Which of the following is not an objective and goal of a cooperative?

Enter into division, merger or consolidation

Provide optimum social and economic benefits to its members
Teach them efficient ways of doing things in a cooperative manner
Propagate cooperative practices and new ideas in business and management

A cooperative acquires juridical personality from

The date of issuance of certificate of registration
The date of filing of articles of incorporation
The date of filing of articles of cooperation
The date of issuance of certificate of incorporation

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. Which is not?
When a member has patronized any of the services of the cooperative for an unreasonable
period of time
When a member has continuously failed to comply with his obligations
When a member has acted in violation of the bylaws and the rules of the cooperative
For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative

A contract entered into by the cooperative with one or more of its directors, officers, and committee
members is voidable, at the option of the cooperative, unless all the following conditions are present.
Which of the following conditions applies only to contracts with officers?
That the contract has been previously authorized by the general assembly or by the board
of directors
That the presence of such director in the board meeting wherein contract was approved was not
necessary to constitute a quorum for such meeting
the vote of such director was not necessary for the approval of the contract
That the contract is fair and reasonable under the circumstances

The following are the qualifications of an external auditor who conducts financial audit on
cooperatives. Which is the exception?
Accredited by the Securities and Exchange Commission
Member in good standing of PICPA
Independent of the cooperative
Accredited by the Board of Accountancy

The following are the contents of articles of cooperation. Which is not?

The rights and liabilities of membership
The term of existence of the cooperative
The common bond of membership
The names, nationality, and the postal addresses of the registrants

The general assembly shall have the following exclusive powers which cannot be delegated. Which is
the exception?
To determine strategic plans and policy formulation activities
To determine and approve amendments to the articles of cooperation and bylaws
To elect or appoint the members of the board of directors, and to remove them for cause
To approve developmental plans of the cooperative
The following are required for the assignment of share capital in a cooperative. Which is not?
The share capital is held for less than 1 year
The assignment is made to a member of the cooperative
The assignment is made to the cooperative
The board of directors has approved such assignment

Q1.True Statements
1.) A contract entered into between a cooperative and its officer is valid if it is fair and reasonable
and approved by the board of directors
2.) Cooperatives may derive their capital from borrowings
3.) Upon dissolution, the donated capital of the cooperative shall be subject to escheat
4.) The directors of cooperatives shall not receive any compensation, except for reasonable per
diem, in the absence of any provision in the bylaws fixing their compensation
5.) Cooperatives may derive their capital from revolving capital
6.) Officers who knowingly assent to patently unlawful acts are severally liable for damages to the
cooperative
7.) The directors of cooperatives may receive compensation if there is a provision in the bylaws
fixing their compensation
8.) Duly registered cooperatives dealing/transacting business with members only are exempt from
paying income taxes
9.) If a cooperative has commenced business and its operation, but has not carried on its business
for two consecutive years, is a ground for dissolution
10.) A contract entered into between a cooperative and its director is voidable
11.) Duly registered cooperatives which transact business with both members and non-members and
with accumulated reserves and undivided net savings of not more that P10,000,000 are exempt
from income taxes

Q2.False Statements
1.) A director who, by virtue of his office, acquires for himself an opportunity which should belong
to the cooperative shall be solidarily liable with the other directors for damages
3.) Duly registered cooperatives which transact business with both members and non-members and
with accumulated reserves and undivided net savings of not more than P10,000,000 are exempt
from income taxes with respect to sales to members only
4.) If a cooperative has not commenced business and its operation within two years after the
issuance of its certificate of registration, it is deemed dissolved
5.) The transfer of share capital by a member of a cooperative must be approved by the general
assembly
6.) Not more than 10% of the net surplus of a cooperative shall be allocated for the reserve fund
7.) Committee members who knowingly assent to patently unlawful acts are jointly liable for all
damages to the cooperative
8.) Upon dissolution, the revolving capital of the cooperative shall be subject to escheat
9.) A contract entered into between a director and a committee member is voidable
10.) A director who, by virtue of his office, acquires for the cooperative an opportunity which should
belong to the cooperative shall be liable for damages
 Q2.True Statements
1.) In determining the net amount of deposit under the PDIC Law, if the account is held jointly by 2
or more natural persons, or by 2 or more juridical entities, the maximum insured deposit shall
be divided into as many equal shares as there are individuals, juridical entities, unless a different
sharing is stipulated in the document of the deposit
2.) The Ombudsman has the power to examine and access bank accounts and records
3.) The PDIC acts as deposit insurer if it promotes and safeguards the interest of the depositors by
way of providing permanent and continuing insurance coverage of all deposits
4.) Bank Secrecy Law does not apply to an examination made in the course of a special
examination of bank which is specifically authorized by the Monetary Board (BSP) after being
satisfied that there is reasonable ground to believe that a bank fraud has been committed and
that is necessary to look into the deposit to establish such fraud
5.) The report of banks to AMLC of covered or suspicious transactions does not require written
permission of the depositor
6.) The PDIC acts as receiver of banks if it administers the affairs of a closed bank
7.) Under PDIC Law, the amount due to a bona fide depositor for legitimate deposits in an insured
bank net of any obligation of the depositor to insured bank as of the date of closure, and
includes foreign currency denominated deposits, shall not be more than P500,000.00
8.) The PDIC acts as deposit insurer if it promotes and safeguards the interest of the depositing
public by way of providing insurance coverage of all deposits
9.) The depositor under PDIC Law has to file a claim within 2 years from the actual takeover of the
closed bank by the PDIC

