ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 45  May 2023 CPALE  11 February 2023  3:00 - 5:00 PM

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS FIRST PRE-BOARD EXAMINATION

INSTRUCTIONS: Select the correct answer for each of the questions. Mark only one
answer for each item by shading the box corresponding to the letter of your choice on
the answer sheet provided. STRICTLY NO ERASURES ALLOWED. Use pencil no. 2 only.
1. It is a kind of partnership where a time is specified
B a. Partnership at will
b. Partnership with a fixed term
c. De jure partnership
d. De facto partnership
2. One wherein the existence of certain persons as partners is avowed or known
C a. Secret partnership
b. Open partnership
c. Notorious partnership
d. Commercial partnership
3. One who does not take an active part in the business and is not known or held out
as a partner
C a. Silent partner
b. Secret partner
c. Dormant partner
d. Both B and C
4. One who takes an active part in the business and is known or held out as a partner
C a. Silent partner
b. Secret partner
c. Ostensible partner
d. Managing partner
5. As regards capitalist partners, the prohibition may extend to operation which is
A a. The same kind of business in which the partnership is engaged
b. A different kind of business in which the partnership is engaged
c. All kinds of business
d. No prohibition at all
6. As regards industrial partners, the prohibition may extend to operation which is
C a. The same kind of business in which the partnership is engaged
b. A different kind of business in which the partnership is engaged
c. Both A & B
d. No prohibition at all
7. J is the managing partner in JKL Partnership. Mr X, a third person, owe P10,000
from J personally. Likewise, Mr. X also owe P20,000 from the JKL Partnership. One
day, Mr. X paid P6,000 to Partner J. The managing partner issued a receipt for
Mr. X’s personal liability to him. How much of the P6,000 should go to the
partnership?
D a. P6,000
b. 0
c. P2,000
d. P4,000
8. J is the managing partner in JKL Partnership. Mr X, a third person, owe P10,000
from J personally. Likewise, Mr. X also owe P20,000 from the JKL Partnership. One
day, Mr. X paid P6,000 to Partner J. The managing partner issued a receipt for
Mr. X’s liability to the JKL Partnership. How much of the P6,000 should go to
Partner J?
B a. P6,000
b. 0
c. P2,000
d. P4,000
9. Three sisters inherited a dormitory from their deceased father. It continuously
gave them rental income every month. As a result, a _______________ was established
among the siblings.
B a. Partnership
b. Co-ownership
c. Suretyship
d. Friendship

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
10. Three sisters inherited a 4 door apartment from their deceased mother. Due to the
fact that it continuously gave them rental income every month, they decided to
upgrade such to an 10 door apartment. As a result, a _______________ was
established among the siblings.
A a. Partnership
b. Co-ownership
c. Suretyship
d. Friendship
11. The contributions of a limited partner may be _________
D a. Cash
b. Land or Building
c. Services or Industry
d. Both A & B only
12. Limited partners can be
A a. Capitalist partners
b. Industrial partner
c. Managing partners
d. Both B and C
13. The surname of a limited partner shall not appear in the partnership name unless
C a. It is also the surname of a general partner
b. Prior to the time when the limited partner became such, the business
has been carried on under a name in which his surname appeared.
c. Both a & b
d. None of the above
14. The losses and profits shall be distributed _______________
A a. in conformity with the agreement of the partners
b. equally
c. proportionately
d. none of the above

15. If no P & L ratio was agreed upon by the partners, losses and profits for the
period shall be distributed _______________
C a. equally
b. based on the ending capital ratio
c. based on the original capital contribution ratio
d. based on the weighted average capital ratio
16. If only the profit ratio was agreed upon, losses for the period shall be
distributed _______________
C a. equally
b. proportionately
c. same as the profit ratio
d. will not be distributed at all
17. Which of the following has the least priority when it comes to the liquidation of
a limited partnership?
B a. Those to general partners in respect to profits
b. Those to general partners in respect to capital
c. Those to limited partners, other than capital or profits
d. Those to outside creditors
18. Which of the following is the top priority when it comes to the liquidation of a
limited partnership?
D a. Those owing to general partners in respect to profits
b. Those owing to general partners in respect to capital
c. Those owing to limited partners, in respect to capital
d. Those owing to outside creditors
19. Which of the following has the least priority when it comes to assets of a general
partnership?
A a. Those owing to general partners in respect to profits
b. Those owing to general partners in respect to capital
c. Those owing to general partners, other than capital or profits
d. Those to outside creditors

