Ans # Statements

1. The power of a parent corporation to direct or govern the

financial and operating policies of an enterprise to obtain
benefits from its activities.
A. CONTROL
B. COMMAND
C. COURT
D. NONE OF THE ABOVE
2. Real or personal property of the debtor upon which a lien
attaches.
A. PERSONAL PROPERTY
B. REAL PROPERTY
C. ENCUMBERED PROPERTY
D. LIEN-ATTACHED PROPERTY
3 The financial condition of a debtor that is generally unable
to pay its or his liabilities as they fall due in the
ordinary course of business or has liabilities that are
greater than its or his assets.
A. INSOLVENT
B. LIQUID
C. SOLVENT
D. SOLID
4 Proceedings initiated by creditors.
A. CREDITOR PROCEEDINGS
B. VOLUNTARY PROCEEDINGS
C. COURT PROCEEDINGS
D. INVOLUNTARY PROCEEDINGS
5 The amount of voting power a parent should own, directly or
indirectly through subsidiaries or affiliates, so that
control is presumed to exist.
A. ½
B. MORE THAN ½
C. ¼ TO ½
D. THE AMOUNT IS IRRELEVANT
6 A corporation which has control over another corporation
either directly or indirectly through one or more
intermediaries.
A. PARENT
B. SUBSIDIARY
C. AFFILIATE
D. HEAD
7 A corporation that directly or indirectly, through one or
more intermediaries, is controlled by, or is under the
common control of another corporation.
A. PARENT
B. CHILD
C. AFFILIATE
D. BODY
8 Demands of whatever nature or character against the debtor
or its property.
A. CLAIM
B. CONTROL
C. DEFENSE
D. RIGHT
9 The date on which the court issues the Commencement Order.
A. COMMENCEMENT DAY
B. COMMENCEMENT DATE
C. COMMENCEMENT ORDER DAY
D. COMMENCEMENT ORDER DATE
10 A claim that is secured by a lien.
A. CLAIM
B. SECURED LIEN
C. SECURED CLAIM
D. LIEN CLAIM
11 A secured creditor or the agent or representative of such
secured creditor.
A. SECURED REPRESENTATIVE
B. SECURED AGENT
C. SECURED CLAIM
D. SECURED PARTY
12 A corporation more than fifty percent (50%) of the voting
stock of which is owned or controlled directly or indirectly
through one or more intermediaries by another corporation.
A. SUBSIDIARY
B. PARENT
C. AFFILIATE
D. BODY
13 A claim that is not secured by a lien.
A. UNSECURED LIEN
B. UNLIEN CLAIM
C. UNSECURED CLAIM
D. UNSAFE CLAIM
14 Proceedings initiated by the debtor.
A. DEBTOR INITIATED PROCEEDING
B. VOLUNTARY PROCEEDING
C. INVOLUNTARY PROCEEDING
D. COURT PROCEEDING
15 any corporation authorized/licensed to sell or offer to sell
pre-need plans.
A. PRE-NEED COMPANY
B. INSURANCE COMPANY
C. BANK
D. NEED COMPANY
16 A creditor with a secured claim
A. SECURED CREDITOR
B. SECURED CLAIM
C. SECURED DEBTOR
D. SECURED CREDIT
17 A broker, dealer, underwriter, transfer agent or other
juridical persons transacting securities in the capital
market
A. SECURED PARTY
B. SECURED BROKER
C. SECURITIES MARKET PARTICIPANT
D. SECURITIES DEALER
18 A member of a nonstock corporation or association or a
partner in a partnership or a holder of shares of a
corporation.
A. STEAKHOLDER
B. STAKEHOLDER
C. STROKEHOLDER
D. STICKHOLDER
19 It is the Act which is also known as the Financial
Rehabilitation and Insolvency Act.
A. R.A. NO. 10142
B. R.A. NO. 9520
C. R.A. NO. 20015
D. R.A. NO. 6969
20 The nature of proceedings under FRIA.
A. EX REM
B. IN REM
C. EX DIEM
D. IN DIEM

21 Those reasonable and necessary expenses incurred or arising

from the filing of a petition under the provisions of FRIA.
A. JURIDICAL EXPENSES
B. JUDICIAL EXPENSES
C. OPERATING EXPENSES
D. ADMINISTRATIVE EXPENSES
22 The monetary claims against the debtor.
A. LIABILITIES
B. CLAIMS
C. CREDIT
D. RIGHT
23 A natural person holding a management position described in
or contemplated by a juridical entity’s articles of
incorporation and bylaws
A. ACCOUNTANT
B. LIQUIDATOR
C. OFFICER
D. COURT
24 A statutory or contractual claim or judicial charge on real
or personal property
A. CLAIM
B. RIGHT
C. DEMAND
D. LIEN
25 The restoration of the debtor to a condition of successful
operation and solvency
A. REHABILITATION
B. RESURRECTION
C. RESTORE
D. RESTATE
26 It may acquire or hold an equity interest or investment in a
debtor or its subsidiaries when conveyed to such bank in
satisfaction of debts.
A. GOVERNMENT
B. COURTS
C. CREDITORS
D. BANKS
27 A plan by which the financial well-being and viability of an
insolvent debtor can be restored using various means.
A. REVIVAL PLAN
B. RESORT PLAN
C. RESTORATION PLAN
D. REHABILITATION PLAN
28 Designate the court or courts that will hear and resolve
cases brought under FRIA.
A. SUPREME COURT
B. REGIONAL TRIAL COURT
C. SANDIGANBAYAN
D. COURT OF APPEALS

