RFBT Other Special Law Mcqs

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RFBT - Other Special Law MCQs
Bs accountancy (Mindanao State University)
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CPA REVIEW SCHOOL OF THE PHILIPPINES

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS
COVERAGE: Special Laws
A. Securities Regulation Code
B. Code of Corporate Governance
C. Intellectual Property Code
D. Data Privacy Act
E. Electronic Commerce Act
F. Ease of Doing Business and Efficient Delivery of Government Services Law
Direction: Read and select the best answer for the following questions.
1. Which of the following is not an objective of Securities Regulation Code a.k.a. R.A. No. 8799?
a. To establish a socially conscious, free market that regulates itself
b. To encourage the widest participation of ownership in enterprises
c. To enhance the democratization of wealth
d. To promote monopoly and oligopoly
2. Which of the following is not an objective of Securities Regulation Code a.k.a. R.A. No. 8799?
a. To promote the development of the capital market
b. To protect investors
c. To ensure full and fair disclosure about securities
d. To encourage insider trading and other fraudulent or manipulative devices and practices which create distortions in the free
market
3. Upon winding up of the corporate affairs, any asset distributable to any creditor or stockholder or member who is unknown and cannot be
found shall be escheated and forfeited in favor of the
Old Corporation Code Revised Corporation Code
a. Barangay where such property is located Province where such property is located
b. Province where such property is located City where such property is located
c. City or municipality where such property is located National government
d. National government City of municipality where such property is located
4. Under Securities Regulation Code, they are defined as shares, participation or interests in a corporation or in a commercial enterprise or
profit-making venture and evidenced by a certificate, contract, instruments, whether written or electronic in character.
a. Securities
b. Instruments
c. Documents
d. Papers
5. Which of the following is considered a security under Securities Regulation Code?

a. Inventory
b. Options and warrants
c. Investment property
d. Prepaid asset
6. Which of the following is not considered a security under Securities Regulation Code?
a. Shares of stocks, bonds, debentures, notes evidences of indebtedness, asset-backed securities
b. Investment contracts, certificates of interest or participation in a profit sharing agreement, certifies of deposit for a future subscription
c. Fractional undivided interests in oil, gas or other mineral rights
d. Deed of Lease or Deed of Sale
7. Which of the following is not considered a security under Securities Regulation Code?
a. Certificates of assignments, certificates of participation, trust certificates, voting trust certificates or similar instruments
b. Derivatives like option and warrants
c. Deed of Loan with Real Estate Mortgage
d. Proprietary or nonproprietary membership certificates in corporations
8. They are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying security at a predetermined price, called
the exercise or strike price, on or before a predetermined date, called the expiry date, which can only be extended by SEC upon
stockholders' approval
a. Option contract
b. Subscription contract
c. Contract of sale
d. Bond indenture
9. He refers to the originator, maker, obligor or creator of the security.

a. Issuer
b. Broker
c. Dealer
d. Associated person of a broker or dealer
10. He refers to the person engaged in the business of buying and selling securities for the account of others.
a. Issuer
b. Broker
c. Dealer
d. Associated person
CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 1 of 25

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11. He refers to person who buys sells securities for his/her own account in the ordinary course of business.
a. Issuer
b. Broker
c. Dealer
12. He refers to an employee therefor whom, directly exercises control of supervisory authority, but does not include a salesman, or an agent or a
person whose functions are solely clerical or ministerial.
a. Issuer
b. Broker
c. Dealer
13. He refers to a natural person, employed as such as an agent, by a dealer, issuer or broker to buy and sell securities
a. Issuer
b. Broker
c. Salesman
14. He refers to any person who acts as intermediary in making deliveries upon payment effect settlement in securities transactions.
a. Exchange
b. Clearing agency
c. Market
d. Auction
15. It refers to an organized market place or facility that brings together buyers and sellers and executes trade of securities and/or commodities.
a. Exchange
b. Auction
c. Mall
d. Store
16. They refer to contracts which provide for the performance of future services of or the payment of future monetary considerations at the time
actual need, for which plan holders pay in cash or installment at stated prices, with or without interest or insurance coverage and includes
life, pension, education, interment, and other plans which the Commission may from time to time approve
a. Insurance policies
b. Investment schemes
c. Pre-need plans
d. Money market placements
17. He refers to a person who, acting alone or with others, takes initiative in founding and organizing the business or enterprise of the issuer and
receives consideration therefor.
a. Promoter
b. Underwriter
c. Incorporator
d. Founder
18. He refers to a person who guarantees on a firm commitment and/or declared best effort basis the distribution and sale of securities of any kind
by another company.
a. Promoter
b. Underwriter
c. Incorporator
d. Founder
19. Which government agency is entrusted with the administration of the Securities Regulation Code?
a. Board of Accountancy
b. Securities and Exchange Commission
c. Bangko Sentral ng Pilipinas
d. Insurance Commission
20. Which of the following is a function of Securities and Exchange Commission?

a. To approve, reject, suspend, revoke or require amendments to registration statements, and registration and licensing
applications
b. To convict a person of criminal violation of Securities Regulation Code
c. To entertain intra-corporate disputes and election contests
d. To reverse the decision of board of directors in matters of corporate management
21. Which of the following is not a function of Securities and Exchange Commission?
a. To prepare, approve, amend or repeal rules, regulations and orders, and issue opinions and provide guidance on and supervise compliance
with such rules, regulation and orders in relation to Securities Regulation Code
b. To compel the officers of any registered corporation or association to call meetings of stockholders or members thereof under its
supervision
c. To suspend or revoke, after proper notice and hearing the franchise or certificate of registration of corporations, partnership or
associations, upon any of the grounds provided by law
d. To enact law amending the Securities Regulation Code and the Corporation Code of the Philippines

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22. What is the condition precedent before securities will be allowed to be sold or offered for sale or distribution within the Philippines?
a. It must be guaranteed by the Government of the Republic of the Philippines.
b. The securities must be risk-free.
c. The securities must be registered first before the Securities and Exchange Commission.
d. The securities must be profitable in all cases.
23. It refers to the application for the registration of securities required to be filed with the Securities and Exchange Commission before these
securities be allowed to be sold or offered for sale or distributed within the Philippines.
a. Certificate of registration
b. Application form
c. Registration statement
d. Articles of registration
24. It refers to the document made by or an behalf of an issuer, underwriter or dealer to sell or offer securities for sale to the public through
registration statement filed with the Securities and Exchange Commission.
a. Prospectus
b. Brochure
c. Table of specification
d. Syllabus
25. Which of the following may not be done by Securities and Exchange Commission regarding the application for registration of securities by
issuer?
a. The SEC may specify the terms and conditions under which any written communication, including any summary prospectus, shall be
deemed not to constitute an offer for sale.
b. The SEC may audit the financial statements, assets and other information of firm applying for registration of its securities whenever it
deems the same necessary to insure full disclosure or to protect the interest of the investors and the public in general.
c. The SEC shall deny any application for registration of securities if the applicant is a not a Filipino citizen.
d. The SEC shall keep Register Securities which shall record the registration of securities and such register and all documents or
information with the respect to the securities registered therein shall be open to public inspection at reasonable hours on business days.
26. Which of the following securities is required to be registered before the Securities and Exchange Commission?
a. Any security issued or guaranteed by the Government of the Philippines, or by any political subdivision or agency thereof, or by any
person controlled or supervised by, and acting as an instrumentality of said Government
b. Shares of stocks issued by a banking institution
c. Certificates issued by a receiver or by a trustee in bankruptcy duly approved by the proper adjudicatory body
d. Any security issued or guaranteed by the government of any country with which the Philippines maintains diplomatic relations, or by
any state, province or political subdivision thereof on the basis of reciprocity
27. Which of the following securities is required to be registered before the Securities and Exchange Commission?
a. Bank's own shares of stocks
b. Insurance policy
c. Preneed policy
d. Certificate of time deposit
28. Which of the following securities is exempted from registration before Securities and Exchange Commission?
a. Insurance policy
b. Bond indenture
c. Share warrants and share options
d. Fractional undivided interest in oil or mineral rights
29. Which of the following securities is exempted from registration before Securities and Exchange Commission?
a. Participation in profit sharing agreement in a partnership
b. Investment contracts issued by a networking company
c. Trust certificates and voting trust certificates in a mining company
d. Certificate of time deposit or money market placement issued by a bank
30. Which of the following sale of securities is subject to registration with Securities and Exchange Commission?
a. At any judicial sale, or sale by an executor, administrator, guardian or receiver or trustee in insolvency or bankruptcy
b. The distribution by a corporation actively engaged in the business authorized by its articles of incorporation, of securities to its
stockholders or other security holders as a stock dividend or other distribution out of surplus
c. The sale of capital stock of a corporation to its own stockholders exclusively, where no commission or other remuneration is paid or
given directly or indirectly in connection with the sale of such capital stock
d. The sale of securities by an issuer to more than twenty (20) persons in the Philippines during any twelve-month period
31. Which of the following sale of securities is subject to registration with Securities and Exchange Commission?
a. The issuance of bonds or notes secured by mortgage upon real estate or tangible personal property, when the entire mortgage together
with all the bonds or notes secured thereby are sold to a single purchaser at a single sale
b. Broker’s transaction, executed upon customer’s orders, on any registered Exchange or other trading market
c. The exchange of securities by the issuer with the new security holders where commission or other remuneration is paid or
given directly or indirectly for soliciting such exchange
d. An isolated transaction in which any security is sold, offered for sale, subscription or delivery by the owner therefore, or by his
representative for the owner’s account, such sale or offer for sale or offer for sale, subscription or delivery not being made in the
course of repeated and successive transaction of a like character by such owner, or on his account by such representative and
such owner or representative not being the underwriter of such security

