. Mortgage
c. Deposit
d. Mutuum
72. A is the owner of a house which is being verbally leased to B for 7 years. During
the effectivity of the agreed period, A demanded that B vacate the leased
premises. Can B go to court and enforce his right under the contract?
B a. Yes, because there was an oral promise made by A to B.
b. Yes, because the contract is valid and enforceable.
c. No, because the contract is void.
d. No, because the contract is unenforceable.
73. Which is not a rescissible contract:

B a. Those which are entered into by guardians whenever the wards whom
they represent suffer lesion by more than one-fourth of the value of
the things which are the object thereof.
b. Those which are entered into by agents whenever the principal suffer
lesion by more than one-fourth of the value of the things which are
the objects thereof.
c. Those agreed upon in representation of absentees, if the latter suffer
the lesion by more than one-fourth of the value of the things which
are the object thereof.
d. Those undertaken in fraud of creditors when the latter cannot in any
other manner collect the claims due them
74. 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 a. Universal partnership of all present property
b. Universal partnership of all profits
c. Limited partnership
d. Particular partnership
75. First statement: a partner is deemed to be a co-owner of his co-partners of

specific partnership property.
Second statement: A partner’s right in specific partnership property is not

assignable even if there is consent from the other partners.
A a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
76. First statement: A stranger who includes his name in the partnership name shall
be liable as a partner but without any rights as such
Second statement: A limited partner who included his name in the firm name shall
be generally liable as a general partner
A a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
77. The revocation of the authority of a managing partner who was appointed after
the formation of the partnership and not in the Articles of Partnership would
require:
B a. Just and lawful cause
b. Vote of the controlling interest
c. Unanimous vote of the partners
d. A and B
e. A and C
78. May an industrial partner engage in another business during the existence of the
partnership?
B a. No, in all cases.
b. No, unless the capitalist partners expressly permit him to do so.
c. No, unless the other business is not of the same kind.
d. Yes, he has every right to do so.
79. In case of imminent losses, this type of partner is exempted from making
additional contributions to save the partnership:
B a. Capitalist partner
b. Industrial partner
c. Secret partner
d. Strong and Independent Partner
80. In the liquidation of a general partnership, which of the following is to be

settled last?
D a. Claims of creditors
b. Claims of creditor-partners
c. Partners’ capital
d. Partners’ share in the profits
81. No corporation under the Code, shall possess or exercise any corporate powers,
except those conferred by law, its Articles of Incorporation, those implied from
express powers and those necessary or incidental to the exercise of the powers
so conferred.
C a. Business Entity Theory
b. Right of Succession
c. Doctrine of Limited Capacity
d. Piercing the Veil of Corporate Fiction
82. An act done by a corporation that is contrary to law shall be considered:

C a. Illegal
b. Ultra-Vires
c. Both Illegal and Ultra-Vires
d. Neither Illegal nor Ultra-Vires
83. What is considered to be the smallest public corporation in the Philippines?

C a. Sitio
b. Barrio
c. Barangay
d. Purok
84. Under the Revised Corporation Code, what is the minimum paid-in capital for a
corporation with an authorized capital stock amounting to P1,000,000?
D a. P1,000,000
b. P250,000
c. P62,500
d. None of the choices
85. MINERO Corporation would like to engage in the business of mining gold in Abra.
It is 80% owned by LEICA (a domestic corporation) and 20% owned by individual
foreigners. Leica, on the other hand, is 70% owned by Filipino individuals and
30% owned by individual foreigners. Should the SEC approve the application of
MINERO Corporation?
A a. Yes, it was able to comply with the requirements of the law.
b. No, the required Filipino ownership percentage was not met.
c. Yes, anything is possible as long as there is unity.
d. No, because it is late in the evening and she is wondering what
clothes to wear.
86. Emma subscribed to 2,000 shares of KILLER BRIDE Corporation at P50. She only paid
P10,000 cash. How many shares, if any, is to be issued to Emma upon her payment
of P10,000?
D a. 2,000 shares
b. 1,000
c. 200 shares
d. None of the choices
87. FUJI Corporation has a principal office located on ELJ Building, Diliman, Quezon
City. What are the possible valid venues for the upcoming shareholder’s meeting?
C a. ELJ Building only
b. Any venue in Quezon City
c. Any venue in Metro Manila
d. Any venue in the Philippines

88. OLYMPUS Corporation has a principal office located in SM JAZZ Building, Bel-Air,
Makati City. What are the possible valid venues for the upcoming Board of
Director’s meeting?
D a. Any venue in Makati
b. Any venue in Metro Manila
c. Any venue in the Philippines
d. Any venue in the world
89. Which of the following vacancies in the Board of Directors can be filled up by
the stockholders only?
D a. Death of a director
b. Abandonment made by a director
c. Resignation of a director
d. Removal of a director
90. Insider trading involving information related to a tender offer would require
all of the following, except:
B a. Material non-public information relating to a tender offer
b. Any of the insiders as enumerated under the SRC
c. Transacting on the security while the information is still non-public
d. All of the choices are required
91. Which among the following is an element of an insurance contract?

