ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 41  May 2021 CPALE  Summary Lecture (13 May 2021)

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS Atty. J. Domingo  Atty. N. Soriano

ReSA Batch 41
RFBT SUMMARY LECTURE (MCQS)
1. If the work is anonymous or the author wrote under a pen name, then the copyright belongs to the
a. State
b. IPO
c. Publisher
d. Public

2. I: Reports by media of current events can be copyrighted.

II: The concepts for a game show can be the subject of a copyright.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

3. If there are several authors, the copyright for the intellectual property is
a. 50 years from the death of the first author
b. 50 years from the death of the last author
c. Until the last author is alive
d. 50 years from the date of publication

4. Mr. X wrote and published a story similar to an unpublished copyrighted story of Mr. Y. It was, however, conclusively
proven that Mr. X was not aware that the story of Mr. Y was protected by a copyright. Mr. Y sued for infringement. Is
Mr. X liable?
a. No, he is not liable because he was not aware.
b. No, he is not liable because no one has the monopoly of ideas.
c. No, he is not liable under the doctrine of fair use.
d. Yes, he is liable despite the circumstances.

5. Solid Investment House (SOLID) commissioned Mon Marasigan and his son Jayson, both noted artists, to paint a
mural for the main lobby of the new building of SOLID for a contract price of P3,000,000. Who owns the mural and
who owns the copyright of the mural?
a. SOLID owns both the mural and the copyright of the mural.
b. The artists own both the mural and the copyright of the mural.
c. SOLID owns the mural while the artists owns the copyright of the mural.
d. SOLID owns the mural while SOLID and the artists have joint ownership of the copyright.

6. The longtime exclusive and continuous use of a mark which is unregistered for being descriptive or geographical,
such that it has lost its primary meaning and becomes associated to the public with a particular product, entitles the
user to register the same in the supplmental register
a. Doctrine of Fair Use
b. Doctrine of Secondary Meaning
c. Test for Unfair Competition
d. Dominancy Test

7. It is a court order directing that money or property of a third party be seized to satisfy a debt owed by a debtor to a
plaintiff creditor
a. Impounding
b. Garnishment
c. Ejectment
d. Offsetting

8. Under the AMLA, covered persons includes jewelry dealers in precious stones, who, as a business, trade in precious
stones, for transactions in excess of
a. P500,000
b. P1,000,000
c. P5,000,000
d. P10,000,000

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT
13 May 2021: SUMMARY LECTURE

9. Under this provision, no administrative, criminal or civil proceedings shall lie against any person for having made a
transaction report in the regular performance of his duties in good faith, whether or not such results in any criminal
prosecution under Philippine laws.
a. Miranda doctrine
b. Doctrine of presumption of innocence
c. Safe harbor provision
d. Presumption of regularity

10. The AMLC may inquire into deposits upon order of the court when there is a probable cause that deposits are
related to the crime or unlawful activities. In which of the following crimes is a court order still necessary before the
AMLC may inquire into such deposits?
a. Kidnapping for ransom
b. Hijacking
c. Destructive arson
d. None of the above

11. Which among the following is considered to be the smallest unit of a public corporation in the Philippines?
a. Barrio
b. Barangay
c. Purok
d. Sitio
e. Municipality

12. Mr. X subscribed to 1,000 shares of ABC Co at its par value of P20. Mr. X was only able to pay P5,000 cash. How
many shares of stock should be issued to Mr. X at that moment, if any?
a. 1,000 shares
b. 250 shares
c. 20,000 shares
d. None

13. Mr. J would like to be elected as a director of ABC Corporation. Upon investigation, it was known that Mr. J was
convicted by final judgment for a crime punishable by 8 years. Due to his voluntary surrender, his sentence was
reduced by 1.5 years. His imprisonment was also reduced by 2 more years due to his good conduct inside the
penitentiary. Taking into consideration the following information, is Mr. J qualified to be a director of ABC
Corporation?
a. Yes, because his actual stay inside prison is only 4.5 years.
b. No, because his crime is punishable by imprisonment for a period exceeding 6 years
c. No, because his crime is punishable by imprisonment for a period of 6 years
d. Yes, because everyone deserves a second chance in life.

