MOCK COMPREHENSIVE EXAM – REGULATORY FRAMEWORK FOR BUSINESS

TRANSACTIONS
1. Which of the following is not a Bureau under the Intellectual Property Office?
A. The Administrative, Financial and Personnel Services Bureau
B. The Documentation, Information and Technology Transfer Bureau
C. The Assessment, Approval, and Appeals Bureau
D. The Bureau of Patents

2. What is the term of protection for copyrighted works?

A. During the life of the author
B. 50 years, including time during the life of the author
C. 25 years whether or not the author is alive
D. During the life of the author plus 50 years after his death

3. An insolvent debtor may initiate voluntary proceedings under the Financial Rehabilitation
and Insolvency Act of 2010 given the approval of the following, except:
A. The owner, in case of a sole proprietorship
B. All of the partners, in case of a partnership
C. Two thirds of the members of a nonstock corporation
D. Majority vote of the board of directors or trustees and authorized by the vote of the
stockholders representing at least two-thirds (2/3) of the outstanding capital stock

4. A creditor may initiate involuntary proceedings under the Financial Rehabilitation and
Insolvency Act of 2010 if they have a claim amounting to at least:
A. One million pesos
B. 25% of the subscribed capital stock or partners’ contributions, whichever is higher
C. Either of the two
D. None of the given choices

5. A right gained by the creditor from the time that the fruits of the thing have been
delivered.
A. Moral Right
B. Real Right
C. Personal Right
D. Human Right

6. On December 8, 2021, Jay borrowed money to Jake payable on December 23, 221. If
Jay failed to pay the amount on the due date, will Jay be liable for delay?
A. No, since Jay has enough money to pay Jake
B. Yes, because there is a stipulation regarding the due date
C. No, because there is no demand by Jake
D. Yes, because there is failure of payment on the part of Jay

7. The remedy of one party if the other party acted fraudulently in a way where the
instrument of the contract does not show its true intentions of the agreement is
A. Reformation
B. Restitution
 C. Annulment
D. Recission

8. Chan is the guardian of Felix, a minor. On January 16, 2022, Felix sold his land with a
fair value of 120 million to Jake at 97 million. The sale of land is
A. Rescissible
B. Unenforceable
C. Voidable
D. Void

9. The maximum deposit insurance coverage for joint accounts in the PDIC Law is
A. P 1,000,000
B. P 5,000,000
C. P 100,000
D. P 500,000

10. The TXT Bank’s liabilities have been continuously increasing every year. In 2022, the
bank decided to close and stop all of its operations. Kai, a depositor, has P2,000,000
worth of money deposited on the bank. Thankfully, Kai will be able to claim a portion of
his money due to the PDIC law but how would he claim the remaining amount of his
deposit?
A. Kai will now have a claim against the assets of the closed bank
B. The remaining amounts will be given by the PDIC when claimed
C. Kai will not be able to recover the remaining amount
D. Kai can claim his money from another bank

11. The obligation of a pledgor includes all of the following, except:

A. Pay the actual debt
B. Pay the interest and expenses
C. Pay the damages due to the fault of the pledgor
D. Pay the damages known by pledgor but did not notify pledgee

12. The Bank Secrecy Law prohibits disclosing to any person, any information concerning
bank deposits. Certain instances are allowed by the law except:
A. In an impeachment proceeding
B. In violation of Anti-Money Laundering Act
C. In examination to determine gross estate of decedent
D. In written permission by the wife of depositor

13. It is the duty of a covered person to report to the Anti-Money Laundering Council all
covered and suspicious transactions within a period of ______ from the date of
occurrence of the said transaction.
A. 10 normal days
B. 10 working days
C. 5 normal days
D. 5 working days
14. The Anti-Money Laundering council is composed of 3 members, this includes:
A. Governor of the BSP, Commissioner of the Securities and Exchange Commission,
Commissioner of the Bureau of Internal Revenue
B. Governor of the BSP, Commissioner of the Bureau of Internal Revenue,
Commissioner of the Commission on Audit
C. Governor of the BSP, Commissioner of the Insurance Commission, Commissioner of
the Commission on Audit
D. Governor of the BSP, Commissioner of the Securities and Exchange Commission,
Commissioner of Insurance Commission

