Business Law and Taxation Final Pre-board Examination Batch 18 (October 200! 1" The buyer acquires a real right to the fruits of the thing sold. a" From the time the obligation to deliver the thing arises b" From the perfection of the contract of sale c" From From the deli deli#e #er$ r$ ther thereo eo% % d" From payment of the price 2" A buyer may sue the seller for breach of warranty against hidden defects of things a" Within 40 days from delivery of the thing sold b" &ithin &ithin ' months months %rom %rom deli# deli#er$ er$ o% o% the thin sold c" Within 1 year from delivery of the things sold d" Within 4 years from discovery of the fraud )" is indebted to ! in the amount of "#00$000 and delivers to ! his diamond ring by way of pledge. %f sells the same diamond ring to T$ when when will T acquire ownership of the same& a" From the time the sale is perfected between and T b" From the time T pays the price to c" From From the tim timee * consen consents ts to the the sale sale betwe between en + and and T d" From the time T obtains actual possession of the diamond ring ," %n a partnership$ the partners share in the profits a" 'qually b" According to capital contribution
c" cco ccord rdin in to to the the cont contra ract ct d" (ustly and equitably
." This )ind of agent merely ma)es the principal and the third person meet and when they arrive at an agreement or contract becomes entitled to compensation. a" Bro/er c" Factor b" !ommission agent d" Attorney at law '" The following are advantages of no*par value share of stoc). Which is the e+ception& a" ,o*par value shares allow fle+ibility fle+ibility in price. price. b" The stoc)holders of no*par value shares are relieved of personal liability for unpaid stoc) subscription c" t allows allows the issue issue o% stoc/s stoc/s in exchan exchanee o% roert$ roert$"" d" ,o*par value shares afford a possible remedy of relief from the evil of over*capitali-ation over*capitali-ation and stoc) watering. " ! appointed to sell the former/s car for "#00$000. sold the car to " for "#00$000 but acted in her own name. After delivery$ delivery$ " inspected the car and she found hidden hidden defects in the car. !an " file an action against ! even when acted in her own name& the buyer beware. a" ,o$ under caveat emptor let the b" 3es4 es4 because this this is a contract in#ol#i in#ol#in n roert$ roert$ belonin belonin to the rincial rincial"" c" ,o$ because acted in her own name name not of the principal. 2es$ because the contract of sale is already perfected. d" 2es$ 8" A bill of e+change to which no document is attached when presentment for payment or acceptance is made. a" Trade acceptance c" *lea *lean n bill bill o% exc excha han nee b" 3an) acceptance d" ocumentary bill of e+change
" The distinction between a pro+y and a voting trust is that in a voting trust a" The trustee had no legal title to the shares of the transferring stoc)holder. b" 5nless coupled with interest$ is revocable at any time. c" s not limited to an$ articular meetin" d" toc) certificate is not cancelled. 10" A and 3 entered into a universal partnership of all present property. The common property of the partnership shall be a" All the properties which belonged to each of the partners at the time of the constitution of the partnership b" All the properties which shall belong to each of the partners after the constitution of the partnership c" ll the roerties which beloned to each o% the artners at the time o% the constitution o% the artnershi as well as the ro%its which the$ ma$ ac5uire therewith d" All the properties which belonged to each of the partners at the time of the constitution of the partnership as well as the properties which each may acquire thereafter 11" " appointed A his agent for the purpose of selling his car for "600$000 with 107 commission. A sold the same car to T for "800$000. 9ow much should A pay to "& a" "600$000 only b" ":40$000 or minus already the 107 commission c" P8004000 d" ";#0$000 or minus already the 107 commission 12" Which of the following instruments is negotiable& a" 67ood to ose dela Pa9 or order4 P204000: (;d" Pedro *ura! b" % hereby authori-e you to pay (ose dela "a- or order$ "#0$000 <gd. "edro !ura= c" % promise to pay (ose dela "a- or order "#0$000 worth in sugar. <gd. "edro !ura= d" % promise to pay (ose dela "a- or order "#0$000 on >ay #?. 1)" tatement 1. Where the business of the partnership is in imminent danger of being lost$ an industrial partner who refuses to give an additional contribution agreed upon can be compelled to sell his interests to the others.
