Source: http://jamesmamba.blogspot.com/2012/05/multiple-choice-questions.

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POLITICAL LAW 1.) What vote is required for Congress to submit to the electorate the question of calling a constitutional convention? A. A vote of two-thirds of all its Members. B. A vote of two-thirds of a quorum. C. A majority vote of all its Members. D. A majority vote of a quorum. 2.) The Supreme Court will entertain a constitutional question only if it is determinative of the case itself because A. it would prejudice the administration of justice. B. the separation of powers demands respect due the other departments. C. the Court would not have acquired jurisdiction over the case. D. there is no actual case or controversy that justifies such a review. 3.) Which is unconstitutional for being an invalid exercise of police power? A. A law prohibiting the use of motor vehicles on certain days of the week. B. A law imposing rent control. C. A law prescribing minimum standards for the practice of the engineering profession. D. A law prohibiting the sale of cigarettes to young men and women ages 18 to 25.

4.) An artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. A. estate B. de jure partnership C. implied trust D. corporation Answers: 1.) C 2.) B 3.) D 4.) D

LABOR LAW -Labor Standards 1.) This is issued by DOLE authorizing a person or entity to operate a private employment agency. a. License b. Document c. Authority d. Charter party 2.) The following may engage in the recruitment and placement of workers, locally and overseas, except: a. Public employment offices b. Private employment agencies c. Shipping or manning agents d. Local employment agencies 3.) Direct hiring of Filipino workers for overseas employment is not allowed. The following are not covered by this rule, except: a. Members of the diplomatic corps b. International organizations c. Multinational Corporations d. Name hirees 4.) The accused X and Y represented themselves to complainants A and B to have the capacity to send workers abroad, although they did not have any authority or license. It is by this representation that they induced complainants to pay a placement fee. X and Y may also be liable for a. Illegal recruitment by economic sabotage b. Illegal recruitment in large scale c. Syndicated Illegal recruitment d. Estafa 5.) The Labor Code applies to: a. Employees in a government corporation incorporated under the Corporation Code b. International Agencies c. Employees of government corporations created by special or original charter d. Government employees 6.) Which of the following is the most essential element without which there is no employer-employee relationship. a. Hiring b. Control c. Firing

d. Payment of wages 7.) Who has jurisdication over all money claims of overseas filipino workers arising from employeremployee relationship? a. labor arbiters b. POEA c. regular courts d. voluntary arbitrators 8.) A Filipino serviceman who is working in a US military installation in Pakistan is mandatorily required by law to remit to his family or dependents in the Philippines ____ of his foreign exchange earnings. a. 70 per cent b. 50 per cent c. 80 per cent d. none 9.) Illegal recruitment involving economic sabotage prescribes in: a. 10 years b. 20 years c. 5 years d. imprescriptible 10.) Being the judge of the trial court, you found the accused Jonie guilty of simple illegal recruitment. The proper penalty you would impose would be a. life imprisonment b. prision correctional c. prision mayor d. destierro

11.) Statement A - A company that exercises its prerogative to dismiss is not allowed to turn around and deny employee-employer relationship. Statement B - Alleging abandonment indicates employer-employee relationship. a.) Both statements are true b.) Both statements are false c.) Only statement A is true d.) Only statement B is true 12.) Statement A - It is the employers duty to inform the probation ary employee reasonable work standards. Statement B -The employer may terminate the services of probationary employee without valid cause as long as such termination is done within the six month trial period.

a) Both statements are true b) Both statements are false c) Only statement A is true d) Only statement B is true

Answers 1.) a 2.) d 3.) c 4.) d 5.) b 6.) b 7.) a 8.) d 9.) b 10.) c 11.) a 12.) c