15. Sam settled a pre-existing obligation by issuing a check to Dean, which the latter did not
encash. Instead, Dean endorsed and discounted the same check to Bobby, claiming it to
be good, and subsequently received 80% of its value. Within 90 days from this, Bobby
deposited the check, which was then returned due to inadequate funds. According to
Batas Pambansa Blg. 22, which of the individuals may be charged with a violation,
assuming that the required notice was already provided?
A. Sam
B. Dean
C. Sam and Dean
D. Neither Sam or Dean

16. A partner that has no participation in the firm’s management and is not a known partner
to the public is called a/an
A. Silent partner
B. Secret partner
C. Dormant partner
D. Ostensible partner

17. Jake, Amy, and Charles formed a partnership in which Jake is an industrial partner while
Amy and Charles are both capitalist partners. How should they divide the losses from
operations?
A. Jake shall not share in the losses, while Amy and Charles shall divide the losses
according to their agreement.
B. All three partners shall absorb an equal share in the losses of the business.
C. Amy and Charles shall share the losses in the same proportion as their share in
profits, regardless of their agreement during formation.
D. Jake shall share in the losses only up to the extent of his investment in the
partnership, while Amy and Charles shall split the remaining according to their profit
sharing agreement.

18. The following acts of a partner after dissolution do not bind the partnership, except:
A. Where the dissolution is due to the unlawfulness of carrying on the business
B. Where the acting partner is solvent
C. Where the partner in question had no authority to wind up the affairs of the
partnership
D. None of the given choices
19. The following stipulations are invalid, except for:
A. One that excludes a capitalist partner from profits
B. One that exempts a capitalist partner from losses
C. One that exempts an industrial partner from losses
D. One that excludes an industrial partner from profits

20. The following shall automatically cause the dissolution of a general partnership, except:
A. A partner’s death
B. A partner’s insolvency
C. Unlawful nature of the business
D. A partner’s insanity

21. When is a contract of sale perfected?

A. Upon the buyer’s full payment of the purchase price
B. Upon the delivery of the object to the buyer
C. Upon the meeting minds between the seller and the buyer with regard to the object
of the contract and the price or consideration
D. Upon acknowledgement of the deed of sale before a notary public by both parties

22. Which of the following would result in the extinguishment of a sale?

A. When there is a cancellation of sale of personal property that is payable in
installments
B. Redemption, be it conventional or legal
C. Recession of the sale by the unpaid seller
D. All of the given choices

23. Violation of Batas Pambansa Blg. 22 shall be punishable by:

A. Imprisonment of at least 30 days but not exceeding one year
B. A fine double the amount of the check, but not exceeding P200,000
C. Both such fine and imprisonment at the discretion of the court
D. All of the given choices

24. According to the Revised Corporation Code, no-par value shares must be issued for a
consideration of at least
A. P5.00 per share
B. P25.00 per share
C. P10.00 per share
D. Zero

25. Shares which may be purchased by the corporation from the holders of such shares
upon the expiration of a fixed period are called
A. Founders’ shares
B. Treasury shares
C. Redeemable shares
D. Preferred shares
26. Jack, Sam, and Dean are solidary debtors of Bobby and Cas for P30,000, joint creditors.
A. Bobby may collect P30,000 from either Jack, Sam, and Dean. Thereafter, he must
give to Cas P15,000 representing the share of Cas.
B. Bobby may collect P30,000 from the debtors but not more than P10,000 from each of
them. Thereafter, he must give to Cas P15,000 representing the share of Cas.
C. Bobby may collect P15,000 from either Jack, Sam, and Dean. Thereafter, he is not
obligated to give any amount to Cas.
D. Bobby may collect P15,000 from the debtors but not more than P5,000 from each of
them. Thereafter, he is not obligated to give any amount to Cas.