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32. Which of the following sale of securities is exempted from registration with Securities and Exchange Commission?
a. By or for the account of a pledge holder, or mortgagee or any of a pledge lien holder selling of offering for sale or delivery in
the ordinary course of business and not for the purpose of avoiding the provision of this Code, to liquidate
a bonafide debt, a security pledged in good faith as security for such debt
b. Sale of investment contracts to numerous investors by a networking company
c. Sale of subscription contracts by a prospective corporation to the public
d. Subscriptions for shares of the capitals stocks of a corporation prior to the incorporation thereof or in pursuance of an increase in its
authorized capital stocks under the Corporation Code, when expense is incurred, or commission, compensation or remuneration
is paid or given in connection with the sale or disposition of such securities, and when the purpose for soliciting, giving or
taking of such subscription is other than to comply with the requirements of such law as to the percentage of the capital stock
of a corporation which should be subscribed before it can be registered and duly incorporated, or its authorized, capital increase
33. In which of the following buyers of securities is sale of securities still required to be registered with Securities and Exchange Commission?
a. Bank
b. Registered investment house or investment company
c. Insurance company
d. Professionals
34. In which of the following buyers of securities is sale of securities exempted from registration with Securities and Exchange Commission?
a. Pension fund or retirement plan of Government of the Philippines or any of its political subdivision
b. Real estate company
c. Educational institution
d. Farmers
35. Which of the following is not a ground for the rejection of the registration statement and refuse registration of the securities of the issuer by
the Securities and Exchange Commission?
a. The issuer has been judicially declared solvent.
b. The issuer has violated any of the provision of Securities Regulation Code.
c. The issuer has been or is engaged or about to engage in fraudulent transactions.
d. The issuer has failed to comply with the conditions imposed by SEC for registration of security.
36. Which of the following is a ground for the rejection of the registration statement and refuse registration of the securities of the issuer by the
Securities and Exchange Commission?
a. The issuer has been profitable during the year.
b. The issuer has abided with the lawful order of SEC.
c. The issuer has made any false or misleading representation of material facts in any prospectus concerning the issuer or its
securities
d. The issuer is a non-resident and non-Philippine national juridical person.
37. It means a publicly announced intention by a person acting alone or in concert with other persons to acquire outstanding equity securities of
a public company, or outstanding equity securities of an associate or related company of such public company which controls the said public
company.
a. Tender offer
b. Insider trading
c. Fraudulent practices
d. Issuer tender offer
38. It means a publicly announced intention by an Issuer to reacquire any of its own class of equity securities, or by an associate of such Issuer to
acquire such securities.
a. Tender offer
b. Insider trading
c. Fraudulent practices
d. Issuer tender offer
39. In which of the following instances is tender offer mandatory?

a. Any person or group of persons acting in concert, who intends to acquire (15 %) of equity securities in a public company in one
or more transactions within a period of twelve (12) months.
b. Any person or group of persons acting in concert, who intends to acquire (5%) of the outstanding voting shares or such outstanding
voting shares that are sufficient to gain control of the board in a public company in one or more transactions within a period of twelve
(12) months.
c. Any person or group of persons acting in concert, who intends to acquire (5%) of the outstanding voting shares or such outstanding
voting shares that are sufficient to gain control of the board in a public company directly from one or more stockholders.
d. Any acquisition that would result in ownership of over (10%) of the total outstanding equity securities of a public company
40. In which of the following instances is tender offer not mandatory?

a. Any person or group of persons acting in concert, who intends to acquire (15 %) of equity securities in a public company in one or more
transactions within a period of twelve (12) months.
b. Any person or group of persons acting in concert, who intends to acquire (35%) of the outstanding voting shares or such outstanding
voting shares that are sufficient to gain control of the board in a public company in one or more transactions within a period of twelve
(12) months.
c. Any person or group of persons acting in concert, who intends to acquire (35%) of the outstanding voting shares or such outstanding
voting shares that are sufficient to gain control of the board in a public company directly from one or more stockholders.
d. Any acquisition that would result in ownership of over (50%) of the total outstanding equity securities of a public company
e. Any person or group of persons acting in concert, who intends to acquire thirty five percent (35%) of the outstanding voting
shares or such outstanding voting shares that are sufficient to gain control of the board in a public company through the
Exchange trading system if such person or group of persons acting in concert acquire the remainder through a block sale but
after acquisition through the Exchange trading system, they fail to acquire their target of thirty five percent (35%) or such
outstanding voting shares that is sufficient to gain control of the board.

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41. Which of the following transactions is subject to mandatory tender offer?

a. Any acquisition that would result in ownership of over (50%) of the total outstanding equity securities of a public company
b. Any purchase of securities from an increase in authorized capital stock
c. Purchase in connection with foreclosure proceedings involving a duly constituted pledge or security arrangement where the acquisition
is made by the debtor or creditor
d. Purchases in connection with corporate rehabilitation under court supervision
e. Purchases in the open market at the prevailing market price
42. Which of the following transactions is exempted from mandatory tender offer?
a. Any purchase of securities from the unissued capital stock even if the acquisition will result to a fifty percent (50%) or more ownership of
securities by the purchaser or such percentage that is sufficient to gain control of the board
b. Merger or consolidation
c. Any purchase from a publicly listed company
d. Purchase from the biggest company
43. Which of the following transactions is exempted from mandatory tender offer?
a. Purchases in connection with a privatization undertaken by the government of the Philippines
b. Purchases in connection with a banking institutions
c. Purchases that will result to control of a publicly listed company
d. Purchases that will result to parent-subsidiary relationship
44. What is the condition precedent in the tender offer by an Issuer or buyback or reacquisition or repurchase by an Issuer of its own securities?
a. Presence of unrestricted retained earnings in its books
b. Presence of contributed capital in its books
c. Solvency of the issuer
d. Liquidity of the issuer
45. Which of the following is not a purpose of tender offer by an Issuer or buyback or reacquisition or repurchase by an Issuer of its own
securities?
a. To implement a stock option or stock purchase plan
b. To meet short-term obligations which can be settled by the re-issuance of the repurchased shares
c. To pay dissenting or withdrawing stockholders entitled to payment for their securities under the Corporation Code
d. To dissolve the corporation
46. Where and when shall the terms and conditions of the tender offer be published by the offeror or issuer in a tender offer?
a. An Offeror or Issuer shall publish the terms and conditions of the tender offering in (2) national newspapers of general
circulation in the Philippines on the date of commencement of the tender offer and for (2) consecutive days
b. An Offeror or Issuer shall publish the terms and conditions of the tender offering in (1) national newspaper of general circulation in the
Philippines on the date of commencement of the tender offer and for (1) day
c. An Offeror or Issuer shall publish the terms and conditions of the tender offering in (3) national newspapers of general circulation in the
Philippines on the date of commencement of the tender offer and for (3) consecutive days
d. An Offeror or Issuer shall publish the terms and conditions of the tender offering in (4) national newspapers of general circulation in the
Philippines on the date of commencement of the tender offer and for (4) consecutive days
47. Unless withdrawn earlier, what is the validity or expiration period of tender offer?
a. At least twenty (20) business days from its commencement; Provided, that an offer should as much as possible be completed within sixty
(60) business days from the date the intention to make such offer is publicly announced
b. At least ten (10) business days from the date the notice of a change in the percentage of the class of securities being sought or in the
consideration offered is first published, sent or given to security holders
c. Either A or B
d. Neither A nor B
48. In a mandatory tender offer, what price of shares of stocks shall the Offeror shall be compelled to offer?
a. The highest price paid by him for such securities during the preceding six (6) months
b. The lowest price paid by him for such securities during the preceding six (6) months
c. The average price paid by him for such securities during the preceding six (6) months
d. The lowest price paid by him for such securities during the preceding three (3) months
49. What are the requirements of tender offer?

a. Tender offer shall be open to all security holders of the class of securities subject to the tender offer.
b. The consideration paid to any security holder pursuant to the tender offer shall be the highest consideration paid to any other security
holder during such tender offer.
c. Both A and B.
d. Neither A nor B.
50. It refers to the company subject of the tender offer.

a. Target company
b. Desired company
c. Prospective company
d. Forecasted company

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51. In case of a tender offer other than by an Issuer, the subject of the tender offer ("the target company") shall not engage in any of the following
transactions during the course of a tender offer, or before its commencement if its board has reason to believe that an offer might be
imminent, except
a. Issue any authorized but unissued shares
b. Issue or grant options in respect to any unissued shares
c. Create or issue, or permit the creation or issuance of, any securities carrying rights of conversion into, or subscription to shares
d. Sell, dispose of or acquire, or agree to acquire, any asset whose value amounts to five percent (5 %) or more of the total value of the assets
prior to acquisition
e. Enter into contracts that are in the ordinary course of business
52. It refers to the act of an insider or selling or buying a security of the issuer, while in possession of material information with respect to the
issuer or the security that is not generally available to the public.
a. Tender offer
b. Manipulation of price
c. Fraudulent practice
d. Insider trading
53. It refers to (a) the issuer; (b) a director or officer (or any person performing similar functions) of, or a person controlling the issuer; gives or
gave him access to material information about the issuer or the security that is not generally available to the public; (c) A government
employee, director, or officer of an exchange, clearing agency and/or self-regulatory organization who has access to material information
about an issuer or a security that is not generally available to the public; or (d) a person who learns such information by a communication
from any forgoing insiders.
a. Insider
b. Outsider
c. Independent person
d. Suitably qualified external person
54. Which of the following is not considered an insider?

a. Issuer of the securities
b. A director or officer (or any person performing similar functions) of, or a person controlling the issuer
c. A person who has access to material information about the issuer or the security that is not generally available to the public
d. A government employee, director, or officer of an exchange, clearing agency and/or self-regulatory organization who has access to
material information about an issuer or a security that is not generally available to the public
e. Any person who made investment decision on the basis of published audited financial statements
55. Which of the following is not considered an insider?

a. Internal auditor of the issuer
b. External auditor of the issuer
c. Creditor of the issuer
d. Board of directors of the issuer
56. When is information considered "material nonpublic" for purposes of insider trading?
a. When the information has not been generally disclosed to the public and would likely affect the market price of the security after being
disseminated to the public and the lapse of a reasonable time for the market to absorb the information
b. When the information would be considered by a reasonable person important under the circumstances in determining his course of action
whether to buy, sell or hold a security
c. Either A or B
d. Neither A nor B
57. Which of the following acts considered insider trading is unlawful?

a. To communicate material nonpublic information about the issuer or the security to any person who, by virtue of the
communication, becomes an insider, where the insider communicating the information knows or has reason to believe that such
person will likely buy or sell a security of the issuer whole in possession of such information
b. To become an insider
c. To possess material nonpublic information for being an insider
d. All of the above
58. Which of the following acts is not considered unlawful under Securities Regulation Code?
a. To employ any device, scheme or artifice to defraud
b. To invest in bonds and stocks of competing corporations
c. To obtain money or property by means of any untrue statement of a material fact of any omission to state a material fact necessary in
order to make the statements made, in the light of the circumstances under which they were made, not misleading
d. To engage in any act, transaction, practice or course of business which operates or would operate as a fraud or deceit upon any person
59. Which of the following acts is not considered unlawful manipulation of security prices under Securities Regulation Code?
a. To create a false or misleading appearance of active trading in any listed security traded in an Exchange of any other trading market
b. To affect, alone or with others, a securities or transactions in securities that: (I) Raises their price to induce the purchase of a security,
whether of the same or a different class of the same issuer or of controlling, controlled, or commonly controlled company by others; or
(iii) Creates active trading to induce such a purchase or sale through manipulative devices such as marking the close, painting the tape,
squeezing the float, hype and dump, boiler room operations and such other similar devicesTo obtain money or property by means of any
untrue statement of a material fact of any omission to state a material fact necessary in order to make the statements made, in the light of
the circumstances under which they were made, not misleading
c. To circulate or disseminate information that the price of any security listed in an Exchange will or is likely to rise or fall because of
manipulative market operations of any one or more persons conducted for the purpose of raising or depressing the price of the security
for the purpose of inducing the purpose of sale of such security
d. To participate in trading of stocks and bonds if the investor is not stock broker

