 A corporation has the attributes of being created by operation of law, has the right to succession,

has powers, attributes and properties expressly authorized by law or incident to its existence and is
an artificial being. Therefore, when does a corporation acquire its juridical personality?

A. upon issuance of certificate of incorporation

B. upon subscription of at least 25% of the authorized capital stock

C. upon completing the by-laws

D. upon filing of articles of incorporation

 Which of the following stipulations is valid?

A. A stipulation exempting a capitalist partner from losses

B. A stipulation excluding an industrial partner from profits

C. A stipulation excluding a capitalist partner from losses

D. A stipulation exempting an industrial partner from losses

 The Commission shall hold a meeting at least once a week for the conduct of business or as often
as the Chairperson deems it necessary to hold one or upon the request of 3 Commissioners. To
whom shall the notice of the meeting be sent to and what is the quorum requirement?

A. Sent to all the Commissioners and the presence of 5 Commissioners

B. Sent to selected Commissioners and the presence of 3 Commissioners

C. Sent to the senior Commissioners and the presence of them shall constitute a quorum

D. Sent to all the Commissioners and the presence of 3 Commissioners

 Matty, Adam, Taka, Kellin, Kevin and Anthony are partners in MSC Enterprise, a dealer oif
instruments and speaker products, with contributions of P100,000.00, P80,000.00, P60,000.00,
P50,000.00, P40,000 and P20,000.00, respectively. No one was appointed as manager in the
articles of partnership.

A. Matty is the manager because he made the biggest investment.

B. Every act in the ordinary course of the business will have to be decided by the majority determined on a
per head basis.
C. Every act in the ordinary course of the business will have to be decided by the controlling interest
(biggest investment) although the partners owning them do not constitute the majority.

D. All the partners are agents or managers of the partnership and any one of them may perform
acts of administration.

 The president of a corporation may at the same time be the:

A. Treasurer

B. Corporate Secretary

C. Chairman of the Board of Director

D. None of the foregoing, because the president cannot occupy another position in the corporation during
his term.

 Any corporation with a class of equity securities listed for trading on an Exchange or with assets in
excess of P50,000,000.00 and having 200 or more holders, at least of 200 of which are holding at
least 100 shares of a class of its equity securities or which has sold a class of equity securities to
the public pursuant to an effective registration statement in compliance with Section 12 hereof shall
have how many independent directors?

A. At least two (2) independent directors or such independent directors shall constitute at least
twenty percent (20%) of the members of such board whichever is the lesser.

B. At least two (2) independent directors or such independent directors shall constitute at least twenty
percent (20%) of the members of such board whichever is higher.

C. At least two (2) independent directors or such independent directors shall constitute at least twenty
percent 2/3 of the members.

D. At least two (2) independent directors or such independent directors shall constitute at least twenty
percent (25%) of the members of such board whichever is the lesser.

 The change in the relation of the partners caused by any ceasing to be associated in carrying on
the business is known as:

A. Termination of the partnership

B. Winding up of partnership affairs.

C. Liquidation of the partnership business.

D. Dissolution of the partnership.

  A delinquent stockholder is not entitled to the following rights, except the right:

A. To be voted.

B. To vote or be represented in the meetings of stockholders.

C. To dividends.

D. He is not entitled to all the rights of a stockholder.

 Any person aggrieved by an order of the Commission (SEC) may appeal a petition to the Court of
Appeals to review the order. This right is in accordance to the provisions of what code or rule?

A. New Civil Code

B. Rules of Court

C. Revised Corporation Code

D. Rules of State

 Where an immovable property or real rights are contributed to a partnership, the partnership
contract must be in a public instrument to which shall be attached an inventory of the immovable
property contributed and signed by the parties. Failure to comply with the said requirements:

A. makes the partnership unenforceable

B. makes the partnership voidable

C. does not affect the acquisition by the partnership of a juridical personality

D. makes the partnership void

 Statement I: Comiso can be a single stockholder of ABC Corp. Statement

II: Jerico who do not have a share of capital stock can be a incorporator.

a. The 1st statement is true and 2nd statement is false.

b. The 1st statement is false and 2nd statement is true.

c. Both statements are false.

d. Both statements are true.

 What procedure must be followed under the Securities Regulation Code to authorize the sale or
offer for sale or distribution of an investment contract?
a) It should be registered with Bureau of Internal Revenue (BIR).

b) It should be registered with Department of Trade and Industry (DTI).

c) It should be registered with Securities and Exchange Commission (SEC).

d) None of the above.

