ANSWERS NUMBERS STATEMENTS

D 1 Meetings of directors, trustees,

stockholders, or members may
be?

a. Everyday
b. Regular
c. Special
d. Both b and c
C 2 A private corporation may
provide the following in its
bylaws except?

a. The time, place and

manner of calling and
conducting regular or
special meetings of the
directors or trustees
b. The time and manner of
calling and conducting
regular or special
meetings and mode of
notifying the
stockholders or
members thereof
c. To establish pension,
retirement, and other
plans for the benefit of
its directors, trustees,
officers, and employees
d. The required quorum in
meetings of stockholders
or members and the
manner of voting therein
A 3 A person or group of persons
desiring to incorporate shall
submit the intended corporate
name to the Commission for
verification.

a. Registration,
Incorporation and
Commencement of
Corporate Existence.
b. Minimum capital stock
required of stock
corporations
c. Corporate Powers and
 Capacity
d. Power to Enter into
Management Contract
A 4 Every corporation shall keep and
carefully preserve at its principal
office all information relating to
the corporation including, but
not limited to:

a. Copies of the latest

reportorial requirements
submitted to the
Commission
b. A statement of the
changes, if any, in the
articles of incorporation
of the surviving
corporation in case of
merger
c. The terms of the merger
or consolidation and the
mode of carrying the
same into effect
d. The names of the
corporations proposing
to merge or consolidate,
hereinafter referred to
as the constituent
corporations
B 5 Shall be the sole director and
president of the One Person
Corporation.

a. Nominee and Alternate

Nominee.
b. Single stockholder as
Director, President
c. Term of Nominee and
Alternate Nominee
d. Change of Nominee or
Alternate Nominee
D 6 The single stockholder may, at
any time, change its nominee
and alternate nominee by
submitting to the Commission
the names of the new nominees
and their corresponding written
consent.
 a. Nominee and Alternate
Nominee.
b. Single stockholder as
Director, President
c. Term of Nominee and
Alternate Nominee
d. Change of Nominee or
Alternate Nominee
A 7 The single stockholder shall
designate a nominee and an
alternate nominee who shall, in
the event of the single
stockholder’s death or
incapacity, take the place of the
single stockholder as director.

a. Nominee and Alternate

Nominee.
b. Single stockholder as
Director, President
c. Term of Nominee and
Alternate Nominee
d. Change of Nominee or
Alternate Nominee
C 8 When the incapacity of the
single stockholder is temporary,
the nominee shall sit as director
and manage the affairs of the
One Person Corporation until the
stockholder, regains the capacity
to assume such duties.

a. Nominee and Alternate

Nominee.
b. Single stockholder as
Director, President
c. Term of Nominee and
Alternate Nominee
d. Change of Nominee or
Alternate Nominee
A 9 Is an 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.
 a. Corporation
b. Cooperative
c. Negotiable instrument
d. None of the above
A 10 Are those 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.

a. Stock corporation
b. Stock Incorporators
c. Stock classification
d. None of the above
B 11 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. Stock shares
b. Treasury shares
c. Purchase share
d. Redeemable share
D 12 May be issued by the
corporation when expressly
provided in the articles of
incorporation.

a. Stock shares
b. Treasury shares
c. Purchase share
d. Redeemable share
A 13 A corporation shall have
perpetual existence unless its
articles of incorporation provides
otherwise.

a. Corporate Term
b. Existence of the term
c. Incorporation term
d. None of the above
B 14 Stock corporations shall require
to have a minimum capital stock,
 except as otherwise specifically
provided by special law.

a. True
b. False
c. None of the above
d. Both a and b
D 15 No corporate name shall be
allowed by the Commission if?

a. it is not distinguishable
from that already
reserved or registered
for the use of another
corporation
b. such name is already
protected by law
c. when its use is contrary
to exist
d. All of the above
B 16 All persons who assume to act
as a corporation knowing it to be
without authority to do so shall
be liable as general partners for
all debts, liabilities and damages
incurred or arising as a result
thereof

a. De facto Corporations
b. Corporation by Estoppel
c. Corporate Charter
d. Trustees of a
corporation
C 17 Corporations covered by Section
17.2 of Republic Act No. 8799,
otherwise known as?

