RFBT Final Preboard Questionaires

No. 125 Brgy.
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
RFBT FINAL PRE-BOARD EXAM (MAY 2023) Batch 6 Joshua
INSTRUCTION: CHOOSE THE LETTER THAT CORRESPONDS TO THE BEST

ANSWER.
1. On February 1, 2023, Rose borrowed from Chandler P10, 000 payable on March
1, 2023. On April 1, 2023, Chandler demanded Rose to pay. How much should
Rose pay to Chandler?
A. P10,000 only
B. P10,000 plus legal interest
C. P10,000 plus 12% interest
D. Nothing
2. Joey promised to deliver to Penny a diamond ring on March 15, 2023. Penny
agreed that Joey shall not be liable for fraud or gross negligence. March 15, 2023
came, and Joey delivered which he knew was a fake diamond ring. When Penny
had the ring checked by an expert jeweler, she found out that the ring Joey
delivered was fake. Does Penny have a cause of action against Joey?
A. No, because Penny has already agreed that Joey is not liable for fraud.
B. No, because Penny has already agreed that Joey is not liable for gross
negligence.
C. Yes, because waiver of an action for future fraud is void.
D. Yes, because Joey has not performed any obligation at all.
3. Ross, Chandler, and Joey borrowed P90, 000 from Monica, Rachel, and Phoebe.
How much can Monica demand from Ross in case of passive solidarity?
A. P30,000
B. P45,000
C. P60,000
D. P90,000
4. Monica promised Joey that she will give him a car if Joey sells P500,000 worth of
shabu in 3 days. What is the status of the obligation?
A. Valid
B. Void
C. Voidable
D. Unenforceable
5. On January 1, 2023, Charlotte promised Sandy that she will give her P100000
when she passes the May 2023 CPALE. For the meantime and without Sandy’s
knowledge, Charlotte deposited P10,000 in a BDO time deposit. On June 1, 2023,
the results came out and Sandy passed. Charlotte’s deposit has grown to
P10,250.00. How much should Charlotte give to Sandy when Sandy demands the
fulfillment of Charlotte’s promise?
A. P10,000
B. P10,250
C. P10,125
D. Nothing
6. First statement: The intention to divide the profits among the partners is an
essential element of every contract of partnership.
Second statement: The intention to enter into a business is also an element of
every contract of partnership.
A. Both statements are correct
B. Only the first statement is correct
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C. Only the second statement is correct

D. Both statements are not correct
7. First statement: A contract of partnership is a consensual contract.

Second statement: As a rule, a contract of partnership is not required to comply
with a certain form for its perfection.

8. If a debtor is indebted to the partnership and to its managing partner and the latter
was able to collect from the said debtor, the managing partner should not:
A. Allocate the amount collected in proportion to the credit owed to the
partnership and to the managing partner if no receipt is issued by the
managing partner.
B. Allocate the amount collected in proportion to the credit owed to the
partnership and to the managing partner if the latter issued a receipt in the
managing partner’s name.
C. Apply the entire payment to the credit owed to the partnership if a receipt is
issued in the partnership’s name.
D. Apply the entire payment to the credit owed to the managing partner if a
receipt is issued in the managing partner’s name.
9. If no partner is appointed as the managing partner, the general rule is:

A. All partners are deemed managing partners and may execute all acts of
administration.
B. None of the partners may execute acts of administration.
C. The partners must execute a partners’ resolution to appoint a managing
partner.
D. None of the above.
10. If the exclusive right to vote and be voted for in an election of directors is granted
to founder shares, it must be for a limited period not to exceed _____ year/s from
the date of incorporation.
A. 1 year
B. 2 years
C. 5 years
D. 10 years
11. If the authorized capital stock of a corporation is P40,000, what is the minimum
amount that should be paid by prospective stockholders in order for the SEC to
issue a Certificate of Incorporation?
A. None
B. P10,000
C. P40,000
D. P5,000
12. If a corporation does not formally organize and commence the transaction of its
business within _____ year/s from the date of its incorporation, its certificate of
incorporation shall be deemed revoke as of the day following the end of such
period.
A. 1 year
B. 2 years
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C. 5 years
D. 10 years
13. If a corporation has commenced the transaction of its business but subsequently
becomes continuously inoperative for a period of ____ consecutive years, the SEC
may, after due notice and hearing, place the corporation under delinquent status.
A. 10 years
B. 2 years
C. 5 years
D. 50 years
14. What is the vote required in an amendment of the articles of incorporation?

