ReSA

The Review School of Accountancy

Tel. No. 735-9807 & 734-3989

REGULATORY FRAMEWORK FOR

BUSINESS TRANSACTIONS September 26, 2021(Sunday)
Final Pre-Board Examination 1:00 PM to 4:00 PM

MULTIPLE CHOICE
INSTRUCTIONS: Select the correct answer for each of the following questions. Mark
only one answer for each item by shading the box corresponding to the letter of
your choice on the sheet provided. STRICTLY NO ERASURES ARE ALLOWED. Use pencil
no. 2 only.

1. On September 1, 2021, Arnold (aged 16) sold his iPhone to Bobby (aged
21) for P500 so he could buy a cake for his 16th birthday celebration
on September 21, 2021. The exchange of the iPhone and the payment was
made on September 9, 2021. Until when can Arnold ask for the annulment
of the contract of sale?
C a. September 1, 2025
b. September 21, 2025
c. September 21, 2027
d. The action for annulment is imprescriptible.
2. 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?
B a. Valid c. Void
b. Voidable d. Unenforceable
3. As a general rule, who has the right to vote in case of shares placed
in the treasury?
D a. The original subscriber
b. The corporation
c. The delinquent stockholder
d. None of the above
4. No proxy shall be valid and effective for a period longer than ____
years at any one time.
C a. 2 c. 5
b. 3 d. 10
5. ABC Company owns a beach resort with several cottages. Mr. Domingo, the
president of the company, occupied one of the cottages for residential
purposes. After Mr. Domingo’s term expired, ABC Company wanted to
recover possession of the cottage. Mr. Domingo refused to surrender the
cottage. Is the refusal of Mr. Domingo justified?
D a. Yes, as a stockholder of ABC Company, he has a right to possess
and enjoy the properties of the corporation.
b. Yes, as a former president of ABC 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 ABC Company does not entitle any
stockholder to possession of any specific property of the
corporation.
6. 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.
C a. Doctrine of Piercing the Veil of Corporate Fiction
b. Alter Ego Doctrine
c. Grandfather Rule
d. Both A and B
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7. Janice promised to deliver to Christian a 55”-inch LED TV worth P55,000

on March 15, 2021. When Janice realized that she cannot deliver the TV
anymore, she offered to Christian P60,000 instead of giving the TV to
which Christian agreed. Christian accepted the P60,000. How was the
first obligation extinguished?
C a. Dation in payment c. Novation
b. Payment by cession d. Performance
8. 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 is likewise liable as a general partner.
A a. Both statements are correct
b. Only the first statement is correct
c. Only the second statement is correct
d. Both statements are not correct
9. First statement: A Particular Partnership has for its object determinate
things, their use or fruits or a specific transaction or exercise of
profession.
Second statement: In a Universal Partnership of all present property
the partners contribute all the properties that actually belong to them
at the time of the perfection of the partnership to the common fund.
A a. Both statements are correct
b. Only the first statement is correct
c. Only the second statement is correct
d. Both statements are not correct
10. Under the Articles of Incorporation of DEF 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 c. 10
b. 8 d. 15
11. Assuming 10 out of the 15 directors were present in the BOD meeting of
DEF 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 c. 8
b. 6 d. 10
12. Assuming 10 out of the 15 directors were present in the BOD meeting of
DEF Corporation, what is the minimum number of affirmative votes that
should be garnered if they would like to elect a new treasurer?
B a. 6 c. 10
b. 8 d. 15
13. There are nine directors in GHI Corporation. One 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
14. There are ten directors in MNO 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