 Jake and Vince entered into universal partnership of all present property. At the time of their
agreement, Jake had a three-door apartment which he had inherited from his father 4 years earlier.
Vince, on the other hand, had a fishpond which he acquired by dacion en pago from John. During
the first year of partnership, rentals collected on the three-door apartment amounted to P350,
000.00; while fish harvested from the fishpond were sold for P270,000.00. During the same period,
Vince received by way of donation a vacant lot from an uncle. The partnership had a stipulation
that future property shall belong to the partnership. Which of the following does not belong to the
common fund of the partnership?

A. Apartment

B. Vacant lot

C. Fishpond

D. Rentals of P350,000

 In the meeting of the board of directors of Rand Corporation, a construction company, held on May
20, 2014, directors A, B, C,D and E were present among the 9 directors. The meeting had for its
agenda the following:

I. The approval of the contract for the purchase of cement worth P50,000.00 from Z Construction Supplies
Co.

II. The appointment of new treasurer

When the voting took place directors A,C,D and E voted for the election of X as the new treasurer; the
directors A,B and C voted for the approval of the contract with Z Contruction Supplies.

a. Both corporate acts are valid.

b. Both corporate acts are not valid.

c. The election of X as the new treasurer is valid; while the approval of contract with Z Construction
Supplies is not valid.

d. The election of X as treasurer is not valid, while the approval of contract with Z Construction
Supplies is valid.
The following are the powers and functions of the Commission, except:

A. Prepare, approve, amend or repeal rules, regulations and orders, and issue opinions and provide
guidance on and supervise compliance with such rules, regulation and orders.

B. Approve, reject, suspend, revoke or require amendments to registration statements, and

registration and licensing applications.

C. Formulate policies and recommendations on issues concerning the securities market, advise Congress
and other government agencies on all aspect of the securities market and propose legislation and
amendments.

D. Have jurisdiction and supervision over all corporations, partnership or associations whether or not they
are grantees of primary franchises and/or a license or a permit issued by the Government.

 Which if the following statements are false concerning Treasury Shares?

A. They are entitled to dividends.

B. They have no voting right.

C. They may be disposed of for a price lower than the par value provided such price is reasonable.

D. They are not outstanding shares.

 One who does not participate in the management of the business of the partnership and is not
known to the public as partner.

a. Silent partner

b. Dormant partner

c. Secret partner

d. Liquidation partner

 The document made by or on behalf of an issuer, underwriter or dealer to sell or offer securities for
sale to the public through registration statement filed with the commission.

A. Under certificated Security

B. Prospectus

C. Promotion Letter

D. Registration Statement
  Peter Baylon and Sons is a partnership composed of 3 partners, namely: Juan Baylon, Ryan
Baylon and Jose Baylon. The partners are sons of Peter Baylon who has retired from business but
suggested that they should include his name in the firm to give them an advantage since he is well-
known in the business industry. This act of Peter Baylon shall let him have all the rights of a
general partner.

II. Articles of universal partnership entered into without specification of its nature, only constitute a universal
property of all present property.

a. Statement I is true; Statement II is false.

b. Statement I is false; Statement II is true.
c. Both statements are false.
d. Both statements are true.

 A private corporation organized under RCC commences its corporate existence and juridical
personality from the date all the requirements are fully complied even without the issuance of the
certificate of incorporation from the SEC

II. A director need not be a shareholder.

a. Statement I is true; Statement II is false.

b. Statement I is false; Statement II is true.
c. Both statements are false.
d. Both statements are true.

 Securities can be sold or offered for sale even without registration statement filed and approved by
the Commission.

II. Prior to sale of a security, information on them, in such form and with such substance as the Commission
may prescribe, shall be made available to each prospective purchaser.

a. Statement I is true; Statement II is false.

b. Statement I is false; Statement II is true.
c. Both statements are false.
d. Both statements are true.

 The minimum capital in money or property except when immovable property or real rights thereto
are contributed, that will require the contract of partnership to be in a public instrument and be
registered with the Securities and Exchange Commission (SEC).

a. P 8,000

b. P 4,000
c. P 30,000

d. P 3,000

 These statements concerning the number of trustees of a non-stock corporation at the time of its
incorporation are presented to you:

Statement I. The number of trustees may or may not be more than 15.