tatement #. A partner appointed as manager in the Articles of "artnership can be removed with or without cause. a" 3oth statements are true b" Both statements are %alse c" tatement 1 is true$ but tatement # is false d" tatement 1 is false$ but tatement # is true 1," toc) corporations are prohibited from retaining surplus profits in e+cess of one hundred percent of their paid*in capital stoc) in this case a" When @ustified$ by definite corporate e+pansion pro@ects or programs approved by the board directors b" &hen there is ension lan as areed in the *ollecti#e Barainin reement c" When the corporations is prohibited under any loan agreement with any financial institution or creditor$ whether local or foreign$ from declaring dividends without its consent
d" When it can be clearly shown that such retention is necessary under special circumstances obtaining in the corporation$ such as providing preserves for probable contingencies 1." The following are the rights of an unpaid seller$ e+cept a" A right of lien over the thing sold while he is still in possession b" %n case of insolvency on the part of the buyer$ the right of stoppage in transit c" ight to resell the things sold d"
orit$ #ote o% the Board o% +irectors b" >a@ority vote of the 3oard of irectors plus the vote of a ma@ority of the outstanding shares c" >a@ority vote of the 3oard of irectors plus the vote of #G? of the outstanding shares d" #G? votes of the directors plus a ma@ority of the outstanding shares 18" A$ 3 and ! are partners. A contributed his services only$ 3 "#0$000 and ! "10$000. The partnership was liquidated. After payment of the partnership obligation$ only "D$000 worth of assets remained. The share of A will be a" "?$000 c" 'qual to the share of ! b" 'qual to the share of 3 d" ?othin 1" The following are instances of pledge created by operation of law$ e+cept a" 9otel )eeper retains the things brought into the hotel by the guest who cannot pay his hotel bills b" n aent retains in lede the thin which is the ob>ect o% the aenc$ reardin his commission c" A mechanic retains the car he repaired until he is paid d" A depository retains the thing deposited until he is paid the charges due him 20" and 3 agreed on the sale of a four hectare property at >acapagal 3oulevard for the price of ";:$000 per square meter on condition that if the price is not paid on a particular date$ the sale will be considered automatically cancelled. En the particular date agreed upon$ 3 did not pay $ but 3 never as)ed for a @udicial cancellation nor made a notarial act of rescission. %n this case a" The sale is cancelled as per agreement. b" can validly refuse any subsequent offer to pay by 3. c" B can still a$ ; the rice" d" 3 cannot anymore pay the price simply because the sale is cancelled due to his failure to pay on the stipulated date. 21" En ecember 1:$ #006$ offered to sell to 3 his house and lost for ":$000$000. 3 requested to give him 60 days within which to raise the ":$000$000. En February :$ #00;$ before the e+piration of the 60 day period$ informed 3 that he has raised the price to ";$000$000. !an 3$ under the circumstances$ compel to accept ":$000$000 as payment for the house and lot&
a" ?o4 because as between ; and B4 there is as $et no er%ected sale" b" 2es$ because it was who made the offer and 3 is @ust accepting the same. c" ,o$ because in a contract of sale has the e+clusive right to fi+ the price to which 3 can only concur d" 2es$ because he impliedly committed himself to ":$000 in not re@ecting the request of 60 days to raise the money 22" Which of these is not a special form of payment& a" lication o% a$ment b" acion en pago
c" !ession en pago d" Tender of payment H consignation
2)" A contract as a rule must be in writing to be valid.
A ta+payer is not entitled to interest on the overpayment of ta+ sub@ect of a refund because an obligation derived from law is not presumed. a" 3oth statements are true b" 3oth are false c" First is %alse4 second is true d" econd is false$ first is true 2," %n which of these cases does the law not allow the recovery of deficiency @udgment& a" n a sale o% ersonal roert$ on the installment basis should the bu$er %ail to a$ two or more installments a%ter %oreclosure o% the chattel mortae b" %n a contract of real estate mortgage c" %n a contract of antichresis d" %n a contract of chattel mortgage 2." A purchased on installment from 3 a house and lot. After a year of installment payment$ A died. 3 refuses to accept the monthly installment being tendered by his heirs contending that upon the death of their father with whom he has a contract$ the contract automatically terminated or cancelled. 3 is a" &ron %or riht ac5uired in #irtue o% an obliation is transmissible b" Wrong for the right to continue the payment is personal only to A c" !orrect for the contract is between him and A only d" !orrect because the parties did not agree on the transmissibility of the right 2'" The by*laws may provide that the holders of a ma@ority of the outstanding capital stoc) may elect all members of the board of directors.