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60. Which of the following acts is not considered unlawful manipulation of security prices under Securities Regulation Code?
a. To make false or misleading statement with respect to any material fact, which he knew or had reasonable ground to believe was so
false or misleading, for the purpose of inducing the purchase or sale of any security listed or traded in an Exchange
b. To effect, either alone or others, any series of transactions for the purchase and/or sale of any security traded in an Exchange for the
purpose of pegging, fixing or stabilizing the price of such security
c. To use or employ, in connection with the purchase or sale of any security any manipulative or deceptive device or contrivance
d. To sell securities in order to obtain gain on changes in fair value of the stocks
61. It means any sale of security which the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for
the account of the seller with the commitment of the seller or securities borrower to return or deliver said securities or their equivalent to the
lender on a determined or determinable future time.
a. Short sale
b. Long sale
c. Middle sale
d. Narrow sale
62. It includes making or offering to make with any person, or inducing or attempting to induce any person to enter into or to offer to enter into
any agreement for or with a view to acquiring, disposing of, subscribing for securities.
a. Dealing in securities
b. Promoting securities
c. Advertising securities
d. Investing in securities
63. It refers to the act of seeking or asking for business or information which includes the act of providing information about a security or
investment product being offered for sale with the view of making another person a client or closing or bringing in a sale or purchase of
security or investment product.
a. Solicitation
b. Advertising
c. Marketing
d. Dealing
64. It means a contract, transaction or scheme (collectively "contract") whereby a person invests his money in a common enterprise and is led to
expect profits primarily from the efforts of others. It is presumed to exist whenever a person seeks to use the money or property of others
on the promise of profits.
a. Investment contract
b. Share options
c. Warrants
d. Debentures
65. It refers to the governing body elected by the stockholders in a stock corporation that exercises the corporate powers of a corporation,
conducts all its business and controls its properties.
a. General assembly
b. Board of directors
c. Board of trustees
d. Executive committee
66. It refers to the framework of rules, systems and processes in the corporation that governs the performance by the Board of Directors and
Management of their respective duties and responsibilities to the stockholders.
a. Corporate governance
b. Corporate by-laws
c. Articles of incorporation
d. Corporate regulation
67. Which of the following companies is covered by the Revised Code of Corporate Governance?
a. Corporation whose equity securities are listed on an Exchange Market
b. Barangay Micro Business Enterprise
c. Close corporation
d. Closely held corporation
68. Which of the following companies is not covered by the Revised Code of Corporate Governance?
a. Corporation that is a grantee of secondary licenses from SEC
b. Small and Medium Enterprise
c. Corporation that sells equity and/or debt securities to the public that are required to be registered with the SEC
d. Corporation that has assets in excess of Fifty Million Pesos and at least two hundred (200) stockholders who own at least one hundred
(100) shares each of equity securities
69. How many independent directors must be present in a corporation covered by Revised Code of Corporate Governance?
a. One independent director
b. Two independent directors
c. Three independent directors
d. Four independent directors
70. In addition to the qualifications provided by the Corporate Code of the Philippines, what qualifications of a member of the Board of Directors
may be provided by the Corporation in accordance to Revised Code of Corporate Governance?
a. College education or equivalent academic degree
b. Practical understanding of the business of the corporation
c. Membership in good standing in relevant industry, business or professional organizations
d. Previous business experience
e. All of the above

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71. Which of the following is a ground for permanent disqualification of a director under the Revised Code of Corporate Governance?
a. Conviction by final judgment of an offense punishable by imprisonment for more than six (6) years
b. Any director accused of violation of the Corporation Code
c. Any director charged of crimes involving violation of Securities Regulation Code
d. Attainment of doctorate degree in a university
72. Which of the following is a ground for permanent disqualification of a director under the Revised Code of Corporate Governance?
a. Any person earlier elected as independent director who becomes an officer, employee or consultant of the same corporation
b. Refusal to comply with the disclosure requirements of the Securities Regulation Code and its Implementing Rules and Regulations
c. Absence in more than fifty (50) percent of all regular and special meetings of the Board during his incumbency
d. Any director charged of crimes involving violation of Securities Regulation Code
73. Which of the following is a ground for temporary disqualification of a director under the Revised Code of Corporate Governance?
a. Absence for any twelve (12) month period during his incumbency
b. Any person judicially declared as insolvent
c. Any person convicted by final judgment or order by a court or competent administrative body of an offense involving moral turpitude,
fraud, embezzlement, theft, estafa, counterfeiting, misappropriation, forgery, bribery, false affirmation, perjury or other
fraudulent acts
d. Any person found guilty by final judgment or order of a foreign court or equivalent financial regulatory authority of fraudulent acts
74. What is the nature of the office of a director?

a. It is one of trust and confidence.
b. It is one of independence.
c. It is one for public interest.
d. It is one for creditor's interest.
75. Which of the following is a responsibility of a director of a corporation?

a. He should act in the best interest of the corporation in a manner characterized by transparency, accountability and fairness.
b. He should also exercise leadership, prudence and integrity in directing the corporation towards sustained progress.
c. Both A and B
d. Neither A nor B
76. Which of the following is not a responsibility of a director of a corporation?

a. He must conduct unfair business transactions with the corporation, and ensure that his personal interest does conflict with the
interests of the corporation.
b. He must devote the time and attention necessary to properly and effectively perform his duties and responsibilities.
c. He must act judiciously and exercise independent judgment.
d. He must have a working knowledge of the statutory and regulatory requirements that affect the corporation, including its articles of
incorporation and by-laws, the rules and regulations of the SEC and, where applicable, the requirements of relevant regulatory agencies.
e. He must observe confidentiality.
77. It refers to an executive committee with the responsibility to assist the Board of Directors in the performance of its oversight responsibility
for the financial reporting process, system of internal control, audit process, and monitoring of compliance with applicable laws, rules and
regulations.
a. Finance committee
b. Operation committee
c. Audit committee
d. External committee
78. What is the minimum composition of audit committee of a corporation?

a. At least three directors who shall preferably have accounting and finance backgrounds, one of whom shall be an independent
director and another with audit experience
b. At least five directors who shall preferably have accounting and finance backgrounds, one of whom shall be an independent director and
another with audit experience
c. At least four directors who shall preferably have accounting and finance backgrounds, one of whom shall be an independent director and
another with audit experience
d. At least seven directors who shall preferably have accounting and finance backgrounds, one of whom shall be an independent director
and another with audit experience
79. Who shall be the chairman of the audit committee of a corporation?

a. Chairman of the Board of Directors
b. Independent director
c. President of the Corporation
d. Secretary of the Corporation
80. He refers to a corporate officer who must monitor compliance by the corporation with Revised Code of Corporate Governance and the rules
and regulations of regulatory agencies and, if any violations are found, report the matter to the Board of Directors and recommend the
imposition of appropriate disciplinary action on the responsible parties and the adoption of measures to prevent a repetition of the
violation.
a. Independent director
b. Compliance officer
c. Controller
d. Treasurer

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81. To whom shall the compliance officer report directly?

a. President of the corporation
b. Chairman of the board of directors
c. Independent director
d. Chairman of the audit committee
82. What is the period for submission or filing to SEC of audited financial statements of a corporation whose fiscal year ends on a date other than
December 31?
a. Within 120 calendar days from the end of fiscal year
b. Within 120 working days from the end of fiscal year
c. Within 90 calendar days from the end of fiscal year
d. Within 90 working days from the end of fiscal year
83. When shall the General Information Sheet of a corporation be filed to SEC?
a. Within 30 calendar days from the date of actual meeting of stockholders or members
b. Within 30 working days from the date of actual meeting of stockholders or members
c. Within 30 calendar days from the end of fiscal year
d. Within 30 working days from December 31
84. What rules and regulations issued by Securities and Exchange Commission govern the financial reporting requirements by covered entities?
a. Securities Regulation Code Rule 68
b. Securities Regulation Code Rule 69
c. Securities Regulation Code Rule 65
d. Securities Regulation Code Rule 66
85. Which of the following is a covered entity by Securities Regulation Code Rule 68?
a. Stock Corporations with paid up capital of P50 or more
b. Stock Corporations with paid up capital of P500 or more
c. Stock Corporations with paid up capital of P5,000 or more
d. Stock Corporations with paid up capital of P50,000 or more
86. Which of the following is not a covered by Securities Regulation Code Rule 68?
a. Non-stock corporations with total assets of P500,000 or more, or gross annual receipts of P100,000 or more
b. Branch offices of stock foreign corporations with assigned capital in the equivalent amount of P1,000,000 or more
c. Branch offices of nonstock corporations with total assets in the equivalent amount of P1,000,000 or more
d. Regional operating headquarters of foreign corporations with total revenues in the equivalent amount of P1,000,000 or more
e. Cooperatives with paid up capital of P50,000 or more
87. Which of the following is a large and/or publicly accountable entity under SRC Rule 68?
a. Those with total assets of more than P35M or total liabilities of more than P25M
b. Those with total assets of more than P3.5M or total liabilities of more than P2.5M
c. Those with total assets of more than P350M or total liabilities of more than P250M
d. Those with total assets of more than P350,000 or total liabilities of more than P250,000
88. Which of the following is a not large and/or publicly accountable entity under SRC Rule 68?
a. Those which are required to file financial statements under Part II of SRC Rule 68.
b. Those in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market.
c. Those which are holders of secondary licenses issued by regulatory agencies.
d. Those which are considered as close corporations with paid up capital of at least P50,000.
89. What is the applicable financial reporting framework for the preparation and presentation of financial statements of a large and/or publicly
accountable entity under SRC Rule 68?
a. Full Philippine Financial Reporting Standards
b. Philippine Financial Reporting Standards for Medium Entities
c. Philippine Financial Reporting Standards for Small Entities
d. Philippine Financial Reporting Standards for Micro Entities
90. What is the quantitative threshold to be considered a medium sized entity under SRC Rule 68?
a. Those with total assets between P100M to P350M or total liabilities of between P100M to P250M.
b. Those with total assets of more than P350M or total liabilities of more than P250M
c. Those with total assets between P3M to P100M or total liabilities of between P3M to P100M.
d. Those with total assets below P3M and total liabilities of below P3M.
91. What is the applicable financial reporting framework for the preparation and presentation of financial statements of a medium-sized entity
under SRC Rule 68?
d. International Financial Reporting Standards for Micro Entities
92. What is the quantitative threshold to be considered a small entity under SRC Rule 68?