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
20. These shares do not entitle the holder to payment of dividends in arrears
D a. Participating preferred stock
b. Non-participating preferred stock
c. Cumulative preferred stock
d. Non-cumulative preferred stock
21. Meal periods are mandated to be provided for employee’s regular meals which
should be:
B a. Not less than 30 minutes
b. Not less than 60 minutes
c. Not more than 30 minutes
d. Not more than 90 minutes
22. If an employee did not work on a regular holiday, he shall:
B a. Not entitled to any pay
b. Be entitled to 100% of his regular wage
c. Be entitled to 150% of his regular wage
d. Be entitled to 300% of his regular wage
23. Which of the following leave benefits is convertible or commutable to cash?
A a. Service Incentive Leave
b. Paternity Leave
c. Both A & B
d. None of the above
24. The minimum dependent’s pension shall be:
B a. P200/month
b. P250/month
c. P500/month
d. P2,000/month
25. The contract of insurance is one of perfect good faith, not for the insured alone,
but equally so for the insurer.
A a. Uberrimae fides contract
b. Contract of indemnity
c. Risk distributing device
d. Aleatory
26. Both the insured and insurer have reciprocal obligations of equal value to each
other.
D a. Contract of adhesion
b. Personal
c. Voluntary
d. Synallagmatic
27. An insurance contract is a ready-made form of contract, which the other party may
accept or reject, but which the latter cannot modify.
A a. Contract of adhesion
b. Personal
c. Voluntary
d. Synallagmatic
28. Which among the following is not a life insurance contract?
C a. Individual
b. Group
c. Marine
d. Industrial
29. Actions arising from insurance contracts prescribe in __ years.
C a. Two
b. Five
c. Ten
d. Twenty
30. In property insurance, the proceeds must be paid within ___ days after proof of
loss is received by the insurer and ascertainment of the loss or damage is made.
B a. 10
b. 30
c. 50
d. 100

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
31. Offspring of animals, born thru the assistance of a veterinarian, are considered
as
A a. Natural fruits
b. Industrial fruits
c. Civil fruits
d. Juicy fruits

32. A, B and C are joint debtors. They obliged themselves to deliver a specific cat
(worth P9,000) to D and E, joint creditors. Assuming C is the only one who does
not want to comply with the obligation, how much is the total amount that can be
collected from him by the creditors?
C a. P9,000
b. P9,000 plus damages
c. P3,000 plus damages
d. None. He is not forced to comply.

33. A, B and C are solidary debtors for the amount of P45,000 from X. Mr. B has
already paid P20,000 to X. How much can X further collect from B?
A a. P25,000
b. None. It has already exceeded the share of B.
c. Another P20,000
d. P5,000

34. Five peso coins are considered to be legal tender up to

A a. One thousand pesos
b. One hundred pesos
c. One million pesos
d. Up to any amount

35. Ten centavo coins are considered to be legal tender up to

B a. One thousand pesos
b. One hundred pesos
c. One million pesos
d. Up to any amount

36. One hundred peso bills are considered to be legal tender up to

D a. One thousand pesos
b. One hundred pesos
c. One million pesos
d. Up to any amount

37. The contract must bind both contracting parties and its validity or compliance
cannot be left to the will of one of them.
B a. Liberty to contract
b. Mutuality of contracts
c. Relativity of contracts
d. Consensuality of contracts

38. It is a remedy in equity by means of which a written instrument is made or

construed so as to express or conform to the real intention of the parties when
some error or mistake has been committed.
D a. Recollection
b. Rescission
c. Reparation
d. Reformation

39. Which among the following is considered to be the least defective?

C a. Voidable
b. Void
c. Rescissible
d. Unenforceable

40. Golda is the guardian of Marvin, a minor. She sold Marvin’s car with a fair value
of P200,000 for just P170,000. The contract entered into by Golda is
C a. Voidable
b. Void
c. Valid
d. Rescissible