A. Majority vote of the BOD
B. Majority vote of the outstanding capital stock
C. Majority vote of the BOD + majority vote of the outstanding capital stock
D. Majority vote of the BOD + 2/3 vote of the outstanding capital stock
15. On March 1, 2023, Biboy borrowed from Ted P50,000 payable when Biboy’s
means permit him to do so. A month after, Ted is contemplating on collecting the
loan from Biboy. What must Ted do?
A. Ted must go to court and ask the court to fix the period within which Biboy
must pay.
B. Ted must go to Biboy and ask him to agree on a specific date of payment.
C. Ted may compel Biboy to pay at once since the obligation to pay the loan
is demandable at once.
D. Ted must wait until Biboy’s means permit him to pay the loan.
16. Chelsea promised to deliver Sherwin on March 15, 2023 one of her following
phones: an iPhone 14 Pro Max, a Huawei P50 Pro, or Samsung S23 Ultra. Two
days before the promised date of delivery, Chelsea lost her iPhone 14 Pro Max
due to fortuitous event, and her Samsung S23 Ultra due to her own fault. What can
Chelsea deliver to Sherwin on March 15, 2023 to perform her obligation?
A. Any of the three
B. iPhone 14 Pro Max or money equivalent of Samsung S23 Ultra
C. Huawei P50 Pro or money equivalent of Samsung S23 Ultra
D. Huawei P50 Pro only
17. Tosca promised to deliver to Mike a 2022 Toyota Vios worth P800,000 when he
reaches the age of 21. Tosca agreed that in case of non-compliance, she will be
liable to pay a penalty of P1,000,000. Mike celebrated his 21 st birthday and when
he demanded from Tosca the delivery of the promised car, Tosca was failed to
perform. Mike is entitled to get from Tosca:
A. P1,800,000
B. P1,000,000
C. P800,000
D. Nothing
18. On March 1, 2023, Monica, 17, borrowed P5,000 from Rachel, 21, payable on April
1, 2023. During Monica’s 18th birthday on March 15, 2023, Rachel borrowed
P5,000 from Monica payable on April 1, 2023. April 1, 2023 came, and Monica is
now demanding Rachel to pay. Can Rachel invoke compensation?
A. Yes, since there are two debts in money which are both due and liquidated.
B. Yes, Rachel can invoke any defense.
C. No, Monica’s loan is voidable, and a minor cannot be made to pay except
for the reasonable value of the loan.
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D. No, minors are prohibited by law to enter into contracts of loan, which makes
Monica’s loan void.
19. Janice promised to deliver to Christian a 55”-inch LED TV worth P35,000 on March
15, 2023. When Janice realized that she cannot deliver the TV anymore, she
offered to Christian P40,000 instead of giving the TV to which Christian agreed.
Christian accepted the P40,000. How was the first obligation extinguished?
A. Dation in payment
B. Payment by cession
C. Novation
D. Performance
20. A proper court may dissolve the partnership in any of the following cases, except:
A. A partner has been declared insane in any judicial proceeding or is shown
to be of unsound mind.
B. A partner becomes in any other way incapable of performing his part of the
partnership contract.
C. A partner has been guilty of such conduct as it tends to affect prejudicially
the carrying on of the business.
D. Illegality of the partnership’s business.
21. First Statement: As a rule, a limited partner whose surname appears in a

partnership name contrary is liable as a general partner to partnership creditors.
Second Statement: If the limited partner takes part in the control of the business,
he/she is likewise liable as a general partner.
22. Under the Articles of Incorporation of BTS Corporation, it was stated that it should
have 15 directors. In order to have a quorum in their next meeting, what is the
minimum number of directors that should be able to attend?
A. 7
B. 8
C. 10
D. 15
23. Assuming 10 out of the 15 directors were present in the BOD meeting of BTS
Corporation, what is the minimum number of affirmative votes that should be
garnered if the corporation would like to push through with the purchase of a certain
asset?
A. 5
B. 6
C. 8
D. 10
24. Assuming 10 out of the 15 directors were present in the BOD meeting of BTS
Corporation, what is the minimum number of affirmative votes that should be
garnered if they would like to elect a new treasurer?
A. 6
B. 8
C. 10
D. 15
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25. There are nine directors in BPINK Corporation pursuant to its articles of
incorporation. One of them was validly removed as a director. Who has the power
to fill such vacancy?
A. The stockholders only
B. The remaining eight directors
C. The remaining eight directors and the majority of the stockholders
D. The remaining eight directors and 2/3 of the stockholders
26. There are ten directors in NSYNC Corporation pursuant to its articles of
incorporation. Four of them resigned due to an internal conflict. Who has the power
to fill such vacancies?
A. The stockholders only
B. The remaining six directors
C. The remaining six directors and the majority of the stockholders
D. The remaining six directors and 2/3 of the stockholders
27. Lawrence sold Michael’s car to Hershey for P100,000 without Michael’s authority.
Upon learning that Lawrence acted without authority from Michael, Hershey
revoked the contract of sale. Subsequently, Lawrence told Michael what
happened. Realizing that the P100,000 sale price was a good bargain, Michael
went to Hershey and told her that he is agreeing to Lawrence’s act of selling and
is now demanding that Hershey pays him P100,000 in exchange of his car that he
is willing to deliver. Can Hershey be compelled to pay P100,000 in exchange of
the car?
A. No, because Hershey revoked the contract before Michael expressed his
ratification.
B. No, because the sale entered into by Lawrence and Hershey is void and it
produces no legal effects and cannot be ratified.
C. Yes, because Michael’s ratification retroacted to the date of sale as if it was
executed without any defect.
D. Yes, because the revocation is without effect as it was only made by
Hershey without Lawrence’s consent.
28. Bryan offered to sell his mountain bike to Kerwin for P50,000. Kerwin told Bryan
that he is willing to buy it for P60,000. Bryan told Kerwin that P60,000 is too much
so he told Kerwin that he would be willing to selling it for P55,000. After hearing
Bryan’s last offer, Kerwin had a heart attack which led to his immediate death. After
Kerwin’s funeral, Bryan went to Kerwin’s heirs and demanded to enforce the
contract of sale he allegedly entered into with Kerwin before the latter’s death. Can
Kerwin’s heirs be compelled to perform?
A. No, there is no perfected contract of sale.
B. Yes, if Kerwin is ready to deliver the mountain bike, the heirs must pay him
P50,000.
C. Yes, if Kerwin is ready to deliver the mountain bike, the heirs must pay him
P55,000.
D. Yes, if Kerwin is ready to deliver the mountain bike, the heirs must pay him
P60,000.
29. A contract entered into by and between two (2) deaf-mutes is:
A. Valid
B. Voidable
C. Void
D. Unenforceable
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30. In no case shall the total yearly compensation of directors, as such directors,
exceed _____ percent of the net income before income tax of the corporation
during the preceding year.
A. 3%
B. 5%
C. 10%
D. 12%
31. Contracts entered into by the corporation with one or more of its directors or
trustees may be ratified by the vote of the stockholders representing at least
________ of the outstanding capital stock in a meeting called for that purpose.
A. ¼
B. ½
C. A majority
D. 2/3
32. It is the right of existing stockholders to purchase or subscribe to all issuances or

