1.

The newly installed sound system of a car is considered to be a/an:

a. Accession
b. Accessory
c. Both A and B
d. Natural fruit
2. Interest income from bank deposits are considered as:
a. Natural fruits
b. Industrial fruits
c. Civil fruits
d. Juicy fruits
3. H, I and J are joints debtors. They obliged themselves to deliver a specific rooster (worth P9000)
to P and Q, joint creditors. Assuming H is the only one who does not want to comply with the
obligation, how much is the total amount that can be collected from him by the creditors?
a. P9,000
b. P9,000 plus damages
c. P3,000 plus damages
d. None. He is not forced to comply.
4. A, B and C are solidary debtors for the amount of P45,000 from F. Mr. B has already paid
P20,000 to F. How much can F further collect from B?
a. P25,000
b. None. It has already exceeded the share of B
c. Another P20,000
d. P5,000
5. A (minor), B(insane), C and D borrowed of P60,000 from G. The relationship of the debtors is
solidary. How much can G collect from A?
a. P60,000
b. P15,000
c. P 0
d. P30,000
6. What is the Entity Theory?
a. A partnership has its separate and distinct personality
b. A partnership is created to engage in business as an entity
c. A partnership has limited liability
d. A partnership is created by mere consent.
7. When an unlawful partnership is dissolved by a judicial decree, to whom shall the profits be
given?
a. To the partners per capita
b. To the partners pro rata
c. T the state
d. To the partners per agreement
8. Which of the following contributions would require a contract of partnership to be in a public
instrument?
a. A shares of stock in a corporation worth P2,500.
b. A parcel of land worth P2,500.
c. Cash contribution amounting to P500
d. Services
9. First statement: Properties, including fruits thereof, acquired subsequently by inheritance,
legacy, or donation cannot be included in a universal partnership of all property by stipulation.
Second statement: Properties, excluding fruits thereof, acquired subsequently by inheritance,
legacy, or donation cannot be included in a universal partnership of all present property by
stipulation.
a. Both statements are true
b. None of the statements is true
c. Only the first statement is true
d. Only the second statement is true
10. First statement: Articles of universal partnership entered into without specification of its nature,
only constitute a universal partnership of profits.
Second statement: Persons who are prohibited form giving each other any donation or
advantage cannot enter into limited partnership.
a. Both statements are true.
b. None of the statements is true.
c. Only the first statement is true
d. Only the second statement is true
11. Rep, Nagma Marunong, a known supporter of the current administration, authored a bill
creating a corporation that wull be granted a franchise to operate an oil refinery in the Spratly.
Atty. E. Pal, a known critic of the President and the leader of the opposition party opposed
saying that Congressman Marunong intends to create a private corporation. With respect to the
foregoing, which of the following statements is false?
a. Of the corporation to be created is a GOCC, it will not be violative of Sec 116, Article XII of the
1987 Constitution.
b. Only public corporations can be created through a special law enacted by Congress with the
exception of GOCCs.
c. Private corporations are created only through the corporation code.
d. GOCC are created only though a special law passed by Congress.
12. One for All Corp. has 10 Shareholders. Before a shareholder can transfer his share to a third
person, approval requiring 2/3 vote of the Board and the other shareholders must be secured.
The restrictions are provided in One for All’s article of incorporation, in the Stock Certificates,
and in the by-laws. The Corporation is not listed in the stock exchange neither it is publicly
listed. What kind of corporation is One for all corp?
a. A closely-held Corporation
b. A closed Corporation
c. A closer to you Corporation
d. A close Corporation
13. Which of the following is a consequence of having a separate juridical personality?
a. Can do business in its own name
b. Can be incur liabilities in its own name
c. Can acquire assets in its own name
d. All of the above
14. A Private Corporation is defined in B.P. Blg. 68 as an artificial being created by operation of law
having the right of succession and powers, attributes and properties expressly authorized by law
or incident to its existence. Given the said definition, are Private Corporations entitled to
Constitutional rights under Article III of the 1987 Constitution?
a. Absolutely nit since corporations are merely artificial beings
b. Yes, to some extent
c. No, except the right against self-incrimination
d. Yes, under the equal protection clause
15. Batas Pambansa Blg, 68 otherwise known as the Corporation Code of the Philippines applies to
the following corporations except:
a. Public Corporations
b. Government Owned and Controlled Corporations
c. Public Utility Corporations
d. Religious Corporations
16. One- peso coins are considered to be legal tender up to
a. One thousand pesos
b. One hundred pesos
c. One million pesos
d. Up to any amount
17. On January 1, Diego borrowed P20,000 from Carlo. On February 1, the former borrowed another
P10,000 from the latter, evidenced by an interest-bearing promissory note. Both debts are now
due. Upon demand by Cardo, Diego paid P6,000 without designating the liability on which it
would be applied. How will the P6,000 be applied?
