WorksheetsSECRET REVIEWER (Mock Exam 2)
Total questions: 63
Worksheet time: 5hrs 15mins
Name
Class
Date
1.
Which of the following are corporate entities not allowed to issue no-par value shares?
I. Banks
II. Transfer Agencies
III. Trust companies
IV. Insurance companies
V. Public utilities
VI. Building and Loan Associations
VII. Clearing Agencies
a)
I, III, IV, V, VI
b)
I, II, III, IV, V, VI
c)
I, II, III, IV, V, VI, VII
d)
I, III, IV, V, VI, VII
2.
A corporation is a Public Company if
I. A corporation with a class of equity shares listed in an Exchange
II. A corporation with assets in excess of P50,000,000 and having 200 or more holders, at least 200 of which are holding at least 100 shares
III. A corporation with assets in excess of P50,000,000 and having 200 or more holders, at least 200 of which are holding at least 1 share
a)
I only
b)
I, II only
c)
I, III only
d)
I, II, III
3.
The articles of incorporation of a Close Corporation must provide that:
I. All the corporation’s issued stocks shall be held by not exceeding 20 specified person (except of treasury shares)
II. All the corporation’s issued stocks shall be held by at least 19 specified person (except of treasury shares)
III. All of the issued stocks shall be subject to one or more specified restrictions on transfer permitted by the Corporation Code
IV. The corporation shall not list in any stock exchange or make any public offering of any of all classes of its stocks.
V. The corporation shall list in any stock exchange or make any public offering of any of all classes of its stocks.
a)
I, II, III
b)
II, III, IV
c)
I, III, V
d)
II, III, V
4.
Efficient market hypothesis is defined as
I. Market is information efficient
II. Market reflects all available information
III. No one can consistently achieve excess returns above market average
IV. Prices are affected by psychology and sentiment of investors
V. Study of past price action is useless
a)
I, II, III
b)
I, II, III, IV
c)
I, II, III, IV, V
d)
I, II, III, V
5.
The registration requirements shall not apply to evidence of indebtedness, such as commercial papers, that meet the following conditions:
I. Issued to at least twenty (20) institutional lenders
II. Issued to not more than nineteen (19) non-institutional lenders
III. Payable to a specific person
IV. Neither negotiable nor assignable and held on to maturity
V. In an amount not exceeding One Hundred Fifty Million Pesos (Php 150,000,000.00)
a)
I, II, III, IV, V
b)
I, III, IV, V
c)
II, III, IV, V
d)
I, II, II, IV
6.
The following are considered as securities:
a. Derivatives like option and warrants
b. Certificates of assignments
c. Shares of stock
d. Bonds, government securities, commercial papers, debentures, notes
e. Certificate of assignments, participation, voting trust certificates
f. Proprietary or non-proprietary membership certificates
g. Investment contracts
a)
III, IV
b)
I, III, IV, V, VII
c)
I, II, II, IV, V, VII
d)
I, II, III, IV, V, VI, VII
7.
Which of the following are required when filing an Annual Audited Financial Report?
I. Accomplished by a Commission-accredited CPA
II. Statement of management responsibility signed by the chairman of BOD and CEO
III. Statement of management responsibility signed by the Chief Financial Officer
a)
I, II
b)
I, II, III
c)
I, III
d)
I only
8.
A corporation shall exist for a period not exceeding ________ unless sooner dissolved or unless said period is extended
a)
Fifty (50) years from the date of incorporation
b)
fifty (50) years from the date of issuance of the articles of incorporation
c)
fifty (50) years from the date of execution
d)
fifty (50) years from the date of operation
9.
Which of the following has the highest claim of assets in a corporation?
a)
Common Shares
b)
Warrants
c)
Options
d)
Rights
10.
A ___________ will result into an increase of number of shares and lower prices of shares
a)
Stock Split
b)
Reverse Stock Split
c)
Stock Conversion
d)
None of the above
11.
This type of dividends entitle the holder of the stock to payment of dividends in arrears and participate with the holders of common stock in the remaining profits
a)
Cumulative
b)
Participating
c)
Cumulative-Participating
d)
Guaranteed
12.