disposition of shares of any class, in proportion to their respective stockholders,
before such shares are offered to the public.
A. Appraisal right
B. Pre-emptive right
C. Subscription right
D. Dissenting right
33. Adele Corporation is a stock corporation that has a principal office located in
Taguig City. What are the possible venues for the upcoming regular stockholder’s
meeting?
A. Any place in Taguig City only
B. Any place in Metro Manila only
C. Any place in Luzon only
D. Any place in the Philippines only
34. Mendes Corporation is a stock corporation that has a principal office in Makati City.
Assuming their by-laws is silent on the matter, what are the possible venues for
the upcoming meeting of the Board of Directors?
A. Any place in Makati City only
B. Any place in Metro Manila only
C. Any place in the Philippines only
D. Any place in the world
35. What is the primary and general objective of a Cooperative as provided in R.A. No.
9520?
A. To generate income for allocation and distribution to its members
B. To provide services of various scope to the benefit of its members
C. Propagate cooperative practices and new ideas in business and
management
D. To help improve the quality of life of its members
36. Statement 1: All officers of a cooperative shall serve during good behavior and
shall not be removed except for cause after due hearing.
Statement 2: Loss of confidence shall not be a valid ground for removal unless
evidenced by acts or omission causing loss of confidence in the honesty and
integrity of such officer.
A. Both statements are true
B. Both statements are false
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C. Only statement 1 is true