C a. The insured is subject to a risk of loss upon the happening of the
designated peril.
b. The assumption of risk is part of a general scheme to distribute
actual losses among a large group or substantial number or persons
bearing similar risks.
c. Both A and B
92. The contract of insurance is one of perfect good faith, not for the insured
alone, but equally so for the insurer. This relates to which characteristic of
an insurance contract?
A a. Uberrimae fides contract
b. Contract of indemnity
c. Risk distributing device
d. Aleatory
93. The obligation of the insurer to pay the proceeds of the insurance arises only
upon the happening of an event which is uncertain. It does not depend upon some
contingent event.
D a. Uberrimae fides contract
b. Contract of indemnity
c. Risk distributing device
d. Aleatory
94. An insurance contract is a ready-made form of contract, which the other party
may accept or reject, but which the latter cannot modify.
A a. Contract of adhesion
b. Personal
c. Voluntary
d. Synallagmatic
95. Work performed beyond the normal working hours must be paid an additional
compensation equivalent to an employee’s regular wage plus at least _____
thereof.
C a. 10%
b. 20%
c. 25%
d. 30%
96. Employees who work beyond 8 hours on a holiday or rest day shall also be paid an
additional compensation equivalent to the rate of the first 8 hours plus at least
____ thereof.
D a. 10%
b. 20%
c. 25%
d. 30%
97. An employee performing work between 10:00 PM and 6:00 AM must be paid a night
shift premium of not less than ____ of their regular wage for each hour of work
performed.
B a. 5%
b. 10%
c. 15%
d. 20%
98. Employees who have rendered at least one (1) year of service is entitled to a
yearly service incentive of _____ days with pay.
A a. 5
b. 10
c. 15
d. 20
99. Coverage in the SSS shall be compulsory upon all employees including kasambahays
or domestic workers not over ___ years of age and their employers
B a. 50
b. 60
c. 70
d. 80
100. A funeral grant equivalent to ________ shall be paid, in cash or in kind, to

help defray the cost of funeral expenses upon the death of a member, including
permanently totally disabled member or retiree.
B a. P10,000
b. P12,000
c. P15,000
d. P20,000

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ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS FIRST PRE-BOARD EXAMINATION

1. Holders of nonvoting shares shall nevertheless be entitled to vote on the following

Page 1 of 13 0915-2303213  resacpareview@gmail.com

15. Regular meetings of stockholders or members shall be held annually on a date

Page 2 of 13 0915-2303213  resacpareview@gmail.com

A person shall be disqualified from being a director, trustee or officer of any

Page 3 of 13 0915-2303213  resacpareview@gmail.com

32. One centavo coins are considered to be legal tender up to

33. Twenty peso-bills are considered to be legal tender up to

37. Which among the following is considered to be the most defective?

Page 5 of 13 0915-2303213  resacpareview@gmail.com

45. Ownership over a property is transferred upon

Page 6 of 13 0915-2303213  resacpareview@gmail.com

54. X is indebted to Y in the amount of P1,000,000 payable in 10 monthly installments

57. There is no extinguishment of the obligation:

61. A special form of payment where property is alienated to the creditor in

62. Who has the right of choice in an alternative obligation?

Page 8 of 13 0915-2303213  resacpareview@gmail.com

65. What is the basis of payment of an obligation in case of extraordinary inflation

70. A contract entered into by a minor and an insane person is:

Page 9 of 13 0915-2303213  resacpareview@gmail.com

73. Which is not a rescissible contract:

75. First statement: a partner is deemed to be a co-owner of his co-partners of

Second statement: A partner’s right in specific partnership property is not

80. In the liquidation of a general partnership, which of the following is to be

82. An act done by a corporation that is contrary to law shall be considered:

83. What is considered to be the smallest public corporation in the Philippines?

Page 11 of 13 0915-2303213  resacpareview@gmail.com

91. Which among the following is an element of an insurance contract?

100. A funeral grant equivalent to ________ shall be paid, in cash or in kind, to

Page 13 of 13 0915-2303213  resacpareview@gmail.com

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