RFBT Second Monthly Assessment

1. X, Y and Z formed a partnership with the following initial contributions: X – P10,000; Y – P30,000; Z
– P60,000. They agreed to distribute losses equally. During the year 2022, the partnership earned a
profit of P30,000. How much is the share of Z in the said profits?
A. P3,000
B. P9,000
C. P10,000
D. P18,000

2. The following may inspect the books of the partnership, except:

A. Secret partner

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B. Limited partner
C. Silent partner
D. None of the choices is an exception

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3. The consent of all the partners will not be necessary in which of the following:
A. Submission of partnership claim to arbitration

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B. Disposition of the partnership’s goodwill
C. Approval of a collective bargaining agreement
D. Confession of judgment

A. Insanity
B. Death
C. Insolvency
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4. Which of the following is a judicial ground for dissolution of a partnership?
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D. All of the choices are judicial grounds

5. Which type of partner generally cannot engage in a business similar to that of a partnership?
A. Managing partner
B. Capitalist partner
C. Industrial partner
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D. All of the choices

6. Which of the following does not dissolve a partnership?

A. Loss before delivery of specific thing which a partner promised to contribute
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B. Loss after delivery of property where the partner contributed only the use or enjoyment
C. Loss after delivery of specific thing which the partner promised to contribute
D. All of the choices will dissolve the partnership

7. Contribution of this kind made by a limited partner will make him liable as a general partner:
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A. Money
B. Property
C. Industry
D. All of the choices

8. In the liquidation of a general partnership, this will be the last to be settled:

A. Claims of creditors
B. Advances of partners
C. Profits of the partners
D. Capital contributions of the partners
9. If there is no agreement to the contrary, in case of imminent losses, this type of partner is not required
to make additional contributions to save the venture:
A. Silent partner
B. Managing partner
C. Industrial partner
D. Ostensible partner

10. As to object, a partnership may be classified as:

A. General or limited
B. Universal or particular

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C. Capitalist or industrial
D. At will or for a specific undertaking

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11. A stipulation prohibiting a partner from sharing in the profits and losses is:
A. Valid
B. Void

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C. Unenforceable
D. Voidable

12. A partner who manage or administer partnership affairs

A. Capitalist partner
B. Silent partner
C. Ostensible partner
D. Managing partner
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13. First Statement: A partnership may be constituted in any form, except where immovable property or
real rights are contributed to the common fund, in which case a public instrument, to which is attached
an inventory of said property, signed by any of the partners, shall be necessary for validity.
Second Statement: If the general partnership has a capital of P3,000 or more, it must appear in a public
instrument, which shall be recorded in the office of the SEC. However, it is not necessary for its
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validity.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
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D. Only the second statement is correct

14. Tom and Jerry are partners in a certain business, Jerry being the managing partner. Tyke owes Jerry
P50,000 and the partnership P100,000, and both credits are demandable. Tyke pays Jerry P30,000 and
Jerry issues a receipt in his name. How much is Jerry entitled to apply to his credit?
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A. P10,000
B. P20,000
C. P30,000
D. P0

15. When a managing partner is appointed in the Articles of Partnership, what is required to revoke his
authority?
I. Just or lawful cause
II. Majority vote of the partners
III. Vote of the controlling interest
 A. I and II
B. I and III
C. II only
D. III only

16. If there is no managing partner appointed, and no stipulation requiring the approval of all partners,
who may manage the partnership?
A. The partners with the highest capital contribution
B. The partners with the highest share in the losses
C. The partners with a majority stake

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D. All of the partners

17. Bubbles, Buttercup and Blossom formed a partnership contributing P20,000, P40,000 and P60,000

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respectively. After some time, the assets of the partnership dwindled to P30,000 and the partners
agreed to close the business. The partnership remained indebted to Mojo Jojo for P120,000. How
much can Mojo Jojo collect from the partners?