D. Only statement 2 is true
37. The highest policy-making body in a cooperative is the—

A. General Assembly
B. Board of Directors
C. Body of Officers
D. Board of Trustees
38. Shalin had a bitter quarrel with her boyfriend whom she caught cheating. After
sharing what happened to Shalin, Lenny offered to sell his gun for P4,990 to Shalin
so she can use it to get back at her cheating boyfriend. Shalin accepted Lenny’s
offer. What is the status of the contract of sale?
A. Valid
B. Voidable
C. Void
D. Unenforceable
39. In anticipation of the upcoming elections, mayoral candidate Bong Devilla offered
to buy Cathy’s vote for P1,500 to which Cathy agreed. Bong Devilla had a contract
prepared which mistakenly indicated that the price for Cathy’s vote is P15,000.
Both parties signed the written agreement without reading the contents. Bong
Devilla lost in the elections. When Cathy demanded from Bong the payment of
P15,000, Bong went to court and asked for the reformation of the contract to make
it appear that the correct price is P1,500. Is the reformation of the contract available
to Bong?
A. No, because the remedy is only available to Cathy.
B. No, because the contract is void.
C. Yes, because Bong lost the elections.
D. Yes, because there is clearly a mistake as to what the real price is.
40. On March 1, 2023, Roger, who has an outstanding loan to Rafael amounting to
P1,000,000 payable on March 31, 2023, donated his only property worth
P3,000,000 to Novak. Upon learning of the Roger’s donation, Novak sought for the
rescission of the donation. Is rescission the proper remedy?
A. Yes, because Roger won’t be able to pay Novak anymore since there is no
more property left.
B. Yes, because Roger’s action clearly prejudicial to Novak.
C. No, because Novak has to sue for specific performance first.
D. No, because the debt is not yet due, and Novak has not yet demanded
performance from Roger.
41. On September 1, 2022, Archie (aged 16) sold his iPhone to Betty (aged 21) for
P5,000 so he could buy an expensive cake for his 17 th birthday celebration on
September 21, 2022. The exchange of the iPhone and the payment was made on
September 9, 2022. Until when can Archie ask for the annulment of the contract of
sale?
A. September 1, 2026
B. September 21, 2026
C. September 21, 2027
D. The action for annulment is imprescriptible.
42. Pepe (aged 17) sold his old shoes to Pablo (aged 16) for P100. Mario (Pepe’s
father) learned about the said sale. Mario told Pablo that he is expressly ratifying
the sale between his son and Pablo. What is the status of the contract?
A. Valid
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B. Voidable
C. Void
D. Unenforceable
43. As a general rule, who has the right to vote in case of shares placed in the
treasury?
A. The original subscriber
B. The corporation
C. The delinquent stockholder
D. None of the above
44. No proxy shall be valid and effective for a period longer than ____ years at any
one time.
A. 2
B. 3
C. 5
D. 10
45. XYZ Company (a domestic corporation) owns a beach resort with several cottages.
Mr. Peterson, the president of the company and owner of 30% of the company’s
outstanding capital stock, occupied one of the cottages for residential purposes.
After Mr. Peterson’s term expired, XYZ Company wanted to recover possession of
the cottage. Mr. Peterson refused to surrender the cottage. Is the refusal of Mr.
Peterson justified?
A. Yes, as a stockholder of XYZ Company, he has a right to possess and enjoy
the properties of the corporation.
B. Yes, as a former president of XYZ Company, he has a right to possess and
enjoy the properties of the corporation.
C. Both A and B
D. No, ownership of shares in XYZ Company does not entitle any stockholder
to possession of any specific property of the corporation.
46. These are group of persons who assume to act as a corporation knowing it to be
without authority to do so.
A. De facto corporation
B. Ostensible corporation
C. Corporation by estoppel
D. Both B and C
47. Under this concept, the percentage of Filipino equity in a corporation engaged in
nationalized and/or partly nationalized areas of activities is computed by attributing
the nationality of the second or even subsequent tier of ownership to determine
the nationality of the corporate shareholder.
A. Doctrine of Piercing the Veil of Corporate Fiction
B. Alter Ego Doctrine
C. Grandfather Rule
D. Both A and B
48. Membership in the cooperative may be terminated by a vote of the majority of all
the members of the board of directors for any of the following causes, except:
A. When a member has not patronized any of the services of the cooperative
for an unreasonable period of time as may be previously determined by the
board of directors;
B. When a member has acted in violation of the bylaws and the rules of the
cooperative;
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C. For any act or omission injurious or prejudicial to the interest or the welfare
of the cooperative;
D. All of the above.
49. What is the minimum paid up share capital of a cooperative?

A. P5,000.00
B. P15,000.00
C. P20,000.00
D. P25,000.00
50. Jeff sold his red car worth P500,000 to Ren in exchange for Rens white van worth
P251,000 plus P249,000 cash. What contract is entered into?
A. Sale
B. Barter
C. Commodatum
D. No contract
51. On March 1, 2023, Jennifer orally offered to sell to Brenda her parcel of land for
P1,000,000 to which Brenda orally agreed. On March 2, 2023, the two executed a
deed of sale and payment was made. On March 3, 2023, the deed of sale was
notarized. The following day, Brenda put fences around the parcel of land she
bought to prevent trespassers from entering the property. When did/will Brenda
become the owner of the parcel of land sold?
A. Upon issuance of the new certificate of title under Brenda’s name
B. March 2, 2023
C. March 3, 2023
D. March 4, 2023
52. Francis sold his car to Lorena for P240,000 payable in 24 equal monthly
installments of P10,000 represented by 24 postdated checks dated every 5th day
of each calendar month. To secure the payment of the purchase price, Lorena and
Francis entered into a chattel mortgage over the car sold. After paying the first 6
monthly installments on time, the 7 th check bounced, and Lorena failed to make
good of the check when demanded by Francis. What remedy is available to
Francis?
A. Sue for specific performance
B. Cancel the sale
C. Foreclose the chattel mortgage
D. Any of the three
53. On January 1, 2023, Mara sold her residential condominium apartment to Clara
for P15,000,000 payable in monthly equal installments of P100,000 after paying a
downpayment of P3,000,000.00. Clara paid the downpayment and was able to pay
the first 6 monthly installments. Unfortunately, Clara missed the 7 th monthly
installment. How many months can be given to Clara for her to pay without
additional interest, the unpaid installment?
A. 1 month
B. 2 months
C. 3 months
D. 4 months
54. Dexter and Lady, married but legally separated, entered into a contract of sale
involving Dexter’s condominium unit for a price of P4,000,000. The sale was
embodied in a public instrument and Lady paid the price using her exclusive
money. What is the status of the contract?
A. Valid
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B. Voidable
C. Void
D. Unenforceable
55. Which of the following is not a qualification of an incorporator?