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15. When in order to wrest consent, serious or irresistible force is

employed, there is:
C a. Threat c. Violence
b. Intimidation d. Undue influence
16. 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.
C a. 3% c. 10%
b. 5% d. 12%
17. 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.
D a. 1/4 c. A majority
b. 1/2 d. 2/3
18. 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.
B a. Appraisal right c. Subscription right
b. Pre-emptive right d. Dissenting right
19. ABC Corporation is a stock corporation that has a principal office
located in Quezon City. What are the possible venues for the upcoming
regular stockholder’s meeting?
B a. Any place in Quezon City only
b. Any place in Metro Manila only
c. Any place in Luzon only
d. Any place in the Philippines only
20. DEF 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?
D 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
21. _______________ is a procedure wherein the cooperative assesses its
social impact and ethical performance vis-a-vis its stated mission,
vision, goals and code of social responsibility for cooperatives to be
established by the Authority in consultation with the cooperative
sector. It enables the cooperative to develop a process whereby it can
account for its social performance and evaluate its impact in the
community and be accountable for its decisions and actions to its
regular members.
D a. Performance Audit c. Financial Audit
b. Operational Audit d. Social Audit
22. Joey promised to deliver to Phoebe a diamond ring on March 15, 2021.
Phoebe agreed that Joey shall not be liable for fraud or gross
negligence. March 15, 2021 came, and Joey delivered which he knew was
a fake diamond ring. When Phoebe had the ring checked by an expert
jeweler, she found out that the ring Joey delivered was fake. Does
Phoebe have a cause of action against Joey?
C a. No, because Phoebe has already agreed that Joey is not liable
for fraud.
b. No, because Phoebe 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.

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23. Ross, Chandler, and Joey borrowed P9,000 from Monica, Rachel, and
Phoebe. How much can Monica demand from Ross in case of passive
solidarity?
A a. P3,000 c. P6,000
b. P4,500 d. P9,000
24. Monica promised Joey that she will give him a car if Joey sells P500,000
worth of shabu in 7 days. What is the status of the obligation?
B a. Valid c. Voidable
b. Void d. Unenforceable
25. First statement: A partnership has the right of succession just like a
corporation.
Second statement: A partnership is capable of mutual agency just like
a corporation.
D a. Both statements are correct
b. Only the first statement is correct
c. Only the second statement is correct
d. Both statements are not correct
26. If no partner is appointed as the managing partner, the general rule
is:
A 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.
27. 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 c. 5 years
b. 2 years d. 10 years
28. 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
29. On March 1, 2021, Biboy borrowed from Ted P5,000 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 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.
30. Chelsea promised to deliver Sherwin on March 15, 2021 one of his
following phones: an iPhone X, a Huawei P20 Pro, or Samsung S10. Two
days before the promised date of delivery, Chelsea lost her iPhone X
due to fortuitous event, and her Samsung S10 due to her own fault. What
can Chelsea deliver to Sherwin on March 15, 2021 to perform her
obligation?
D a. Any of the three
b. iPhone X or money equivalent of Samsung S10
c. Huawei P20 Pro or money equivalent of Samsung S10
d. Huawei P20 Pro only
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31. Tosca promised to deliver to Mike a 2019 Toyota Vios worth P900,000
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 21st 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:
B a. P1,900,000 c. P900,000
b. P1,000,000 d. Nothing
32. 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 a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
33. The highest policy-making body in a cooperative is the—
A a. General Assembly c. Body of Officers
b. Board of Directors d. Board of Trustees
34. Jazreel had a bitter quarrel with her boyfriend whom she caught
cheating. After sharing what happened to Jazreel, Lenny offered to sell
his gun for P499 to Jazreel so she can use it to get back at her
cheating boyfriend. Jazreel accepted Lenny’s offer. What is the status
of the contract of sale?
A a. Valid c. Voidable
b. Voidable d. Unenforceable
35. Statement 1: A Cooperative may have two kinds of members— (1) regular
members and (2) associate members.
Statement 2: A regular member is one who has complied with all the
membership requirements and entitled to all the rights and privileges
of membership while an associate member is one who has no right to vote
nor be voted upon and shall be entitled only to such rights and
privileges as the bylaws may provide.
A a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
36. What is the minimum paid up share capital of a cooperative?
B a. P5,000.00 c. P20,000.00
b. P15,000.00 d. P25,000.00
37. Nikki sold his red car worth P500,000 to Ricky in exchange for Ricky’s
white van worth P251,000 plus P249,000 cash. What contract is entered
into?
A a. Sale c. Commodatum
b. Barter d. No contract
38. On January 2, 2021, Harvey borrowed P1,000,000 from Mike payable on
December 31, 2021. 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 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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39. 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
CCP committed within _____ year/s prior to the date of his election or
appointment.
B a. 2; 3 c. 6; 10
b. 6; 5 d. 3; 5
40. The minority block of EERIE Corporation was able to elect only one
director, Mr. A. The stockholders held a meeting and mustered the
required 2/3 vote to remove A. Was the removal of A proper?
B 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 Mr. A was elected by
the minority stockholders.
d. No, the removal was not proper because the required number of
votes was not met.
41. James borrowed P10,000 from Cristopher as evidenced by a promissory
note. The note complied with all the requisites of negotiability, except
that James did not affix his usual signature thereon as he was very ill
at the time, he prepared the instrument. James wrote “X” on the space
intended for the signature of the maker. In the instrument negotiable?
D a. No, the law requires the full signature of the maker before
the instrument will be considered negotiable
b. No, the law requires that at least the surname of the maker be
placed in the instrument
c. Both A and B
d. Yes, the “X” mark is sufficient to make the instrument
negotiable.
42. First Instrument: “I promise to pay X or order the P1,000 out of the
proceeds of the sale of my house. (Signed) Y”
Second Instrument: “I promise to pay Y or order the sum of P10,000 as
soon as my means permit me to do so. (Signed) X”
B a. Both instruments are negotiable
b. Both instruments are not negotiable
c. Only the first instrument is negotiable
d. Only the second instrument is negotiable
43. How do you treat a negotiable instrument that is so ambiguous that
there is doubt whether it is a bill or a note?
C a. The holder should treat it as a bill of exchange
b. The holder should treat it as a promissory note
c. The holder may treat it either as a bill of exchange or a
promissory note, at his election
d. None of the above
44. Which of the following is not sensitive personal information?
D a. Social security number
b. Suspension of driver’s license
c. Income tax returns
d. All of the above are sensitive personal information.
45. 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.
C a. 30 days c. 90 days
b. 60 days d. None of the above