Q2.False Statements
1.) It is obligatory of every bank to report to the Treasurer of the Philippines of deposits that have
not been touched for a period of 10 years, then escheat proceedings shall be made
2.) Directors, officers, stockholders and related interests who contract a loan with their bank or
related bank are required to execute a written waiver of secrecy of deposits pursuant to the Anti-
Money Laundering Act
3.) The examination of bank accounts requires court order if it is done by the Ombudsman
4.) If the depositor fails to file or enforce a claim within the prescriptive period, the rights of the
depositor under PDIC Law against the closed bank shall be barred
5.) There is waiver of rights under Foreign Currency Deposit Act when there is written permission
from the depositor not to disclose his bank deposits
6.) The depositor under PDIC Law has to file a claim within 2 years from the actual takeover of the
PDIC by the closed bank
7.) All deposits of whatever nature with banks or banking institutions, including investments in
bonds issued by Government and its political subdivisions and instrumentalities, are absolutely
confidential in nature and may be examined, inquired or looked into by any person, government
official, bureau, or office
8.) It is obligatory of every bank to report to the City Treasurer of the city where the bank is
located, of deposits that have not been touched for a period of 10 years
9.) Examining and investing in banks are among the powers of the PDIC
10.) Administering the affairs of banks before they are closed is one of the powers of the PDIC
11.) The bank deposits insured by the PDIC does not include foreign currency deposits
12.) Examinations by the BSP, PDIC, PCGG and COA are covered by the confidentiality of deposits
under the Foreign Currency Deposit Act but not by the Bank Secrecy Law
13.) The powers of the PDIC as regulator of banks include the power to collect loans and other
claims of banks
14.) Bank Secrecy Law does not apply to an examination made in the course of a special
examination of bank which is specifically authorized by the Monetary Board (BSP) after being
satisfied that there is reasonable ground to believe that a bank fraud has not been committed and
that is necessary to look into the deposit to establish such fraud
15.) The PDIC acts as regulator of banks if it manages the affairs of a closed bank
16.) Directors, officers, stockholders and related interests who contract a loan or any form of
financial accommodation with their bank or related bank are required to execute a written
waiver of unclaimed balances pursuant to The New Central Bank Act
17.) Directors, officers, stockholders and related interests who contract a loan with their bank are
required to execute a written waiver of the unclaimed balances
18.) The Ombudsman has the power to examine and access bank accounts and records for violations
of Human Security Act
19.) All deposits of whatever nature with banks or banking institutions, including investments in
bonds issued by Government and its political subdivisions and instrumentalities, are absolutely
confidential in nature and may not be examined, inquired or looked into by any person,
government official, bureau, or office, under Foreign Currency Deposit Act
20.) It is obligatory of every bank to report to the City or Municipal Treasurer of the Philippines of
deposits that have not been touched for a period of 10 years
21.) In determining the net amount of deposit under the Bank Secrecy Law, if the account is held
jointly by 2 or more natural persons, or by 2 or more juridical entities, the maximum insured
deposit shall be divided into as many equal shares as there are individuals, juridical entities,
unless a different sharing is stipulated in the document of the deposit
22.) If the depositor fails to file or enforce a claim within the prescriptive period, the PDIC shall be
discharged from liability for the insured deposit and the rights against the closed bank shall be
barred
23.) There is waiver of rights under the Bank Secrecy Law when there is written permission from
the depositor to withdraw from his deposit
24.) Examinations by the BSP, PDIC, PCGG and COA are covered by the confidentiality of foreign
deposits under Foreign Currency Deposit Act
25.) The PDIC acts as deposit insurer if it promotes and safeguards the interest of the depositing
public by way of providing temporary insurance coverage of all deposits
 Q3.True Statements
1.) There is no violation of the Bouncing Checks Law if the check is presented for payment after
180 days from the date of issuance, even if there was no sufficient fund at the time of issuance
2.) Insurance brokers are covered entities under the Anti-Money Laundering Law
3.) The amount involved is not commensurate with the business or financial capacity of the client,
is an example of suspicious transaction
4.) The dishonor of the check by the drawee-bank is an essential element of violation of the
Bouncing Checks Law
5.) The Supreme Court may enjoin the freeze order of the Court of Appeals and the Anti-Money
Laundering Council
6.) A person who assists in the commission of money laundering commits money laundering if he
had knowledge that the money came from an unlawful activity
7.) The BSP Governor is always the chairman of the AMLC
8.) All deposits of whatever nature with banks or banking institutions, including investments in
bonds issued by Government and its political subdivisions and instrumentalities, are absolutely
confidential in nature and may not be examined, inquired or looked into by any person,
government official, bureau, or office
9.) At the time the check was issued, there was no sufficient fund, but when it was encashed, there
was enough fund, there is no violation of the Bank Secrecy Law
10.) Quasi-banks are covered entities are the Anti-Money Laundering Law
11.) A check presented for payment after 90 days from the date of issuance but before 180 days,
does not presume knowledge on the part of the drawer that there was insufficient fund at the
time of issuance
12.) If there is an attempt to conceal the money coming from smuggling, money laundering is
committed
13.) A person who counsels the commission of money laundering commits money laundering if he
had knowledge that the money came from an unlawful activity