a. Revised penal code

b. Quasi-bank
c. The Securities
Regulation Code
d. Commission
C 18 Who participates through
remote communication or in
absentia, shall be deemed
present for purposes of quorum.

a. Stockholder
 b. Member
c. Both a and b
d. None of the above
B 19 The report shall specify a new
date for the election, which shall
not be later than how many days
from the scheduled date?

a. 30
b. 60
c. 90
d. 45
A 20 Any director or trustee of a
corporation may be removed
from office by a vote of the
stockholders holding or
representing atleast?

a. 2/3 of outstanding
capital stock
b. ½ of outstanding capital
stock
c. ¼ of outstanding capital
stock
d. None of the above
D 21 When the vacancy is due to term
expiration, the election shall be
held no later than?

a. After the day of such

expiration at a meeting
called for that purpose.
b. 15 days of such
expiration at a meeting
called for that purpose.
c. 3 days of such expiration
at a meeting called for
that purpose.
d. the day of such
expiration at a meeting
called for that purpose.
B 22 The application with the
Commission shall be made
within from the date of
approval of the board of
directors and stockholders,
which period may be extended
for justifiable reasons.
 a. 6 days
b. 6 months
c. 6 years
d. 60 years
A 23 Republic Act No. 10667,
otherwise known as?

a. “Philippine Competition
Act”
b. “Revised Penal Code”
c. “Philippine Corporate
Act”
d. None of the above
B 24 In where there are no
members with voting rights, the
vote of at least a majority of the
trustees in office will be
sufficient authorization for the
corporation to enter into any
transaction authorized by this
section.

a. Stock corporation
b. Non-stock corporation
c. Share corporation
d. None of the above
D 25 No management contract shall
be entered into for a period
longer than year/s for any
term.

a. 3, 6
b. 3, 1
c. 5, 1
d. 5, 6
A 26 The right to vote of stockholders
or members may be exercised in
person, through a proxy, or
when so authorized in the
bylaws, through remote
communication or in .

a. Absentia
b. Absencia
c. Absentcias
d. None of the above
C 27 The assets of a nonstock
 corporation undergoing the
process of dissolution for
reasons other than those set
forth in Section 139 of this Code.

a. Rules of Liquidation
b. Rules of Rehabilitation
c. Rules od distribution
d. None of the above
A 28 The Commission may place the
corporation under delinquent
status should the corporation fail
to submit the reportorial
requirements times,
consecutively or intermittently,
within a period of years.

a. 3,5
b. 4,6
c. 2,4
d. 8,5
A 29 shall have the power to
grant interim measures
necessary to ensure
enforcement of the award,
prevent a miscarriage of justice,
or otherwise protect the rights
of the parties.

a. Arbitral Tribunal
b. Monitoring system
c. Implementation of
Electronics
d. None of the above
C 30 This Act shall take effect upon
completion of its publication in
the Official Gazette or in at least
Newspaper/s of general
circulation.

a. 4
b. 3
c. 2
d. 1
B 31 A corporation lawfully existing
and doing business in the
Philippines affected by the new
requirements of this Code shall
 be given a period of not more
than two (2) years from the
effectivity of this Act within
which to comply.

a. Effectiviy
b. Applicability of Existing
Corporation
c. Separability Clause
d. None of the above
C 32 If any provision of this Act is
declared invalid or
unconstitutional, other
provisions hereof which are not
affected thereby shall continue
to be in full force and effect.

a. Effectiviy
b. Applicability of Existing
Corporation
c. Separability Clause
d. None of the above
A 33 Batas Pambansa Blg. 68
otherwise known as “The
Code of the
Philippines”

a. Corporation
b. Rehabilitation
c. Negotiability
d. None of the above
C 34 Within months after the
effectivity of this Act, the
monitoring, supervision, and
regulation of such corporations
shall be deemed automatically
transferred to the COMELEC.