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46. This test mandates that the entirety of the marks in question must be
considered in determining confusing similarity.
B a. Dominancy Test c. Idem Sonans Test
b. Holistic Test d. None of the above
47. Any transaction involving the amount of more than
______________________ in one banking day is a covered transaction
under the AMLA.
A a. P500,000 c. P300,000
b. P1,000,000 d. P600,000
48. Republic Act No. 11032 otherwise known as the Ease of Doing Business
Act applies to the following except:
D 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
49. 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:
B a. Processing Time c. Regulation
b. Red Tape d. Simple transactions
50. On March 1, 2021, Jennifer orally offered to sell to Brenda her parcel
of land for P1,000,000 to which Brenda orally agreed. On March 2, 2021,
the two executed a deed of sale and payment was made. On March 3, 2021,
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?
C a. Upon issuance of the new certificate of title under Brenda’s
name
b. March 2, 2021
c. March 3, 2021
d. March 4, 2021
51. 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 a. Ultra vires act c. Both A and B
b. Unenforceable act d. None of the above
52. X 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. A, a school supply dealer, wanted to purchase all of the
stocks of X Corporation. What is vote required before this transaction
could push through?
D 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.
53. 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 bank. Bangko Marupok declared bankruptcy and was
subsequently closed. How much can A recover from PDIC for deposit
insurance?
C 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
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54. If the transaction is a covered transaction and at the same time, a