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93. What is the applicable financial reporting framework for the preparation and presentation of financial statements of a small entity under SRC
Rule 68?
94. What is the quantitative threshold to be considered a micro entity under SRC Rule 68?
95. What is the applicable financial reporting framework for the preparation and presentation of financial statements of a micro entity under SRC
Rule 68?
e. Tax Basis or Cash Basis or Any acceptable financial reporting framework
f. Any of the above
96. What is the state's policy under Foreign Investment Act of 1991 a.k.a. R.A. No. 7042?
a. To attract, promote and welcome productive investments from foreign individuals, partnerships, corporations, and
governments, including their political subdivisions, in activities which significantly contribute to national industrialization
and socio-economic development to the extent that foreign investment is allowed in such activity by the Constitution and
relevant laws
b. To discriminate against foreigners in so far as investment in the Philippines is concerned.
c. To reserve all industries to Filipinos.
d. To discourage globalization.
97. Under the 1987 Constitution, which of the following industry must be fully owned and controlled by Filipinos?
a. Educational institution
b. Mass media
c. Advertising
d. Public utility
e. Exploration, development and utilization of natural resources
98. Under the 1987 Constitution, what is the maximum foreign investment in an advertising company?
a. 100%
b. 30%
c. 40%
d. 60%
99. Under the 1987 Constitution, what is the minimum Filipino ownership in an educational institution?
a. 70%
b. 30%
c. 40%
d. 60%
100. Under the 1987 Constitution, what is the maximum foreign investment in a public utility?
a. 100%
b. 30%
c. 40%
d. 60%
101. Under the 1987 Constitution, what is the minimum Filipino ownership in an entity engaged in exploration development and utilization of
natural resources?
a. 70%
b. 30%
c. 40%
d. 60%
102. Under the 1987 Constitution, what is the minimum Filipino ownership in a corporation before such corporation may own private land in the
Philippines?
a. 70%
b. 30%
c. 40%
d. 60%
103. Twenty professional doctors are intending to establish an entity for the rendition of medical services. What is the maximum foreign
investment in such entity?
a. 0%
b. 60%
c. 40%
d. 30%

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104. Ten scientists are intending to establish a corporation for the manufacturing and disposition of medical equipments. What the maximum
foreign investment in such entity?
a. 100%
b. 30%
c. 40%
d. 0%
105. Under Special Laws, in which of the following companies may a foreigner make investment in the Philippines?
a. Cooperatives
b. Retail trade enterprises with paid up capital less than USA $2,500,000
c. Recording company
d. Small-scale mining
106. It means an equity investment made by non-Philippine national in the form of foreign exchange and/or other assets actually transferred to
the Philippines and duly registered with the Central Bank which shall assess and appraise the value of such assets other than foreign
exchange.
a. Foreign investment
b. Nonresident investment
c. Filipino investment
d. Offshore investment
107. Which of the following is considered Non-Philippine national under Foreign Investment Act?
a. Citizen of the Philippines
b. Domestic Partnership or Association wholly owned by citizens of the Philippines
c. A Corporation organized under the laws of the Philippines of which at least sixty percent (60%) of the capital stock outstanding and
entitled to vote is owned and held by citizens of the Philippines
d. A Corporation organized abroad and registered as doing business in the Philippines under the Corporation Code of which one
hundred percent (100%) of the capital stock outstanding and entitled to vote is wholly owned by Foreigners
108. What is the requirement before a non-Philippine national be allowed to engage in business in the Philippines?
a. Such person must first apply naturalization process to become a Filipino national.
b. Such person must first register and obtain a license from appropriate agency such as SEC or DTI.
c. Such person must invest first in the Philippines.
d. Such person must set up first a corporation in the Philippines.
109. Which of the following acts is considered doing business?

a. Any other act or acts that imply a continuity of commercial dealings or arrangements and contemplate to that extent the
performance of acts or works, or the exercise of some of the functions normally incident to, and in progressive
prosecution of commercial gain or of the purpose and object of the business organization.
b. Mere investment as a shareholder by a foreign entity in domestic corporations duly registered to do business
c. Having a nominee director or officer to represent its interests in such corporation
d. Appointing a representative or distributor domiciled in the Philippines which transacts business in its own name and for its own account
110. Which of the following acts is not considered doing business?

a. Participating in the management, supervision or control of any domestic business, firm, entity or corporation in the Philippines
b. Mere exercise of rights as an investor or stockholder in a Filipino corporation
c. Soliciting orders, service contracts, opening offices, whether called “liaison” offices or branches; appointing representatives or
distributors domiciled in the Philippines or who in any calendar year stay in the country for a period or periods of one hundred eighty
[180] days or more
d. Any other act or acts that imply a continuity of commercial dealings or arrangements and contemplate to that extent the performance of
acts or works, or the exercise of some of the functions normally incident to, and in progressive prosecution of commercial gain or of the
purpose and object of the business organization
111. This test of nationality of corporation means that corporation is a national of the country under whose laws it has been organized and
registered.
a. Place of incorporation test
b. Control test
c. Dominancy test
d. Grandfather rule test
112. This test of nationality of corporation means that the nationality of a corporation is determined by the nationality of the majority of the
stockholders on whom equity control is vested and it is normally used as war-time test or to determine the compliance with
minimum requirement of Filipino ownership in industry reserved for Filipinos.
b. Control test
c. Dominancy test
113. This test of nationality of corporation is a a three-level relationship test by which the percentage of Filipino equity is computed in a
corporation engaged in fully or partly nationalized areas of activities provided in the Constitution and other nationalization laws, in
cases where corporate shareholders are present in the situation, by attributing the nationality of the second or even subsequent tier
of ownership to determine the nationality of the corporate shareholder.
b. Control test
c. Dominancy test

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114. What is the effect if there is non-compliance or violation of minimum Filipino ownership in an existing corporation?
a. The corporation is ip so facto dissolved by operation of law.
b. The corporate remains to be de jure corporation.
c. The noncompliance is merely a non-automatic ground for dissolution making a corporation a de facto corporation subject to
direct attack by the State through the Office of Solicitor General via Quo Warranto Proceedings.
d. The corporation becomes an ostensible corporation.
115. Ayala Corporation is 60% owned by Filipinos and 40% owned by Japanese. Globe Corporation is owned 55% by Ayala Corporation, 10% by
other Filipino Citizens and the remaining interest by Americans. Does Globe Corporation, a public utility, comply with the
minimum Filipino ownership?
a. It cannot be determined.
b. Yes under grandfather rule test.
c. No under grandfather rule test.
d. No under incorporation test.
116. MPIC Corporation is 50% owned by Filipinos and 50% owned by Indonesians. Smart Corporation is owned 60% by MPIC Corporation, 25%
by other Filipino Citizens and the remaining interest by Koreans. Does Smart Corporation, a public utility, comply with the minimum
Filipino ownership?
117. MPIC Corporation is 55% owned by Filipinos and 45% owned by Indonesians. Meralco is owned 60% by MPIC Corporation, 30% by other
Filipino Citizens and the remaining interest by Koreans. Does Meralco, a public utility, comply with the minimum Filipino ownership?
118. It refers to an intellectual property which gives an exclusive right to the inventor over his new, inventive and useful product, process or an
improvement of a product or process.
a. Copyright
b. Trademark
c. Franchise
d. Patent
119. How is a patent as an intellectual property or right created or protected by law?

a. By invention by the inventor
b. By registration with Intellectual Property Office
c. By notarization of the invention
d. By experimenting over the invention
120. What is the legal term of a patent that gives its owner the exclusive right to use the covered invention?
a. 20 years
b. 10 years
c. 15 years
d. 25 years
121. It refers to a protection option, which is designed to protect innovations that are not sufficiently inventive to meet the inventive threshold
required for standard patents application. It may be any useful machine, implement, tools, product, composition, process, improvement or
part of the same, that is of practical utility, novelty and industrial applicability.
a. Utility model
b. Patent
c. Industrial design
d. Trademark
122. What is the legal term of the registered owner of utility model?
a. 20 years
b. 7 years
c. 10 years
d. 50 years
123. It refers to any composition of lines or colors or any three-dimensional form, whether or not associated with lines or colors; provided that
such composition or form gives a special appearance to and can serve as pattern for an industrial product or handicraft. Simply put, it is
that aspect of a useful article which is ornamental or aesthetic.
a. Utility model
b. Patent
c. Industrial design
d. Trademark

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124. What is the legal term of the registration of an industrial design?

a. The registration of the Industrial Design shall be valid for (5) years from the filing date of the application. It may be renewed
for not more than two (2) consecutive periods of five (5) years each, by paying the renewal fee.
b. The registration of the Industrial Design shall be valid for (10) years from the filing date of the application. It may be renewed for not
more than two (2) consecutive periods of (10) years each, by paying the renewal fee.
c. The registration of the Industrial Design shall be valid for (8) years from the filing date of the application. It may be renewed for not
d. The registration of the Industrial Design shall be valid for 20 (20) years from the filing date of the application. It may be renewed for not
125. Which of the following is not a requisite of a patentable invention?

a. It must involve a technical solution to a problem in any field of human activity.
b. It must be new or novel.
c. It must involve inventive step.
d. It must be industrially applicable.
e. It must be made by a scientist.
126. When is an invention considered new or novel?

a. When it forms part of prior art.
b. When it does not form part of prior art.
c. Either A or B.
d. Neither A nor B.
127. What consist prior art?

a. Everything which has been made available to the public anywhere in the world, before the filing date or the priority date of the
application claiming the invention.
b. The whole contents of an application for a patent, utility model, or industrial design registration, published in accordance with
Intellectual Property Code, filed or effective in the Philippines, with a filing or priority date that is earlier than the filing or priority
date of the application.
c. Both A and B.
d. Neither A nor B.
128. When does an invention involve inventive step?

a. When it is part of prior art.
b. When it is not obvious to a person skilled in the art at the time of the filing date or priority date of the application claiming the
invention.
c. Either A or B.
d. Neither A nor B.
129. Which of the following may become the subject matter of patent application?
a. Discoveries, scientific theories and mathematical methods
b. Schemes, rules and methods of performing mental acts, playing games or doing business, and programs for computers
c. Methods for treatment of the human or animal body by surgery or therapy and diagnostic methods practiced on the human or animal
body
d. Microorganisms, non-biological process and microbiological process
e. Plant varieties and animal breeds
130. Which of the following is non-patentable?