a. 4
b. 5
c. 6
d. 7
A 35 When do financial statements
audited by an independent
certified public accountant

a. Annually
b. Twice a week
 c. Every 3 months
d. Every 4 months
B 36 Notice of such meetings shall be
given to all stockholders or
members of the respective
corporations in the same
manner as giving notice of
regular or special meetings
under Section 69 of this Code.

a. True
b. False
c. None of the above
d. Both a and b
A 37 In addition to the functions
designated by the One Person
Corporation, the corporate
secretary shall:

a. Be responsible for
maintaining the minutes
book and/or records of
the corporation
b. Notify the nominee or
alternate nominee of the
death or incapacity of
the single stockholder,
which notice shall be
given no later than 15
days from such
occurrence;
c. report containing
explanations or
comments by the
president on every
qualification,
reservation, or adverse
remark or disclaimer
made by the auditor in
the latter’s report
d. None of the above
A 38 Republic Act No. 8799, otherwise
known as

a. “The Securities
Regulation Code”
b. “The Corporation Law”
c. “The Quasi-bank Law”
 d. None of the above
39 A person who, apart from
shareholdings and fees received
from the corporation.

a. Independent director
b. Dependent director
c. Manager
d. None of the above
A 40 There are no members with
voting rights, the vote of at least
a majority of the trustees in
office will be sufficient
authorization for the corporation
to enter into any transaction
authorized by this section.

a. Nonstock Corporation
b. Sale
c. Power to invest
d. None of the above
A 41 Notice of meetings shall be sent
through the means of
communication provided in the
bylaws, which notice shall state
the time, place and purpose of
the meetings.

a. True
b. False
c. Both a and b
d. None of the above
A 42 Who must be a director?

a. President
b. Treasurer
c. Secretary
d. None of the above
B 43 Who must be a resident?

a. President
b. Treasurer
c. Secretary
d. None of the above
C 44 Who must be a citizen and
resident of the Philippines?
 a. President
b. Treasurer
c. Secretary
d. None of the above
A 45 A subscription of shares in a
corporation still to be formed
shall be irrevocable for a period
of at least six (6) months from
the date of subscription.

a. Pre-incorporation
Subscription
b. Subscription Contract
c. Contract
d. None of the above
B 46 Any contract for the acquisition
of unissued stock in an existing
corporation or a corporation still
to be formed shall be deemed a
subscription within the meaning
of this Title.

a. Pre-incorporation
Subscription
b. Subscription Contract
c. Contract
d. None of the above
A 47 Nothing in this Code shall
prevent the corporation from
collecting through court action,
the amount due on any unpaid
subscription, with accrued
interest, costs and expenses.

a. Court Action to Recover

Unpaid Subscription
b. Effect of Delinquency
c. When Sale may be
Questioned
d. None of the above
B 48 No action to recover delinquent
stock sold can be sustained upon
the ground of irregularity or
defect in the notice of sale.

a. Court Action to Recover

Unpaid Subscription
b. Effect of Delinquency
 c. When Sale may be
Questioned
d. None of the above
A 49 Stockholders actively engaged in
the management or operation of
the business and affairs of a
close corporation shall be held to
strict fiduciary duties to each
other and among themselves

a. True
b. False
c. Both a and b
d. None of the above
A 50 Educational corporations shall be
governed by special laws and by
the general provisions of this
Code.

a. Incorporation
b. Corporation
c. Cooperative
d. None of the above

You
 TOPIC: FRIA

ANSWERS NUMBERS STATEMENTS

B 1 Shall refer to a natural or juridical person which has a claim against the debtor that
arose on or before the commencement date.

a. Debtor
b. Creditor
c. Drawer
d. Payee

A 2 Shall refer to proceedings initiated by creditors.

a. Involuntary proceedings
b. Voluntary proceedings
c. Liquidations
d. Liabilities

C 3 Shall refer to the proceedings under Chapter V of this Act.