suspicious transaction, the covered institution shall report it as a—
C a. Either a covered or suspicious transaction
b. A covered transaction
c. A suspicious transaction
d. Depends on the discretion of the covered institution
55. A borrowed P20,000 from B with A’s cellphone given to B by way of
pledge. It was stipulated that in case of non-payment on due date, the
cellphone would belong to B. This forfeiture is:
C a. Right of redemption
b. Conventional redemption
c. Pactum commissorium
d. Legal redemption
56. A borrowed P100,000 from B, and as security, he pledged his ring,
cellphone and laptop. On due date, A paid P70,000. As a result,
D a. A can demand the return of one of the things pledged
b. A can demand the return of any 2 of the things pledged
c. A can demand the retunn of the ring
d. A cannot demand the return of any of the things pledged.
57. A mortgaged his residential land to B to secure the loan of P800,000
worth of obligations to B. They agreed that A should not sell the land
while the obligation exists. Before the maturity of the mortgage, C
offered to buy the land from A. Which is correct?
C a. A cannot sell the land to C because of the agreement not to sell
b. A can sell the land to C only if B consents in writing
c. A can sell the land to C despite the agreement not to sell
d. A cannot sell the land to C unless A pays the obligation.
58. At the public auction, the pledgor or owner cannot bid.
The pledgee may also bid, and his offer shall be valid if he is the
only bidder.
D a. Only the first statement is true.
b. Only the second statement is true.
c. Both are true.
d. Both are false.
59. One which reveals an intent to make the property a security, even if
the contracts lacks the proper formalities of a real estate mortgage.
D a. Voluntary mortgage c. Legal mortgage
b. Conventional mortgage d. Equitable mortgage
60. The latin phrase “delectus personae” means
A a. Choice of the person c. Choice of the public
b. Choice of the people d. Lady’s Choice
61. The contract of partnership may be oral or in writing.
Where an immovable property is contributed in a partnership, a private
instrument shall be necessary.
A a. Only the first statement is true.
b. Only the second statement is true.
c. Both are true.
d. Both are false.
62. It is one which has complied with all the legal requirements for its
creation.
B a. De facto partnership c. Real partnership
b. De jure partnership d. Ordinary partnership
63. He may contribute money, property or industry to a common fund.
B a. Limited partner
b. General partner
c. Both limited and general partner
d. Both limited and industrial partner
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64. The following are disqualified to form a universal partnership, except

one:
A a. Brother and sister
b. Husband and wife
c. Those guilty of adultery or concubinage
d. Those guilty of the same offense, if the partnership is entered
into consideration of the same.
65. A, B and C are partners in a partnership with each contributing P100,000
each. D is admitted as a new partner with a contribution of P50,000.
At the time of his admission, the partnership has a pre-existing
obligation to E in the amount of P150,000.
D a. D is not liable to E for this obligation incurred when he was
not yet a partner.
b. D is liable up to P25,000.
c. D is liable up to P16,667.
d. D is liable up to P50,000.
66. This arises if all the partners consented to the misrepresentation of
a third person who is not a real partner. This creates a partnership
obligation.
B a. General partnership c. Limited partnership
b. Partnership by estoppel d. None of the above
67. If a partner is insolvent, the first in the order of preference in the
distribution of his assets is:
B a. Partnership creditors
b. Separate creditors of the partner-debtor
c. Partner’s contribution to the partnership
d. Pro-rata between the separate creditors and the partnership
creditors
68. One of the following incidents may be a cause for involuntary
dissolution of a partnership. Which is it?
B a. Termination of the partnership
b. Insolvency of any partner
c. Express will of any partner
d. Expulsion of any partner
69. Subscriptions to the capital stock of a corporation constitute a fund
to which the creditors have a right to look for the satisfaction of
their claims.
A a. Trust fund doctrine.
b. Doctrine of indivisibility
c. Doctrine of corporate opportunity
d. None of the above
70. Corporate directors are personally liable if found guilty of gross
negligence or bad faith in directing the affairs of the corporation,
which results in damage or injury to the corporation, its stockholders
or members, and other persons.
B a. Doctrine of self-dealing board of directors
b. Doctrine of corporate opportunity
c. Doctrine of double compensation
d. Doctrine of trust fund
71. It is an action brought by a stockholder on behalf of the corporation
to enforce corporate rights against the corporation’s directors,
officers or other insiders.
C a. Individual suit
b. Corporate suit
c. Derivative suit
d. Representative suit

