Laguna State Polytechnic University

Sta Cruz, Laguna

Quiz 2

1. It is a form of partnership wherein there is community of interest in the business and sharing of profits
and losses.

A. Corporation

B. Sole proprietorship

C. Joint venture

D. Cooperative

2. It exist when two or more persons bind themselves to contribute money, property, or industry to a
common fund, with the intention of dividing the profits among themselves.

A. Corporation

B. Partnership

C. Sole proprietorship

D. Cooperative

3. X and Y verbally entered into a partnership with each of them contributing P2,000 each and some
personal properties in the amount of P500 each. The partnership contract is:

A. Unenforceable because the amount involved exceeds P500

B. Void because it is not in public instrument

C. Valid

D. Void, because it is not registered with the SEC

4. X and Y verbally agreed to form a contract of partnership 18 months from today, each one contribute
P15,000. At the arrival of the said date, if one refuses to go ahead with the agreement, can the other
onforce the agreement?

A. Yes, since the agreement is to be enforced after one year from the making thwreof, the same should be
in writing to be enforceable.
B. No, because the agreement was merely verbal.

C. Yes, because the prior agreement was voluntarily made.

D. Yes, because the contract of partnership is not governed by the Statute of Frauds.

5. A, B and C are partners who contributed the following: A- P6,000 B- P4,000 and C- Industry. They
agreed that the profits and losses shall be distributed as follows to wit: A-35% ; B- 25% ; and C-40%. How
shall the loss of P10,000 be distributed?

A. A-P6,000; B- P4,000 ; C- none

B. A- P3,333 ; B- P3,333 ; C- P3,333

C. A- P3,500 ; B- P2,500 ; C- P4,000

D. A- P3,000 ; B- P3,500 ; C- P 3,500

6. In the same problem in the preceding number, suppose it is a profit of P10,000, how shall it be
distributed?

A. A- P6,000 ; B- P4,000 ; C- none

B. A- P3,333 ; B- P3,333 ; C- P3,333

C. A- P6,000 ; B- P2,000 ; C- P2,000

D. A- P3,500 ; B- P2,500 ; C- P4,000

7.Those who contribute only their industry or labor to the common fund.

A. Capitalist partner

B. Industrial partner

C. General partner

D. Limited partner

8. A, B and C formed a commercial partnership. D represented himself as a partner in the partnership to E

who , on the belief of such representation, extended credit of P50,000 to the partnership. Assuming only B
and C consented to such representation, who shall be liable to E?
A. All of A,B, C and D are liable because of partnership liability for the credit extended to the
partnership by E.

B. B, C and D are the only partners by estoppel. Thus, they are liable to E.

C. Only partners A,B and C are liable to E for the benefit extended to them.

D. Only D who made the representation is liable to E.

9. A partnership that does not fix its term.

A. Partnership for a particular undertaking

B. Partnership with a fixed term

C. Partnership at will

D. None of the above

10. A and B are capitalist partners while C is an industrial partner. There is no agreement as to the profits
and losses. The partnership realized profit in the amount of P150,000. The share of C in the profits shall be:

A. A and B will determine C's share in the profits.

B. C's share shall be P150,000.

C. Pro rata to his contributed capital.

D. Just and equitable under the circumstances.

11. If a partner is insolvent, the first in the order of preference in the distribution of his assets is:

A. Partnership creditors

B. Separate creditors of the partner- debtor

C. Partner's contribution to the partnership

D. Pro-rata between the separate creditors and the partnerships creditors.

12. I. Since it is the partnership, as a separate and distinct entity, that must refund the shares of the
partners in case of winding- up, the amount to be refunded is necessarily limited to its total resources.
II. In other words, in case of winding-up, the partnership can only pay out what it has in its coffers, which
consists of all its assets.

A. Only I is correct

B. Only II is correct

C. Both are true

D. Both are false

13. I. In the ordinary course of events, the legal personality of the expiring partnership persists for the
limited purpose of winding up and closing of the affairs of the partnership.