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A. Bubbles – P15,000; Buttercup – P30,000; Blossom – P45,000
B. Bubbles – P20,000; Buttercup – P40,000; Blossom – P60,000
C. Bubbles – P30,000; Buttercup – P30,000; Blossom – P30,000
D. Bubbles – P40,000; Buttercup – P40,000; Blossom – P40,000

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18. Distinguish between a general partner and a limited partner.
A. A general partner can be held personally liable for partnership obligations after all of the assets of
the partnership have been exhausted, where a limited partner cannot be held liable.
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B. A general partner may not participate in the management of the partnership, whereas a limited
partner may.
C. A general partner may contribute money or other property only to the common fund, whereas a
limited partner may contribute money, property, or industry.
D. The name of a general partner may not appear in the firm name, whereas that of a limited partner
may.
C

19. If the partnership is a general partnership, the order of payment is as follows, those owing to: (1)
creditors other than partners, (2) partners other than for capital and profits, (3) partners in respect
of capital, and (4) partners in respect of profits
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A. 1, 2, 3 then 4
B. 1, 3, 2 then 4
C. 1, 2, 4 then 3
D. 4, 3, 2 then 1
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20. A limited partner’s capital contribution may be returned even if there is no period agreed upon in the
Certificate of Limited Partnership, provided, he provides __ months’ notice.
A. 3
B. 6
C. 9
D. 12

21. If the winding up of the partnership affairs is judicial, who has the right or duty to wind up or liquidate
the partnership affairs?
 A. Partner or legal representative or assignee designated by the partners
B. Partner or legal representative or assignee designated by the court
C. Managing partner
D. Notary public

22. Which of the following may be assignable? (I) general partner’s interest; (II) limited partner’s interest;
(III) general partner’s share in the specific partnership property
A. I, II and III
B. I and II only
C. I and III only
D. II and III only

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23. If a limited partner took as security, property of the partnership, for a loan he extended to the latter,
the contract is:

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A. Valid
B. Unenforceable
C. Rescissible

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D. Void

24. The obligation of the partner to contribute specific property carries with it the obligation/s: (I) to take
care of the thing prior to its delivery; (II) to warrant the thing against eviction; (III) to deliver the fruits
from the time the obligation to deliver arises.
A. I, II and III
B. I and II only
C. I and III only
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D. II and III only

25. Where one partner acting within the scope of his apparent authority receives money or property of
a third person and misapplies it, who may be made liable?
A. The partner who misappropriated
B. All the other partners
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C. The partnership
D. All of the choices, solidarily

26. A, B and C agreed to form a corporation in January 1, 2022. They fully paid for their subscriptions on
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January 31, 2022 and submitted the documentary requirements for incorporation including the
Articles of Incorporation and the By-Laws on February 15, 2022. On March 15 2022, the SEC issued
the Certificate of Registration. When did the Corporation acquired juridical personality?
A. January 1, 2022
B. January 31, 2022
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C. February 15, 2022

D. March 15, 2022

27. Under the Revised Corporation Code, a foreign corporation may now:
A. Form a One Person Corporation
B. Form a partnership or joint venture
C. Form a partnership for the practice of a common profession
D. Make reasonable donations for public welfare including giving aid to political parties
28. A group of persons which holds itself out as a corporation and enters into a contract with third
persons on the strength of such appearance cannot be permitted to deny its existence in an action
under the said contract. The “corporation” these people set themselves out to be is called:
A. De jure corporation
B. De facto corporation
C. Corporation by estoppel
D. Eleemosynary Corporation

29. Rebecca, Jack, Kate, Kevin and Randall are organizing a corporation whose Authorized Capital Stock
is P64,000. How much is the minimum paid-up capital requirement under the Revised Corporation
Code if the incorporators subscribed to 25% of the Authorized Capital Stock?

