HOLY ANGEL UNIVERSITY

College of Business and Accountancy

Comprehensive Examination
Secondary Semester SY 2009 2010
Students Code ___________
I.

Subject Code_______

Multiple choice. Choose the best answer.

1. When a Corporate director by virtue of his office acquires for himself a business
opportunity which should belong to the corporation, he is guilty of
1.
2.
3.
4.
5.

Self dealing
Violation of trust and confidence
Acquiring corporate opportunity
Disloyalty of a Director
None of the above

2. Is a right of a shareholder to subscribe to all issues or disposition of shares of any

class in proportion to his present stock holdings.
1. Appraisal Right
2. Right of Subscription
3. Pre emptive right

4.
5

Corporate right
All of the above

3. Corporations are prohibited from retaining surplus profits in excess of 100% of their
paid in capital stock except;
1. When justified by definite corporate expansion projects or programs
2. When the corporation is prohibited under any loan agreement with any
financial institution or creditors, such consent has not yet been secured.
3. When retention is necessary under special circumstances.
4. All of the above.
5. None of the above.
4. In case no one was appointed as managing partners the following rule will apply
1.
2.
3.
4.

The capitalist partners will take care of the business of the partnership.
The industrial partners and the general partners will manage the business
All the partners will be considered us agents of the partnership.
None of the above.

5. All partners are solidarily liable with the partnership in the in the following except;
1. When one partner with authority receives money from a 3 rd person and
misapplied it.
2. In case of contractual liability to a 3rd person.
3. Where by a wrongful act of a partner in the ordinary course of the business,
injury is caused to a 3rd person.
4. None of the above
5. All of the above

6. The following causes will not automatically dissolve the partnership except.
1.
2.
3.
4.
5.
6.

The business can only be carried on at a loss.

Insanity of a partner.
the civil interdiction of any partner
Incapacity of partner.
None of the above.
All of the above.

7. The charged interest in the partnership of a limited partner may be redeemed by

1.
2.
3.
4.

Equally by both the general partners and the limited partners.

Equally by all the limited partners.
The limited partnership with partnership funds.
Only by the general partners and the limited partners.

8. A limited partner becomes liable for the specific partnership property which he
promised to contribute but failed to do so, as a
1.
2.
3.
4.

Debtor
Trustee
Both debtor and Trustee
None of the above

9. The following, Except one are rights of a holder in due Course which is the
exception?
1. He holds the instruments subject to the same defense as if it were nonnegotiable
2. He may sue on the instrument in his own name.
3. He may enforce payment of the instrument for the full amount thereof against
all parties liable.
4. He may receive payment and if payment is in due course, the instrument is
discharged.
10. Pepe sold to Emma a parcel of land for 100,000.00 such Emma executed a
promissory note. But it turn out that there is no land, and the title of the land is fake.
The said promissory note was already indorsed to Amy a holder in due course. Can
Amy still collect from Emma?
1. No. for there is no consideration
2. Yes. For there is always a presumption of consideration
3. Yes. For failure of consideration is only a defense against a person who is not
a holder in due course.
4. Answer not stated
11. Executed for the acquisition of unissued stock in an existing corporation
1.
2.
3.
4.

Certificate of Stock
Articles of Incorporation
Subscription contract
Promoters share

12. The member of the Board of Directors who cannot be removed without just cause
1.
2.
3.
4.

proxy
President
Board member who garnered the highest vote
Board member who was elected thru cumulative voting by the minority
stockholders
5. All of the above
6. None of the above
13. When the separate legal personality of a corporation may be disregarded if it is
being used as a cloak or cover for fraud or illegally. Hence, the individual composing
it will be treated as identical
1.
2.
3.
4.

Derivative suit
Trust fund doctrines
Share in Escrow
Piercing the veil of corporate entity

14. Is one who signed the instrument as maker, drawer, acceptor or indorser, without
receiving value therefore, and for the purpose of lending his name to some other
persons
1.
2.
3.
4.

Holder in due course

Accommodation Party
Accommodated Party
A holder not in due Course

15. Lito and Maria entered into an agreement whereby Lito used to deliver a Dog worth
20,000 to Maria, In turn Maria will give Lito a cat worth 20,000, This contract
is
1.
2.
3.
4.

Contract of Sale
Agency to Sell
Contract of Barter or Exchange
Contract of Service

16. Refer to No. 15 If Maria Could not Deliver the cat instead paid Lito 20,000. The
contract is?
1.
2.
3.
4.

Contract of Sale
Agency to sell
Contract of Barter or Exchange
Contract of Service

17. Peter Sold to John a Specific Sofa set for a price of 50,000 It was stipulated John
will pay 46,000 Cash and for the difference he will deliver a specific radio set
worth 4,000 What is the Nature of the contract
1.
2.
3.
4.

Sale
Barter
Partly Sale and Partly Barter sale
None of the above

18. There is a contract of sale

1. When the manufacturer deliver the goods to an agent where the former
retainer the ownership and dictates the terms of for sale
2. When goods are delivered to a person on charge account
3. When goods are delivered to an agent to be sold by him and the agent is not
liable to the manufacturer of the goods.
4. When goods are delivered to a distributor on consignment
5. Answer not stated
19. If immovable property have been sold to different vendees, the ownership shall be
transferred to the person.
1.
2.
3.
4.

Who in good faith recorded it in the registry of property

Who presents for oldest title in good faith
Who have first taken possession in good faith
Who have paid in good faith for purchase price in full

20. The Recto Law is applicable

1. Sale of house on installment
2. Sale of car on Straight term
3. Sale of car on installment where the buyer constituted a mortgage on the
same car
4. All of the above
21. In contract of sale what are the Implied warranties except:
1.
2.
3.
4.
5.

implied warranty agent eviction

Implied warranty of Fitness
Implied warranty of Merchantability
All of the above
None of the above

22. In contract of sale, if the price is uncertain

1.
2.
3.
4.
5.