a. Involuntary proceedings
b. Voluntary proceedings
c. Liquidations
d. Liabilities

A 4 The rehabilitation receiver shall have the following minimum qualifications except

a. A citizen of the Philippines or a resident of the Philippines in the seven (7)

months immediately preceding his nomination

b. Of good moral character and with acknowledged integrity, impartiality and

independence;

c. Has the requisite knowledge of insolvency and other relevant commercial

laws, rules and procedures, as well as the relevant training and/or experience
that may be necessary to enable him to properly discharge the duties and
obligations of a rehabilitation receiver

d. Has no conflict of interest

C 5 No person may be appointed as a rehabilitation receiver, member of a_ management

committee, or be employed by the rehabilitation receiver or the management
committee if he has a conflict of interest.

a. Employment of Professionals
b. Role of the Management Committee
c. Conflict of Interest
 d. Qualifications of Members of the Management Committee

C 6 Shall refer to the natural person or juridical entity appointed as such by the court and
entrusted with such powers and duties as set forth in this Act

a. Creditor
b. Debtor
c. Liquidator
d. Holder

B 7 Shall refer to notice through publication in a newspaper of general circulation in the

Philippines on a business day for two (2) consecutive weeks.

a. Rehabilitation
b. Publication notice
c. Secured Claim
d. Secured creditor

D 8 Shall refer to a creditor with a secured claim

a. Rehabilitation
b. Publication notice
c. Secured claim
d. Secured creditor

C 9 Shall refer to a claim that is secured by a lien

a. Rehabilitation
b. Publication notice
c. Secured claim
d. Secured creditor

A 10 Receiver shall refer to the person or persons, natural or juridical, appointed as such by
the court pursuant to this Act and which shall be entrusted with such powers and
duties as set forth herein.

a. Rehabilitation
b. Publication notice
c. Secured claim
d. Secured loan

A 11 Shall refer, in addition to a holder of shares of a corporation, to a member of a

nonstock corporation or association or a partner in a partnership.

a. Shareholder
b. Party
c. Secured creditor
d. Corporation
A 12 The term debtor does not include banks, insurance companies, pre-need companies,
and national and local government agencies or units.

a. Exclusion
b. Inclusion
c. Inclusive
d. Incentives

D 13 Which is not true

a. Bank shall refer to any duly licensed bank or quasi-bank that is potentially or
actually subject to conservatorship, receivership or liquidation proceedings
under the New Central Bank Act (Republic Act No. 7653) or successor
legislation;
b. Insurance company shall refer to those companies that are potentially or
actually subject to insolvency proceedings under the Insurance Code
(Presidential Decree No. 1460) or successor legislation; and
c. Pre-need company shall refer to any corporation authorized/licensed to sell or
offer to sell pre-need plans.
d. None of the above

A 14 Shall be made according to the relevant provisions of the Corporation Code in the case
of stock or nonstock corporations or the Civil Code in the case of partnerships that are
not inconsistent with this Act.

a. Decisions of creditor
b. Decision of the monetary board
c. Decisions of the maker
d. None of the above

A 15 Shall refer to property held by the debtor in which other persons have an ownership
interest.

a. Property of others
b. Proceedings
c. Liquidations
d. None of the above

C 16 Shall refer to a lien on property, the possession of which has been transferred to a
creditor or a representative or agent thereof.

a. Property lien
b. Proceedings lien
c. Possessory lien
d. None of the above

A 17 Shall refer to proceedings initiated by the debtor.

 a. Voluntary proceedings
b. Voting creditor
c. Involuntary proceedings
d. None of the above

D 18 An individual shall be deemed to have a conflict of interest if?

a. He is a debtor, owner, partner or stockholder of the debtor;

b. He is engaged in a line of business which competes with that of thecreditor;
c. He is, or was, within 3 years from the filing of the petition, a director, officer,
owner, partner or employee of the debtor or any of the creditors, or the
auditor or accountant of the debtor;
d. He is, or was, within two (2) years from the filing of the petition, an
underwriter of the outstanding securities of the debtor;