The stockholders are not personally liable for corporate obligations and cannot be held liable to third persons who have claims against the corporation beyond their agreed subscriptions/contributions to the corporate capital
a)
Doctrine of Piercing of the Corporate Veil
b)
Limited Liability Company
c)
Doctrine of Corporate Opportunity
d)
De Jure Corporation
13.
A corporation shall be deemed not a close corporation when _______ of its voting stocks or voting rights is owned or controlled by another corporation which is not a close corporation
a)
More than 50%
b)
At least 2/3
c)
At least 1/3
d)
All of the above
14.
Which of the following cannot be amended in the Articles of Incorporation?
a)
Incorporators
b)
Term for which the corporation is to exist (years)
c)
Name of the Corporation
d)
Specific purpose / purposes of the incorporation
15.
The ___________________ is enacted by a corporation to regulate, govern and control its own actions, affairs and concerns and its stockholders or members and directors and officers
a)
Articles of Incorporation
b)
By-Laws
c)
Certificate of Registration
d)
Code of Corporate Governance
16.
A corporation must adopt ________________
a)
By-Laws within 1 month after receipt of the official notice of the issuance of the certificate of incorporation by the SEC
b)
By-Laws within 1 year after receipt of the official notice of the issuance of the certificate of incorporation by the SEC
c)
By-Laws within 30 days after receipt of the official notice of the issuance of the certificate of registration by the SEC
d)
By-Laws within 6 months after receipt of the official notice of the issuance of the certificate of incorporation by the SEC
17.
This doctrine disregards the principle on separate identity of a corporation from its stockholders when it is used to defeat public convenience, justify wrong, protect or cover fraud or defend crime or work or injustice
a)
Doctrine of Corporate Entity
b)
Doctrine of Piercing of Veil of Corporate Fiction
c)
Ultra Vires Acts of a Corporation
d)
Doctrine of Corporate Opportunity
18.
Acts acted by a Corporation beyond its legal powers or authority conferred by the Code or by its articles of incorporation
a)
Ultra Vires
b)
Intra Vires
c)
Supra Vires
d)
Extra Vires
19.
This refers to the total amount of shares which a corporation is allowed to issue if the shares have a par value
a)
Authorized Stock
b)
Authorized Capital Stock
c)
Capital Structure
d)
Capital Stock
20.
Which of the following will not be considered for the issuance of shares?
a)
Payment of cash or Real Estate
b)
Legal services provided by a lawyer
c)
Previously incurred indebtedness of the corporation
d)
Services to be rendered in the future
21.
The articles of incorporation of ABC Corporation provide for the issuance of 100,000 shares without par value and an issued price per share of P10.00. At the time of incorporation, the subscription and paid-up capital should not be less than:
a)
P250,000.00 and P62,500.00 respectively
b)
P1,000,000.00 and P250,000.00, respectively
c)
P250,000.00 and P125,000.00, respectively
d)
P250,000.00 and P250,000.00, respectively
22.
Which of the following will happen if the company declared a 10% stock dividend and a shareholder has 100 shares initially bought at Php 60/share
a)
The shareholder will have 110 shares priced at Php 60/share
b)
The shareholder will have 110 shares priced at Php 54/share
c)
The shareholder will have 100 shares priced at Php 66/share
d)
The shareholder will have 100 shares priced at Php 54/share
23.
A company announces a stock conversion of 6:1 and the current price of common stock is Php 12. How much is needed to convert a preferred share to a common stock?
a)
Php 2
b)
Php 72
c)
Php 12
d)
Php 0.5
24.
An investor buys a bond that has a coupon scheduled on April 30 and September 30 and will mature on September 30. What will the investor receive at the end of the maturity?
a)
Face Value of the bond and the September 30 coupon
b)
Face Value of the bond and the April 30 and September 30 coupon
c)
Premium Price of the bond
d)
Face value of the bond
25.
An investor buys a bond with Face Value of Php 500,000 has a coupon of 4% p.a. scheduled on April 30 and September 30 and will mature on September 30. What will the investor receive at the end of the maturity?
a)
Php 520,000
b)
Php 510,000
c)
Php 500,000
d)
Php 480,000
26.
Which of the following statements are true about no par value stocks
a)
Issued price should not be less than Php 5
b)
The paid-up capital requirement of the par value stocks is equal to its subscribed capital requirement
c)
The company has no authorized capital stock but only authorized number of shares it can issue
d)
The company has no capital stock
27.