27. Justine is a debtor of M Lending. On the due date, due to financial incapacity, Justine
offered to M Lending his car instead. M Lending accepted his car with the condition that
Justine should deliver the car on or before seven (7) days after the agreement. The old
obligation is extinguished through:
A. Novation
B. Compensation
C. Remission
D. Consignation

28. The following are the powers and duties of the Board of Investment per EO 226, also
known as Omnibus Investment Code, except:
A. Decide controversies concerning the implementation of the said order
B. Examine and do a periodic evaluation of Filipino registrants in a registered
enterprise
C. Maintain regulations to monitor the investments of Filipino and foreign national
investors
D. Enter into agreements with other branches of the government to ensure that the very
objective of the Code is being met

29. The Investment Priorities Plan (IPP), issued by the Board of Investments, is a
comprehensive list of areas or sectors that must be focused by the economy to ensure
comparative advantage and economic development. Before issuance of such plan, the
Board of Investments should:
A. Assess the economic implications of the sectors that must not be included to ensure
that these sectors would contribute the most when it comes to economic
development.
B. Consult with other government agencies, as well as the private sector.
C. Prioritize the technological implications of the sectors included to ensure sound
technological integration while ensuring efficiency and effectiveness.
D. Consider the specific development goals (SDGs) issued by the United Nations to
ensure that the Philippines is globally competitive and can adapt to the ongoing
globalization.

30. The following are the instances where the confidentiality rule may be waived, in
accordance with Law of Secrecy of Bank Deposits and other related laws, except:
A. Authorization from the depositor himself
 B. If the BIR Commissioner will demand, in cases where the net estate of a decedent
should be determine
C. If the BIR Commissioner will demand, in cases where a taxpayer applies for a
compromise due to financial distress
D. If the Secretary of Department of Finance demands, in cases where a creditor’s
demand is nullified by a Regional Trial Court.

31. In accordance with Republic Act 8791, also known as the General Banking Law, thrift
banks shall include the following, except:
A. Savings banks
B. Mortgage banks
C. Public development banks
D. Stock savings and loan associations

32. Contractual obligations have the force of law between the contracting parties and must
be honored in good faith. The parties are obligated by perfection not only to the
execution of what has been expressly defined, but also to all of the consequences that,
by their nature, may be in accordance with good faith, usage, and law. This principle is
known as:
A. Consummation of contract
B. Consensuality of contract
C. Obligatory force of contract and compliance in good faith
D. Mutuality of contract

33. The Monetary Board, after the below-cited findings, shall subject the bank to
receivership. Which of the following is not a factor in considering whether or not a bank,
after a thorough examination, shall be under receivership?
A. A bank is unable to pay its currently maturing liabilities as well as long-term
obligations
B. The bank is under a lawsuit wherein its assets might not be enough to pay the
lawsuit expenses, damages, and interest (if applicable)
C. The net fair value of the bank’s assets is insufficient in meeting its liabilities
D. Continuance of operations might be a cause of losses to the current depositors

34. Where an individual received a fake money and chose to retains the same, which of the
following is true:
A. He should obtain the signature of the person who gave him the money
B. He should go to the nearest police office to file a complaint
C. He should go to the central office of the Bangko Sentral of Pilipinas and report the
same
D. He is considered the owner of the fake money, unless disproven.