B 19 Any decision of the rehabilitation receiver regarding a claim may be appealed to the
court

a. Claims
b. Appeal
c. Rehabilitation
d. None of the above

A 20 The court, on motion or motu proprio, may terminate, modify or set conditions for the
continuance of suspension of payment, or relieve a claim from the coverage thereof

a. Lack of Adequate Protection

b. Contents of a Rehabilitation Plan
c. Consultation with Debtor and Creditors
d. None of the above

D 21 There is failure of rehabilitation in the following cases except

a. Dismissal of the petition by the court;

b. The debtor fails to submit a Rehabilitation Plan
c. The commission of fraud in securing the approval of the Rehabilitation Plan or
its amendment
d. None of the above

A 22 who are unaffected by the Suspension Order may refrain from attending the
meeting and from voting therein.

a. Creditors
b. Debtors
c. Liquidators
d. None of the above
B 23 "Financial Rehabilitation and
Act of 2010"

a. Insufficiency
b. Insolvency
c. Indirectly
d. None of the above

A 24 Refer to the power of a parent corporation to direct or govern the financial and
operating policies of an enterprise so as to obtain benefits from its activities.

a. Control
b. Power
c. Right
d. None of the above

A 25 Refer to a corporation that directly or indirectly, through one or more intermediaries,

is controlled by, or is under the common control of another corporation.

a. Affiliate
b. Commencement
c. Command
d. None of the above

D 26 Which is not true?

a. assistance is sought in a Philippine court by a foreign court or a foreign

representative in connection with a foreign proceeding
b. assistance is sought in a foreign State in connection with a proceeding
governed by the FRIA and these Rules
c. a foreign proceeding and a proceeding governed by the FRIA and these Rules
are concurrently taking place
d. None of the above

B 27 Cooperation may be implemented by any appropriate means, including but not limited
to the following except one

a. Appointment of a person or body to act at the discretion of the court

b. Communication of information by any means considered appropriate by the
manager
c. Coordination of the administration and supervision of the debtor's assets and
affairs
d. Approval or implementation by courts of agreements concerning the
coordination of proceedings

A 28 An authorized to act in a foreign State on behalf of a proceeding under these Rules, as

permitted by the applicable foreign law.
 a. Authorization of a Rehabilitation Reciever to Act in a Foreign Stat
b. Forms of Rehabilitation
c. Local Proceedings
d. None of the above

A 29 A petition for recognition of a foreign proceeding shall be decided within thirty (30)
days from its filing.

a. Period to Recognize Foreign Proceeding

b. Presumptions Concerning Recognition
c. Notification to Court
d. None of the above

D 30 Which is not an Effects of Recognition of Foreign Proceeding?

a. Upon recognition of a foreign proceeding, the foreign representative is

entitled to participate, through counsel, in any proceeding involving the debtor
filed under these Rules
b. There cognition of the foreign proceeding does not affect the right of
Philippine creditors to commence or continue a rehabilitation or liquidation
proceeding under these Rules or the right to file or continue claims in these
proceedings
c. The order granting recognition of the foreign proceeding shall be published in
two separate newspapers of general circulation not later than five (5) days
from its issuance
d. None of the above

D 31 The creditors may, as a body, agree to form a creditors' committee composed of a

representative from each class of creditors, such as the following except:
a. Secured creditors
b. Unsecured creditors
c. Trade creditors and suppliers
d. None of the above

A 32 A restructuring/workout agreement or Rehabilitation Plan that is approved pursuant to

an informal workout framework referred to in this chapter shall have the same legal
effect as confirmation of a Plan under Section 69 hereof.

a. Cram Down Effect

b. Cram up effect
c. Secured creditors
d. None of the above

A 33 The court may require a translation of documents supplied in support of the

application for recognition into an official language of this State.

a. True
 b. False
c. Both a and b
d. None of the above

A 34 Where a foreign proceeding and a local proceeding are taking place concurrently
regarding the same debtor, the court shall seek cooperation and coordination under
Sections 19 and 20 of this Rule.