II. A withdrawing partner is no longer liable to a third party creditor of the old partnership.

A. Only I is correct

B. Only II is correct

C. Both are true

D. Both are false

14. A,B and C are partners in ABC partnership. A and B contributed P10,000 each while C contributed his
service. After payment of the partnership liabilities to creditors, only P15,000 remains. In the absence of
stipulation to the contrary the share of C shall be:

A. P5,000

B. P10,000

C. P2,500

D. Zero

15. A partnership is dissolved in the following instances, except:

A. Death of a partner

B. Partnership business can only be carried on at loss

C. Insolvency of a partner or of the partnership

D. Partnership business has become unlawful

16. The change in the relation of the parties caused by any partner ceasing to ve associated in the carrying
on, as might be distinguished from the winding up of, the business.

A. Dissolution

B. Liquidation

C. Termination

D. Winding up

Limited Partnership

17. Is formed by two or more persons having as members one or more general partners and one or more
limited partners?

A. General partnership

B. Limited partnership

C. Real partnership

D. Partnership by estoppel

18. Spouses H and W formed a limited partnership to engage in real estate business and H contributed
P500,000. Is the partnership between the spouses valid?

A. The partnership is not valid because the spouses cannot enter into a limited partnership

B. The partnership is valid because spouses are prohibited to enter into a universal partnership
only

C. The partnership is valid because spouses can enter into a partnership, limited or general, universal or
particular

D. The partnership is not valid because spouses cannot enter into any kind of partnership for business

19. I. A corporation cannot enter into a partnership contract with natural person but with a juridical person, it
can.

II. A general partner is always the capitalist in a limited partnership.

A. Only I is true
B. Only II is true

C. Both are true

D. Both are false

20. I. A general partnership is dissolve by the insanity os a partner.

II. A limited partnership is dissolve by the insanity of a limited partner.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

21. I. A universal partnership entered into without designation is considered one of profits.

II. A limited partner's surname cannot appear in the partnership name, as a rule.

A. Only I is true

B. Only II is true

C. Both are true

D. Borh are false

22. It is an arrificial being created by operation of law, having the right of succession and the powers,
attributes and properties expressly authorized by law or incident to its existence?

A. Corporation sile

B. Corporation

C. Partnership

D. Sole proprietorship

23. I. The provisions governing stock corporation, when perrinent, shall be applicable ro non-stock
corporations.
II. A non-stock corporation must have shareholders.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

24. All persons who assumes to act as a corporation knowing it to be without authority to do so shall be
liable as general partners for all debts, liabilities and damages incurred or arising as a result thereof.

A. Foreign corporation

B. Domestic corporation

C. Corporation by prescription

D. Corporation by estoppel

25. A corporation consisting of more than one member.

A. Open corporation

B. Close corporation

C. Corporation aggregate

D. Corporation sole

26. I. There shall always be a class or series of shares which have complete voting rights.

II. The right to vote is inherent in and incidental to the ownership of corporate stocks.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

27. I. It is settled that unissued stocks may not be voted or considered in determining whether a quorum is
present in a stockholders' meeting.

II. Only stock actually issued and outstanding may be voted.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

28. A class of stock entitling the holder to vote on corporate matters, to receive dividends after other claims
and dividends have been paid (specifically to preferred shareholders), and to share in assets upon
liquidation.

A. Common stock

B. Peeferred stock

C. Treasury stock

D. Watered stock

29. It is one which entitles the holder thereof to certain preferences over the holders of common stock?

A. Common stock

B. Preferred stock

C. Treasury stock

D. Watered stock

30. I. A corporation shall have perpetual existence unless its articles of incorporation provides otherwise.

II. A corporate term for a specific period may be extended or shortened by amending the articles of
incorporation.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

31. The SEC may summarily order the corporation to immediately cease and desist from using its corporate
name and require the corporation to register a new one upon determination that its corporate name is:

A. Not distinguishable from a name already reserved or registered for the use of another corporation.

B. Already protected by law.

C. Contrary to law, rules and regulations.

D. All of the above

32. He must be a director of the corporation?

A. President

B. Secretary

C. Treasurer

D. Vice-president

33. I. The acts of corporate officers within the scope of their authority are binding on the corporation.

II. Any two or more positions may be held concurrently bt the same person, except that no one shall act as
president and secretary or as president and vice-president at the same time.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

34. I. Directors or trustees can attend or vote by proxy at board meetings.

II. 2/3 of the number of directors or trustees, as fixed in the articles of incorporation, shall constitute a
quorum for the transaction of corporate business.