a. It will be considered as payment for the January 1 debt only
b. It will be considered as payment for the February 1 debt only
c. It will be considered as payment for both debts, in the ratio of 1:1
d. It will be considered as payment for both debts, in the ration of 2:1 respectively
18. On March 1, Desire borrowed p100,000 from Christine, On July 1, the former borrowed another
P500,000 from the latter. Both debts are now due. Upon demand by Christine, Desiree paid
P40,000 without designating the liability on which it would be applied. How will the P40,000 be
applied?
a. It will be considered as payment for the March 1 debt only.
b. It will be considered as payment for the July 1 debt only.
c. It will be considered as payment for both debts, in the ratio of 1:1
d. It will be considered as payment for both debts, in the ration of 1:5 respectively
19. It is the act of depositing the sum or thing due with the judicial authorities whenever the
creditor refuses without just cause to accept the same or in the cases when the creditor cannot
accept it.
a. Consignation
b. Tender of payment
c. Novation
d. Remissiom
20. Under a contract, Mr. X obligated himself to build a house for Mr. Z. In this example, the object
or the prestations is
a. Mr. X
b. The house itself
c. Mr. Z
d. The construction of the house
21. A partnership begins from:
a. The moment of the execution of the contract, unless it is otherwise stipulated
b. The moment of the execution of the contract, notwithstanding a contrary stipulation.
c. The first delivery of capital contribution
d. The complete delivery of all capital contributions
22. On January 1, 2019, Andres, Bonnie, and Carlo agreed to form a partnership. Each of them
promised to contribute P50,000 each to the partnership. Assume that today is February 10,
2019. Which of the following statements is true?
a. Andres is liable to pay the partnership P50,000.
b. Bonnie is liable to pay the partnership P50,000 plus legal interest from January 1, 2019.
c. Carlo is liable to pay the partnership P50,000 plus legal interest from the time of demand,
whether judicial or extrajudicial.
d. Andres, Bonnie, and Carlo are not liable to pay the partnership anything.
23. Debbie (capital partner), Eric (industrial), and Fiona (capital) formed DEF Partnership. After one
year of operations, the partnership has suffered losses which requires the partnership to take
action in order to save the venture. Which of the following statements is true?
a. Debbie can refuse to contribute an additional share to the capital
b. Eric can refuse to contribute an additional share to the capital
c. Fiona can buy Eric’s share in the partnership should Eric refuse to contribute additional share to
the capital.
d. Eric shall be required to buy additional interest to the partnership.
24. Greta, Hilario, and Ivan formed a partnership with a capital contributions of P50,000 each. They
also agreed that the profit sharing shall be 40-40-20 (Greta-Hilario-Ivan). They also agreed that
in case of losses, the losses shall be shared equally by Greta, and Hilario only. Should be
partnership suffer losses in the amount of P90,000. How much is Greta’s share?
a. P45,000
b. P30,000
c. 36,000
d. Nothing
25. Greta, Hilario, and Ivan formed a partnership with a capital contributions of P50,000 each. They
also agreed that the profit sharing shall be 40-40-20 (Greta-Hilario-Ivan). They also agreed that
in case of losses, the losses shall be shared equally by Greta, and Hilario only. Should be
partnership suffer losses in the amount of P90,000. How much is Hilarios share?
a. P45,000
b. P30,000
c. 36,000
d. Nothing
26. In the Corporation Code, a corporation is defined as an artificial being created by operation of
law. Which of the statement Best describes the foregoing phrase?
a. The capital of any corporation is entrusted to the Board of Directors for the protection of
creditors.
b. A corporation, by fiction of law, has a personality separate and distinct from the persons
composing it.
c. A corporation has powers that are expressly given by law or in the Articles of Incorporation
as well as powers implied to the exercise of such powers and powers inherent in every
corporation.
d. The Board of Directors manages the operations of a corporation by acting as a body to
decide matters concerning the corporation.

27. It is a method of determining the nationality of a corporation by breaking down the equity
structure of such corporation and further determines of its stockholders are also “Filipino
Nationals.”
a. Trust Fund Doctrine
b. Separate Personality Principle
c. Grandfather Rule
d. Piercing the veil of corporation fiction
28. The following are the elements that must be present to justify the piercing the veil of corporate
fiction on the ground that the corporation is a mere alter ego except:
a. Control not only financial but complete dominance over the affairs of the other corporation
b. Such control must be used to perpetuate fraud
c. The said control and use of fraud are the proximate causes for the loss complained of
d. None of the above
29. The right of succession of a corporation means
a. Corporations with infinite years of corporate existence may be created.
b. A corporation may continue to exist even if all of its stockholders are dead.
c. A corporation is never dissolved.