A. He must be a natural person
B. He must be citizen of the Philippines
C. He must be of legal age
D. He must own or subscribe to at least one share
56. Under the Revised Corporation Code, the corporate term as originally stated in the
articles of incorporation may be extended by amending the articles of
incorporation. However, no extension can be made earlier than ____ years prior
to the original or subsequent expiry date/s unless there are justifiable reasons for
an earlier extension as may be determined by the SEC.
A. Two years
B. Three years
C. Five years
D. Ten years
57. What is the required vote to amend or repeal the by-laws of a corporation?
A. Majority vote of the BOD
B. Majority vote of the stockholders of the corporation
C. Majority vote of the BOD and majority vote of the stockholders of the
corporation
D. 2/3 of the stockholders and majority vote of the BOD
58. It is an act committed outside the purpose for which a corporation is created as
defined by the law and its organization, therefore beyond the powers conferred
upon it.
A. Ultra vires act
B. Unenforceable act
C. Both A and B
59. Celine Corporation is engaged in selling pencils on wholesale basis. It is merely

renting a bodega and 90% of its assets consist of its stocks of pencil. Mr. Sam, a
school supply dealer, wanted to purchase all of the stocks of Celine Corporation.
What is vote required before this transaction could push through?
A. 2/3 vote of the outstanding capital stock
B. 2/3 vote of the outstanding capital stock and majority vote of the BOD
C. Majority vote of the BOD
D. No voting is required for this specific transaction.
60. Statement 1: PDIC covers deposits or funds deposited in a bank giving rise to a
creditor-debtor relationship with the depositor.
Statement 2: Trust funds and money market placements are investments and are
thus, not covered by the PDIC.
61. A has an individual savings account with Bangko Marupok with a balance of
P1,200,000. He also has a P1,500,000 joint account with his mother in the same
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bank. Bangko Marupok declared bankruptcy and was subsequently closed. How
much can A recover from PDIC for deposit insurance?
A. P2,000,000 from both individual and joint accounts
B. Only P500,000 from both individual and joint accounts
C. P500,000 from his individual account and P250,000 from his joint account
D. Only P500,000 from his individual account
62. If the transaction is a covered transaction and at the same time, a suspicious
transaction, the covered institution shall report it as a—
A. Either a covered or suspicious transaction
B. A covered transaction
C. A suspicious transaction
D. Depends on the discretion of the covered institution
63. What government agency/office institutes escheat proceedings to acquire

unclaimed balances in favor of the government?
A. The Office of the Solicitor General
B. The Office of the President
C. The Monetary Board of the Bangko Sentral ng Pilipinas
D. The Office of the Chief of the Philippine National Police
64. Chief Justice Joseph is the respondent in an impeachment case being heard in the
Senate. The Prosecution wants to inspect the foreign currency denominated bank
accounts of the Chief Justice in CBA Bank, but the Defense Lawyers opposed
saying that foreign currency denominated bank accounts are beyond the coverage
of Bank Secrecy laws. Are the defense lawyers of the Chief Justice correct?
A. Yes, foreign currency denominated bank accounts in impeachment
proceedings are not among the exceptions provided in RA 1405.
B. No, RA 1405 covers foreign currency denominated bank accounts in
impeachment proceedings as within the coverage of the said law.
C. No, in impeachment proceedings, the Senate may order the disclosure of
the subject bank accounts regardless if it is denominated in foreign or local
currency.
D. Yes, RA 8791 explicitly recognizes that foreign currency denominated bank
accounts are not subject to disclosure or inspection.
65. Leonard owns a hen. On March 1, 2023, Charlene offered to buy the hen for P500,
and Leonard accepted her offer. They agreed to have the hen delivered on March
31, 2023. On March 2, 2023, the hen laid two (2) eggs. One of the eggs were stolen
without fault or negligence attributable to Leonard. On March 31, 2023, what must
Leonard deliver to Charlene?
A. Nothing
B. The hen
C. The hen and the one remaining egg
D. The hen and two eggs
66. On January 2, 2023, Harvey borrowed P1,000,000 from Mike payable on

December 31, 2023. The following month, Mike sold his parcel of land worth
P1,000,000 to Harvey for P10.00. Mike was given the right to repurchase the same
parcel of land within 15 years from date of sale. What is the status of the contract
of sale involving Mike’s parcel of land?
A. It is a valid contract of sale with right of repurchase.
B. It is a valid and absolute contract of sale.
C. It is a void.
D. It is an equitable mortgage.
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67. Shane borrowed from Kian P100,000 and secured said borrowing by executing a
real estate mortgage over a parcel of land owned by Shane which is valued at
P50,000. Said mortgage was properly registered with the Register of Deeds.
Shane, without the consent of Kian, sold the same parcel of land to Nicky and
transferred possession over the same to Nicky. The same parcel of land has
increased its value to P80,000. Shane’s loan later became due and when Kian
demanded payment, Shane refused to pay. How much can Shane claim from
Nicky?
A. Nothing
B. P50,000
C. P80,000
D. P100,000
68. A prospective director of a corporation must be of legal age and must not be
convicted by final judgement of an offense punishable by imprisonment for a period
exceeding _____ year/s, or a violation of the Revised Corporation Code committed
within _____ year/s prior to the date of his/her election or appointment.
A. 2; 3
B. 6; 5
C. 6; 10
D. 3; 5
69. The minority block of Bieber Corporation was able to elect only one director, Justin.
The stockholders held a meeting and mustered the required 2/3 vote to remove
Justin. Was the removal of Justin proper?
A. Yes, the removal was proper because stockholders holding outstanding
capital stock may, by a 2/3 vote, remove a director.
B. Yes, the removal was proper only if it was for a just cause.
C. No, the removal was not proper because Justin was elected by the minority
stockholders.
D. No, the removal was not proper because the required number of votes was
not met.
70. Which of the following is not sensitive personal information?