A. Only I is true
B. Only II is true

C. Both are true

D. Both are false

35. Immendiately after their election, the directors ofa corporation must formally organize and elect:

A. A president, who must be a director.

B. A treasurer, who must be a resident

C. A secretary, who must be a citizen and resident of the Philippines

D. All of the above

36. It is an action brought by a stockholder on behalf of the corporation to enforce corporate rights against
the corporation's directors, officers or other insiders?

A. Individual suit

B. Corporate suit

C. Deprivative suit

D. Representative suit

37. I. Evert corporation has the power and capacity to have perpetual existence unless the certificate of
incorporation provides otherwise.

II. Every corporation has the power and capacity to enter into a partnership, joint venture, merger,
consolodation, or any other commercial agreement with natural and juridical persons.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

38. Subscription to the capital stock of a corporation constitute a fund to which the creditors have a right to
look for the satiafaction of their claims.
A. Trust fund doctrine

B. Doctrine of corporate opportunity

C. Doctrine of piercing the veil of corporate fiction

D. Entity doctrine

39. I. The purpose of pre-emptive right isvto enable the shareholder to retain his proportionate control in the
corporation.

II. A suit to enforce pre-emptive rights in a corporation is a derivative suit.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

40. Its absence merely furnishes a ground for the revocation of the franchise or certificate of registration.
A. By-laws
B. Articles of incorporation
C. Rules, regulations and discipline
D. None of the above

41. I. In all cases, by laws shall be effective only upon the issuance by the SEC of a certification that the
bylaws are in accordance with the Revised Corporation Code.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

42. I. It is genrally accepted rule that third persons are bound by by-laws.
II. By-laws may be necessary for the "government" of the corporation but these are subordinate to the
articles of incorporation.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

43. The requirements for a valid meeting are the following except:
A. It must be held at the principal place of the business only.
B. It must be called by the proper person.
C. There must be a previous notice.
D. There must be a quorum.

44. Revocation of proxy may be made through the following, except:

A. Verbal communication
B. Conduct
C. Formal notice
D. None of the above

45. Is the book which records the names and addresses of all stockholders arranged alphabetically, the
installments paid and unpaid on all stock for which subscription has been made, and the date of payment
thereof?
A. Stock and transfer book
B. Check book
C. Journals
D. Ledgers

46. Is an action brought by minority shareholders in the name of the corporation to redress wrongs
committed against it for which the directors refuse to sue?
A. Individual suit
B. Derivative suit
C. Representative suit
D. Class suit

47. Unit of interest in a corporation.

A. Par value stock
B. Certificate of stock
C. Shares of stock
D. Treasury stock

48. Evidence of the holder's ownership of the stock and of his right as a shareholder.
A. Par value stock
B. Certificate of stock
C. Shares of stock
D. Treasury stock
49. I. The certificate of stock itself once issued is a continuing affirmation or representation that the stock
described therein is valid and genuine.
II. Stock issued without authority and in violation of law is voidable and confers rights on the person to
whom it is issued and subject him to no liabilities.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

50. For a valid transfer of stocks, there must be strict compliance with the mode of transfer prescribed by
law. One of the following is not a requirement for transfer of stocks:
A. To be valid against third parties, the transfer must be recorded in the books of the corporation.
B. The certificate must be endorsed by the owner or his attorney-in-fact or other persons legally authorized
to make the transfer.
C. There must be delivery of the stock certificate.
D. To be valid against third parties, the transfer must be recorded in the SEC.
51. The books and records required to be kept by the corporation are the following, except:
A. A record of all business transactions.
B. Minutes of all meetings of directors or trustees.
C. Minutes of meetings of stockholders or members.
D. Log Book