CIVIL LAW -1. The majority age begins at the age of A. 21 B. 20 C. 18 D. 16 2. Who may solemnize marriage anywhere in the Philippines? A. A Consul-general B. A Court of Appeals justice C. A ship captain D. A military commander 3.To be enforceable, when must a contract comply with the Statute of Frauds? When by its terms it is to be performed beyond A. a year from its making. B. 5 years from its making. C. a year from its ratification. D. 5 years from its ratification. 4.) An uninterrupted possession for a statutory period of time without the need of just title and good faith are requisites for A. laches. B. prescription of actions. C. ordinary acquisitive prescription. D. extraordinary acquisitive prescription. 5.) Sonny, a Filipino citizen, obtained in a divorce in Canada from his wife, Lulu, also a Filipino citizen. Is the divorce valid and binding? A. It is not since Philippine law binds Filipinos abroad and it does not permit divorce. B. It is since Philippine law does not operate in Canada. C. It is not since Philippine law is recognized in Canada. D. It is since international law demands local recognition of foreign acts. 6.) In a case, a very old woman executed a will. A friend, a cousin, and a notary public came to witness the will. Due to old age she thumbmarked the will instead of signing it. The friend signed the pages on the right margin, thinking it looked better. The cousin did not see this because his eyes were on a painting that hanged on a nearby wall. Finally, the notary public notarized the will. The will is invalid because A. the cousin looked away just as the friend was signing the will. B. the testator failed to subscribe the will. C. the friend signed at the right margin. D. of lack of sufficient witnesses.

Answers: 1.) C 2.) B 3.) A 4.) D 5.) A 6.) D

TAXATION -- 10%

1.) Fringe Benefit Tax is payable by the A. Employee B. Donor C. Employer D. Beneficiary 2.) The following can claim for a tax credit, except A. Citizen B. Beneficiary of an estate or trust C. Member of a General Professional Partnership D. Foreign corporation 3.) Optional Standard Deduction is applicable to all individuals except A. Resident Aliens B. Non-resident aliens C. Resident Citizens D. Non-resident Citizen 4.) A fringe benefit may be subject to fringe benefit tax if received by A. any employee B. rank and file employees C. managerial employees D. Stockholders 5.) A laundry allowance of P300 per month is an example of A. fringe benefit B. allowance C. tax benefit D. de minimis benefit 6.) Which of the following forms part of the stages of taxation? A. payment and filing B. filing and collection C. withholding and levying D. assessment and payment 7.) Any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee refers to

A. de minimis benefit B. company benefit C. fringe benefit D. annuity 8.) Fringe benefit tax is imposed on the fringe benefit's A. fair market value B. actual monetary value C. grossed-up monetary value D. assessed value

9.) The following fringe benefits are not taxable except

A. fringe benefits which are authorized and exempted from tax under special laws B. life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows C. benefits given to the rank and file employees, whether granted under a collective bargaining agreement or not D. de minimis benefits 10.) Deductions from gross income are not allowed to taxpayers earning compensation income arising from personal services rendered under an employer-employee relationship, except A. bad debts B. ordinary and necessary trade, business or professional expenses C. charitable and other contributions D. premium payments on health and/or hospitalization insurance of an individual taxpayer 11.) X is a Brazilian citizen working as a host and model in a local television show here in the Philippines. X is therefore taxable as a A. non resident alien engaged in trade or business B. resident alien C. foreign citizen D. resident citizen 12.) The following dividends are taxable except A. property dividends B. liquidating dividends C. cash dividends D. stock dividends 13.) Under the tax code, the following are income taxpayers, except: a. GOCC b. Estate and Trust c. Min wage income earners d. non-resident foreign corp.

Answers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. C D B C D D C C B D B B c

MERCANTILE LAW (COMMERCIAL LAW) 1.) The bank deposit secrecy law bars all inquiries into a bank deposit. A deposit may, however, be looked into A. after prior notice to the depositor. B. upon court order in annulment of marriage cases. C. in cases of impeachment. D. on motion in a bribery case. 2.) A draws a bill payable to B or order with X, as the drawee. The bill was successively endorsed to C, D, E and F, holder. X does not pay and F has duly protested non-payment. Y pays for the honor of C. Which of the following statement is wrong? A. D is discharged. B. E is discharged. C. C is discharged. D. Y can ask reimbursement from A. 3.) When an endorser waives presentment and notice of dishonor, he increases his liability. His endorsement is: A. Facultative endorsement B. Qualified endorsement C. Alternative endorsement D. Restrictive endorsement 4.) Ariel issued a note to Brando. There was a total failure of consideration. Brando issued the note for consideration to Cecil who is a holder in due course. Cecil indorsed the note to David who knew of the failure of consideration. Can David successfully collect from Ariel? A. No, because David knew the failure of consideration. B. No, although David acquired the rights of Cecil, a holder in due course and he was not a party to any illegality. C. Yes, because David acquired the note for consideration. D. No, because David is not a holder in due course. 5.) The SEC, after notice and hearing, may dissolve a corporation upon filing of a verified petition for the dissolution, on grounds provided by law. Which of the following statement is not correct? a. In case of deadlock in the management of the affairs and business of a close corporation, the SEC, upon written petition by any stockholder, shall have the power to make such order as it deems appropriate, including an order dissolving the corporation. b. Any stockholder of a corporation may, by written petition to the SEC, compel the dissolution of the corporation whenever any acts of its directors, officers or those in control of the corporation is illegal, fraudulent or dishonest.