A. Social security number
B. Suspension of driver’s license
C. Income tax returns
D. All of the above are sensitive personal information.
71. Rachelle made an appointment with Dr. Ederick for a medical consultation. In order
to keep track of Rachelle’s condition and efficiently monitor it, Dr. Ederick secretly
recorded his conversation with Rachelle during the medical consultation. Dr.
Ederick has no intention of sharing his recording to anyone and committed to
himself to treat any information with strict confidentiality. Did Dr. Ederick violate
Rachelle’s rights under the Data Privacy Act?
A. Yes, Rachelle has a right to be informed that her consultation with Dr.
Ederick is being recorded.
B. Yes, Rachelle has a right to access the recording made by Dr. Ederick.
C. No, since Dr. Ederick has no intention of sharing the information, he does
not need to comply with the Data Privacy Act.
D. No, as long as Dr. Ederick keeps the recording confidential.
72. Westlife Corp. is a domestic corporation, the principal office of which is in Taguig
City. Backstreet, Inc. is a foreign corporation based in New York City, USA. Brian,
the President of Westlife Corp., was in Makati City when he emailed a business
proposal to Backstreet, Inc. using the company laptop. It was received and read
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by Nick, the President of Backstreet, Inc., using the company-issued smartphone

while he was in Los Angeles, California. Where is the place of dispatch of the
electronic document sent by Brian?
A. Taguig City
B. Makati City
C. New York City
D. Los Angeles
73. Under Batas Pambansa Blg. 22, the making, drawing and issuance of a check
payment of which is refused by the drawee because of insufficient funds in or credit
with such bank, when presented within _____ days form the date of the check,
shall be prima facie evidence of knowledge of such insufficiency of funds or credit.
A. 30 days
B. 60 days
C. 90 days
D. 120 days
74. This test mandates that the entirety of the marks in question must be considered
in determining confusing similarity.
A. Dominancy Test
B. Holistic Test
C. Idem Sonans Test
75. Within what term or period may intellectual right involving patents exist?
A. 10 years subject to indefinite renewal for periods of 10 years each
B. 20 years from the filing date of application
C. During author’s lifetime and for 50 years after his death
76. Statement 1: The BIR, as an exception to the Bank Secrecy Law, may inquire into
the bank deposits of a decedent for purposes of ascertaining the correct amount
of estate tax due of the latter.
Statement 2: The BIR may likewise inquire into the bank deposits of a taxpayer for
compromise of his tax liability on the ground of financial incapacity.
77. Any transaction involving the amount of more than ______________________ in

one banking day is a covered transaction under the AMLA.
A. P500,000
B. P1,000,000
C. P300,000
D. P600,000
78. A lawyer accompanied his client in a bank for the latter to deposit P10,000,000
pesos without any question. If the lawyer or depositor-client cannot explain the
supposed to be money deposited in the bank, the lawyer and the depositor-client
may be held liable for violation of the AMLA as a suspicious transaction, because—
A. The transaction is so structured as to prevent reporting to the AMLC.
B. The transaction deviates from its usual transaction with the bank.
C. The transaction originates from an unlawful activity as defined in the AMLA.
D. There is no underlying legal justification or economic trade.
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79. The Court of Appeals (CA) may issue a freeze order, upon determination by the
AMLC that certain funds are from suspicious transactions, under the following
conditions:
A. There must be a verified ex parte petition filed by the AMLC
B. CA must determine that probable cause exists that any monetary instrument
or property is in any way related to an unlawful activity as defined in the
AMLA
C. The freeze order shall be effective immediately and shall be for a period not
exceeding six (6) months
D. All of the above.
80. Republic Act No. 11032 otherwise known as the Ease of Doing Business Act
applies to the following except:
A. Local government units
B. Government owned and controlled corporations
C. Government offices, agencies and instrumentalities
D. Private entities granted by a public franchise by the Government
81. Any regulation, rule or administrative procedure or system that is detrimental in

achieving its intended objectives and, as a result, produces slow, suboptimal, and
undesirable social outcomes:
A. Processing Time
B. Red Tape
C. Regulation
D. Simple transactions
82. To eliminate bureaucratic red tape, avert graft and corrupt practices and to
promote transparency and sustain ease of doing business the Department of
Information and Communication Technology (DICT) shall be responsible in
establishing, operating and maintaining a __________________.
A. Central Business Portal
B. Philippine Business Data Bank
C. Anti-Red Tape Council
D. Zero-contact Policy
83. Applications or requests submitted by applicants or requesting parties of a