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72. It is an agreement whereby a corporation delegates the management of

its affairs to another corporation for a certain period of time.
A a. Management contract
b. Voting trust agreement
c. Contract of agency
d. Self-dealing contract
73. Refers to an act outside or beyond corporate powers, including those
that may ostensibly be within such powers but are, by general or special
laws, prohibited or declared illegal.
B a. Intra vires act
b. Ultra vires act
c. Doctrine of limited capacity
d. Doctrine of piercing the veil of corporate fiction
74. He is one who shall offer to pay the full amount of the balance on the
subscription together with the accrued interest, costs of advertisement
and expenses of sale, for the smallest number of shares or fraction of
a share.
B a. Lowest bidder c. Winning bidder
b. Highest bidder d. Losing bidder
75. It is a union whereby one or more existing corporations are absorbed
by another corporation that survives and continues the combined
business.
A a. Merger c. Acquisition
b. Consolidation d. Business combination
76. It means that a stockholder who dissented and voted against the proposed
corporation action may, choose to get out of the corporation by
demanding the payment of the fair market value of his shares.
B a. Pre-emptive right c. Voting right
b. Appraisal right d. Management right
77. Obligations arise from
E a. Law
b. Contracts
c. Quasi-contracts
d. Acts or omissions punished by law
e. All of the above
78. The demand by the creditor shall not be necessary in order that delay
may exist
D a. When the obligation or the law expressly so declare
b. When from the nature and the circumstances of the obligation
it appears that the designation of the time when the thing is
to be delivered or the service is to be rendered was a
controlling motive for the establishment of the contract
c. When demand would be useless, as when the obligor has rendered
it beyond his power to perform
d. All of the above
79. These are obligations which are not based on positive law but on equity
and natural law. It does not grant a right of action to enforce their
performance although in case of voluntary fulfillment by the debtor,
the latter may not recover what has been delivered.
C a. Civil obligation c. Natural obligation
b. Moral obligation d. None of the above
80. It is the juridical relation resulting from lawful, voluntary and
unilateral acts by virtue of which the parties become bound to each
other to the end that no one shall be unjustly enriched or benefited
at the expense of another.
C a. Delicts c. Quasi-Contract
b. Contract d. Quasi-delicts

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81. This is the voluntary management of the property or affairs of another