That it may also provide that no officer of the corporation shall be required to be a stoc)holder. a" 3oth statements are true c" First is false$ second is true b" Both are %alse d" First is true$ second is false 2" A subscribed to 1$000 shares of stoc) to B !orporation. he paid #:7 of the said subscription. uring the stoc)holder meeting$ can A vote all her subscribed shares& a" ,o$ because the subscription has not yet been fully paid b" ,o$ because A/s shares has become delinquent which cannot be voted. c" 2es$ as to the paid percentage of subscription d" 3es4 because unaid shares can be #oted 28" and ! agreed that shall deliver to ! ten )ilos of mari@uana instead of paying /s loan amounting to "1 million. Therefore a" /s obligation is e+tinguished b" must deliver 10 )ilos of mari@uana
c" + must a$ the 1 million" d" may choose between the two obligations. 2" A= Ebligations between husband and wife$ people/s obligation to pay ta+es$ obligation of the employer to pay the salaries and benefits of their employees$ and the obligation of the winner in gambling to return his winning to the loser are obligations derived from law.
3= eath of the victim through mista)e of fact mista)en to be an aswang$ hitting a bystander through rec)lessness$ rec)less digging on his own property that triggered a landslide and fall of the residential structure of the ad@acent property owner will give rise to an obligation derived from quasi*delict. a" Enly A is correct c" Both are correct b" Enly 3 is correct d" 3oth are wrong )0" A= indo insured his only house with unog Agad %nsurance !o. indo/s house was hit by a lightning and was totally burned. The insurance co. is not liable because the loss of the house was due to fortuitous event.
3= The condition not to do an impossible thing shall be considered as not having been agreed upon. a" Enly A is false c" 3oth are true b" Onl$ is true d" 3oth are false )1" The insurer refuses to pay the insurance claim by the insurer on the ground that the loss was due to fire which is a fortuitous event is a" !orrect for no person shall be responsible for damage or in@ury due to fortuitous event b" %ncorrect for the very nature of the insurer is he assumed the ris) of loss c" %ncorrect for his obligation is derived from contract which is the law between the parties d" Both B and * )2" En refusal by obligor to perform a positive personal obligation < Bonus= a" 9e can be compelled for it is his obligation to do so b" 9e cannot be compelled for to do so would violate his constitutional right against involuntary servitude c" Iive rise to an action for damage in favor of the creditor or oblige d" 3oth A and 3 ))" A= eal obligation is also )nown as an obligation to give
3= elivery of money in payment of an indebtedness$ delivery of the boo) borrowed$ delivery of a car purchased are e+amples of an obligation to do. a" Onl$ is correct c" 3oth are correct b" Enly 3 is correct d" 3oth are wrong )," borrowed from ! "1$000$000 to secure the payment of which the former verbally agreed to deliver his 4 hectare agricultural land by way of antichresis and to pay 107 interest per annum. The contract of loan and antichresis a" Are both valid b" 3oth null and void c" The loan is #alid but the antichresis is null and #oid d" The contract of antichresis is valid$ but the loan is null and void )." Which of these is not an essential requisite common to both pledge and mortgage& a" That the pledge or mortgage be constituted to secure the fulfillment of a principal obligation