Statement II. The number of trustees may be less than five.

In your evaluation of the foregoing statements:

A. Both statements are correct.

B. Both statements are incorrect.
C. Statement I is correct and statement II is incorrect.
D. Statement I is incorrect and statement II is correct.

 Which of the following best describes an independent director?

A. An independent director is a shareholder other than an employee and officer of the corporation

B. An independent director is a person engaged in any transaction with covered company and/or with
any of its related companies and/or with any of its substantial shareholders.

C. An independent director own more than two percent of the shares of the covered company and/or
its related companies or any of its substantial shareholders

D. An independent director is a person other than an officer or employee of the corporation, its
parents and subsidiaries, or any other individual having a relationship with the corporation,
which would interfere with the exercise of independent judgment in carrying out the
responsibilities of a director.

 Jeremy, Elijah, and Donita are partners, with Jeremy contributing P60,000; Elijah 40,000; and
Donita service. They agreed to divide profits and losses in the ration of 3:3:4, respectively. If the
partnership incurred a loss of P10,000, how should the loss be shared by the partners?
A. Jeremy 5,000; Elijah 5,000; Donita nothing
B. Jeremy 3,000; Elijah 3,000; Donita 4,000
C. Jeremy 5,000; Elijah 3,000; Donita 2,000
D. Jeremy 2,000; Elijah 3,000; Donita 5,000
  In no case shall the total yearly compensation of the directors exceed.
A. 10% of the net income before income tax during the current year.
B. 10% of the net income before income tax during the preceding year.
C. 10% of the net income after income tax during the current year.
D. 10% of the net income after income tax during the preceding year.

 1st Statement: Securities can be sold or offered for sale or distribution within the Philippines, even
without filing a registration statement with the Commission.

2nd Statement: The Commission may audit the financial statements of a firm applying for registration of its
securities.

A. Both statement are true.

B. 1st statement is true; 2nd statement is false.

C. Both statement are false.

D. 1st statement is false; 2nd statement is true

 Erica, Angel, Ally, Christine, and Trisha are partners in CBA Company, Ltd. Erica, Angel, and Ally
are general partners, Christine is a general-limited partner, while Trisha is a limited partner. Based
on the foregoing information, which of the following statements is false?

A. Christine may participate in the management of the partnership.

B. Trisha may not be held liable with her separate property for partnership debts after the exhaustion of
partnership assets.

C. Christine may not be held liable with her separate property for partnership debts after the
exhaustion of partnership assets.

D. Erica, Angel, and Ally may be held liable with their separate property after the exhaustion of partnership
assets.

 The following statements pertain to the express powers of a corporation:

I. A corporation may establish pension, retirement, and other plans for the benefit of its directors, trustees,
officers and employees.

II. A foreign corporation may make donations for the benefit of a political party or candidate or for purposes
of partisan political activity.

a. Both statements are true.

b. Both statements are false.

c. Statement I is true; Statement II is false.

d. Statement I is false; Statement II is true

 The following information pertains to the rules of Proxy solicitations except:

A. Proxies must be in writing, signed by the stockholder or his duly authorized representative.

B. The validity and effectivity of proxies last only for a period longer than five years.

C. No proxy shall be valid only for the meeting for which it is intended.

D. A broker may give any proxy consent or any authorization to a person other than the customer
without written authorization of such customer.

 A partner’s interest in the partnership is his share of the profits and surplus which he may assign to
a third person. Which of the following statements concerning such right is correct?

A. The conveyance of a partner’s interest will cause the dissolution of the partnership.
B. The assignee becomes a partner.
C. The assignee has a right to interfere in the management of the partnership business.
D. The assignee has the right to receive the profits which the assigning partner would
otherwise be entitled to.

 The articles of incorporation of a Carat Development Corporation provide for 15 directors. Which of
the following is invalid concerning its by-laws?
A. That the quorum in the meetings of directors be atleast 8 directors.
B. That the quorum in the meetings of directors be atleast 10 directors.
C. That the quorum in the meetings of directors be atleast 7 directors.
D. The by-laws do not mention anything about the quorum in the meetings of directors.