14. Which of the following contracts can cover an after incurred obligation?
a. Pledge only
b. Pledge and chattel mortgage only
c. Pledge and real estate mortgage only
d. Pledge, chattel mortgage and real estate mortgage

15. In which of the following contracts can the right of redemption be exercised?
a. Pledge only
b. Chattel mortgage only
c. Real estate mortgage only
d. Both A & B
e. Both B & C

16. In which of the following contracts can the equity of redemption be exercised?
a. Pledge only
b. Pledge and chattel mortgage only
c. Chattel mortgage and real estate mortgage only
d. Pledge, chattel mortgage and real estate mortgage

17. In a real estate mortgage, who is entitled to the “excess” of the foreclosure sale?
a. Mortgagor
b. Motrgagee
c. Both of them, equally
d. The court

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT
13 May 2021: SUMMARY LECTURE

18. Can a “deficiency” in a foreclosure sale be recovered in a contract of pledge?

a. Yes, in all cases.
b. No, even if there is a stipulation to the contrary.
c. No, unless there is a stipulation to the contrary.
d. Yes, unless there is a stipulation to the contrary.

19. Four sisters inherited an apartment from their deceased parents. It gave them a rental income of P50,000 a month.
Their income for the first year was used to upgrade the property to accommodate more bedspacers. The siblings are
said to be in a
a. Co-ownership
b. Partnership
c. Corporation
d. Sole Proprietorship

20. He is one who is both active and known, but may or may not have an actual interest in the partnership
a. Silent partner
b. Dormant partner
c. Ostensible partner
d. Partner by estoppel

21. I: All partners, except the industrial ones, shall be liable pro-rata with all their property. Any stipulation against this
article shall be void, except as among the partners.

II: It cannot be agreed upon that all partners will only contribute industry to the partnership.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

22. In the dissolution of a general partnership, which has the top priority?
a. Those owing to partners other than for capital and profits
b. Those owing to partners in respect of capital
c. Those owing to partners in respect of profits
d. Those owing to creditors other than partners

23. In the dissolution of a limited partnership, which has the least priority?
a. Those owing to general partners in respect of profits
b. Those owing to general partners in respect of capital
c. Those owing to limited parters in respect of profits
d. Those owing to limted partners in respect to loans

24. I: A single purpose cooperative may transform into a multi purpose cooperative only after at least one year of
operations.

II: A cooperative that is duly registered shall have unlimited liability.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

25. I: For cooperatives, no extension can be made earlier than 5 years prior to the original or subsequent expiry date
unless there are justifiable reasons.

II: All applications for registration shall be finally disposed of by the CDA within a period of 90 days from the filing
thereof, otherwise the application is deemed approved.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT
13 May 2021: SUMMARY LECTURE

26. I: For electric cooperatives, the quorum is 50% of all members plus one.

II: For cooperatives in general, the quorum is 25% of all members entitled to vote.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

27. I: The Board of Directors of a cooperative has a term of 3 years.

II: Intra-cooperative disputes are within the jurisdiction of the Municipal Trial Court.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

28. I: In a cooperative, all officers shall serve during good behavior and shall not be removed except for cause after due
hearing.

II: No two or more persons with relationships up to the fourth civil degree of consanguinity and affinity shall serve as
an appointive officer in a cooperative.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

29. I: Reports shall be filed with the CDA within 90 days from the end of the calendar year.

II: Duly registered cooperatives which do not transact any business with non-members or the general public shall not
be subject to any taxes and fees imposed under the internal revenue laws and other tax laws.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

30. I: Shares refer to a unit of capital in a primary cooperative, the par value of which may be fixed to any figure not
more than one hundred pesos.

II: In the distribution of the net surplus of a cooperative, an amount for the reserve fund shall be at least three
percent of the net surplus.

a. Only the first statement is correct.

b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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