52. I. The signature of the corporate secretary gives the minutes of the meeting probative and value and
credibility.
II. The proper custodian of the books, minutes and official records of a corporation is usually the corporate
secretary.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

53. I.The stockholder's right of inspection of the corporation's books and records is based upon their
ownership of the assets and property of the corporation.
II. The right of inspection granted to stockholders is absolute.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

54. The proper custodian of the books, minutes and official records of a corporation.
A. President
B. Corporate secretary
C. Vice-president
D. Corporate treasurer
55. It is the union whereby one or more existing corporations are absorbed by another corporation that
survives and continues the combined business?
A. Merger
B. Consolidation
C. Acquisition
D. Business combination

56. It is the union of two or more exciting entities to form a new entry called the consolidated corporation?
A. Merger
B. Consolidation
C. Acquisition
D. Business combination

57. I. Consolidation becomes effective upon the mere agreement of the members and upon issuance of the
certificate of consolidation by the SEC.
II. The merger shall only be effective upon the issuance of a certificate of merger by the DTI.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

58. It means that a stockholder who dissented and voted against the proposed corporate action, may
choose to get out of the corporation by demanding payment of the fair market value of his shares.
A. Appraisal right
B. Voting right
C. Management right
D. Pre-emptive right

59. The following are the instances of appraisal right, except:

A. In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all.
B. In case of merger or consolidation.
C. In case of any amendment of the by-laws.
D. In case of investing of corporate funds in another corporation or business.

60. The following are instances where a dissenting stockholder who demands payment of his shares is ni
longer allowed to withdraw from his decision, except:
A. The corporation consents to the withdrawal.
B.The proposed corporate action is approved by the SEC where its approval is necessary.
C. The SEC determines that such stockholder is not entitled to appraisal right.
D. The proposed corporate action is abandoned or rescinded by the corporation.

61. I. The corporation shall bear the costs of appraisal, as a rule.

II. Clearly, the right of appraisal may be exercised when there is a fundamental change in the character
or articles of incorporation substantially prejudicing the rights of the stockholders.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

62. Is one where no part of its income is distributable as dividends to its members, trustees, or officers?
A. Non-stock corporation
B. Stock corporation
C. Close corporation
D. Corporation sole

63. The following are the cbaracteristics of a non-stock corporation, except:

A. It does not have capital stock divided into shares.
B. There is transferability of membership
C. No part of its income during its existence is distributable as dividends to its members, trustees, or
officers.
D. The right to vote of members may be limited, broadened, or even denied in the articles of incorporation
or the by-laws.

64. I. In stock corporations, shareholders may generally transfer their shares.

II. Membership in and all rights arising from a non-stock corporation are transerable.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

65. I. A non-stock corporation is not allowed to distribute any of its assets or any incidental income or profit
made by the corporation during its existence.
II. A non-stock corporation cannot be converted into a stock corporation by mere amendment of its
articles of incorporation because the conversion would change the corporate nature from non-prodit to
profit.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

66. The following are corporations that cannot incorporate as a close corporation, except:
A. Public Utilities
B. Banks
C. Educational institutions
D. Industrial companies

67. The following are characteristics of a close corporation, except:

A. Quorum may be less than mere majority
B. Restrictions on transfer of shares can be validly imposed.
C. Any action by thw directors of a close corporation without a meeting shall nevertheless be deemed valid.
D. Pre-emptive right extends to all stock issuances.

68. I. The pre-emptive right of stockholders in close corporations shall extend to all stock to be issued,
excluding reissuance of treasury shares.
II. A close corporation may, at its option, refuse to register the transfer of stock in the name of the
transferee if the person is not qualified to be a stockholder and has notice thereof.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

69. An action by the directors of a close corporation without a meeting shall not be deemed valid:
A. Before or after such action is taken, written consent thereto is signed by a majority of the
directors.
B. All the stockholders have actual or implied knowledge of the action and make no prompt objection
thereto in writing.
C. The directors are accustomed to take informal action with the express or implied acquiescence of all the
stockholders.
D. All the directors have express or implied knowledge of the action in question and none of them makes
prompt objection thereto in writing.