a. Aesthetic creations
b. Salt lamp technology
c. Car driven by water-engine
d. Microorganisms
131. Which of the following is non-patentable?

a. Scientific discovery
b. Solar-panel
c. Soft-touch technology
d. Laser that can remove scars
132. If two or more persons have made an invention separately and independently of each other, who shall own the right to the patent?
a. The first person who invented the technology.
b. The person who filed an application for registration for such invention.
c. The first person who mass produced the technology.
d. The first person who presented the technology to a convention.
133. If two or more persons have made an invention separately and independently of each other, who shall own the right to the patent where two
or more applications for registration are filed for the same invention?
a. The applicant who has the earliest filing date or, the earliest priority date.
b. The applicant who has the latest filing date or, the latest priority date.
c. The first person who invented the technology.
d. The first person who presented the technology to a convention.
134. On January 1, 2001, Mang Tomas invented the technology of Bamboo Lamp and was using it already for three years. On January 1, 2004,
Mang Pedro invented the same technology of Bamboo Lamp. Mang Pedro made an application for registration with Intellectual
Property Office. Who has better right over the patent of the technology?
a. Mang Pedro
b. Mang Tomas
c. Both Pedro and Tomas equally
d. None of them

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135. On January 1, 2001, Steve Jobs invented the technology of Soft Touch which he registered in the Intellectual Property Office of USA on
January 1, 2001. On April 1, 2001, Juan Gaya also invented the same technology of Soft Touch which he registered in the Intellectual
Property Office of the Philippines on April 1, 2001. A certified copy of Steve Job's application in USA was filed on June 1, 2001 to
Intellectual Property Office of the Philippines. Who has better right over the patent of the Soft Touch in so far as the Philippine jurisdiction
is concerned?
a. Steve Job
b. Juan Gaya
c. Both Steve and Juan equally
d. None of them
136. Cherry Mobile Co. commissioned Engineer Reyes to develop a new phone. Engineer Reyes was able to develop the commissioned phone. Who
owns the patent over the new phone?
a. Always Cherry Mobile Co.
b. Always Engineer Reyes
c. Generally Cherry Mobile Co. unless otherwise provided in the contract
d. Generally Engineer Reyes unless otherwise provided in the contract
137. Samsung Co. employs Engineer Cruz to develop a new phone. Engineer Cruz was able to develop the phone in the course of performance of
his regular duties. Who owns the patent over the new phone?
a. Always Samsung Co.
b. Always Engineer Cruz
c. Generally Samsung Co. unless otherwise provided in the contract
d. Generally Engineer Cruz unless otherwise provided in the contract
138. Sony Co. employs Engineer Santos to develop a new phone. Engineer Santos was able to develop the phone during his breaktime using the
resources of Sony Co. Who owns the patent over the new phone?
a. Always Sony Co.
b. Always Engineer Santos
c. Generally Sony Co. unless otherwise provided in the contract
d. Generally Engineer Santos unless otherwise provided in the contract
139. It means the unauthorized, replication or use of patented invention or process.

a. Patent laundering
b. Patent infringement
c. Patent misappropriation
d. Patent destruction
140. This test of patent infringement means that a resort must be had, in the first instance, to the words of the claim.
a. Literal infringement test
b. Doctrine of equivalents infringement test
c. Dominancy test
d. Holistic test
141. This test of patent infringement means that infringement also takes place when a device appropriates a prior invention by incorporating its
innovative concept and, although with some modification and change, performs substantially the same function in substantially the same
way to achieve substantially the same result.
b. Doctrine of equivalents infringement test
c. Dominancy test
d. Holistic test
142. Which of the following is not a valid defense by the defendant in an action for patent infringement?
a. The covered invention or technical solution is non-patentable.
b. The covered invention or technical solution is part of prior art.
c. The respondent is the true owner of the patent and has right of priority in registration.
d. The respondent has right of prior use.
e. The respondent acted in good faith.
143. This defense may be set up by a respondent in an action for patent infringement when the respondent is any prior user, who, in good faith was
using the invention or has undertaken serious preparations to use the invention in his enterprise or business, before the filing date
or priority date of the application on which a patent is granted.
a. Doctrine of fair use
b. Doctrine of prior use
c. Doctrine of good faith
d. Doctrine of bad faith
144. It is an intellectual property that refers to any visible sign capable of distinguishing the goods of an enterprise and shall include a stamped or
marked container of goods.
a. Distinguishing mark
b. Trademark
c. Patent
d. Copyright
145. It is an intellectual property that refers to any visible sign capable of distinguishing services of an enterprise and shall include a stamped or
marked container of services.
b. Service mark
c. Patent
d. Copyright

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146. It is an intellectual property that refers to any visible sign designated as such in the application for registration and capable of distinguishing
the origin or any other common characteristic, including the quality of goods or services of different enterprises which use the sign under
the control of the registered owner of the collective mark.
b. Collective mark
c. Patent
d. Copyright
147. It is an intellectual property that refers to the name or designation identifying or distinguishing an enterprise.
a. Distinguishing name
b. Tradename
c. Patent
d. Copyright
148. How is the right over a trademark, service mark or collective mark created or protected by law?
a. By its usage of owner
b. By its registration with Intellectual Property Office
c. By its publication in a newspaper of general circulation
d. By notarization of the mark
149. How is the right over a tradename created or protected by law?

a. By its usage of owner
b. By its registration with Intellectual Property Office
c. By its publication in a newspaper of general circulation
d. By its registration with DTI or SEC
150. What is the term and life of a trademark?

a. It has a term of 10 years which is subject to unlimited times of renewal, thus, it has indefinite life.
b. It has a term of 5 years which is subject to unlimited times of renewal, thus, it has definite life.
c. It has a term of 20 years which is subject to unlimited times of renewal, thus, it has indefinite life.
d. It has a term of 15 years which is subject to unlimited times of renewal, thus, it has definite life.
151. Which of following marks may be registered before Intellectual Property Office for protection?
a. Marks consisting exclusively of signs that are generic for the goods or services that they seek to identify
b. Marks consisting of color along
c. Marks consisting of shapes only
d. Marks consisting of combination of color, shapes and drawing
152. Which of the following marks may be registered before Intellectual Property Office for protection?
a. Marks consisting exclusively of signs or of indications that have become customary or usual to designate the goods or services in
everyday language or in bona fide and established trade practice
b. Marks identical or confusingly similar to a well-known mark
c. Marks consisting of a name, portrait or signature identifying a particular living individual with consent of such individual
d. Marks consisting of portrait of a deceased President of the Philippines, during the life of his widow, if any without by written consent of
the widow
153. Which of the following marks may be registered before Intellectual Property Office for protection?
a. Marks consisting of immoral, deceptive or scandalous matter, or matter which may disparage or falsely suggest a connection with
persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt or disrepute
b. Marks which are unlikely to mislead the public, particularly as to the nature, quality, characteristics or geographical origin of
the goods or service
c. Marks consisting of the flag or coat of arms or other insignia of the Philippines or any of its political subdivisions, or of any foreign
nation, or any simulation thereof
d. Marks identical to a registered mark belonging to a different proprietor or a mark with an earlier filing or priority date
154. This test of trademark infringement focuses on the similarity of the main, prevalent or essential features of the competing trademarks that
might cause confusion.
b. Doctrine of equivalents test
c. Dominancy test
d. Holistic test
155. This test of trademark infringement focuses not only on the predominant words but also on the other features appearing on the labels.
b. Doctrine of equivalents test
c. Dominancy test
d. Holistic test
156. It refers to the unauthorized usage by any person of a mark without the consent of the registrant of mark. It also pertains to any reproduction,
counterfeiting, copying or colorable imitation of any registered mark or trade-name in connection with the sale, offering for sale, or
advertising of any goods, business or services on or in connection with which such use is likely to cause confusion or mistake or to deceive
purchasers or others as to the source or origin of such goods or services, or identity of such business.
a. Trademark infringement
b. Unfair competition
c. Trademark misappropriation
d. Unfair theft

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157. It refers to the passing off (or palming off) or attempting to pass off upon the public of the goods or business of one person as the goods or
business of another with the end and probable effect of deceiving the public.
a. Trademark infringement
b. Unfair competition
c. Trademark misappropriation
d. Unfair theft
158. Which of the following is not a valid defense by the defendant in an action for trademark infringement?
a. The mark is nonregistrable.
b. The respondent is the true owner of the mark.
c. The respondent has right of priority in registration.
d. The respondent acted in good faith.
159. It is an intellectual property that refers to the legal protection extended to the owner of the rights in an original work.
a. Trademark
b. Copyright
c. Tradename
d. Patent
160. It refers to every production in the literary, scientific and artistic domain such as books and other writings, musical works, films, paintings
and other works, and computer programs.
a. Original work
b. Imitated work
c. Counterfeited work
d. Copied work
161. How is a copyright over original work created or protected by law?

a. It is created and protected from the moment of creation.
b. It is created and protected from the moment of registration with Intellectual Property Office.
c. It is created and protected from the moment of notarization.
d. It is created and protected from the moment of publication.
162. As a general rule, what is the term of copyright?

a. The term of protection of copyright for original and derivative works is the life of the author plus (50) years after his death.
b. The term of protection of copyright for original and derivative works is the life of the author plus (20) years after his death.
c. The term of protection of copyright for original and derivative works is the life of the author plus (10) years after his death.
d. The term of protection of copyright for original and derivative works is the life of the author plus (30) years after his death.
163. It refers to a type of right provided by a copyright which enables the creator to obtain remuneration from the exploitation of his works by
third parties.
a. Economic rights
b. Moral rights
c. Material rights
d. Intellectual rights
164. It refers to a type of right provided by a copyright which makes it possible for the creator to undertake measures to maintain and protect the
personal connection between himself and the work.
a. Economic rights
b. Moral rights
c. Material rights
d. Intellectual rights
165. Which of the following is not an example of moral rights granted by a copyright to the creator or original work?
a. Right of attribution
b. Right of alteration
c. Right of integrity by objecting to any prejudicial distortion
d. Right to restrain the use of his name
e. Right to rental income
166. Rose commissioned Jack to paint her nude body. Who owns the painting of nude body of Rose?
a. Jack
b. Rose
c. Both Jack and Rose
d. Neither Jack nor Rose
167. Rose commissioned Jack to paint her nude body. Who owns the copyright over the painting of nude body of Rose?
a. Jack
b. Rose
c. Both Jack and Rose
d. Neither Jack nor Rose
168. Jane Santos is an employed scriptwriter of ABS CBN Co. As part of her regularly assigned duties, she was able to write the script of the movie
One More Chance. Who owns the copyright over the script?
a. Generally Jane Santos in the absence of express or implied agreement to the contrary
b. Generally ABS CBN in the absence of express or implied agreement to the contrary
c. Always Jane Santos
d. Always ABS CBN