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
41. Under a contract, Diego obligated himself to build a house for Cardo. In this
example, the object or the prestation is
D a. Diego
b. The house itself
c. Cardo
d. The construction of the house
42. An obligation to deliver a dog named Casper is an example of
D a. Negative personal obligation
b. Generic real obligation
c. Positive personal obligation
d. Specific real obligation
43. During a strong thyphoon, Benny saved the chickens of Cris, who is currently out
of town. Benny incurred expenses amounting to P49,000. This can be reimbursed
because of
B a. Solutio indebiti
b. Negotiorum gestio
c. Fortuitous event
d. Pactum commissorium
44. The diligence required from bus and jeepney drivers is
B a. Ordinary diligence
b. Extra ordinary diligence
c. Diligence of a good father of a family
d. No diligence at all
45. Sarah sold a pig named Pepper to Barbara for P25,000. No condition or period was
contemplated. After the perfection of the contract but before the delivery of the
pig, Pepper the pig gave birth to 5 piglets. Who is entitled to the 5 piglets?
B a. Sarah
b. Barbara
c. Pepper, because she is the mother of the piglets
d. None of the above
46. On March 1, 2023, the seller agreed to sell a truck worth P2,000,000 to a buyer.
The car will be delivered to the buyer on December 31, 2023. Prior to December
31, 2023, what kind of right does the buyer possess?
A a. Personal right
b. Real right
c. Both a and b
d. None of the above
47. Ownership over a property is transferred during the
B a. Perfection of the contract
b. Delivery of the subject matter
c. Payment of the price
d. All of the above
48. What principle is the basis of the rule that an indeterminate thing cannot be the
object of destruction?
C a. Force majeure
b. Negotiorum gestio
c. Genus nunquam perit
d. Compensatio morae
49. The situation when one person causes damage or loss to another for which the
latter has no remedy.
A a. Damnum absque injuria
b. Genus nunquam perit
c. Pactum commissorium
d. Pactum leonina
50. Barry is contemplating whether to buy Sarah’s car for P800,000. To give him more
time, he gave a P50,000 option money to Sarah. He finally decided to buy the
subject matter after 5 days. How much should Barry give to Sarah at the date of
payment?
A a. P800,000
b. P850,000
c. P750,000
d. P348,523.67

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
51. Any director or trustee of a corporation may be removed from office by a vote of
the stockholders holding or representing at least ___________ of the outstanding
capital stock.
B a. 1/2
b. 2/3
c. 3/4
d. All
52. In the absence of any provision in the bylaws fixing their compensation, the
directors or trustees shall not receive any compensation in their capacity as
such, except for reasonable ________.
C a. Honorariums
b. Talent fee
c. Per diems
d. None of the above
53. Directors or trustees who willfully and knowingly vote for or assent to patently
unlawful acts of the corporation or who are guilty of gross negligence or bad
faith in directing the affairs of the corporation or acquire any personal or
pecuniary interest in conflict with their duty as such directors or trustees shall
be liable ______________ for all damages resulting therefrom suffered by the
corporation, its stockholders or members and other persons.
B a. Jointly
b. Solidarily
c. Both A & B
d. None of the above
54. The owners of _________ of the outstanding capital stock may delegate to the board
of directors the power to amend or repeal the bylaws or adopt new bylaws.
C a. 1/2
b. Majority
c. 2/3
d. 3/4
55. The owners of _________ of the outstanding capital stock may revoke the delegated
power of the board of directors to amend or repeal the bylaws.
B a. 1/2
b. Majority
c. 2/3
d. 3/4
56. Regular meetings of stockholders or members shall be held annually on a date fixed
in the bylaws, or if not so fixed, on any date after ______ of every year as
determined by the board of directors or trustees.
C a. January 15
b. March 15
c. April 15
d. December 15
57. Special meetings of stockholders or members shall be held at any time deemed
necessary or as provided in the bylaws: Provided, however, that at least ______
week/s written notice shall be sent to all stockholders or members, unless a
different period is provided in the bylaws, law or regulation.
A a. One
b. Two
c. Three
d. Ten
58. The board of the following corporations vested with public interest shall have
independent directors constituting at least _______________ of such board.
B a. 10%
b. 20%
c. 30%
d. 50%
59. A person shall be disqualified from being a director, trustee or officer of any
corporation if, within five years prior to the election or appointment as such,
the person was convicted by final judgment of an offense punishable by
imprisonment for a period exceeding _________ years.
B a. Five
b. Six
c. One
d. Ten
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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
60. In no case shall the total yearly compensation of directors exceed ______ of the
net income before income tax of the corporation during the preceding year.
B a. 5%
b. 10%
c. 15%
d. 20%

61. A contract of the corporation with (1) one or more of its directors, trustees,
officers or their spouses and relatives within the fourth civil degree of
consanguinity or affinity is ____________, at the option of such corporation.
B a. Void
b. Voidable
c. Unenforceable
d. Rescissible

62. Stockholdings not exceeding ______________ of the outstanding capital stock shall
be considered “nominal” for purposes of interlocking directors.
C a. 10%
b. 15%
c. 20%
d. 30%

63. If the bylaws so provide, the board may create an executive committee composed of
at least _________ directors.
B a. Two
b. Three
c. Five
d. Ten