35. In accordance with Republic Act 7042, also known as the Foreign Investments Act, the
following shall have no foreign equity ownership percentage and shall be fully owned by
the Filipino investors, except:
A. Private radio communication network
B. Management of cockpits
 C. Manufacturing of pyrotechnic devices
D. Cooperatives

36. To register as an enterprise under the Foreign Investments Act, a registrant should
comply with the following, except:
A. Secure the necessary licenses or registrations from the SEC or from the Bureau of
Trade Regulation & Consumer Protection of the DTI
B. Filing of a verified application with the SEC setting forth specifically required data,
including certified copies of its articles of incorporation and by-laws (for corporations)
C. Shall not be permitted to maintain or intervene in any action, suit or proceeding in
any court or administrative agency of the Philippines
D. Shall, upon recommendation from the Board of Investments, maintain a 40% foreign
ownership to ensure the capitalization will be maintained

37. Statement 1: If a payment is made to an incapacitated person, the same shall be valid if
the payee accepted and kept the payment.
Statement 2: In obligations to do, an extinguishment of obligation on the debtor happens
if the prestation becomes physically impossible due to the debtor’s fault.
A. True, True
B. True, False
C. False, True
D. False, False

38. Justine is indebted to Jayson. Joseph, a third person, decided to pay Jayson and such
payment is unauthorized by the debtor. If the third person, Joseph, does not have any
intentions to be reimbursed:
A. The payment made to Jayson is valid as to his capacity as creditor after accepting
the same.
B. Justine has no obligations to reimburse the third person, Joseph.
C. The payment made by Joseph is invalid because no one can pay the liability of
another without his consent.
D. Jayson should return the payment to Joseph.

39. Under Republic Act 8762, also known as the Retail Trade Liberalization Act, the
following scenarios are not considered retail, except:
A. Joseph, a manufacturer, who started his own business last week with a capitalization
of P90,000
B. SPN Corporation, a export-oriented entity, after selling a government owned and
controlled corporation some of its products under a special order agreement.
C. John, an accountant, sells his own-made cosmetics products.
D. Rowan, a farmer, after selling crops worth P24,000,000.

40. A law that aims to encourage both domestic and foreign investment to create a more
efficient and competitive retail sector. As well as increasing the power of the Filipino
consumer through cheaper pricing, higher-quality goods, improved services, and a
greater range of options.
A. Omnibus Investment Code
 B. Foreign Investments Act
C. Retail Trade Liberalization Act
D. Law on Credit Transactions

41. Presidential Decree No. 679, otherwise known as the Unclaimed Balances Law, requires
banks, building and loan associations, and trust corporations to forward a statement
containing all credits and deposits held by them belonging to dead persons, or who have
not made any further withdrawals on such during the last ten years to the Treasurer of
the Philippines every
A. End of the year
B. Beginning of the year
C. January of every odd year
D. Five years within the first half of the year

42. Based on the Unclaimed Balances Law, refusal to file the statement of unclaimed
balances shall be punishable by
A. a fine of 500 pesos a month for every month or fraction thereof that the default
continues
B. a fine of 1000 pesos a month for every month or fraction thereof that the default
continues
C. a fine of 5000 pesos regardless of the duration of the default
D. Imprisonment

43. Which of the following is the third priority in the order of payment of partnership
liabilities?
A. Those owing to creditors other than partners
B. Those owing to partners other than for capital and profits
C. Those owing to partners in respect of profits
D. Those owing to partners in respect of capital

44. If a limited partner allows the inclusion of their surname in the partnership name,
A. They shall be liable as a general partner to partnership creditors who extend their
credit to the partnership and do not know that said partner is not a general partner
B. They shall remain a limited partner and will not be held liable as a general partner
C. The effect shall depend on the decision of all general partners
D. None of the above

45. A limited partner’s interest is not assignable.

A. True
B. False

46. After dissolution, the partnership is bound by the acts of a partner

A. Where the partner acting is in a state of insolvency
B. When carrying on the business is unlawful
C. When the partner acting has no authority to wind up the affairs of the partnership and
the third person has no knowledge of such lack of authority
D. All of the given choices
47. A person who is admitted to all the rights of a limited partner who has died or assigned
their interest in the partnership is considered a partner who is
A. Ostensible
B. Liquidating
C. Substituted limited
D. General-limited