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169. Cris Reyes is an employed reporter of GMA7. During his breaktime, Cris was able to write a novel titled True Love using the laptop and
printer of GMA7. Who owns the copyright over the novel?
a. Generally Cris Reyes in the absence of express or implied agreement to the contrary
b. Generally GMA7 in the absence of express or implied agreement to the contrary
c. Always Cris Reyes
d. Always GMA7
170. Which of the following works is not copyrightable?

a. any official text of a legislative, administrative or legal nature, as well as any official translation thereof
b. computer programs
c. drawings or plastic works of a scientific or technical character
d. lectures, sermons, addresses, dissertations prepared for oral delivery, whether or not reduced in writing or other material form
171. Which of the following works is copyrightable?

a. news of the day and other miscellaneous facts having the character of mere items of press information
b. any idea, procedure, system, method or operation
c. concept, principle, discovery or mere data as such
d. musical compositions, with or without words
172. Which of the following works is copyrightable?

a. Speech of a senator
b. Jurisprudence involving decision of Supreme Court
c. Philippine Financial Reporting Standards and Philippine Standards on Auditing
d. Republic Act No. 10963 a.k.a. TRAIN Law
173. It consists of unauthorized use of original work without proper consent and attribution to the owner of the original work.
a. Plagiarism
b. Infringement of copyright
c. Misappropriation of copyright
d. Protection of copyright
174. It refers to the defense in a suit in copyright infringement which pertains to a privilege to use the copyrighted material in a reasonable manner
without the consent of the copyright owner or as copying the theme or ideas rather than their expression. It is an exception to the
copyright owner's monopoly of the use of the work to avoid stifling the very creativity which that law is designed to foster.
a. Doctrine of Fair use
b. Doctrine of Unfair use
c. Doctrine of Inappropriate use
d. Doctrine of Authorized use
175. It refers to a government agency which is considered an independent body entrusted to administer and implement the provisions of Data
Privacy Act, and to monitor and ensure compliance of the country with international standards set for data protection.
a. National Telecommunication Commission
b. National Privacy Commission
c. National Economic Commission
d. National Power Corporation
176. It refers to any freely given, specific, informed indication of will, whereby the data subject agrees to the collection and processing of personal
information about and/or relating to him or her.
a. Consent of the data subject
b. Acceptance of the data subject
c. Offer of the data subject
d. Objection of the data subject
177. How shall consent of the data subject be evidenced?

a. By written means only
b. By electronic means only
c. By recorded means only
d. Any of the above
178. How shall consent of the data subject be given?

a. Only personally by the data subject only
b. Only through an agent specifically authorized by the data subject to do so
c. Either A or B
d. Neither A nor B
179. He refers to an individual whose personal information is processed.

a. Data subject
b. Subject matter
c. Subject matter information
d. Humanity
180. It refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.
a. Solicitation
b. Direct marketing
c. Incidental advertisement
d. Business proposing

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181. It refers to any act of information relating to natural or juridical persons to the extent that, although the information is not processed by
equipment operating automatically in response to instructions given for that purpose, the set is structured, either by reference to individuals
or by reference to criteria relating to individuals, in such a way that specific information relating to a particular person is readily accessible.
a. Structuring system
b. Organizing system
c. Controlling system
d. Filing system
182. It refers to a system for generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and
includes the computer system or other similar device by or which data is recorded, transmitted or stored and any procedure related to the
recording, transmission or storage of electronic data, electronic message, or electronic document.
a. Information and communication system
b. Database system
c. Transportation system
d. Connectivity system
183. It refers to any information whether recorded in a material form or not, from which the identity of an individual is apparent or can be
reasonably and directly ascertained by the entity holding the information, or when put together with other information would directly and
certainly identify an individual.
a. Confidential information
b. Sensitive information
c. Personal information
d. Privileged information
184. He or it refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person
or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or
her behalf.
a. Personal information processor
b. Personal information controller
c. Personal information holder
d. Personal information collector
185. Which of the following are considered personal information controller?

a. A person or organization who performs such functions as instructed by another person or organization
b. An individual who collects, holds, processes or uses personal information in connection with the individual’s personal, family or
household affairs
c. Both A and B
d. Neither A nor B
186. He or it refers to any natural or juridical person qualified to act as such under Data Privacy Act to whom a personal information controller
may outsource the processing of personal data pertaining to a data subject.
a. Personal information processor
b. Personal information collector
c. Personal information holder
d. Personal information custodian
187. It refers to any operation or any set of operations performed upon personal information including, but not limited to, the collection, recording,
organization, storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data.
a. Processing
b. Collecting
c. Auditing
d. Examining
188. It refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.
a. Confidential information
b. Sensitive information
c. Personal information
d. Privileged information
189. Which of the following is considered a sensitive personal information?

a. Information about an individual’s race, ethnic origin, marital status, age, color, and religious, philosophical or political
affiliations
b. Information about an individual’s business, company, business venture and profitable transactions
c. Information about an individual’s facebook public profile picture and display photo
d. Information about an individual’s instagram public account and public twitter account
190. Which of the following is not considered a sensitive personal information?

a. Information about an individual’s health, education, genetic or sexual life of a person, or to any proceeding for any offense committed or
alleged to have been committed by such person, the disposal of such proceedings, or the sentence of any court in such proceedings
b. Information issued by government agencies peculiar to an individual which includes, but not limited to, social security numbers, previous
or current health records, licenses or its denials, suspension or revocation, and tax returns
c. Information specifically established by an executive order or an act of Congress to be kept classified
d. Information about the platform of a candidate for national elective position that is discussed in a public debate televised in
national television network

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191. Which of the following is not covered by Data Privacy Act?

a. Processing of all types of personal information by natural persons
b. Processing of all types of personal information by juridical persons
c. Processing of all types of personal information by personal information controllers
d. Processing of all types of personal information by personal information processors
e. Requiring the publishers, editors or duly accredited reporters of any newspaper, magazine or periodical of general circulation
to reveal the source of any news report or information appearing in said publication which was related in any confidence to
such publisher, editor, or reporter
192. Which of the following information is covered by the protection of Data Privacy Act?
a. Information about any individual who is or was an officer or employee of a government institution that relates to the position or
functions of the individual
b. Information about an individual who is or was performing service under contract for a government institution that relates to the services
performed, including the terms of the contract, and the name of the individual given in the course of the performance of those services
c. Information about students enrolled in the College of Law or Graduate School
d. Information relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the government
to an individual, including the name of the individual and the exact nature of the benefit
193. Which of the following information is covered by the protection of Data Privacy Act?
a. Personal information processed for journalistic, artistic, literary or research purposes
b. Information necessary in order to carry out the functions of public authority which includes the processing of personal data for the
performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and
statutorily mandated functions
c. Information necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or
Bangko Sentral ng Pilipinas to comply with Republic Act No. 9510, and Republic Act No. 9160, as amended, otherwise known as the
Anti-Money Laundering Act and other applicable laws
d. Information about employees of a nonstock nonprofit charitable institutions
e. Personal information originally collected from residents of foreign jurisdictions in accordance with the laws of those foreign jurisdictions,
including any applicable data privacy laws, which is being processed in the Philippines
194. What is the obligation of National Privacy Commission regarding any personal information that comes to its knowledge and possession?
a. It shall at all times ensure the confidentiality of such personal information.
b. It shall disclose such personal information without the consent of data subject.
c. It shall sell such personal information for commercial purposes.
d. It shall use such personal information for public persecution.
195. Who is National Privacy Commission’s head that shall also act as the National Privacy Commission Chairman?
a. Privacy Chairperson
b. Privacy Commissioner
c. Privacy Director
d. Privacy Administrator
196. Who shall assist the Privacy Commissioner of National Privacy Commission?
a. Two Deputy Privacy Commissioner, one to be responsible for Data Processing Systems and to be responsible for Policies and
Planning
b. Two Assistant Privacy Commissioner, one to be responsible for Data Processing Systems and to be responsible for Policies and Planning
c. Two Vice Privacy Commissioner, one to be responsible for Data Processing Systems and to be responsible for Policies and Planning
d. Two Under Privacy Commissioner, one to be responsible for Data Processing Systems and to be responsible for Policies and Planning
197. Who has the authority to appoint the Privacy Commissioner and the two Deputy Privacy Commissioners?
a. Department of Information and Communication Technology (DICT) Secretary
b. Department of Justice Secretary
c. President of the Republic of the Philippines
d. Commission of Human Rights (CHR) Chairman
198. What is the term of office of Privacy Commissioner and the two Deputy Privacy Commissioner?
a. Term of three (3) years and may be reappointed for another term of three (3) years
b. Term of six (6) years but ineligible for reappointment
c. Term of seven (7) years but ineligible for reappointment
d. Term of four (4) years and may be reappointed for another term of four (4) years
199. Which of the following is not a qualification of Privacy Commissioner?

a. He must be at least 35 years of age.
b. He must be of good moral character, unquestionable integrity and known probity.
c. He must be a recognized expert in the field of information technology and data privacy.
d. He must be a holder of Doctor of Philosophy (PhD) in the field of information technology and data privacy.
200. Which of the following is the qualification of two Deputy Privacy Commisioners?
a. He must be at least 35 years of age.
b. He must be a holder of Masteral Degree in the field of information technology and data privacy.
c. He must be a recognized expert in the field of information and communication technology and data privacy.
d. He must be a holder of Doctor of Philosophy (PhD) in the field of information technology and data privacy.
201. When will the Privacy Commissioner and two Deputy Privacy Commissioners become civilly liable for their acts?
a. When they acted in good faith in the performance of their duties.
b. When they wilfully and negligently acted in such a manner that is contrary to law, morals, public policy and good customs
even if they acted under orders or instructions of superiors.
c. Either A or B
d. Neither A nor B

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202. Which of the following is not a general data privacy principle?