without the knowledge or consent of the latter.
A a. Negotiorum gestio
b. Solutio indebiti
c. Genus nunquam perit
d. Damnum absque injuria
82. This is the juridical relation which is created when something is
received when there is no right to demand it and it was unduly delivered
through mistake
B a. Negotiorum gestio
b. Solutio indebiti
c. Genus nunquam perit
d. Damnum absque injuria
83. Mr. A and his whole family went to Boracay for a short vacation.
Unfortunately, a strong typhoon hit Manila and it destroyed the cages
of Mr. A’s dogs. Luckily, his neighbor Mr. B saw what happened and
immediately repaired the cages of the animals. The materials and labor
amounted to P5,000. Is Mr. B entitled to reimbursement?
B a. Yes, only if he was able to get the consent of Mr. A beforehand.
b. Yes, even if there was no consent from the owner of the dogs.
c. No, because there was no consent on the part of the owner of
the dogs.
d. No, because Mr. B is considered to be a trespasser.
84. A taxi driver was negligent in driving his car. As a result, an accident
occurred. This resulted to injuries to his passenger (Mr. C) and to a
pedestrian (Mr. D). Both victims were rushed to the hospital and
incurred expenses for their treatment. With regards to Mr. C, what is
the source of taxi driver’s obligation to reimburse?
B a. Law c. Quasi Contract
b. Contract d. Delict
85. A taxi driver was negligent in driving his car. As a result, an accident
occurred. This resulted to injuries to his passenger (Mr. C) and to a
pedestrian (Mr. D). Both victims were rushed to the hospital and
incurred expenses for their treatment. With regards to Mr. D, what is
the source of taxi driver’s obligation to reimburse?
D a. Law c. Quasi Contract
b. Contract d. Quasi - Delict
86. Which among the following is an example of a specific object?
D a. A blue car c. An old book
b. A red house d. This pencil in my hand
87. What is the diligence required for contracts of carriage involvings
jeeps, buses and taxis?
C a. Diligence of a good father of a family
b. Ordinary diligence
c. Extra-ordinary diligence
d. Diligence of a good mother of a family
88. On August 1, 2020, Mr. S sold a specific dog to Mr. B for P15,000.
Based on their agreement, the specific dog should be delivered to Mr.
B on August 8, 2020. The deadline has passed and the specific dog is
still in possession of the seller. While still in possession of Mr.
S, the mother dog gave birth to three puppies on August 20, 2020. Who
is entitled to the three puppies?
B a. Mr. S
b. Mr. B
c. The mother dog
d. Each one of them is entitled to one puppy each

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ReSA: The Review School of Accountancy Page 12 of 12

89. Which among the following is an example of a natural fruit?

E a. Grass
b. A baby calf that was born without the intervention of human
labor
c. Both A and B
d. A puppy that was born with the help of a veterinarian
e. All of the above
90. Rice, corn and other kinds of vegetables are examples of
B a. Natural fruits c. Civil fruits
b. Industrial fruits d. Juicy fruits
91. Which among the following is an example of a civil fruit?
C a. Rent income c. Both A & B
b. Interest income d. None of the above
92. It is the right or power of a person to demand from another, as a
definite passive subject, the fulfillment of the latter’s obligation
to give, to do, or not to do.
A a. Personal right c. Both A & B
b. Real right d. None of the above
93. It is the right or interest of a person over a specific thing, without
a definite passive subject against whom the right may be personally
enforced.
B a. Personal right c. Both A & B
b. Real right d. None of the above
94. Is the failure to perform an obligation on time which failure
constitutes a breach of the obligation.
A a. Legal delay c. Both A & B
b. Ordinary delay d. None of the above
95. This is the delay on the part of the debtor to fulfill his obligation
A a. Mora solvendi c. Compensatio morae
b. More accipiendi d. Mora dela torre
96. This is the delay of the obligors in reciprocal obligations
C a. Mora solvendi c. Compensatio morae
b. Mora accipiendi d. Empleo patriciae
97. It is the contracting for or receiving interest in excess of the amount
allowed by law for the loan or use of money, good, chattels or credits.
C a. Dolo causante c. Usury
b. Dolo incidente d. None of the above
98. It is one of the remedies available to a creditor, after having pursued
the property in possession of debtor, exercise all the rights and bring
all the actions of the debtor except those inherent in or personal to
the person of the latter.
C a. Exact fulfillment c. Accion subrogatoria
b. Attachment d. Accion pauliana
99. This is a remedy of a creditor to impugn the acts which the debtor may
have done to defraud him.
B a. Accion subrogatoria c. Accion quanti minoris
b. Accion pauliana d. Accion redhibitoria
100. The is the remedy of a creditor to pursue the leviable property of the
debtor
B a. Exact fulfillment c. Accion subrogatoria
b. Attachment d. Accion pauliana

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RFBT – FINAL PRE-BOARD EXAMINATION (BATCH 42)