d. All of the above
30. The following are the requisites of a valid de facto corporation except:
a. The existence of a valid law under which it may be incorporated
b. An attempt in good faith to incorporate
c. Notarization of the Articles of Incorporation
d. None of the above
31. During a strong typhoon, Mr. X saved the horses of Mr. Z, who is currently out of town. Mr. X
incurred expenses amounting to P5,000. This can be reimbursed because of:
a. Solution indebiti
b. Negotiorium gestio
c. Fortuitous event
d. Natural obligation
32. Juan received P20,000 from Pedro because the latter thought that Juan is his creditor Juancho.
Juan should return the money because of
a. Contract
b. Solution indebiti
c. Negotiorium Gestio
d. Public Policy
33. After the strong storm, Pedro did not remove the broken branches of his mango tree. A few
days after, a passer-by was hit by a branch that fell. Is Pedro liable?
a. No, it is a fortuitous event
b. Yes, he is liable for a crime
c. No, it is mere accident
d. Yes, he is liable for a quasi-delict
34. Mr. S sold a pig named Pcachy to Ms. B for P5,000. No condition or period was contemplated.
After the perfection of the contract but before the delivery of the pig, Peachy the pig gave birth
to 5 piglets. Who is entitled to the 5 piglets?
a. Mr. S
b. Ms. B
c. Peachy, because she is the mother of the piglets
d. None of the above
35. On December 1, 2018, Mr. S agreed to sell a car worth P1,000,000 to Mr. B. the car will be
delivered to Mr. B on December 31, 2018. Prior to December 31, 2018, what kind of right does
Mr. B possess?
a. Personal right
b. Real right
c. Both A and B
d. None of the above
36. Assume further that delivery has been made to Mr. B. What kind of right does he now possess?
a. Personal right binding against Mr. S
b. Real right binding against Mr. S
c. Personal right binding against the whole world
d. real right binding against the whole world
37. Greta, Hilario, and Ivan formed a partnership with a capital contributions of P50,000 each. They
also agreed that the profit sharing shall be 40-40-20 (Greta-Hilario-Ivan). They also agreed that
in case of losses, the losses shall be shared equally by Greta, and Hilario only. Should be
partnership suffer losses in the amount of P90,000. How much is Hilarios share?
a. P18,000
b. P30,000
c. P36,000
d. Nothing
38. A limited partner cannot contribute to the partnership:
a. Cash
b. Tangible property
c. Intangible property
d. Services
39. First statement: Assignee of the limited partner’s interested becomes a substituted limited
partner when the certificate is appropriately amended.
Second statement: A limited partner who became liable as a general partner for taking part on
the control of the business ceases to be liable after being substituted as a limited partner by an
assignee.
a. Both statements are true
b. None of the statements is true
c. Only the first statement is true
d. Only the second statement is true
40. In case of death of a limited partner, who shall be liable for all his liabilities as a limited partner?
a. The estate of the deceased limited partner
b. The heirs of the deceased limited partner
c. The general partners
d. The partnership
41. Which of the following liabilities is the last in the order of settlement after the dissolution of a
limited partnership?
a. Those to the general partners other than for capital and profits
b. Those to the general partners in respect to profits
c. Those to the general partners in respect to the capital
d. Those to partnership creditors
42. A corporation formed organized or existing under the Philippine laws:
a. Foreign corporation
b. Stock Corporation
c. Corporation
d. Domestic Corporation
43. The following are advantages of a corporate form of business except:
a. Transferability of shares
b. Unlimited liability of the owners
c. Centralized Management through the Board of Directors
d. Separate personality from its owners
44. Those mentioned in the articles of incorporation as originally forming and composing the
corporation having signed the articles and acknowledged the same before a notary public:
a. Corporators
b. Incorporators
c. Stockholders
d. Directors
45. That portion of the authorized capital stock that is covered by subscription agreements:
a. Paid up capital
b. Subscribed capital stock
c. Authorized capital
d. Additional paid in capital

46. A document certifying that 25% of the authorized capital stock has been subscribed and 25%
thereof are actually paid:
a. Treasurer’s affidavit
b. Articles of incorporation
c. Corporate by-laws
d. Secretary’s certificate
47. Ownership over a property is transferred during the
a. Perfection of the contract
b. Delivery of the subject matter
c. Payment of the price
d. All of The above
48. Mr. S obliged himself to deliver to Mr. B 50 sacks of sugar for P20,000. Mr. S was not able to
comply with his undertaking. Mr. B was now forced to find a new seller of sugar. Mr. B was able
to buy 50 sacks of sugar from Mr. T for P20,000 also. Is Mr. S still liable?
a. No, because there was no damage on the part of Mr. B. The sugar still costs P20,000
b. No, because Mr. B was able to get a replacement
c. Yes, Mr. S incurred a breach of contract
d. Both A and B
49. What principle is the basis of the rule that an indeterminate thing cannot be the object of
destruction?
a. Force majeure
b. Negotiorum gestio
c. Genus nunquam perit
d. Compensatio morae
50. Mr. S agreed to deliver a specific horse on August 30, 2018 to Mr. B. Today is September 2, 2018
and Mr. S has not yet delivered the specific horse. Mr. S is now said to be in:
a. Legal delay
b. Ordinary delay
c. Both A and B
d. None of the above