a. Transparency
b. Legitimate purpose
c. Proportionality
d. Immorality

a. Personal information must be collected for specified and legitimate purposes determined and declared before, or as soon as reasonably
practicable after collection, and later processed in a way compatible with such declared, specified and legitimate purposes only
b. Personal information must be processed fairly and lawfully
c. Personal information must be accurate, relevant and, where necessary for purposes for which it is to be used the processing of personal
information, kept up to date; inaccurate or incomplete data must be rectified, supplemented, destroyed or their further processing
restricted
d. Personal information must be disclosed for commercial purposes even without the consent of data subject

a. Personal information must be adequate and not excessive in relation to the purposes for which they are collected and processed
b. Personal information must be retained only for as long as necessary for the fulfillment of the purposes for which the data was obtained
or for the establishment, exercise or defense of legal claims, or for legitimate business purposes, or as provided by law
c. Personal information must be kept in a form which permits identification of data subjects for no longer than is necessary for the
purposes for which the data were collected and processed
d. Personal information must be processed surreptitiously to achieve the objective of the company
205. Which of the following is not a criterion for lawful processing of personal information?
a. The data subject has given his or her consent
b. The processing of personal information is necessary and is related to the fulfillment of a contract with the data subject or in order to take
steps at the request of the data subject prior to entering into a contract
c. The processing is necessary for compliance with a legal obligation to which the personal information controller is subject
d. The processing is necessary in order to take undue advantage on the personal information of the data subject
206. Which of the following is not a criterion for lawful processing of personal information?
a. The processing is necessary to protect vitally important interests of the data subject, including life and health
b. The processing is necessary in order to respond to national emergency, to comply with the requirements of public order and safety, or to
fulfill functions of public authority which necessarily includes the processing of personal data for the fulfillment of its mandate
c. The processing is necessary for the purposes of the legitimate interests pursued by the personal information controller or by a third party
or parties to whom the data is disclosed, except where such interests are overridden by fundamental rights and freedoms of the data
subject which require protection under the Philippine Constitution
d. The processing pertains to sensitive personal information of the data subject without the consent of the data subject
207. What is the principle about the processing of sensitive personal information and privileged information or communication?
a. As a general rule, the processing of sensitive personal information and privileged information shall be prohibited except to
those allowed by Data Privacy Act.
b. As a general rule, the processing of sensitive personal information and privileged information shall be allowed except to those prohibited
by Data Privacy Act.
c. The processing of sensitive personal information and privileged information shall be absolutely prohibited.
d. The processing of sensitive personal information and privileged information shall be absolutely allowed.
208. Which is not a lawful processing of sensitive personal information and privileged information or communication?
a. The data subject has given his or her consent, specific to the purpose prior to the processing, or in the case of privileged information, all
parties to the exchange have given their consent prior to processing.
b. The processing of the same is provided for by existing laws and regulations: Provided, That such regulatory enactments guarantee the
protection of the sensitive personal information and the privileged information: Provided, further, That the consent of the data
subjects are not required by law or regulation permitting the processing of the sensitive personal information or the privileged
information.
c. The processing is necessary to protect the life and health of the data subject or another person, and the data subject is not legally or
physically able to express his or her consent prior to the processing.
d. The processing is necessary for making economic decision on the part of data controller.
209. Which is not a lawful processing of sensitive personal information and privileged information or communication?
a. The processing is necessary to achieve the lawful and noncommercial objectives of public organizations and their
associations: Provided, That such processing is only confined and related to the bona fide members of these organizations or their
associations: Provided, further, That the sensitive personal information are not transferred to third parties: Provided, finally, That
consent of the data subject was obtained prior to processing.
b. The processing is necessary for purposes of medical treatment, is carried out by a medical practitioner or a medical treatment
institution, and an adequate level of protection of personal information is ensured.
c. The processing concerns such personal information as is necessary for the protection of lawful rights and interests of natural or legal
persons in court proceedings, or the establishment, exercise or defense of legal claims, or when provided to government or public
authority.
d. The processing is necessary for discriminating against the employees who are members of labor union.
210. Which of the following is not a right of Data Subject under Data Privacy Act?
a. Right to be informed whether personal information pertaining to him or her shall be, are being or have been processed
b. Right to be furnished the information indicated hereunder before the entry of his or her personal information into the processing
system of the personal information controller, or at the next practical opportunity
c. Right to have reasonable access to, upon demand, the information being processed by the data controller
d. Right to question the decision made by the data controller regarding act of management or act of administration of the
corporation

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211. Which of the following is not a right of Data Subject under Data Privacy Act?
a. Right to dispute the inaccuracy or error in the personal information and have the personal information controller correct it immediately
and accordingly, unless the request is vexatious or otherwise unreasonable.
b. Right to suspend, withdraw or order the blocking, removal or destruction of his or her personal information from the personal
information controller’s filing system upon discovery and substantial proof that the personal information are incomplete, outdated, false,
unlawfully obtained, used for unauthorized purposes or are no longer necessary for the purposes for which they were collected.
c. Right to be indemnified for any damages sustained due to such inaccurate, incomplete, outdated, false, unlawfully obtained or
unauthorized use of personal information.
d. Right to inspect or access the personal information of other data subject.
212. What is the difference between the data privacy and data protection?
a. Data privacy refers to the rights of the data subject while data protection refers to the means employed to protects the rights
of the data subject.
b. Data privacy refers to a person while data protection refers to the technology.
c. Data privacy refers to the technical rules and regulations while data protection refers to substantive laws.
d. Data privacy refers to technology while data protection refers to legal principles.
213. Under the principle of transmissibility of rights of data subject, when may the lawful heirs or assignees invoke the rights of the data
subject?
a. After the death of data subject
b. When the data subject is incapacitated or incapable of exercising the said rights
c. Either A or B
d. Neither A nor B
214. This principle means that the data subject shall have the right, where personal information is processed by electronic means and in a
structured and commonly used format, to obtain from the personal information controller a copy of data undergoing processing in an
electronic or structured format, which is commonly used and allows for further use by the data subject.
a. Transmissibility of rights
b. Right to data portability
c. Extraterritorial application of Data Privacy Act
d. Confidentiality of personal information
215. Which of the following is not an internal control measure to be implemented by the personal information controller to secure personal
information?
a. The personal information controller must implement reasonable and appropriate organizational, physical and technical measures
intended for the protection of personal information against any accidental or unlawful destruction, alteration and disclosure, as well as
against any other unlawful processing.
b. The personal information controller shall implement reasonable and appropriate measures to protect personal information against
natural dangers such as accidental loss or destruction, and human dangers such as unlawful access, fraudulent misuse, unlawful
destruction, alteration and contamination.
c. The determination of the appropriate level of security under this section must take into account the nature of the personal information
to be protected, the risks represented by the processing, the size of the organization and complexity of its operations, current data
privacy best practices and the cost of security implementation.
d. The personal information controller may outsource the processing of personal information to a third party personal
information processor in order to avoid the liability under Data Privacy Act.
216. Which of the following is not an internal control measure to be implemented by the personal information controller to secure personal
information?
a. The personal information controller must further ensure that third parties processing personal information on its behalf shall
implement the security measures required by this provision.
b. The employees, agents or representatives of a personal information controller who are involved in the processing of personal
information shall operate and hold personal information under strict confidentiality if the personal information are not intended for
public disclosure.
c. The personal information controller shall promptly notify the Commission and affected data subjects when sensitive personal
information or other information that may, under the circumstances, be used to enable identity fraud are reasonably believed to have
been acquired by an unauthorized person, and the personal information controller or the Commission believes that such unauthorized
acquisition is likely to give rise to a real risk of serious harm to any affected data subject.
d. The employees, agents or representatives of a personal information controller who are involved in the processing of personal
information are no longer required to observe strict confidentiality after leaving the public service, transfer to another
position or upon termination of employment or contractual relations.
217. Which is not an accountability of Personal Information Controller for transfer of Personal Information?
a. Each personal information controller is responsible for personal information under its control or custody, including information that
have been transferred to a third party for processing, whether domestically or internationally, subject to cross-border arrangement and
cooperation.
b. The personal information controller is accountable for complying with the requirements of Data Privacy Act and shall use contractual
or other reasonable means to provide a comparable level of protection while the information are being processed by a third party.
c. The personal information controller shall designate an individual or individuals who are accountable for the organization’s compliance
with Data Privacy Act. The identity of the individual(s) so designated shall be made known to any data subject upon request.
d. The personal information controller is responsible for the processing done by the data subject concerning his own personal
information.
218. He refers to the person who is intended by the originator to receive the electronic data message or electronic document.
a. Addressee
b. Recipient
c. Drawee
d. Offeree

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219. It refers to information generated, sent, received or stored by electronic, optical or similar means.
a. Mechanical data message
b. Electronic data message
c. Computerized data message
d. Binary data message
220. It refers to a system intended for and capable of generating, sending, receiving, storing, or otherwise processing electronic data messages or
electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures
related to the recording or storage of electronic data message or electronic document.
a. Accounting information system
b. Database system
c. Information and communication system
d. Internal control system
221. It refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or
logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a
person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic
document.
a. Benchmark
b. Trademark
c. Electronic signature
d. Identification mark
222. It refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or
however represented, by which a right is established or an obligation extinguished, or by which a fact may be prove and affirmed, which is
receive, recorded, transmitted, stored, processed, retrieved or produced electronically.
a. Electronic document
b. Paper document
c. Manual document
d. Computerized document
223. It refers to a secret code which secures and defends sensitive information that cross over public channels into a form decipherable only with a
matching electronic key.
a. Digital signature
b. Electronic key
c. Password
d. Manual key
224. He refers to a person by whom, or on whose behalf, the electronic document purports to have been created, generated and/or sent.
a. Offeror
b. Sender
c. Originator
d. Creator
225. The following statements concerning Electronic Commerce Act are correct, except
a. Information shall not be denied legal effect, validity or enforceability solely on the grounds that it is in the data message purporting to
give rise to such legal effect, or that it is merely referred to in that electronic data message.
b. Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing.
c. For evidentiary purposes, an electronic document shall be the functional equivalent of a written document under existing laws.
d. An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that
signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document.
e. Electronic data message and electronic document may not become admissible as evidence in any proceedings on the sole ground that it
is in electronic form or on the sole ground that it is not in the standard written form.
226. Which of the following is not covered by Ease of Doing Business and Efficient Government Service Delivery Act of 2018?
a. Local government units (LGUs)
b. Government owned and controlled corporations (GOCCs)
c. Government instrumentalities located abroad
d. National government offices and agencies
e. None of the above
227. What government services are covered by Ease of Doing Business and Efficient Government Service Delivery Act of 2018?
a. Government services covering business transactions
b. Government services covering nonbusiness transactions
c. Both A and B
d. Neither A nor B
228. Which is false regarding Anti-Red Tape Act/ Ease of doing Business Law?
a. All government agencies including departments, bureaus, offices, instrumentalities, or government-owned and/or -controlled
corporations, or local LGUs shall set up their respective most current and updated service standards to be known as the Citizen's Charter
in the form of information billboards which shall be posted at the main entrance of offices or at the most conspicuous place, in their
respective websites and in the form of published materials written either in English, Filipino, or in the local dialect.
b. Except during the preliminary assessment of the request and evaluation of sufficiency of submitted requirements, no government officer
or employee shall have any contact, in any manner, unless strictly necessary with any requesting party concerning an application or
request. This principle is known as zero-contract policy.
c. If the granting authority in the government fails to approve or disapprove an application for a license, clearance, permit, certification or
authorization within the prescribed processing time under Ease of Doing Business Law, said application shall be deemed approved.
d. To eliminate bureaucratic red tape, avert graft and corrupt practices and to promote transparency and sustain ease of doing
business, the DOST shall be primarily responsible in establishing, operating and maintaining a Central Business Portal or other
similar technology, as the DOST may prescribe.