government agency which only require ministerial functions on the part of public
officer or employee:
A. Simple Transactions
B. Processing Time
C. Highly Technical Application
D. Non business Transactions
84. The _______________ shall coordinate with all government offices in the review
of existing laws, executive issuances and local ordinances related to the Ease of
Doing Business Act:
A. Anti-Red Tape Authority
B. Anti-Red Tape Council
C. DICT
D. Anti-Red Tape Unit
85. As a general rule, a contract between corporations with interlocking directors is:
A. Valid
B. Voidable
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C. Void
D. Unenforceable
86. Who among the following officers of a corporation is required to be a Filipino

citizen?
A. President
B. Corporate Secretary
C. Treasurer
D. None
87. What is the voting requirement from the stockholders when it comes to declaration
of cash dividends?
A. 1/3
B. Majority
C. 2/3
D. None
88. The prescriptive period given to recover penalty from the creditor who fail to
disclose to any person any information required under the truth and lending act
is:
A. 6 months
B. 1 year
C. 2 years
D. 3 years
89. ABC Manila Condo Corp is a duly incorporated domestic corporation organized to
own or hold title to the land and common areas in ABC Manila. Aside from
maintaining and administering the common areas of ABC Manila, ABC Manila
Condo Corp is also responsible for enforcing the Master Deed with Declaration of
Restrictions ("Master Deed"), and promulgating House Rules and such other rules
as may be necessary, among others. In addition, there is a provision under the
property management services which prevent internet service providers ("ISPs")
other than XYZ Cable Inc. from providing fixed-line internet services to the
residents of ABC Manila.
Tenants and residents of ABC Manila have no other choices or alternatives except
the service of XYZ Cable Inc. to serve fixed-line internet services even the service
is poor in quality and at a high price. Did ABC manila violate any provision of the
Philippine Competition Act?
A. No, because ABC Manila can set up its own rule like in a property
management services because this is purely private matter.
B. Yes, ABC Manila violate Sec 15(i) which is “limiting production, markets or
technical development to the prejudice of consumers”.
C. No, because ABC manila is only exercising his right which is the freedom
of contract which is both Constitutional and statutory right.
D. Yes, ABC Manila violate Sec 15 (c) which is “Making a transaction subject
to acceptance by the other parties of other obligations which, by their nature
or according to commercial usage, have no connection with the transaction”
90. A, B and C are competitors. A, B and C agree that to ensure that A will be the
winner. B agree that he will submit a bid of P10M and C agree that he will submit
a bid of P30M. The bid to be submitted by A is P8M only. This bid rigging is called?
A. Cover bidding
B. Bid suppression
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C. Bid rotation
D. Market allocation
91. The stage where the bidder with the Lowest Calculated Bid, in the case of Goods
and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting
Services, undergoes verification and validation whether he has passed all the
requirements and conditions as specified in the Bidding Documents.
A. Post-qualification
B. Pre bid conference
C. Bid evaluation
D. Pre procurement conference
92. In the bid Evaluation of Short Listed Bidders for Consulting Services, the Bid with
the highest calculated rating shall be the:
A. Highest rated Bid

B. Lowest rated bid
C. Lowest Calculated Bid
D. Highest calculated bid
93. In the Bid for the Procurement of Goods and Infrastructure Projects, the bids that
passed the preliminary examination shall be ranked from lowest to highest in
terms of their corresponding calculated price which shall shall be referred to:
A. Highest rated Bid

B. Lowest rated bid
C. Lowest calculated Bid
D. Highest calculated bid
94. The Head of Procuring Agency reserves the right to reject any and all bids, declare
failure of bidding, or not award the contract in case there is prima facie evidence
of collusion, BAC is found to have failed in following the bidding procedures, for
any justifiable and reasonable grounds where the award of the contract will not
redound to the benefit of the government. This clause is called:
A. Cancellation clause
B. Restitution clause
C. Reservation clause
D. Forfeiture clause
95. Ms. Candy usually works in an office for forty (48) hours per week from Monday to
Saturday. She usually starts at 8:00 am and will end by 5:00 pm. One day, she
was informed by her Boss Toto that a flexible working arrangement will start on
February 1, 2023, due to the pandemic and in order to cushion and mitigate the
effect of the loss of income of the employees, based on a voluntary agreement
between employer and employee and subject to the notice requirements of DOLE.
Further, the arrangement provides that the normal work week is reduced from six
days (Monday to Saturday) to four days (Tuesday to Friday) but the total number
of work hours of 48 hours per week shall remain. In effect, the normal workday has
increased from eight hours to twelve hours. Is the arrangement valid?
A. Yes, because flexible working arrangements are valid and beneficial in

terms of reduction of operational cost and helps in saving jobs while
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maintaining competitiveness and productivity in industries as long as a