48. Which of the following contracts is the second-least defective?

A. Voidable contract
B. Unenforceable contract
C. Rescissible contract
D. Void contract

49. With respect to rescissible contract, the prescriptive period is 4 years from the date of
the contract, except for
A. Contracts for persons under guardianship, in which the prescriptive period is 5 years
from the termination of incapacity
B. Contracts for absentees, in which the prescriptive period is 5 years from the time the
absentee’s domicile is known
C. Both of the given choices
D. None of the given choices

50. Which of the following is not a requisite of a rescissible payment?

A. Insolvency of debtor
B. Payment of the debt by the debtor
C. Payment is not yet due
D. The debt is already due

51. Sam was preparing for his wedding. A week before his wedding, he came to Dean, his
brother, to borrow the latter’s 1967 Chevy Impala to be used on his special day. Dean
instructed Sam to come to his garage to pick up the car three days after their meeting.
The day came, Sam got the car and on his way home, he stopped at Shell to fill the tank
of the vehicle. Sam spent P1,000 to fill the tank although Dean mentioned that only P800
is enough for the very purpose of the borrowing (Sam’s wedding). With the foregoing
information, which is true?
A. Sam is not entitled to be reimbursed since filling the tank is part of their agreement
B. Sam is not entitled to be reimbursed since the P1,000 is an ordinary expense
essential for the very purpose of the borrowing.
C. Sam is entitled to be reimbursed by Dean in the amount of P200 since he spent
more to fill the tank of the vehicle.
D. Sam is entitled to be reimbursed in the amount of P200 since Dean is the one to
benefit from the excess gas after the wedding

52. Sam was preparing for his wedding. A week before his wedding, he came to Dean, his
brother, to borrow the latter’s 1967 Chevy Impala to be used on his special day. Dean
instructed Sam to come to his garage to pick up the car three days after their meeting.
This credit transaction is also referred to as?
 A. Pledge
B. Commodatum
C. Deposit
D. Simple loan

53. In cases of an installment sale, which of the following is FALSE?

A. Seller is not bound to deliver the goods sold unless the buyer has already paid the
purchase price.
B. Seller should deliver the goods sold in cases where the buyer has promise to make
the payment but no date was fixed
C. In cases of specific goods, the place of delivery should be at the location where the
specific goods are located
D. The presumption on the acceptance of the delivery commences when a reasonable
time has passed on the buyer to examine the product

54. Statement 1: The salary of the Monetary Board of the Bangko Sentral of Pilipinas should
be fixed by the President of the Philippines after recommendation from the Secretary of
Finance.
Statement 2: For banks, at least ⅔ of the Board of Directors should be a citizen of the
Philippines.
Statement 3: At least 70% of the total issued shares of any banking institution should be
owned by the citizens of the Philippines.
A. One statement is true
B. Two statements are true.
C. Three statements are true.
D. None of the statements are true.

55. Statement 1: Trust funds are any corporation engaged or organized mainly to pool
deposits from the depositors and invest them.
Statement 2: A commercial bank has all the functions of the universal bank including the
power of an investment house.
Statement 3: Cooperative banks are banks established to extend loans on a central
objective of meeting the credit needs of farmers and other small-scale agricultural
investors.
A. One statement is true.
B. Two statements are true.
C. Three statements are true.
D. None of the statements are true.

56. The following are the notable changes imposed by the passing of Republic Act No.
11232, also known as the Revised Corporation Code, EXCEPT:
A. In the absence of a specific corporation’s existence, the corporation will exist
perpetually until its liquidation.
B. One person corporation is now allowed provided that the minimum capital
requirement of P10,000,000 upon incorporation is met.
C. Compared to the old provisions, the corporation, upon incorporation, does not have
to meet a certain number of incorporators.
 D. The control test is imposed to formalize the test in identifying the nationality of the
corporation.