 The Commission may reject a registration statement and refuse registration of the security or
revoke the affectivity of a registration statement and the registration of the security there-under if
the issuer has been found to commit any of the following, except when:
 A. Has failed to comply with any requirements that the Commission may impose as a condition for
registration of the security for which the registration statement has been filed.
B. Has made true and correct representation of material facts in any prospectus concerning
the issuer and its securities.
C. Has violated any of the provision of this Code, the rules promulgate pursuant thereto, or any order
of the Commission of which the issuer has notice in connection with the offering for which a
registration statement has been filed.
D. Has been or is engaged or is about to engage in fraudulent transactions.

 It is a kind of partner where he shall have all the rights and powers and subject to all restrictions of
a general partner; except that in respect to his contribution, he shall have the rights of a limited
partner:

A. General partner
B. Limited partner
C. General-limited partner
D. Managing partner

 The right of a stockholder to demand payment of the fair value of his shares when he dissents from
certain corporate acts is known as:
A. Pre-emptive right
B. Appraisal right
C. Redemption right
D. Appreciation right

 For the publication and posting of notice of filing the issuer shall prepare and file with its
registration statement a notification of such filing which shall state that:

A. A registration statement for the sale of the subject security has been filed with the commission

B. That the registration statement is open for inspection by interested parties during business hours at the
commission

C. That copies shall be furnished to anyone requesting them for reasonable cost

D. All of the foregoing

 A limited partner may contribute:

A. Services only.

B. Money and/or property.

C. Property and/or services.

D. Money and/or services.

 Which cause of vacancy in the board of directors may be filled by the filled by the board of directors
if the remaining directors still constitutes a quorum and by the stockholders if such quorum does
not exist
A. Removal of a director
B. Increase in the number of directors
C. Resignation of a director
D. Expiration of the term of director

 In case of Regulation of Option Trading, no member of an Exchange shall, directly or indirectly

endorse or guarantee the performance in relation to any security registered on a securities
exchange which is these terms shall not include any registered warrant, right or convertible
security, Except.
A. Call
B. Straddle
C. Expel
D. Privilege
 The following statements are presented to you:

I. All ultra-vires acts are illegal acts.

II. All illegal acts are ultra-vires acts.

A. Both statements are true.

B. Both statements are false.

C. I is true; II is false.

D. I is false; II is true.

 Layla, Angela, and Guinevere are partners in LAG Enterprises. Not having established yet their
credit sharing, the three partners requested Alice, a well-known businesswoman, to help them
negotiate a loan from Miya, a money lender. With the consent of Layla, Angela, and Guinevere,
 Alice represented herself as a partner of LAG Enterprises. Thereafter, Miya granted a loan of
P200,000.00 to LAG Enterprises. What kind of partner is Alice?

a. General Partner

b. Limited Partner

c. Managing Partner

d. Partner by estoppel

 I. A corporation, upon registration of warrants, may offer and issue such securities to the public.

II. A corporation, with the exemptions from registration of options, shall not grant or offer such
securities to the public.

A. Both statement are true.

B. Both statement are false.

C. 1st statement is true; 2nd statement is false.

D. 1st statement is false; 2nd statement is true.

 Which of the following will not cause the automatic dissolution of a limited partnership?

a. Death of a general partner.

b. Death of a limited partner.

c. Insolvency of a general partner.

d. Insanity of a general partner.

 Immediately after their election, the directors must formally organize and elect of the following
officers, except:

a. President

b. Vice -President

c. Treasurer
d. Corporate Secretary

 Which of the following transaction shows fraudulent transaction prohibited under trasaction of
securities?

a. Obtain money or property by means of any untrue statement of a material fact of any omission to
state a material fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading.

b. If a natural person, the applicant satisfactorily pass a written examination as to his proficiency and
knowledge in the area of activity for which registration is sought.

c. An issuer with a class of securities listed for trading on an Exchange.

d. The refusal to furnish information required by the Commission may be a ground for the issuance of an
order of suspension pursuant to Subsection.

 Company is a partnership composed of Faye, Angie, Cedrick, Erich and Shiela, with Faye as
manager who is authorized to collect the credits of partnership. Melvin owes Faye P4000 which is
due on June 10. She also owes FACES Company P6000 which is due on December 20. On June
15, Melvin tendered payment in the amount of P4000 to Faye in payment of his debt to the latter.
Faye issued her own receipt acknowledging the payment.

A. The payment will be applied proportionately to the credits of FACES and Faye in the amount of P1600
and 2400, respectively.