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A. P4,000 C. P16,000
B. P5,000 D. None of the answers

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30. The existence of a corporation sole begins from:
A. The time the parties came to an agreement to form a corporation and contribute money or
property

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B. The filing of the verified articles of incorporation
C. The issuance of a certificate of registration
D. First day of the year following the filing of the Articles of Incorporation

31.
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Under the Revised Corporation Code, the non-use of the corporate charter or failure to organize
for a period of __ years from the issuance of its Certificate of Registration will result in the
automatic dissolution of the corporation:
A. 2 C. 5
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B. 3 D. 10

32. A, B, C, D and E are directors of ABC Corporation. D resigned from his post and E retired. Who
will have authority to fill-up the vacancy?
A. By the stockholders as to both D and E
B. By the BoD as to both D and E
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C. By the stockholders as to D and the BoD as to E

D. By the stockholders as to E and the BoD as to D

33. A contract entered into by a person with the corporation where he is a director is generally:
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A. Valid C. Voidable
B. Unenforceable D. Rescissible

34. This corporate officer is now required to be a resident of the Philippines under the Revised
Corporation Code:
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A. Treasurer C. Secretary
B. President D. Internal Auditor

35. The number of incorporators to validly form a corporation under the Revised Corporation Code
is:
A. 5 to 15
B. Not more than 5
C. Not more than 15
D. May be more than 15
36. Which of the following is false with regards no-par value shares?
A. The shares are deemed fully-paid and non-assessable, thus cannot result to issuance of watered
stocks.
B. The consideration should not be less than P5
C. The entire consideration constitutes capital, not available for dividend declaration
D. Cannot be issued by banks, trust companies, insurance companies, public utilities and buildings
and loans associations.

37. A subscriber will be entitled to all the rights of a stockholder even before full-payment of the
subscription, except:
A. Right to vote

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B. Appraisal right
C. Right to dividends
D. Right to a certificate of stock

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38. To delegate the power to amend by-laws to the Board of Directors, the required number of votes
from the stockholders is ________; to revoke the same, the required number of votes is

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________.
A. Majority; Majority
B. Majority; Two-thirds
C. Two-thirds; Majority

39.
D. Two-thirds; two-thirds
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A corporation can retain earnings in excess of 100% of the paid-up capital in the following cases,
except:
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A. For definite corporate expansion projects
B. When prohibited from declaring dividends by a loan agreement with any financial institution or
creditor
C. When necessary under special circumstances such as a special reserve for probable
contingencies
D. When declaring dividends would subject the individual stockholders to a separate tax from the
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corporate tax already paid

40. In order for the restriction on the transfer of shares in a close corporation to be binding, the
prohibition must be indicated in:
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I. Articles of Incorporation
II. By-laws
III. Stock Certificate

A. I, II and III C. I and III only

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B. I and II only D. II and III only

41. A corporation has a personality distinct and separate from its stockholders. As such, the liability
of the corporation does not extend to its stockholders and vice versa. This describes:
A. Corporate Entity Theory
B. Piercing the Veil of Corporate Entity
C. Limited Liability Principle
D. All of the choices

42. The stockholders’ meeting is conducted _____ on ______.

 A. Annually; the date indicated in the by-laws
B. Monthly; any day as determined by the Board
C. Annually; any date after April 15
D. Monthly; the date indicated in the by-laws

43. Under the Revised Corporation Code, the place of stockholders’ meeting shall be:
A. The principal office
B. The city or municipality where the principal office is located
C. Anywhere in the Philippines
D. Anywhere even outside the Philippines

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44. The merger or consolidation of two corporations is deemed effective:
A. On the date the parties agreed to a consolidation or merger
B. On the date the stockholders ratified the Board resolution for consolidation or merger

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C. Upon submission of the articles of merger or consolidation to the SEC
D. Upon issuance of the certificate of merger or consolidation

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45. A remedy available to the stockholder to vindicate the violation of his rights as such, like the right
to inspect the books of accounts of the corporation:
A. Individual suit
B. Representative suit

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C. Derivative suit
D. None of the choices R
The number of stockholders in this type of corporation cannot exceed 20:
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A. Stock Corporations C. Foreign Corporations
B. Close Corporations D. Non-stock Corporations