c. The SEC can automatically issue a certificate of dissolution in case a corporation filed for its dissolution and there are creditors affected provided that majority of the board of directors or trustee consented to such action. d. The SEC, after notice and hearing, may dissolve a corporation in case there are violations of the provisions of the Corporation Code not specially penalized therein. 6.) Which of the following will cause the automatic dissolution of a corporation? a. Commission by the corporation of an ultra vires act b. Continuous non-operation for a period of at least 5 years c. Refusal to comply with or defiance of any lawful order of the SEC restraining commission of acts which would amount to grave violation of its franchise d. None of the above 7.) SUJU Corporation, through its Board of Directors and with the unanimous approval of the stockholders declared to grant stock dividends to its stockholders for the year 2008 amounting to 79 Billion Pesos. After examining the books and other records of the corporation, Sungmin Lee, Vice President for Finance, discovered that the authorized capital stock of the Corporation is almost depleted, that is almost all were already issued and the remaining cannot accommodate the needed stocks for stock dividend distribution. The Corporation though was liquid in cash and has retained earnings amounting to 365 Billion Pesos. How should the Board of Directors of SUJU Corporation best act on it? a. Issue a Board Resolution deferring the distribution of dividends for the said year. b. Increase the authorized capital stock and amend the Articles of Incorporation of SUJU Corporation to cater to the needed stocks for stock dividend distribution. c. Divide the remaining unissued stocks pro rata to the stockholders as stock dividends. d. Recall its previous Resolution declaring stock dividends and in its stead, issue another Resolution declaring cash dividends for year 2008. 8.) FYI Corporation has increased its capital stock and new shares of stock are issued. The stockholders of FYI Corp wish to exercise their pre-emptive right regarding the shares to be issued. Which of the following shares does a pre-emptive right of stockholders extends? a. to shares to be issued in compliance with laws requiring stock offerings or minimum stock ownership by the public b. to shares to be issued in good faith with the approval of stockholders representing 2/3 of the outstanding capital stock in exchange for property needed for corporate purposes c. to shares to be issued in good faith with the approval of the stockholders representing 2/3 of the outstanding capital stock in payment of previously contracted debt d. treasury shares reacquired using the funds from the surplus profits of the corporation which could have been declared as dividends 9.) The following instances are considered as indicators that a foreign corporation is transacting business in the Philippines, even without securing a license, except a. Soliciting orders, purchases and service contracts b. Subscribing shares of stock from a domestic corporation

c. Engaging into continuous business acts or transactions d. Participating in the management, supervision or control of any domestic business firm, entity or corporation in the Philippines 10.) Which among the following is not a necessary result or consequence when a foreign corporation secures a license and/or registers? A. the foreign corporation can do regular business in the Philippines B. the foreign corporation can avail the aid of the Philippine courts and sue C. the foreign corporation may be sued in any regular court for any valid cause of action recognized under Philippine laws. D. the foreign corporation can intervene in any action, suit or proceeding in any court or administrative agency 11.)Assuming all the other requisites of negotiability are present, which of the following instruments is NOT payable to bearer? a. "Pay to the order of Cash." b "Pay to the order of Jose Rizal, national hero." c. "Pay to Pedro Padernal, bearer." d. "Pay to Pedro Padernal or bearer." 12.) Unless the by-laws provide otherwise, written notice of regular meetings shall be sent to all stock holders of record: a. at least one day prior to the meeting b. at least two days prior to the meeting c. at least one week prior to the meeting d. at least two weeks prior to the meeting Answers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. c c a c d d b d b b c d