B. The payment will be applied in its entirety to Faye's credit.

C. The payment will be applied in its entirety to FACES' credit.

D. The payment will be applied equally to the two debts of Melvin

 In which of the following corporation will those composing the corporation be liable as general
partners?

A. Corporation by prescription

B. De facto corporation

C. Corporation by estoppel

D. De jure corporation
  Any person or group of persons acting in concert who intends to acquire at least 15% of any class
of any equity security of a listed corporation of any class of any equity security of a corporation
shall make a tender offer to stockholders by filling with the Commission a declaration with:

A. 30,000,000; 300; 100 assets, stockholders, and shares respectively.

B. 50,000,000; 200; 100 assets, stockholders, and shares respectively.

C. 20,000,000; 200; 100 assets, stockholders, and shares respectively.

D. 40,000,000; 200; 200 assets, stockholders, and shares respectively.

 Freddie Mercury and Brian May want to put up an musical instrument store business. Freddie
Mercury is an expert in musical instruments but has no funds or property to invest. Brian May
knows nothing about musical instruments but he is willing to contribute the funds and property
needed. If Freddie Mercury and Brian May decide to enter into a limited partnership, who between
the two of them will be the limited partner?

A. Freddie Mercury only

B. Brian May only

C. Both Freddie and Brian

D. Neither Freddie nor Brian; hence, they cannot enter into a limited partnership.

 A non-voting stock may vote in the following corporate acts, except in case of:

A. Approval of the compensation of directors.

B. Merger or consolidation

C. Increase or decrease in capital stock

D. Sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of the corporate
property.

 The Commission is authorize, having due regard to the public interest and the protection of
investors, to promulgate rules and regulations which:

A. Validate the transfer of securities by book-entries rather than the delivery of physical certificates.

B. Establish when a person acquires a security or an interest therein and when delivery of a security to a
purchaser occurs.
C. Establish which records constitute the best evidence of a person’s interests in a security and the effect
of any errors in electronic records of ownership.

D. All of the above.

 JANE Enterprises is a partnership composed of Jay, Alden, Horry and Ed. Jay is the partner
authorized to collect the credits of the partnership. Mark owes Jay P4000, which is interest bearing
and JANE Enterprises P6000, non-interest bearing. Both debts are due. Mark gives Jay P4000
informing Jay that the amount is in payment of his debt to the latter. Accordingly, Jay issues his
own receipt. To which credit will the payment be applied.

a. To the credit of Jay

b. To the credit of JANE Enterprises

c. To the credit of Jay and that of JANE Enterprises proportionately at P1600 and P2400 respectively.

d. To the credit of Jay and that of JANE Enterprises equally at P2000 each.

Tony Stark, Bruce Banner, Natasha Romanoff, Steve Rogers and Thor Odin represented themselves to
Stan Lee as directors and stockholders of "Avengers Corporation". In reality, no such corporation is
registered with the Securities and Exchange Commission (SEC). Later Stan Lee granted credit sales to
"Avengers Corporation." When "Avengers Corporation" defaulted in its payment, Stan Lee sued "Avengers
Corporation." "Avengers Corporation" moved for the dismissal of the complaint on the ground that it had no
corporate personality. Is the defense of "Avengers Corporation" tenable?

a. Yes, because it was not registered with the SEC

b. No, because it is estopped from raising as a defense its lack of corporate personality against
Stan Lee

c. Yes, because "Avengers Corporation" does not really exist

d. Yes, because only the Office of the Solicitor General can sue "Avengers Corporation"

 An independent director means a person who, apart from his fees and shareholdings, is
independent of management and free from any business or other relationship which could, or could
reasonably be perceived to, materially interfere with his exercise of independent judgment in
carrying out his responsibilities as a director in any covered company. Who among the following
can fulfill the position of an independent director?
A. A director of the corporation’s related company who owns only five percent (5%) of the shares.

B. A person who is acting as a nominee of one of the substantial shareholders of a related company.

C. A person that has not been employed in any executive capacity by the covered company, any of
its related companies and/or by any of its substantial shareholders within the last two (2) years.

D. A person that engages in any transaction with the covered company and/or with any of its related
companies and/or with any of its substantial shareholders, whether by himself and/or with other persons
and/or through a firm of which he is a partner and/or a company of which he is a director or substantial
shareholder.