64. A private corporation may extend or shorten its term as stated in the articles of
incorporation when approved by a __________ vote of the board of directors or
trustees, and ratified at a meeting by the stockholders or members representing
at least two-thirds (2/3) of the outstanding capital stock or of its members.
C a. 1/3
b. 1/2
c. Majority
d. 2/3

65. Arcovia Corporation has a principal office in Pacific Star Building, Makati City.
As a rule, where should the venue of the stockholder’s meeting be?
A a. Pacific Star Building only
b. Any venue in Makati City only
c. Any venue in Makati City or Quezon City
d. Any venue in Luzon

66. Diamond Corporation has a principal office in Lancaster Tower Building, Pasig
City. What are the possible valid venues of the upcoming stockholder’s meeting if
it’s impractical to hold the meeting in the principal office?
C a. Lancaster Tower Building only
b. Any venue in Pasig City only
c. Any venue in NCR only
d. Any venue in the Philippines

67. Gonzaga Corporation has a principal office in Amparo Building, Kawit, Cavite. What
are the possible valid venues of the upcoming stockholder’s meeting?
B a. Amparo Building only
b. Any venue in Kawit, Cavite only
c. Any venue in Cavite only
d. Any venue in Calabarzon area only

68. A partnership is considered to be onerous because

D a. It is perfected by mere consent
b. It has a special name or designation in law
c. It is entered into by two or more persons
d. Each of the parties is required to give something

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam

69. It means “choice of the person”. Due to this principle, no one can be a member of
the partnership association without the consent of all the other associates.
C a. Solutio indebiti
b. Negotiorum gestio
c. Delectus personae
d. Personae non grata

70. Who among the following can enter in a contract of partnership?

C a. Unemancipated minors
b. Insane or demented persons
c. Deaf mutes who know how to write
d. Persons who are suffering from civil interdiction

71. These are shares that were issued without consideration or inadequate
consideration.
C a. Treasury stock
b. Delinquent stock
c. Watered stock
d. No par value stock

72. 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, subject to the approval of the SEC.
C a. 1 year
b. 2 years
c. 5 years
d. 10 years

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

D 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

74. Under the Articles of Incorporation of GHI 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?
B a. 7
b. 8
c. 10
d. 15

75. Assuming 10 out of 15 directors were present in the BOD meeting of JKL 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?
B a. 5
b. 6
c. 8
d. 10

76. There are nine directors in MNO Corporation. Two of them was validly removed as a
director. Who has the power to fill such vacancy?
A 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

77. There are ten directors in PQR Corporation. Three of the directors died in a car
accident. Who has the power to fill such vacancies?
B a. The stockholders only
b. The remaining seven directors
c. The remaining seven directors and the majority of the stockholders
d. The remaining seven directors and 2/3 of the stockholders
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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam

78. There are ten directors in STU Corporation. Five of them resigned due to an
internal conflict. Who has the power to fill such vacancies?
A a. The stockholders only
b. The remaining five directors
c. The remaining five directors and the majority of the stockholders
d. The remaining five directors and 2/3 of the stockholders

79. An overspeeding jeepney (that was carrying several passengers) turned turtle
because one of its tires blew out. One of the passengers died. The heirs filed a
suit for damages. The owner of the jeep filed an answer contending that the cause
of the accident was a fortuitous event because the tires were not yet old and
overused. Who is liable, if any?
B a. No one is liable because it was just an accident. No one wanted it to
happen.
b. The owner of the jeep is liable.
c. The tire company is liable.
d. Both B and C.

80. X is indebted to Y in the amount of P1,000,000 payable in 10 monthly installments

and with interest at 15% per year. What is the effect if Y would be receiving
payment of the principal without receiving first the interest?
B a. None. The liability for the interest would still remain.
b. It presupposes that there has already been payment of the interest.
c. The interest would now be doubled.
d. This amounts to a condonation of the interest.

81. An obligation by Mr. X is payable from January 2022 to October 2022. X did not
pay the installment for June 2022. But when when he paid in July 2022, the creditor
issue a receipt for July 2022. What is the effect of this?
B a. The liability for the June 2022 amortization would still subsist.
b. There is now a disbutable presumption that the June 2022 installment has
been paid.
c. Additional interest can now be collected for the unpaid amortization.
d. There is now a conclusive presumption that the June 2022 installment has
been paid.