57. Upon signing of the Republic Act No. 11232, also known as the Revised Corporation
Code of the Philippines, by President Rodrigo Duterte last February 21, 2019, it
amended the Batasang Pambansa Blg. 68 which has been active for how many years?
A. 35 years
B. 36 years
C. 37 years
D. 38 years

58. Which of the following is true in accordance with the Republic Act No. 11232, also
known as the Revised Corporation Code?
A. There are two classifications of corporation namely stock corporation and non-stock
corporation.
B. Since it was signed into law, aside from the two classes of corporations, a one-
person corporation (OPC) is added. That makes three classifications of corporations
- stock, non-stock, and OPC.
C. The Revised Corporation Code also includes provisions for special corporations
supplemented by the special laws that made them.
D. After ten (10) years of inactivity of a corporation following its incorporation, their
Certificate of Incorporation shall be deemed as revoked.

59. Among the powers and capacity of a corporation under Republic Act No. 11232, also
known as the Revised Corporation Code, which of the following is false?
A. The corporation may sue and be sued under its registered name accorded under its
articles of incorporation.
B. Establish a pension plan (or an employee benefit plan) of its Board of Directors,
trustees, and employees
C. Make reasonable donations for public welfare
D. Have an official corporate seal

60. Under the Republic Act No. 11232, also known as the Revised Corporation Code, the
following are grounds of disqualification of a director, except:
A. The director, upon final judgment, is convicted.
B. Found violating Republic Act No. 11232, also known as the Revised Corporation
Code.
C. Found violating Republic Act No. 7899, also known as the Securities Regulations
Code
D. Found guilty of offense punishable by imprisonment of 6 years or more.

61. A/An _______ is an autonomous and duly registered association of persons with a
common bond of interest have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services, and accepting a fair share of
the risks and benefits of the undertaking.
A. Trust company
 B. Mutual fund
C. Cooperative
D. Rural bank

62. This principle accords that cooperatives are non-profit organizations that are available to
anybody who can benefit from their services and is ready to take on the duties of
membership, regardless of gender, race, culture, politics, or religion.
A. Democratic member control
B. Member economic participation
C. Autonomy and independence
D. Voluntary and open membership

63. Statement 1: A cooperative registered under Republic Act No. 9520, also known as
Philippine Cooperative Code of 2008, has a limited liability.
Statement 2: Ten (10) persons or more can form a cooperative under the Philippine
Cooperative Code of 2008.
A. True, False
B. True, True
C. False, True
D. False, False

64. A cooperative member that is entitled to all the rights and privileges of membership,
having complied with all the membership requirements
A. Associate member
B. Regular member
C. Both
D. None of the given choices

65. A cooperative organized by minors is considered a/an

A. Invalid cooperative
B. Regular cooperative
C. Preparatory cooperative
D. Laboratory cooperative

66. To what extent is a member liable for the debts of the cooperative?
A. Their contribution to the cooperative’s share capital
B. Members are not liable for cooperative debts
C. Half of their contribution to the share capital of the cooperative
D. The amount of income earned for the year

67. Which of the following is not among the powers of a cooperative’s general assembly?
A. Determining and approving amendments to the cooperative’s articles of cooperation
and by-laws
B. Electing or appointing members of the board of directors
C. Approving the cooperative’s developmental plans
D. None of the given choices
68. How many votes shall each member of a primary cooperative be entitled to?
A. One
B. Two
C. Three
D. One for every 5 years of membership

69. Notwithstanding any of the stipulated conditions, any contract entered into by the
cooperative with at least one of its directors, officers, and committee members is
A. Valid
B. Void
C. Voidable
D. Unenforceable

70. Cooperatives transacting business with both members and non-members shall not be
subjected to tax on their transactions with
A. Members
B. Non-members
C. Both members and non-members
D. None of the given choices