 A partnership formed for the exercise of a profession which is duly registered is an example of:

A. Universal partnership of profits.

B. Universal partnership of all present properties.
C. Particular partnership
D. Partnership by estoppel

 Johan is a filipino citizen and resides at Manila, Philippines. He is one of the 15 directors of Wan-
O-Wan Corporation. During the election of corporate officers, if Johan is to choose one of the
available positions, what is/are the possible position/s he can be elected?

A. President
B. Treasurer and Secretary
C. President and Treasurer
D. President, Treasurer or Secretary

 I. A broker who is not registered in the commission cannot engage in buying and selling of
securities.

II. A dealer doesn’t need to register in the commission to engage in buying and selling of securities

A. Both statement are true.

B. 1st statement is true; 2nd statement is false.
C. Both statement are false.
D. 1st statement is false; 2nd statement is true.

 Where an immovable property or real rights are contributed to a partnership, the partnership
contract must be in a public instrument to which shall be attached an inventory of the immovable
property contributed and signed by the parties. Failure to comply with the said requirements:
a. makes the partnership unenforceable

b.makes the partnership voidable

c.does not affect the acquisition by the partnership of a juridical personality

d. makes the partnership void

 A corporation has the attributes of being created by operation of law, has the right to succession,
has power’s, attributes and properties expressly authorized by law or incident to its existence and
is an artificial being. Therefore, when does a corporation acquire its juridical personality?

A. upon issuance of certificate of incorporation

B. upon subscription of at least 25% of the authorized capital stock

C. upon completing the by-laws

D. upon filing of articles of incorporation

 Mark and Gari decided to become partners in a computer shop business called "FriYay Gaming."
Both Mark and Gari own several computers and other equipment that can be used for the business
and has both decided to invest it into the partnership. As a general rule, what property rights does
each partner have in the equipment?

a. The partner with more invested equipment owns all the property.

b. They own only their personal property, not partnership property.

c. They are co-owners of all the partnership property.

d. They co-own the partnership property only if the partnership has stated so in the agreement

 The document made by or on behalf of an issuer, underwriter or dealer to sell or offer securities for
sale to the public through registration statement filed with the commission.

A. Under certificated Security

B. Prospectus

C. Promotion Letter
D. Registration Statement

I. A corporation, upon registration of warrants, may offer and issue such securities to the public.

II. A corporation, with the exemptions from registration of options, shall not grant or offer such securities to
the public.

A. Both statements are true.

B. Both statements are false.

C. 1st statement is true; 2nd statement is false.

D. 1st statement is false; 2nd statement is true.

 Reyes Company, is a partnership engaged in the trading business, with Lingcoran, Ebreo,
Pentinio, and Guevarra as partners. Lingcoran, Ebreo and Pentinio are capitalist partners
contributing P100,000,000, P600,000,00 and P400,000,000 respectively. Guevarra is an industrial
partner. The partners have a stipulation that Lingcoran shall not be liable for partnership liabilities.
After three (3) years of continued losses, the partnership incurred liabilities of P200,000,000 at
which time its assets had dwindled to P140,000,000. After partnership assets have been
exhausted, partnership creditors may go after the separate assets of:

a. All the partners.

b. Lingcoran, Ebreo, Pentinio but not Guevarra

c. Ebreo, Pentinio, Guevarra but not Lingcoran

d. Ebreo and Ramos only.

 Salvador is the owner of 500 shares f stock of Center Sales Corporation whose articles of
incorporation provide for 5 directors. In the annual election of directors, the following ran for the
position of director: Jaira, Allyzza, Erica, Angel, Trisha, and Christine. Salvador asks you which of
the following is the incorrect way of casting his votes.

a. 500 votes each of the 6 candidates

b. 500 votes each for Jaira, Allyzza, Erica, Angel and Christine

c. 2,500 votes for Jaira

d. 1,000 votes for Jaira, 1,000 votes for Allyzza and 500 votes for Erica

 Which of the following is not decided with an election/voting?

a. Filling a vacancy in the Office of Director

b. Removal of a Trustee

c. Disqualification from being elected as a director/trustee/officer

d. Action of the executive committee

 If the capital of the partnership is P3, 000.00 or more, in money or property, the partnership must
be in public instrument which must be recorded in the office of the Securities and Exchange
Commission. Failure to comply with such requirements:

a. makes the partnership void

b. makes the partnership voidable

c. makes the partnership rescissible

d. does not affect the acquisition by the partnership of a juridical personality

 An independent director shall have the following qualifications, except:

A. He shall have at least one (1) share of stock of the corporation.

B. He shall be at least a college graduate or he shall have been engaged or exposed to the business of the
corporation for at least five (5) years.
C. He shall possess integrity/probity.
D. His beneficial security ownership must exceeds two percent 2% of the outstanding capital stock
of the company where he is such director.