47. Under the Revised Corporation Code, the required number of votes in case of voluntary dissolution
of a corporation where no creditors are affected:
A. 25% C. 2/3
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B. Majority D. 3/4

48. To qualify as a foreign corporation, the consideration is

A. Ownership of the shares of stock
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B. Appointment of a resident agent

C. Agreement of the parties
D. Under what country’s law it was incorporated

49. In the stockholders’ meeting for the election of directors/trustees, the Revised Corporation Code
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now allows the stockholders or members to vote through remote communication or in absentia,
in case (choose the exception):
A. The by-laws authorize the same
B. The majority of the BOD authorizes the same
C. Even without authorization under the by-laws or from the BOD in case of corporations vested
with public interest
D. None of the above is an exception

50. Under the Revised Corporation Code, alternative certification of the financial statements shall be
allowed if:
 A. The paid-up capital is less than P50,000
B. The paid-up capital is less than P600,000
C. The total assets or liabilities is less than P50,000
D. The total assets or liabilities is less than P600,000

51. In case of ambiguity in the provisions of the Consumer Protection Act and its IRR, the rule of
construction to be followed shall be:
A. The greatest reciprocity of interest
B. The best interest of the consumer
C. The best interest of the seller
D. The least transmission of rights

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52. An act or practice may violate the Consumer Protection Act whether it occurs before, during or after
the transaction. This applies to:

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A. Deceptive Sales Acts or Practices
B. Unfair or Unconscionable Sales Act or Practices
C. Both Deceptive Sales Acts or Practices and Unfair or Unconscionable Sales Act or Practices

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D. Neither Deceptive Sales Acts nor Unfair or Unconscionable Sales Act or Practices

53. This requires a prior permit from the Department of Trade and Industry before being conducted by
sellers or business entities:
A. Chain Distribution Plans
B. Home Solicitation Sales
C. Referral Sales
D. All of the choices
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54. This refers to sales devices whereby a person, upon condition that he makes an investment, is granted
by the manufacturer of his representative a right to recruit for profit one or more additional persons
who will also be granted such right to recruit upon condition of making similar investments
A. Chain Distribution Plans
B. Home Solicitation Sales
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C. Referral Sales
D. All of the choices

55. Home solicitation sales, when permitted, may be conducted between __________ on each working
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day:
A. 8:00AM to 5:00PM
B. 8:00AM to 6:00PM
C. 9:00AM to 6:00PM
D. 9:00AM to 7:00PM
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56. Which of the following is/are prohibited representations in home solicitation sales
I. The buyer has been specially selected
II. A survey, test or research is being conducted
III. The seller is making a special offer to a few persons only for a limited period of time

A. I, II and III C. I and III

B. I and II D. II and III

57. Which of the following is not part of the minimum labeling requirements for consumer products?
 A. The registered trade name or brand name
B. The registered trade mark
C. The address of the retailer of the consumer product
D. The general make or active ingredients

58. The following are allowable inclusions to minimum labelling requirements if included by the concerned
department in the rules and regulations issued to implement the Consumer Protection Act, except:
A. Whether the product is flammable or inflammable
B. Directions for use
C. Warning of toxicity
D. None of the choices is an exception

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59. For purposes of the labeling requirements of the Consumer Protection Act, which of the following
reasons for the slack-fill shall be considered as non-functional:

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A. Protection of the contents of such package
B. The requirements of machines used for enclosing the contents in such package
C. Inherent characteristics of package materials or construction being used

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D. None of the choices

60. The indication of the possible irritants in the label as an additional labeling requirement under the
Consumer Protection Act applies to:
A. Food
B. Cosmetics
C. Drugs
D. All of the choices
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61. Which is incorrect? A product is deemed mislabeled if the label fails to state conspicuously:
I. The word “danger” with a bright red or orange color with a black symbol on all h
II. The word “warning” or “caution” on substances which are extremely flammable, corrosive or
highly toxic
III. The word “poison” for any hazardous substance which is defined as highly toxic
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A. I, II and III C. I and III only