voluntary agreement is entered into between the employer and employee.
B. Yes, because employers and the employees are encouraged to explore
alternative schemes under any agreement and company policy or practice
to cushion and mitigate the effect of the loss of income of the employees.
C. No, because prior to the implementation of the flexible work
arrangements, an employer shall first notify the DOLE regional office.
D. No, because the arrangement will be burdensome to the employee
considering that the normal workday is increased without corresponding
overtime premium.
96. Ms. X was employed by Narra Corporation last July 1, 2022 as an office clerk.
However, the former did not receive 13th month pay when the latter distributed it
last December 15, 2022. Feeling aggrieved, she filed a complaint in DOLE for
violation of labor standards. Will the complaint prosper?
A. Yes, because Ms. X is entitled to six-twelfth (6/12) of the total basic salary
she earned within a calendar year as a rank and file employee
B. Yes, because all employees are required to be given 13 th month pay under
the law
C. No, because Ms. X is a managerial employee
D. No, because Ms. X was not able to complete one (1) whole year of service
as required under the law
97. Under the Philippine Competition Act, the threshold amount for compulsory
notification in a merger and acquisition?
A. the size of the party is one billion pesos (P1,000,000,000.00) and the size
of transaction exceeds one billion pesos (P1,000,000,000.00)
B. the size of the party is (P5,600,000,000.00) and the size of transaction is
(P2,200,000,000.00)
C. the size of the party is (P7,000,000,000.00) and the size of transaction is
(P2,900,000,000.00)
D. the size of the party is (P10,000,000,000.00) and the size of transaction is
(P5,000,000,000.00)
98. Statement I - Daniella purchased an iPhone 12 Pro Max worth P70,000 from Imee.
Daniella issues a check in payment of the item that she bought. Imee agrees and
allows Daniella to take the phone home. If the check bounces, Daniella may be
held liable for Estafa, particularly the Estafa by means of deceit.
Statement II – Based on the above statement, suppose that before the first check
was encashed, Daniella takes it back and issues a different (second) check and
when the second check was encashed, the account did not have sufficient funds,
hence, bounced. The crime committed will only be a violation of B.P. 22 because
the second check was issued for payment of a pre-existing debt and, hence, there
is no deceit employed by Daniella which shall result to Estafa.
A. Only Statement 1 is true.

B. Only Statement 2 is true.
C. Both statements are true.
D. Both statements are false.
99. This refers to an act or practice whenever the producer, manufacturer, supplier, or
seller through concealment, false representation or manipulation, induces a
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consumer to enter into a sales or lease transaction of any consumer product or

service
A. Unfair or unconscionable sales act or practice

B. Deceptive sales act or practice
C. Fraudulent sales act or practice
D. False sales act or practice
100. In order to secure a bank loan, JackKnife Corporation surrendered its

certificate of bank deposit, with a maturity date of March 1, 2023, to the bank. The
corporation defaulted on the due repayment of the loan upon maturity, prompting
the bank to encash the certificate of bank deposit. JackKnife Corporation
questioned the above action taken by the bank as being a case of pactum
commissorium. The bank disagrees. Who is correct?
A. JackKnife Corporation is correct since this is a clear case of pactum

commissorium when the bank automatically appropriated the bank deposits
of JackKnife Corporation
B. JackKnife Corporation is correct since the bank is not authorized to offset
the loan from the former’s bank deposit as it will violate the rule on
compensation under the Civil Code
C. The bank is correct since deposits of money in banks and similar financial
institutions are governed by provisions on simple loans. The relationship
between the depositor and a bank is one of creditor and debtor.
D. The bank is correct since pactum commissorium is not applicable to banks

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No. 125 Brgy.

RFBT FINAL PRE-BOARD EXAM (MAY 2023) Batch 6 Joshua

INSTRUCTION: CHOOSE THE LETTER THAT CORRESPONDS TO THE BEST

C. Only the second statement is correct

7. First statement: A contract of partnership is a consensual contract.

A. Both statements are correct

9. If no partner is appointed as the managing partner, the general rule is:

14. What is the vote required in an amendment of the articles of incorporation?

21. First Statement: As a rule, a limited partner whose surname appears in a

32. It is the right of existing stockholders to purchase or subscribe to all issuances or

C. Only statement 1 is true

37. The highest policy-making body in a cooperative is the—

49. What is the minimum paid up share capital of a cooperative?

55. Which of the following is not a qualification of an incorporator?

59. Celine Corporation is engaged in selling pencils on wholesale basis. It is merely

63. What government agency/office institutes escheat proceedings to acquire

66. On January 2, 2023, Harvey borrowed P1,000,000 from Mike payable on

70. Which of the following is not sensitive personal information?

by Nick, the President of Backstreet, Inc., using the company-issued smartphone

77. Any transaction involving the amount of more than ______________________ in

81. Any regulation, rule or administrative procedure or system that is detrimental in

83. Applications or requests submitted by applicants or requesting parties of a

86. Who among the following officers of a corporation is required to be a Filipino

A. Highest rated Bid

A. Highest rated Bid

A. Yes, because flexible working arrangements are valid and beneficial in

maintaining competitiveness and productivity in industries as long as a

A. Only Statement 1 is true.

consumer to enter into a sales or lease transaction of any consumer product or

A. Unfair or unconscionable sales act or practice

100. In order to secure a bank loan, JackKnife Corporation surrendered its

A. JackKnife Corporation is correct since this is a clear case of pactum

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