29 Any duly licensed bank or quasi-bank that is potentially or

subject to conservatorship, receivership or liquidation
proceedings under the New Central Bank Act (Republic Act No.
7653) or successor legislation
A. INSURANCE COMPANY
B. STOCK CORPORATION
C. NON-STOCK CORPORATION
D. BANKS
30 the order issued by the court under Section 16 of FRIA
A. COURT ORDER
B. ORDER
C. COMMENCEMENT ORDER
D. CONTROL ORDER
31 The date on which the court issues the Liquidation Order.
A. DATE OF ORDER
B. DATE OF INSOLVENCY
C. DATE OF LIQUIDATION
D. DATE OF CONCEPTION
32 A creditor whose claim or a portion thereof is neither
secured, preferred nor subordinated under FRIA.
A. UNSECURED CREDITOR
B. GENERAL UNSECURED CREDITOR
C. UNSECURED CLAIM
D. GENERAL UNSECURED CLAIM
33 A natural person who is a resident and citizen of the
Philippines that has become insolvent as defined under FRIA
A. INDIVIDUAL CREDITOR
B. INDIVIDUAL RESIDENT
C. INDIVIDUAL DEBTOR
D. INDIVIDUAL CITIZEN
34 The estate of the insolvent debtor
A. DEBTOR’S ESTATE
B. INSOLVENT DEBTOR
C. INSOLVENT STATE
D. INSOLVENT DEBTOR’S ESTATE
35 The proceedings under chapter V (Liquidation of Insolvent
Juridical Debtors) of FRIA
A. LIQUIDATION
B. SOLIDIFICATION
C. INSOLVENCY
D. VOLUNTARY PROCEEDINGS
36 The Order issued by the court under Section 112 of FRIA
A. COURT ORDER
B. DEMAND ORDER
C. LIQUIDATION ORDER
D. ORDER
37 The ownership interest of third parties in property held by
the debtor, including those covered by trust receipts or
assignments of receivables
A. OWNERSHIP INTEREST
B. INTEREST RATE
C. PROPERTY INTEREST
D. DEBTOR INTEREST
38 a lien on property, the possession of which has been
transferred to a creditor or a representative or agent
thereof
A. POSSESSORY LIEN
B. PROPERTY
C. POSSESSION
D. LIEN
39 A creditor with an unsecured claim
A. UNSECURED CREDITOR
B. CREDITOR
C. UNSECURED CLAIM
D. CLAIM
40 Under FRIA, the term debtor does not include:
A. BANKS
B. INSURANCE COMPANIES
C. PRE-NEED COMPANIES
D. ALL OF THE ABOVE
41 It shall take the place of the management and the governing
body of the debtor and assume their rights and
responsibilities.
A. LIQUIDATOR
B. MANAGEMENT COMMITTEE
 C. AFFILIATE
D. SUBSIDIARY

42 They shall be considered either employees or independent

contractors of the rehabilitation receiver.
A. PROFESSIONAL OR EXPERTS
B. DEBTORS
C. CREDITORS
D. SUBSIDIARY
43 Under FRIA, it refers to the court designated by the Supreme
Court to hear and determine, at the first instance, the
cases brought under this Act.
A. LIQUIDATOR
B. COURT
C. DEBTOR
D. CREDITOR
44 A natural or juridical person which has a claim against the
debtor that arose on or before the commencement date
A. DEBTOR
B. CREDITOR
C. LIQUIDATOR
D. COURT
45 A sole proprietorship duly registered with the Department of
Trade and Industry (DTI), a partnership duly registered with
the Securities and Exchange Commission (SEC), a corporation
duly organized and existing under Philippine laws, or an
individual debtor who has become insolvent as defined herein
A. CREDITOR
B. COURT
C. LIQUIDATOR
D. DEBTOR
46 Transactions in the pursuit of the individual debtor's or
debtor's business operations prior to rehabilitation or
insolvency proceedings and on ordinary business terms
A. ORDINARY COURSE OF BUSINESS
B. EXTRAORDINARY COURSE OF BUSINESS
C. PRIOR COURSE OF BUSINESS
D. NONE OF THE ABOVE
47 The judicial proceedings commenced by the court's acceptance
of a petition filed under FRIA
A. PROCEEDINGS
B. LIQUIDATION
C. INSOLVENCY
D. NONE OF THE ABOVE
48 Property held by the debtor in which other persons have an
ownership interest
A. REAL PROPERTY
B. DEBTOR’S PROPERTY
C. PROPERTY OF OTHERS
D. PERSONAL PROPERTY
49 Decisions of creditor, in case of stock or nonstock
corporations, shall be made in accordance to this Code
A. CIVIL CODE
B. CORPORATION CODE
C. SECRET CODE
D. COOPERATIVE CODE
50 In case of partnership that are not consistent with the
FRIA, decisions shall be made in accordance to this Code
A. CIVIL CODE
B. CORPORATION CODE
C. NO LONGER A SECRET CODE
D. COOPERATIVE CODE