b" That the ledor or mortaor be the rincial debtor c" That the pledgor or mortgagor has the free disposal of the properties d" That it is the essence of the pledge or mortgage that if the obligation is not paid the things in which the pledge or mortgage consist may be alienated for the payment of the debt )'" %n the absence of a marriage settlement$ or when the regime agreed upon is void$ the property relations of the spouses who married before August ?$ 1D88 shall be governed by a" Absolute community of properties c" Absolute separate of properties b" *on>ual artnershi o% ains d" ,o property relations )" The ranch of the decedent was mortgaged to accommodate the request of his brother for a loan. The value of the loan to the brother was not included as receivable in the gross estate of the decedent. What would be the treatment of the unpaid mortgage on the ranch& a" eductible from gross estate b" ?ot deductible %rom the ross estate c" eductible from the gross income of the estate d" eductible either from the gross estate or the gross income of the estate )8" >r. (ohn amuelson$ resident alien$ donated a piece of @ewelry to his son who got married on (anuary 1:$ #00D. The piece of @ewelry was mailed to his son on (anuary 10$ #00D$ and was received and accepted on (anuary #0$ #00D. When is the last day to file the donor/s ta+ return& a" February D$ #00D c" Februar$ 14 200 b" February 14$ #00D d" >arch #0$ #00D )" For value*added ta+$ which is not a requisite for the ta+ability of the sale of goods or property& a" The sale must be an actual sale o% oods o% roerties %or a #aluable consideration" b" The transaction is underta)en in the course of trade or business. c" The goods are for use or consumption in the "hilippines. d" The transaction must not be e+empt under the Ta+ !ode$ special law or international agreement. ,0" reamboat !orporation registered under the JAT system on (anuary 1:$ #00D. When would the last day to manually file its first monthly JAT declaration& a" February #0$ #00D c" April #:$ #00D b" =arch 204 200 d" ,one of the choices ,1" An international air carrier doing business in the "hilippines shall be sub@ect to a" ?7 percentage ta+ on gross receipts in the "hilippines only b" # K 7 income ta+ on gross "hilippine billings only c" Both the 2 @A income tax on ross Philiine billins and )A ercentae tax on ross receits in the Philiines d" ,either the # K7 income ta+ on gross "hilippine billings nor the ?7 percentage ta+ on gross receipts in the "hilippines ,2" Ene of the following is not a large ta+payer. a" Ta+payer who pays value*added ta+ of "100$000 per quarter b" Ta+payer whose gross sales or receipts per year is "1$000$000$000 c" Taxa$er who a$s income tax o% P1004000 er 5uarter d" Ta+payer whose net worth is "?00$000$000 at the close of each calendar or fiscal year ,)" The following information are presented to you in connection with the determination of the fringe benefits ta+ of the general manager of (asmin >erchandising "aid by the company with official receipts in the name of the company
a= b= c= d=
Laptop computer for manager/s office use$ "80$000 Air*conditioning unit for manager/s office use$ "?0$000 Iroceries for manager/s family consumption$ "10$000 "lumbing materials for use in the repair of manager/s residential house$ ":$000 "aid by the manager with official receipts in the name of the company a= "urchase of clothes and shoes for the manager/s wife$ "1:$000 b= amples of merchandise sold in the competitor/s store for mar)eting study$ "1#$000 9ow much is the fringe benefits ta+ due& a" P1,4118 b" "48$640 c" ":8$8#4 d" ";1$:#D ,," Ene of the following is deductible from the gross income even if not business related. a" ent e+pense c" 3ad debts b" Travel e+penses d" *haritable other contributions ,." An operator of an illegal horse*betting business$ single$ has the following data eceipts from illegal bets$ ":00$000 ent of space where bets are received$ gross of :7 withholding ta+$ "#0$000 alaries of assistants$ gross of creditable withholding ta+$ "100$000 3ribe money to obtain protection from arrest and prosecution$ ":0$000 9ow much is the ta+able income& a" "?80$000 b" "?60$000 c" "))04000
d" "#80$000
,'" ,oynoy o+as paid Liberal ealty "600$000 for the right to lease a store space in >a)ati for : years starting Ectober 1$ #008. 9e would also pay a monthly rental of ":0$000 starting Ectober 1$ #008$ and would shoulder the annual real estate ta+ of "#0$000 starting #00D. 9ow much would be the total deductions of ,oynoy o+as in #008& a" "6;0$000 b" "#00$000 c" "1804000 d" "1:0$000 ," The ta+able income before income ta+ of 'laine !orporation for the current year was ":00$000. uring the year$ the corporation received the following refund of ta+es paid in previous years and recoveries of accounts written off$ all of which were credited to miscellaneous income efund of percentage ta+ "#0$000 efund of income ta+ ":0$000 3ad debt recovered