B. I and II only D. II and III only
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62. Express warranties on consumer products shall be operative from the:

A. Offer of the seller
B. Moment of sale
C. Delivery of the goods
D. Acceptance by the buyer
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63. First Statement: A distributor of products covered by the Warranty provisions of the Consumer
Act must report the sales made within 60 days from the date of purchase.
Second Statement: Failure of the distributor to make the required report or send the form required
by the manufacturer, producer, or importer shall relieve the latter of its liability under the warranty.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct
64. First statement: The retailer will shoulder the expenses and costs necessary to honor the warranty
covered by the Consumer Act if both the manufacturer and distributor fails to honor the warranty.
Second statement: the retailer will then have the right to proceed against such distributor or
manufacturer for such expenses and costs shouldered
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct

65. In order to enforce warranty rights under the Consumer Act, the purchaser needs to present:
I. The warranty card

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II. The official receipt
III. The product to be serviced or returned
IV. Such other documentary requirements demanded of the purchaser

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A. I, II, III and IV
B. I or II and III and IV

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C. I or II and III
D. I or II only

66. A warranty that covers the minimum requirements under the Consumer Act is called:
A. Legal warranty
B. Full warranty
C. Limited warranty
D. Minimum warranty
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67. The minimum standards for warranties under the Consumer Act include a statement that the
warrantor shall:
I. remedy such consumer product within a reasonable time and without charge in case of a defect,
malfunction or failure to conform to such written warranty;
II. permit the consumer to elect whether to ask for a refund or replacement without charge of such
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product or part, as the case may be, where after reasonable number of attempts to remedy the
defect or malfunction, the product continues to have the defect or to malfunction

A. Both I and II
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B. Neither I nor II
C. I only
D. II only

68. The duration of implied warranty on merchantability under the Consumer Act will be:
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A. 60 days to 1 year from the sale of the consumer product

B. Not more than 1 year from the sale of the consumer product
C. 40 days from delivery
D. Of the same duration as the express warranty

69. In case of breach of warranty and the consumer opted for the repair of the product, the warranty
work must be made to conform to the express warranty within how many days?
A. 30 days
B. 60 days
C. 90 days
 D. 120 days

70. First Statement: In every contract for the supply of services to a consumer made by a seller in the
course of a business, there is an implied warranty that the service will be rendered with due care and
skill and that any material supplied in connection with such services will be reasonably fit for the
purpose for which it is supplied.
Second Statement: Such warranty applies to professional services rendered by professionals engaged
in their respective professional endeavors.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct

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D. Only the second statement is correct

71. Service Firms shall guarantee workmanship and replacement of spare parts for a period:

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A. Not less than 60 days
B. Not less than 90 days
C. Not less than 60 days nor more than 90 days

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D. Not less than 90 days nor more than 120 days

72. The following are considered prohibited acts relative to the warranty provisions of the Consumer
Act, except:

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A. Refusal, on any valid legal cause, by the local manufacturer or any person obligated under the
warranty or guarantee to honor a warranty or guarantee issued
B. any false representation in an advertisement as to the existence of a warranty or guarantee
C. unreasonable delay by the local manufacturer or any person obligated under the warranty or
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guarantee in honoring the warranty
D. removal by any person of a product's warranty card for the purpose of evading said warranty
obligation

73. The Philippine Lemon Law applies to:

A. Brand new motor vehicles
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B. Refurbished motor vehicles

C. Motor vehicles used for not more than 1 year
D. All of the choices
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74. Motor vehicles as used in the Philippine Lemon Law includes:

A. Motorcycles
B. Delivery trucks
C. Buses
D. None of the choices
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75. If damage to the vehicle is due to force majeure,

A. It can still be covered by the Lemon Law
B. It will be excluded from the coverage of the Lemon Law
C. It can still be covered by the Lemon Law provided there is no abuse or neglect from the purchaser
D. None of the choices is correct