These are shares of stock issued at a much higher value than its underlying assets
a)
Watered Stocks
b)
Appraisal Right
c)
Doctrine of Piercing of the Veil
d)
Voting Trust Certificate
28.
Which of the following are characteristics of a bear market?
a)
Indices are trending higher
b)
Rising trading volumes
c)
Shares are trending below moving averages
d)
All of the above
29.
The following defines Technical Analysis except:
a)
Analysis of past market data to estimate future price
b)
Believes that prices are affected by numerous factors
c)
Prices are affected by psychology and sentiment of investors
d)
Market is information efficient
30.
Which of the following institutions will have the least liquidity requirement?
a)
Corporation
b)
Banks
c)
Pension Plan and Insurance Companies
d)
Investment Companies
31.
If a Financial Statement is used to analyse a company, this is a ____________
a)
Fundamental Analysis
b)
Technical Analysis
c)
Charting
d)
Historical Analysis
32.
If the inflation is cost by rising oil prices this is called a
a)
Demand-push Inflation
b)
Cost-push inflation
c)
Supply-side inflation
d)
None of the above
33.
What is the Net Income of a company whose EBIT is Php 1,680,000, Selling and Admin Expense is Php 1,000,000, Interest Expense is Php 100,000 and Taxes is Php 506,000?
a)
Php 74,000
b)
Php 1,074,000
c)
Php 2,286,000
d)
Php 3,286,000
34.
What is the Operating Profit if the Net Sales is Php 4,000,000, Cost of Goods Sold is Php 1,320,000, Selling and Admin Expense of Php 1,000,000, Interest on Debt is Php 100,000, Liability of 1,000,000?
a)
Php 1,680,000
b)
Php 1,580,000
c)
Php 2,680,000
d)
Php 680,000
35.
What is the Net Profit Margin of a company whose Net Sales is Php 12,500,000, EBT is Php 3,110,000 and Taxes is Php 1,020,000
a)
0.1672
b)
0.25
c)
0.04
d)
0.248
36.
Compute the P/E Ratio if the stock price is at Php 10, its par value is Php 1.50, Net Income is Php 1,680, no preferred dividend was given and the outstanding number of shares is 1000.
a)
7x
b)
6x
c)
5x
d)
4x
37.
Compute the EPS of a company with a Net Income of Php 1,680, Preferred Dividend of Php 100, outstanding number of shares is 1000 and par value of its shares is Php 1.50.
a)
Php 1.68
b)
Php 1.58
c)
Php 0.08
d)
Php 0.18
38.
What is the Price to BV Ratio if the company has Net Income of 612, Liabilities of 3000, Assets of Php 4,500, offer price of Php 2 and Outstanding shares of 1,000.
a)
.95X
b)
1x
c)
1.33X
d)
0.75X
39.
What is the Book Value per share of the company if the Assets is Php 30,000,000 , Liabilities Php 15,000,000, Net Income is Php 2,000,000, Preferred Dividend given is Php 1,000,000, Outstanding shares is 2,000,000
a)
Php 8.50
b)
Php 7.50
c)
Php 1
d)
Php 0.50
40.
What is the average collection period if the Net Sales is Php 4,500 and Accounts Receivables is Php 500?
a)
11 days
b)
15 days
c)
40 days
d)
41 days
41.
What is the D/E Ratio of company with an Asset of Php 50,000,000, Liabilities of Php 11,110,000?
a)
4.5x
b)
22x
c)
29x
d)
45x
42.
What is the Return on Common Equity of a company with an Asset of Php 5,000 , Net Income of Php 500 and Liabilities of Php 1,000?
a)
0.125
b)
0.08
c)
0.0536
d)
1.25
43.
What is the Dividend Yield at the offer price of Php 5, if the company declares Php 2,000 dividends for its 1,000 outstanding shares?
a)
0.025
b)
0.1
c)
0.4
d)
2
44.
If a profit is driven from reinvested earnings, this is called:
a)
Compounding Interest
b)
Simple Interest
c)
Both a & b
d)
None of the above
45.
Who controls the money supply in the Philippines?
a)
SEC
b)
BSP
c)
IC
d)
All of the above
46.
The currency in the circulation, demand deposits, savings and time deposits compose the:
a)
M0
b)
M1
c)
M2
d)
M3
47.