Q3.False Statements
1.) A check presented for payment after 90 days from the date of delivery to the payee but before
180 days, does not presume knowledge on the part of the drawer that there was insufficient fund
at the time of issuance
2.) If there is sufficient fund at the time of the issuance of the check, there can be no violation of
the Bouncing Checks Law
3.) If the drawee-bank dishonors a check on the ground of stop payment order from the drawer,
there can be no violation of the Bouncing Checks Law
4.) At the time the check was issued, there was sufficient fund, but when it was encashed, there was
no sufficient fund, there can be no violation of the Bank Secrecy Law
5.) Money laundering is not committed if there is only an attempt to conceal the money coming
from smuggling
6.) A transaction in cash involving a total amount in excess of P500,000 within one banking day, is
a covered transaction under Bank Secrecy Law
7.) Corporations registered in the Securities and Exchange Commission are covered entities under
the Anti-Money Laundering Law
8.) There is a conclusive presumption of knowledge of insufficiency of funds if the check is
presented for payment within 90 days from the date of issuance of the check
9.) If a dishonored check on the ground of insufficiency of funds is funded within 5 days from the
date of dishonor, there is no violation of the Bouncing Checks Law
10.) Bank Secrecy Law does not apply to an examination made in the course of a special
examination of bank which is specifically authorized by the Monetary Board (BSP) after being
not satisfied that there is reasonable ground to believe that a bank fraud has been committed and
that is necessary to look into the deposit to establish such fraud
11.) The PDIC acts as deposit insurer if it promotes and safeguards the interest of the depositing
public by way of providing temporary insurance coverage of all deposits
12.) It is obligatory of every bank to report to the City or Municipal Treasurer of the Philippines of
deposits that have not been touched for a period of 10 years
13.) If the drawee-bank dishonors a check on the ground of stop-payment order from the drawer but
there is insufficient fund, there can be no violation of the Bouncing Checks Law
14.) The amount involved is not commensurate with the business or financial capacity of the
covered entity, is an example of suspicious transaction
15.) There is a violation of the Bouncing Checks Law if the check is presented for payment after 180
days from the date of issuance, if it is established that there was no sufficient fund at the time of
issuance
16.) In order that there will be a violation of the Bouncing Checks Law, there must be insufficient
funds at the time of the issuance of the check
17.) The dishonor of the check by the drawee-bank is not an essential element of violation of the
Bouncing Checks Law
18.) Bank Secrecy Law does not apply to an examination made in the course of a special
examination of bank which is specifically authorized by the Monetary Board (BSP) after being
satisfied that there is reasonable ground to believe that a bank fraud has not been committed and
that is necessary to look into the deposit to establish such fraud
19.) There is presumption of knowledge of insufficiency of funds if the check is presented for
payment within 90 days from the date of receipt of the check by the payee
20.) If a dishonored check on the ground of insufficiency of funds is funded within 5 days from the
date of receipt of the check, there is no violation of the Bouncing Checks Law
21.) A transaction in cash involving a total amount in excess of P500,000 within one banking day, is
a covered transaction under Bouncing Checks Law
22.) The powers of the PDIC as a receiver of closed banks includes the power to borrow money
23.) It is obligatory of every bank to report to Treasurer of the Philippines of deposits that have not
been touched for a period of 10 years from the date of the last deposit
24.) The Regional Trial Court may enjoin the freeze order of the Anti-Money Laundering Council
25.) Non-stock corporations are covered entities under the Anti-Money Laundering Law
26.) All deposits of whatever nature with banks or banking institutions, including investments in
bonds issued by Government and its political subdivisions and instrumentalities, are absolutely
confidential in nature and may not be examined, inquired or looked into by any person,
government official, bureau, or office, under Foreign Currency Deposit Act
27.) The Commissioner of Customs is a member of the AMLC
 Q4.True Statements
1.) The prior art base, in relation to an invention, means all matter that has at any time before the
priority date of that claim been made available to the public by written or oral description, by
use, or in any other way
2.) A patent owner has a right to assign or transfer by succession the patent
3.) In the case of commissioned work, the owner of the work is the person who commissioned the
work