82. A and B entered into a contract of loan, providing that B shall pay when his means
permit him to do so. What is the remedy of A in case of non-payment by B?
B a. There is none because the obligation is one with a condition. It is not
guaranteed.
b. Since the obligation is deemed to be one with a period, the remedy of A is
to go to court and ask the court to fix the period.
c. The remedy of A is to file a case of quo warranto with the Court of Appeals.
d. Both B and C.
83. This kind of fraud vitiates consent and makes the contract voidable:
A a. Dolo causante c. Dolo revilla
b. Dolo incidente d. None of the above

84. Who has the right of choice in an alternative obligation?

C a. The right of choice belongs to the debtor, in all cases.
b. The right of choice belongs to the creditor, in all cases.
c. The right of choice belongs to the debtor, unless it has been expressly
granted to the creditor.
d. The right of choice belongs to the creditor, unless it has been expressly
granted to the debtor.

85. What is the basis of payment of an obligation in case of extraordinary inflation

or deflation?
A a. In case of extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of the establishment
of the obligation shall be the basis of payment, unless there is an
agreement to the contrary.
b. In case of extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of the establishment
of the obligation shall be the basis of payment, in all cases.

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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
c. In case of extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of maturity of the
obligation shall be the basis of payment, unless there is an agreement to
the contrary.
d. In case of extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of maturity of the
obligation shall be the basis of payment, in all cases.

86. X owns a house and lot. He sent a letter to Y and offered it for sale. Two days
after the receipt, Y sent X a letter accepting the offer. But when the letter of
acceptance reached X’s residence, he was already dead. Was there a perfected
contract of sale?
D a. Yes, it was perfected on the day the offer was sent by X to Y.
b. Yes, it was perfected on the day the acceptance was sent by X to Y.
c. Yes, it was perfected on the day the letter of acceptance reached X’s
residence.
d. None of the above.

87. A contract entered into by a minor and an insane person is:

D a. Valid c. Rescissible
b. Voidable d. Unenforceable

88. The partners contribute all the property which actually belongs to them to a
common fund, with the intention of dividing the same among themselves, as well as
all the profits which they may acquire therewith
A a. Universal partnership of all present property
b. Universal partnership of all profits
c. Limited partnership
d. Particular partnership

89. The revocation of the authority of a managing partner who was appointed after the
formation of the partnership and not in the Articles of Partnership would require:
B a. Just and lawful cause
b. Vote of the controlling interest
c. Unanimous vote of the partners
d. A and B

90. In case of imminent losses, this type of partner is exempted from making additional
contributions to save the partnership:
B a. Capitalist partner c. Secret partner
b. Industrial partner d. Nominal partner

91. No-par value shares must be issued for a consideration of at least

A a. Five pesos per share
b. One peso per share
c. Ten pesos per share
d. One hundred pesos per share

92. Par value shares can be issued for a consideration as low as

D a. Five pesos per share
b. One peso per share
c. Ten centavo per share
d. One centavo per share

93. For founders’ shares, where the exclusive right to vote and be voted for in the
election of directors is granted, it must be for a limited period not to exceed
____ year/s from the date of incorporation
C a. One c. Five
b. Two d. Ten

94. These are shares of stock which have been issued and fully paid for, but
subsequently reacquired by the issuing corporation through purchase, redemption,
donation, or some other lawful means.
B a. Redeemable shares
b. Treasury shares
c. Watered stocks
d. Nominal shares
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 REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS
ReSA Batch 45 – May 2023 CPALE Batch
11 February 2023  3:00 PM to 5:00 PM RFBT First Pre-Board Exam
95. A corporate term for a specific period may be extended or shortened by amending
the articles of incorporation: Provided, That no extension may 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 Commission:
B a. Two
b. Three
c. Five
d. Ten

96. The due incorporation of any corporation claiming in good faith to be a corporation
under this Code, and its right to exercise corporate powers, shall not be inquired
into collaterally in any private suit to which such corporation may be a party.
Such inquiry may be made by the Solicitor General in a ____________ proceeding.
B a. Impeachment
b. Quo warranto
c. Both A & B
d. None of the above

97. If a corporation does not formally organize and commence its business within _____
years from the date of its incorporation, its certificate of incorporation shall
be deemed revoked as of the day following the end of such period
C a. Two
b. Three
c. Five
d. Ten

98. If a corporation has commenced its business but subsequently becomes inoperative
for a period of at least ________ consecutive years, the Commission may, after
due notice and hearing, place the corporation under delinquent status.
B a. Three
b. Five
c. Ten
d. Twenty

99. A delinquent corporation shall have a period of __________ year/s to resume

operations and comply with all requirements that the Commission shall prescribe.
B a. One
b. Two
c. Three
d. Five

100. Directors shall be elected for a term of one (1) year from among the holders of
stocks registered in the corporation’s books, while trustees shall be elected
for a term not exceeding ______ year/s from among the members of the corporation.
C a. One
b. Two
c. Three
d. Six

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