70. The One Person Corporation shall submit the following within such period as the SEC may prescribe:
A. A disclosure of all self-dealings and related party transactions entered into between the One Person
Corporation and the single stockholder.
B. A report containing explanations or comments by the president on every qualification, reservation, or
adverse remark or disclaimer made by auditor in the latter's report;
C. Annual financial statements audited by an independent certified public accountant.
D. All of the above
71. I. When action is needed on any matter, it shall be sufficient to prepare a written resolution, signed and
dated by the single stockholder, and recorded in the minutes book of the One Person Corporation.
II. The date of recording in the minutes book shall be deemed to be the date of the meeting for all
purposes.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

72. The following are voluntary modes of dissolution of a corporation, except:

A. In case of a corporation sole, by submitting to the SEC a verified declaration of the dissolution for
approval.
B. By amending the articles of incorporation to shorten the corporate term
C. By legislative enactment
D. By the vote of the board of directors or trustees and the resolution adopted by the stockholders or
members where no creditors are affected.

73. The following are involuntary modes of dissolution of a corporation, except:

A. By legislative enactment.
B. By expiration of corporate term provided for the articles of incorporation.
C. By failure to formally organize and commence the transaction of its business within 5 years from date of
incorporation.
D. By the judgement of the SEC after hearing of petition for voluntary dissolution where creditors
are affected.

74. I. An involuntary dissolution may be effected by amending the articles of incorporation to shorten the
corporate term.
II. In the case of dissolution where creditors are affected, the SEC may appoint a receiver to take charge of
the liquidation of the corporation.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

75. Is one formed, organized or existing under any laws other than those of the Philippines and whose laws
allow Filipino citizens and corporations to do business in its own country or state?
A. Foreign corporation
B. Domestic corporation
C. Goverment owned-and controlled corporation
D. None of the above

76. The following are the requisites for a foreign corporation under the Corporation Code:
I. The laws of the country where the corporation was organized allow Filipino citizens and corporations to
do business in its own country or state.
II. It must be formed, organized, or existing under any laws other than those of the Philippines
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false
77. It refers to any person who provides truthful information relating to the SEC or possible commission of
any offense or violation under the Revised Corporation Code.
A. Whistleblower
B. Intermediary
C. Mediator
D. Conciliator

78. Every corporation, domestic or foreign, doing business in the Philippines shall submit to the SEC:
A. A general information sheet
B. Annual financial statements audited by an independent certified public accountant: Provided, that if the
total assets or total liabilities of the corporation are less than P600,000.00, the financial statements shall be
certified under oath by the corporations treasurer or chief financial officer.
C. All of the above
D. None of the above

79. The SEC shall have the power and authority to:
A. Issue opinions to clarify the application of laws, rules and regulations.
B. Issue cease and desist orders ex parte to prevent imminent fraud or injury to the public.
C. Hold corporations in direct and indirect contempt.
D. All of the above

80. It is one who has complied with all the membership requirements and entitled to all the rights and
previleges of membership?

A. Cooperative member

B. Regular member

C. Associate member

D. Stockholder

81. It refers to a duly registerd cooperative to which a Laboratory Cooperative is affiliated with.

A. Guardian cooperative

B. Laboratory cooperative

C. Principal cooperative

D. Subsidiary cooperative

82. It refers to the certificate, in lieu of the Certificate of Good Standing, issued to all types of cooperatives
after compliance with the rules pf thw Authority.