Which of the following policies should be done if a country has a low GDP, high inflation and low unemployment
a)
Raise interest rates, raise the income taxes
b)
Lower the interest rates, lower the income taxes
c)
Raise interest rates, lower the income taxes
d)
Lower the interest rates, raise the income taxes
48.
This type of securities are not required to be registered with the Commission
a)
Exempt Securities
b)
Equity Securities
c)
Debt Securities
d)
Derivatives
49.
All of the following are exempted securities except
a)
Bills of exchange arising from a bona fide sale of goods and services that are distributed and/or traded by banks or investment houses
b)
Any security issued or guaranteed by multilateral financial entities established through a treaty or any other binding agreement to which the Philippines is a party or subsequently becomes a member
c)
Evidence of indebtedness issued to the BSP under its open market and/or rediscounting operations
d)
Evidence of indebtedness issued to at least 20 Non-Institutional lenders
50.
Which is not amenable in the Articles of Incorporation?
a)
Primary purpose
b)
Name of Corporation
c)
Name of Incorporators
d)
Length of existence
51.
The following modes of solicitation or presentation are considered as public offering except:
a)
Presentation in any public or commercial place
b)
Advertisement or announcement on radio, television and electronic communications
c)
Publication in an newspaper, magazine or printed reading material distributed in the Philippines
d)
All of the above
e)
None of the above
52.
SRO stands for
a)
Securities Regulation Organization
b)
Self-Regulatory Organization
c)
Shelf Registration Options
d)
Standard Regulatory Organization
53.
Which institution performs the registration of the transfer for securities in behalf of the issuer?
a)
Clearing Agency
b)
Transfer Agent
c)
Settlement Agency
d)
None of the above
54.
Any changes in the application forms of an Associated Person must be reported in the SEC Form 28-AMD filed within ____ from the change
a)
7 days
b)
30 days
c)
45 days
d)
60 days
55.
All payments to customers must be through
a)
Cash, Check and Electronic fund transfer
b)
Checks and Electronic fund transfer only
c)
Checks, Electronic fund transfer and third-party payment centers
d)
Cash and Checks
56.
The Annual Audited Financial Report shall include the following information:
a)
Statement of Financial Condition, Statement of Comprehensive Income and Statement of Cash Flows
b)
Statement of Changes in Equity and in Liabilities
c)
Results of Monthly securities count conducted
d)
All of the above
e)
Only a and b
57.
_________________ is the market where new securities are sold
a)
Primary Market
b)
Secondary Market
c)
OTC Market
d)
IPO
58.
_________________ is the market where outstanding securities are bought and sold
a)
Primary Market
b)
Secondary Market
c)
OTC Market
d)
IPO
59.
Which of the following cannot participate in trading in the OTC Market?
a)
A qualified investor
b)
Bank, Broker or Investment House
c)
A non-qualified investor through the service of a broker, investment house or bank
d)
A non-qualified investor participating in an investment company, non-directional trust or persion fund
e)
None of the above
60.
The broker shall post or publish all transactions executed in its quotation system within ___________ from execution
a)
1 minute
b)
1 hr
c)
1 day
d)
1 week
61.
Which of the following acts is prohibited:
a)
A dealer dealing with a non-qualified investor through its broker
b)
A dealer dealing with another dealer, broker or qualified investor that are authorized to participate or trade in an OTC
c)
A broker with a non-qualified investor as his customer where OTC market securities are confirmed suitable to the investor
d)
None of the above
62.
Which corporation does not have an authorized capital stock and does not distribute its profits to those who contributed to its capital
a)
Stock Corporation
b)
Non-Stock Corporation
c)
Private Corporation
d)
Public Corporation
63.
When is a corporation deemed to have a juridical personality?
a)
A corporation is deemed imbued with juridical personality from the time the Certificate of Incorporation is issued by the Securities and Exchange Commission
b)
A corporation is deemed imbued with juridical personality from the time the Certificate of Registration is received by the Securities and Exchange Commission
c)
A corporation is deemed imbued with juridical personality from the time the Articles of Incorporation is filed with the Securities and Exchange Commission
d)
A corporation is deemed imbued with juridical personality from the time the Certificate of Incorporation is issued by the Securities and Exchange Commission
100 %