The buyer must pay a reasonable price

sale is unenforceable
transaction is void
Price to be fixed by the court
None of the above

23. The following are conditioned sale, Except:

1.
2.
3.
4.

Sale of a vain of hope

Sale of expectancy
Sale subject to a contingency
Sale with a Right to repurchase

24. The following are elements of the Vendors right of stoppage in transitu, except:
1.
2.
3.
4.

The seller must be paid

The goods must be in transit
The buyer must be insolvent
the seller must be in possession of the goods

25. Toni sold his land to Jeremy although the sale was made orally, Jeremy still paid Toni
the agreed price. Later Jeremy wanted to have the sale registered but he needed a
public instrument. What can Jeremy do?
1. Jeremy may occupy and use Tonis land as a buyer in good faith
2. Jeremy may compel Toni to execute the public instrument because the
contract is valid
3. Jeremy may only sue Toni to return the price because no one may enrich
himself at the expense.
4. Jeremy cannot compel Toni to return the price because the contract is not
enforceable.
26. Pia entered into a contract of lease with Vic, Oyo, the clerk of Pia, typed the
document, due to Oyos negligence the document made was that of sales instead of
lease
1.
2.
3.
4.

Parties may go to court for interpretation

Annul their contract
Parties may enforce their right because it is enforceable
none of the above

27. By provision of Law, which of the following contracts is not required to appear in a
public instrument?
1. The power to administer the property
2. Acts and contracts which have for their object the creation, transmission,
modification or extinguishments of real rights over immovable property
3. Sale of immovable property
4. The cession, repudiation or renunciation of hereditary rights
28. Rica owns an BMW car, being in need of money, Rica sold the BMW car to Piolo for
100,000.00 after the sale Rica discovered that the BMW car was valuable and
worth 1,000,000.00
1.
2.
3.
4.

Rica may annul the contract on ground or error.

Rica may annul the contract on ground of fraud.
Rica may annul the contract on ground of lesion or inadequacy of cause.
Piolo is entitled to the benefit of the contract it is valid and binding.

29. Arnold owes Lherma 10,000.00 and issued a check as payment, if Lherma
prevented the check encashment for two (2) years after its issuance, and was
dishonored when presented, Can Arnold be considered as having paid his
obligation?
1.
2.
3.
4.
5.

No, for the check has not been encashed

no, for the check is not considered in law as a legal tender
Yes, because through the Fault of Lherma the check has been impaired
No, for the check was dishonored when presented
Answer not stated

30. Piolo intimidated Robin to marry Juday, Piolos daughter. After a year Robin would
like to file an action for annulment but could not do so because Piolo was around to
intimidate him. The contract of marriage between Robin and Juday is.
1. Rescissible
3.
Voidable
2. Void
4.
Unenforceable
TRUE or FALSE. Choose 1 for True, and Choose 2 for False.

31. A partner who was unjustifiably refused a formal accounting by his co-partners may
seek dissolution of the partnership.
32. Article 1767 defines contract of partnership as; By the contract of partnership two or
more persons bind themselves to contribute money, Property and industry to a
common fund, with the intention of dividing the profits among themselves
33. Article 1767 defines contract or partnership as; by the contract of partnership two or
more persons bind themselves to contribute money, Property and industry to a
common fund, with the intention of dividing the profits proportionately among
themselves
34. Article 1767 defines contract or partnership as; by the contract of partnership two or
more persons bind themselves to contribute money, property or industry to a
common fund, with the intention of dividing the assets among themselves
35. Article 1767 defines contract or partnership as; by the contract of partnershiptwo or
more persons bind themselves to contribute money, property or industry to a
common fund, with the intention of dividing the profits proportionately among
themselves
36. Article 1767 defines contract or partnership as; two or more persons bind
themselves to contribute money, property or industry to a common fund, with the
intention or dividing profits proportionately among themselves
37. Article 1767 defines contract or partnership as; two or more persons bind
themselves to contribute money, property or industry to a common fund, with the
intention of dividing profits among themselves
38. Article 1767 defines contract or partnership as; by the contract of partnership two or
more persons bind themselves to contribute funds, property or industry to a common
fund, with the intention of dividing profits equally among themselves
39. An order or promise to pay out of a particular fund is not negotiable
40. The drawee bank is not liable to the holder unless and until it accepts
41. An antedated or a post dated instrument is void even it is done for lawful purpose.
42. A check is certified by a bank on which it is drawn. Such certification is equivalent to
acceptance.
43. Board of directors are entitled to receive compensation if from reasonable per diems
if approved by majority votes of stockholders
44. Foreign corporators transacting business in the Philippines without license may not
sue but may sued in our courts.

45. Treasury shares sold for less than their par or issued value are considered
watered, and such, are prohibited by law.
46. A partnership may be an incorporator of another corporation
47. The persisted or willful commission of breach of partner of the partnership
agreement will automatically dissolve the partnership.
48. If the dissolution is due to the act. Insolvency or death of a partner, a remaining
partner can still bind the partnership provided his contract is consummated before
the knowledge of the dissolution.
49. The only remedy of a seller in sale of personal property by installment. If the buyers
failure to pay covers 2 or more installments is to cancel the sale.
50. The fixing of the price can never be left to the discretion of one of the contracting
parties. However, if the price fixed by one of the parties is accepted by the other, the
sale is perfected.