b" A (apanese visiting professor who occasionally teaches at one of the leading universities in the "hilippines$ and stays here for an aggregate of 18: days c" A Taiwanese singer who performs in one of the hotels in the "hilippines for one <1= wee)$ and then leaves after he is through with his performances d" Filiino residin and wor/in in merica who comes to #isit his relati#es .0" Which of the following is ta+able as a corporation& a" Ieneral professional partnership b" !o*ownership
c" 7eneral co-artnershi d" ,one of the choices
.1" A resident citi-en owns a real property classified as capital asset situated in 5A. uring the current year$ he sells the property for ":$000$000 reali-ing a gain of "#$000$000. What is the "hilippine ta+ consequence of the sale& a" ub@ect to 67 capital gains ta+ b" ;ub>ect to ;ection 2, (! c" ub@ect to either 67 capital gains ta+ or ection #4 r. Tony ayag$ JAT*registered real estate dealer$ sold a real estate for "#$000$000 on ,ovember #D$ #008. The cost of property was "1$:00$000. The terms of the sale were as follows own payment$ ,ov. #D$ #008$ "400$000$ balance payable in monthly installments of "100$000 beginning on ecember #D$ #008 until fully paid$ "1$600$000. 9ow much was the income to be reported in #008& a" ":00$000 b" "#00$000 c" "12.4000 d" "100$000 .," 5sing the same data in the preceding number$ how much was the output JAT in ,ovember #D$ #008& a" "60$000 b" ":0$000 c" ",84000 d" "1:$000 .." An individual ta+payer is qualified to substituted filing of income ta+ return if he meets the following requisites$ e+cept a" "ure compensation income earner c" Withholding ta+ is correct b" Ene employer in the "hilippines d" =inimum wae earner .'" A ta+payer receives an assessment notice on (anuary :$ #00D. 9e files a motion for reconsideration with the 3% on (anuary 1:$ #00D. When is the last day for the submission of complete documents to support his motion for reconsideration& a" February 4$ #00D c" (anuary 1:$ #011 b" =arch 1'4 200 d" ,one of the choices ." 3oy 3onafe resides in 3acoor$ !avite while his place of wor) is in ampaloc$ >anila. 9e files his income ta+ return for #00; income on eptember 10$ #008 in Mue-on !ity because the evenue istrict Efficcer in the place is his college friend. The amount of ta+ due is "100$000. 9ow much will be the surcharge& a" P.04000 b" "#:$000 c" "#0$000 d" ,one .8" 5sing the same data in the preceding number$ how much is the interest on delinquency& a" "8$111 b" "8$???.?? c" P8401")) d" ";$:00
." Which of the following national ta+es is found in the Ta+ !ode& a" ugar ad@ustment ta+es c" +ocumentar$ stam tax b" Ta+es on narcotic drugs d" "rivate motor vehicle ta+ '0" When a property is donated in contemplation of death$ the basis of the ta+ shall be a" Fair mar)et value at the time of donation b" Fair mar)et value in the hands of the donor before the time of donation c" Fair mar/et #alue at the time o% death o% the donor d" !ost when the property was acquired '1" %f a corporation to which the stoc)holder is indebted forgives the debt$ the transaction has the effect of a payment of what )ind of dividend& a" toc) dividend c" Liquidating dividend b" !ash dividend d" ndirect di#idend '2" !. 5berita has three wives under his tribal customs and practice. 9e has a total of si+ <6= qualified dependent children from his three wives. 9e is entitled to total personal e+emption of a" "#00$000 b" "1.04000 c" ":0$000 d" Cero ')" Which of the following ta+es has been replaced by JAT& a" !ommon carrier/s ta+ on land transport of passengers b" Franchise ta+ on water and gas c" Iross receipts ta+ on ban)s and non*ban) financial intermediaries d" *atererCs tax on oerators o% eatin laces '," Ene of the following is not entitled to an optional standard deduction& a"
"urchases$ total invoice value "?$D#0$000 >onthly JAT payments