 A, B, C, D and E distributed calling cards identifying themselves as directors of Summit

Corporation, to several individuals during a business conference. In reality, however, no such
corporation is registered with the Securities and Exchange Commission. X, who received a calling
card granted credit amounting to P50,000.00 to "Summit Corporation" believing that such a
corporation really existed. When the supposed corporation was unable to pay, X brought a court
action against it. At that time, "Summit Corporation" had assets of P30,000.00.
A) "Summit Corporation" is liable only up to P30,000.00, its
remaining assets, since it is different from A, B, C, D and E who are not liable in their individual capacities.

B) X can go after the separate assets of A, B, C, D and E after exhausting the assets of "Summit
Corporation."

C) A, B, C, D and E can move for the dismissal of the court action because "Summit Corporation" has no
personality of its own.

D) X cannot allege the lack of juridical personality on the part of "Summit Corporation" because he is
estopped from doing so.

 Which of the following partnership agreement is required to be in a public instrument and an

inventory of the propert contributed just be made, signed by the parties and attached to the public
instrument?

A. A general partnership where the capital amounts to P80,000 consisting of P30,000 cash and P50,000
worth of computers.

B. A general partnership where the capital amounts to P150,000 consisting of cash of P100,000 and
a vacant lot of worth P50,000.

C. A general partnership where the capital amounts to P1,000,000 in cash.

D. A general partnership where the capital amounts to P500,000 in cash.

Provided in the Securities Regulation Code, which among the following definition is incorrect?

I. " Broker " means (a) the issuer; (b) a director or officer (or any person performing similar functions) of, or
a person controlling the issuer; gives or gave him access to material information about the issuer or the
security that is not generally available to the public; (d) A government employee, director, or officer of an
exchange, clearing agency and/or self-regulatory organization who has access to material information
about an issuer or a security that is not generally available to the public; or (e) a person who learns such
information by a communication from any forgoing insiders.

II. " Underwriter " is a person who, acting alone or with others, takes initiative in founding and organizing
the business or enterprise of the issuer and receives consideration therefor.

III. " Promoter " is a person who guarantees on a firm commitment and/or declared best effort basis the
distribution and sale of securities of any kind by another company.

IV. " Insider " is a person engaged in the business of buying and selling securities for the account of others.
a. I and II

b. III and IV

c. All of the above

d. All definition is correct

 In the absence of the chairman, who shall preside at all meetings?

a. Secretary

b. Treasurer

c. President

d. Only the Chairman can preside all meetings

 Which is not a consequence if a capitalist partner engaged in a business (which competes with the
business of the partnership)?

I. He may be required to bring to the common fund the profits he derived from the other business

II. He shall personally bear the losses

III. He may be ousted from the partnership, especially if there was a warning

a. I

b. II

c. III

d. All of the above

e. All are consequences

 MTQ-SRC 30
The following are the reasons why Commission should promulgate rules and regulations involving
commodity futures contracts. Which one is not included?
A. To protect investors
B. To ensure the development of the fair market.
C. To ensure the transparent commodities market.
D. To protect the president.

 When as a rule a partnership does a partnership begin to exist?

a.On the date of recording of the partnership agreement with the SEC
b.Upon the execution of the partnership agreement by the partners
c.On the date when all the capitalist partners have delivered their contributions to the partnership
d.On the date when partnership agreement is acknowledge before a notary plublic

 If you are planning to enter into commodity future contracts what will you do to make it possible
when it is not allowed?

A.It should be in accordance with the rules,regulations and orders the Commission may prescribe
to the public interest.

B.It should be in accordance to the policy, republic act and other governing rules the Commission requires.

C.It must be in good faith on behalf of the other person.

D.It should be in accordance to the general rule as prescribed by the Commission Ammended last 2018.