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229. It refers to the written approval or disapproval made by a government office or agency on the application or request submitted by an
applicant or requesting party for processing.
a. Denial
b. Approval
c. Action
d. Inaction
230. It refers to single common site or location, or a single online website or portal designated for the Business Permits and Licensing System
(BPLS) of an LGU to receive and process applications, receive payments, and issue approved licenses, clearances, permits, or
authorizations.
a. Business One Stop Shop (BOSS)
b. Business Only Scope Store (BOSS)
c. Business On Site Scheme (BOSS)
d. Business Own Set Style (BOSS)
231. They refer to sets of regulatory requirements that a business entity must comply with to engage, operate or continue to operate a business,
such as, but not limited to, collection or preparation of a number of documents, submission to national and local government authorities,
approval of application submitted, and receipt of a formal certificate or certificates, permits, licenses which include primary and secondary,
clearances and such similar authorization or documents which confer eligibility to operate or continue to operate as a legitimate business.
a. Related party transactions
b. Business-related transactions
c. Arms length transactions
d. Unrelated party transactions
232. They refer to applications or requests submitted by applicants or requesting parties of a government office which necessitate evaluation in
the resolution of complicated issues by an officer or employee of said government office, such transactions to be determined by the office
concerned.
a. Simple transactions
b. Compound transactions
c. Complex transactions
d. Composite transactions
233. It refers to any individual whether or not officially involved in the operation of a government office or agency who has access to people
working therein, and whether or not in collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other
advantage or consideration.
a. Fixer
b. Arranger
c. Backer
d. Contact
234. It refers to the process or transaction between applicants or requesting parties and government offices or agencies involving applications for
any privilege, right, reward, license, clearance, permit or authorization, concession, or for any modification, renewal or extension of the
enumerated applications or requests which are acted upon in the ordinary course of business of the agency or office concerned.
a. Social service
b. Government service
c. Public service
d. Private service
235. It refers to an application which requires the use of technical knowledge, specialized skills and/or training in the processing and/or
evaluation thereof.
a. Simple application
b. Compound application
c. Highly technical application
d. Common application
236. It refers to time consumed by an LGU or national government agency (NGA) from the receipt of an application or request with complete
requirements, accompanying documents and payment of fees to the issuance of certification or such similar documents approving or
disapproving an application or request.
a. Lead time
b. Set-up time
c. Waiting time
d. Processing time
237. It refers to any regulation, rule, or administrative procedure or system that is ineffective or detrimental in achieving its intended objectives
and, as a result, produces slow, suboptimal, and undesirable social outcomes.
a. Red tape
b. Green tape
c. Blue tape
d. White tape
238. It refers to any legal instrument that gives effect to a government policy intervention and includes licensing, imposing information
obligation, compliance to standards or payment of any form of fee, levy, charge or any other statutory and regulatory requirements
necessary to carry out activity.
a. Control
b. System
c. Regulation
d. Process

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239. They refers to applications or requests submitted by applicants or requesting parties of a government office or agency which only require
ministerial actions on the part of the public officer or employee, or that which present only inconsequential issues for the resolution by an
officer or employee of said government office.
a. Simple transactions
b. Common transactions
c. Ordinary transactions
d. Normal transactions
240. It refers to the government agency, attached to the Office of the President, entrusted with the implementation of Ease of Doing Business and
Efficient Government Service Delivery Act of 2018.
a. Anti-Fixer Authority
b. Anti-Bureaucracy Authority
c. Anti-Red Tape Authority
d. Anti-Influencer Authority
241. It refers to respective most current and updated service standards of any government agency in the form of information billboards which
shall be posted at the main entrance of offices or at the most conspicuous place, in their respective websites and in the form of published
materials written either in English, Filipino, or in the local dialect, that detail the processing of business transactions in a specific
government agency.
a. Citizen’s Charter
b. Citizen’s Bill of Rights
c. Citizen’s Check and Balance
d. Citizen’s Protection
242. This is a policy that prohibits government officer or employee to have any contact with an application except (1) during the preliminary
assessment of the request and evaluation of sufficiency of submitted requirements and (2) necessary with any requesting party concerning
an application or request.
a. Zero-Contact Policy
b. Online Policy
c. Invisible Policy
d. Intangible Policy
243. It shall serve as a central system to receive applications and capture application data involving business-related transactions, including
primary and secondary licenses, and business clearances, permits, certifications or authorizations issued by the local government units
(LGUs): Provided, That the such system may also provide links to the online registration or application systems established by National
Government Agencies (NGAs).
a. Central Business Portal (CBP)
b. Center Binding Program (CBP)
c. Cost Benefit Plan (CBP)
d. Control Brand Premium (CBP)
244. What is the maximum period for issuance of Fire Safety Evaluation Clearance (FSEC), Fire Safety Inspection Certificate (FSIC) by Bureau of
Fire and Protection (BFP) for business permit?
a. No longer than three (3) working days
b. No longer than five (5) working days
c. No longer than seven (7) working days
d. No longer than ten (10) working
245. What is the maximum period for issuance of certification of fire incident for fire insurance purposes by Bureau of Fire and Protection (BFP)
a. No longer than twenty (20) working days, and may be extended only once for another twenty (20) working days
b. No longer than ten (10) working days, and may be extended only once for another ten (10) working days
c. No longer than thirty (30) working days, and may be extended only once for another thirty (30) working days
d. No longer than forty (40) working days, and may be extended only once for another forty (40) working days
246. What is the maximum period for the processing and approval of licenses, clearances, permits, certifications or authorizations for the
installation and operation of telecommunication, broadcast towers, facilities, equipment and services in so far as those issued by barangays?
a. a total of seven (7) working days
b. a total of five (5) working days
c. a total of three (3) working days
d. a total of ten (10) working days
installation and operation of telecommunication, broadcast towers, facilities, equipment and services in so far as those issued by Local
Government Units (LGUs)?
installation and operation of telecommunication, broadcast towers, facilities, equipment and services in so far as those issued by National
Government Agencies (NGAs)?

lOMoARcPSD|20737231
249. What is the effect if the approving government agency fails to approve or disapprove an application for a license, clearance, permit,
certification or authorization within the prescribed processing time of a total of seven (7) working days?
a. Said application shall be deemed approved.
b. Said application shall be deemed denied.
c. The applicant shall file another application.
d. The applicant shall go to the proper court of law to file an action for mandamus.
250. What if the licenses, clearances, permits, certifications or authorizations for the installation and operation of telecommunication, broadcast
towers, facilities, equipment and services require approval by appropriate local legislative body such as the Sanggunian, what is the
prescribed period for the approval of the said application?
a. a nonextendible period of twenty (20) working days
b. a nonextendible period of ten (10) working days
c. a nonextendible period of thirty (30) working days
d. a nonextendible period of forty (40) working days
251. For homeowners and other community clearances, what is the period granted to the officers of homeowner’s association to refer the
application to the members of the association?
a. twenty (20) working days
b. ten (10) working days
c. thirty (30) working days
d. forty (40) working days
252. What is the maximum period granted to homeowner’s association to give consent or disapproval for the application for homeowners and
other community clearances?
a. a nonextendible period of twenty (20) working days
b. a nonextendible period of ten (10) working days
c. a nonextendible period of thirty (30) working days
d. a nonextendible period of forty (40) working days
-Nothing follows-


RFBT Other Special Law Mcqs

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RFBT Other Special Law Mcqs

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lOMoARcPSD|20737231

RFBT - Other Special Law MCQs

Bs accountancy (Mindanao State University)

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CPA REVIEW SCHOOL OF THE PHILIPPINES

5. Which of the following is considered a security under Securities Regulation Code?

9. He refers to the originator, maker, obligor or creator of the security.

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 1 of 25

20. Which of the following is a function of Securities and Exchange Commission?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 2 of 25

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 3 of 25

39. In which of the following instances is tender offer mandatory?

40. In which of the following instances is tender offer not mandatory?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 4 of 25

41. Which of the following transactions is subject to mandatory tender offer?

49. What are the requirements of tender offer?

50. It refers to the company subject of the tender offer.

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 5 of 25

54. Which of the following is not considered an insider?

55. Which of the following is not considered an insider?

57. Which of the following acts considered insider trading is unlawful?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 6 of 25

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 7 of 25

74. What is the nature of the office of a director?

75. Which of the following is a responsibility of a director of a corporation?

76. Which of the following is not a responsibility of a director of a corporation?

78. What is the minimum composition of audit committee of a corporation?

79. Who shall be the chairman of the audit committee of a corporation?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 8 of 25

81. To whom shall the compliance officer report directly?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 9 of 25

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 10 of 25

109. Which of the following acts is considered doing business?

110. Which of the following acts is not considered doing business?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 11 of 25

119. How is a patent as an intellectual property or right created or protected by law?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 12 of 25

124. What is the legal term of the registration of an industrial design?

125. Which of the following is not a requisite of a patentable invention?

126. When is an invention considered new or novel?

127. What consist prior art?

128. When does an invention involve inventive step?

130. Which of the following is non-patentable?

131. Which of the following is non-patentable?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 13 of 25

139. It means the unauthorized, replication or use of patented invention or process.

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 14 of 25

149. How is the right over a tradename created or protected by law?

150. What is the term and life of a trademark?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 15 of 25

161. How is a copyright over original work created or protected by law?

162. As a general rule, what is the term of copyright?

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 16 of 25

170. Which of the following works is not copyrightable?

171. Which of the following works is copyrightable?

172. Which of the following works is copyrightable?

177. How shall consent of the data subject be evidenced?

178. How shall consent of the data subject be given?

179. He refers to an individual whose personal information is processed.

CPAR – Regulatory Framework for Business Transactions (RFBT 9213) Page 17 of 25

185. Which of the following are considered personal information controller?

189. Which of the following is considered a sensitive personal information?