a. Local and Foreign Proceedings

b. Motion for Reconsideration
c. Applicability of Provisions
d. None of the above

A 35 The court shall direct the rehabilitation receiver to review, revise and/or recommend
action on the Rehabilitation Plan and submit the same or a new one to the court
within a period of not more than ninety (90) days.

a. Petition Given Due Course

b. Dismissal of Petition. Initial
c. Appointment of the
Rehabilitation Receiver
d. Removal of the Rehabilitation Receiver

A 36 Within how many days from the date of the second publication of the Order, the court
shall approve the Rehabilitation Plan unless a creditor or other interested party
submits an objection to it in accordance with the next succeeding section?

a. 10
b. 15
c. 30
d. 60

A 37 If the court gives due course to the petition, the rehabilitation receiver shall confer
with the debtor and all the classes of creditors, and may consider their views and
proposals ill the review, revision or preparation of a new Rehabilitation Plan.

a. Consultation with debtors and creditors Creditor

b. Approval of Rehabilitation
c. Plan Submission of Rehabilitation Plan to the Court
d. None if the above

B 38 Shall refer to real or personal property of the debtor upon which a lien attaches

a. General unsecured creditor

b. Encumbered property
c. Individual debtor
d. None of the above
D 39 Under FRIA, the term debtor does not include:

a. Banks
b. Insurance companies
c. Pre-need companies
d. All of the above

A 40 Shall refer to the order issued by the court under Section 16 of this Act
Commencement date Control Affiliate

a. Commencement Order
b. Insolvent debtor's estate
c. Consultation with debtors and creditors
d. None of the above

B 41 Shall refer to a creditor whose claim or a portion thereof its neither secured, preferred
nor subordinated under this Act.

a. Insolvent debtor's estate

b. General unsecured creditor
c. Consultation with debtors and creditors
d. None of the above

A 42 Shall refer to the estate of the insolvent debtor, which includes all the property and
assets of the debtor as of commencement date, plus the property and assets.

a. Insolvent debtor's estate

b. General unsecured creditor
c. Consultation with debtors and creditors
d. None of the above

C 43 Shall refer to a natural person who is a resident and citizen of the Philippines that has
become insolvent as defined herein.

a. General unsecured creditor

b. Encumbered property
c. Individual debtor
d. None of the above

D 44 Shall refer to transactions in the pursuit of the individual debtor's or debtor's business
operations prior to rehabilitation or insolvency proceedings and on ordinary business
terms.

a. Possessory Lien
b. Party to the proceedings
c. Parent
d. Ordinary course of business
A 45 Shall refer to a lien on property, the possession of which has been transferred to a
creditor or a representative or agent thereof.

a. Possessory Lien
b. Party to the proceedings
c. Parent
d. Ordinary course of business

C 46 Shall refer to a corporation which has control over another corporation either directly
or indirectly through one or more intermediaries.

a. Possessory Lien
b. Party to the proceedings
c. Parent
d. Ownership Interest

D 47 Shall refer to the ownership interest of third parties in property held by the debtor,
including those covered by trust receipts or assignments of receivables.

a. Possessory Lien
b. Party to the proceedings
c. Parent
d. Ownership Interest

A 48 The rate and term of interest, if any, on secured and unsecured claims shall be
determined and provided for in the approved Rehabilitation Plan.

a. Post-commencement Interest
b. Party to the proceedings
c. Parent
d. Ownership Interest

A 49 Creditors may designate representatives to vote or otherwise act on their behalf by

filing notice of such representation with the court and serving a copy on the
rehabilitation receiver or liquidator.

a. True
b. False
c. Both a and b
d. None of the above

A 50 Decisions of creditors shall be made according to the relevant provisions of the

Corporation Code in the case of stock or nonstock corporations or the Civil Code in the
case of partnerships that are not inconsistent with this Act.

a. True
b. False
c. Both a and b
d. None of the above