 Tin Cute pays the Rural Bank of HAHA Reacts. the sum of P30 000.00.May Tin Cute demand the
cancellation of the pledge of 1000 shares of stock by reason of such payment?

a.No Tin Cute has to pay his oligation of P90000.00 in full before he can demand any cancellation of the
shares of stock.

b.Yes Tin Cute can Demand cancellation of 1000 shares because the market value of the same is
equivalent to the payment of P30000.00 that was made.

c.No Tin Cute can demand cancellation of the pledge only if she has paid more than 50% of his debt and
marry Jose.

d.Yes Tin Cute can demand cancellation because the pledge of each of the 3 certificates is independent of
one another.
  Who may or may not be a director of a corporation?

A. Treasurer

B. Corporation Secretary

C. Both (a) and (b)

D. Neither (a) and (b)

 Which of the following statement is incorrect?

a. A person who receives the profit is always a partner.
b. A person who receives the profit is not necessarily a partner.
c. The true test of partnership is mutual agency i.e., agency relation among partners.
d. The partnership comes into existence either by express or implied agreement.

 Under the Securities Regulation Code:

Statement I: The Commissioners must be born Filipino and that Chairperson shall be atleast 40
years old and the Commissioners be atleast 35 years old.
Statement II: The salary of the Chairperson and the Commissioners shall be fixed by the President
of the Philippines based on the objective classification system.
Statement III: The Commission shall hold meeting at least twice a week for the conduct of the
business or as often as necessary upon the call of the Chairperson or upon the request of atleast
one Commissioner.
a. Statement I is true.
b. Statement I and II is true.
c. Statement I, II and III is true.
d. None of the statements are true.

 The requirement of registration under Subsection 8.1 shall not as a general rule apply to any of the
following classes of securities except:

I.Any security issued by a bank except its own shares of stock.

II.Any security issued or guaranteed by the Government of the Philippines, or by any political subdivision or
agency thereof, or by any person controlled or supervised by, and acting as an instrumentality of said
Government.

III. The sale of capital stock of a corporation to its own stockholders exclusively, where no commission or
other remuneration is paid or given directly or indirectly in connection with the sale of such capital stock.
IV.Certificates issued by a receiver or by a trustee in bankruptcy duly approved by the proper adjudicatory
body.

A. I,II, and III

B. I,III, and IV,

C. I,II, and IV

D. All of the Above

 Their names are mentioned in the articles of incorporation as originally forming and composing the
corporation and who are signatories thereof.

A. Incorporators
B.Stockholders
C.Members
D.Corporators

 Nine years ago, Kylie and Nana, sisters, inherited a five-floor commercial building and the lot on
which it was constructed, from Yuko, their father, who died without a will. For the past nine years,
the sisters have divided between the two of them the profit on the rental of the property. Are Kylie
and Nana partners?

A.Yes, because of their receipt of the profit from the use of the property.
B.No, they are considered as stockholders of the whole property.
C.No, each one is a sole proprietor of one-half of the whole property.
D.No, they are merely co-owners of the whole property.

 A corporation can exercise all the powers conferred except:

a. To sue and be sued under the corporation's name
b. To amend its Articles of Incorporation
c. To extend or shorten corporate term
D. To give reasonable donations and that Foreign corporations can give donations in aid of
any political party.

 Jeremy, Mae and Angelo are partners in SRT Company with contribution of 10,000.00,
40,000.00, and 50, 000.00, respectively. Their agreement shows that they will share in the
 profits in the ratio of 2:3:4. During the year, the partnership sustained loss of 9,000.00. How
shall this loss be divided among the partners?

A. Equally at 3,000.00 each

B. Jeremy, 900.00; Mae, 3,600.00; and Angelo, 4,500.00

C. Jeremy, 2,000.00; Mae, 3,000.00; and Angelo 4,000.00

D. The partners must establish first a loss sharing agreement before the loss may be divided because
they failed to have an agreement on the division of loss.

 Unless the by-laws provided otherwise, written notice of regular meetings shall be sent to all
stockholders or members:

A. At least two (2) days prior to the meeting.

B. At least three (3) days prior to the meeting.

C. At least two (2) weeks prior to the meeting.

D. At least three (3) weeks prior to the meeting.

 Statement I: The Commission shall have the power to register as a self-regulatory organization.

Statement II: An association of brokers and dealers may be registered as a securities association.

A. Both are true

B. Both are false
C. Statement I is true; Statement II is false
D. Statement I is false; Statement II is true