4.) Dramatizations, translations, adaptations, abridgments, arrangements, and other alterations of
literary or artistic works are derivative works and are protected by copyright
5.) The author of a work has a moral right to require that the authorship of the work be attributed to
him
6.) The author of an original literary work has the exclusive right to reproduce the work and the
right to withhold it from publication
7.) A mark cannot be registered as trademark when it is a mark which is identical with, or
confusingly similar to, or constitutes a translation of a mark which is considered by the
competent authority of the Philippines to be well-known internationally and in the Philippines,
and it is registered here, as being already the mark of a person other than the applicant for
registration, and used for similar or dissimilar goods or services
8.) The assignment of trademark has no effect against third persons until they are recorded in the
Intellectual Property Office
9.) A mark which consists of a signature of a living individual with his written consent can be
registered as trademark
10.) There is no infringement of trademark when a person who, with the consent of the owner of the
registered mark, use in commerce a colorable imitation of a registered trademark
11.) When 2 or more persons have jointly made an invention, the right to a patent shall belong to
them jointly
12.) National symbols cannot be registered as trademark
13.) The private reproduction of a published work in a single copy is permitted, without the
authorization of the owner of copyright in the work, where the reproduction is made by a
natural or juridical person and exclusively for research and private study
14.) "Public lending" is the transfer of possession of the original or a copy of a work or sound
recording for a limited period, for non-profit purposes, by an institution the services of which
are available to the public, such as public library or archive
15.) Literary and artistic works are original intellectual creations in the literary and artistic domain,
and they are protected from the moment of their creation
16.) The author of a derivative literary work has the exclusive right to reproduce the work
17.) A mark cannot be registered as trademark when it is a mark which is identical with, or
confusingly similar to, or constitutes a translation of a mark which is considered by the
competent authority of the Philippines to be well-known internationally and in the Philippines,
whether or not it is registered here, as being already the mark of a person other than the
applicant for registration, and used for identical or similar goods or services
18.) The author of an original literary work has the right to withhold it from publication
19.) In the case of commissioned work, the copyright is granted to the creator
20.) A registered mark has no effect against any person who, in good faith, before the filing date or
the priority date, was using the mark for the purposes of his business or enterprise
21.) The invention must be new as compared to what is already known in the public domain
22.) There is infringement of trademark when a person who, without the consent of the owner of the
registered mark, use in commerce a colorable imitation of a registered trademark
 Q4.False Statements
1.) A "collective mark" is a work which has been created by 2 or more natural persons at the
initiative and under the direction of another with the understanding that it will be disclosed by
the latter under his own name and that contributing natural persons will not be identified
2.) Literary and artistic works are copied intellectual creations in the literary and artistic domain,
and they are protected from the moment of their creation
3.) The term of a patent shall be 10 years from the filing date of the application
4.) A registered mark has no effect against any person who, in good faith, before the filing date or
the priority date, was not using the mark for the purposes of his business or enterprise
5.) The author of an original literary work has the right to withhold it from publication, which is his
economic right
6.) “Published works" means works, which, with or without the consent of the authors, are made
available to the public by wire or wireless means in such a way that members of the public may
access these works from a place and time individually chosen by them
7.) The assignment of trademark is not binding to the parties if it is not recorded in the Intellectual
Property Office
8.) A "collective work" is a work which has been created by 2 or more natural persons at the
initiative and under the direction of another with the understanding that it will be disclosed by
the latter under his own name and that contributing natural persons will be identified
9.) National symbols may or may not be registered as trademark
10.) A patent owner has no right to transfer by succession the patent
11.) A mark which consists of a signature of a living individual with his written consent cannot be
registered as trademark