A. Certificate of commendation

B. Certificate of incorporation

C. Certificate of appreciation

D. Certificate of compliance

83. It refers to the directory pf membership of a cooperative, containing basic information pertaining to
members.
A. Registry of members

B. Committee members

C. Board pf trustees

D. General assembly

84. A cooperative maybe organize and registered for any or all of the following purposes:

A. To encourage thrift and savings mobilization among the members.

B. To generate funds and extend credit to the members for peoductive and provident purposes.

C. Ro encourage among members systematic production and marketing.

D. All of the above

85. It means the full membership of the cooperative duly assembled for the purpose of exercising all the
rights and performing all the obligations pertaining to cooperatives.

A. Shareholder's meeting

B. Member's meeting

C. General assembly

D. Partner's assembly

86. It refers to the government agency in charge of the registration and regulation of cooperatives.

A. Securities and Exchange Commission

B. Department of Trade and Industry

C. Civil Service Commission

D. Cooperative Development Authority

87. I. A cooperative duly registered shall have limited liability.

II. A cooperative shall exist for a period not exceeding fifty (50) years from the date of registration unless
sooner dissolve or unless said period is extended.

A. Only I is true

B. Only II is true
C. Both are true

D. Both are false

88. A cooperative registered under this code shall have rhe following powers, right and capacoties:

A. To the exclusive use of its registered name, to sue and be sued.

B. Of succession

C. To amend its articles of incorporation

D. All of the above

89. I. All amendments to the article of incorporation and/ or bylaws shall be submitted to the CDA.

II. The amendments shall take effect upon its approval by the CDA or within thirty (30) days from the date
of filing thereof if not acted upon by the CDA for a cause not attributable tp the cooperative.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

90. Is one who has no right to vote nor be voted upon and shall be entitled only to such rights and
previleges asa the bylaws may provide: Provided, that an associate who meets the minimum requirements
of regular membership, continues to patronize the cooperative for 2 years, and signifies his/her intention to
remain a member shall be considered a regular member.

A. Regular member

B. Irregular member

C. Principal member

D. Associate member

91. I. The bylaws of every cooperative shall provide for a reasonable and realistic member capital build- up
program to allow thw continuing growth of the members' investment in their cooperative as their own
economic conditions continue to improve.
II. The term "share" refers to a unit capital in a primary cooperative the par value of which may be fixed to
any figure not more than P100.00

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

92. No member shall transfer his share or interest in the cooperative or anu part therof unless:

A. He has held such share capital contribution or interest for not less than 1 year.

B. The assignment is made to the cooperative or to a member of the cooperative or to a person who falls
within the field of the membership of the cooperative.

C. The board of directors has approved such assignment.

D. All of the above.

93. If the account is held jointly by two or more natural persons, or by two or more juridical persons or
entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals,
juridical persons oe entities, unless a different sharing is stipulated in the document of deposit.

II. If the account is held by a juridical person or entity jointly with one or more natural persons, the
maximum insured deposit shall be presumed to belong entirely to such jurodical person or entity.

A. Only I is true

B. Only II is true

C. Both are true

D. Both are false

93. This refers to the team leader of the audit engagement.

a. Associate
b. Auditor-In-Charge
c. External auditor
d. Committee
94. It means an intentional act by one or more individuals among management, employees, or third parties
that result in a misrepresentation of financial statements.
A. Fraud
B. Bad Faith
C. Invalid claims
D. Punishment

95. One if not correct. The net surplus of every cooperative shall be distributed as follows:
A. An amount for the reserve fund which shall be at least 10% of net surplus.
B. An amount for the education and training fund, shall not be more than 10% of the net surplus.
C. An amount for the community development fund, which shall not be less than 7% of the net
surplus
D. An optional fund, a land and building, and any other necessary fund the total of which shall not exceed
7%.

96. I. Every cooperative shall determine its net surplus at the close of every fiscal year and at such other
times as may be prescribed by the bylaws.
II. The net surplus shall be constructed as profit.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

97. I. Cooperative banks shall be under the supervision of the BSP.

II. Cooperative banks shall provide financial and banking services to its members.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false
98. I. Only one cooperative bank may be established in each province.
II. Membership in a cooperative bank shall either be regular or associate.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

99. I. Regular membership shall be limited to cooperative organizations which are holders of common
shares of the bank.
II. Associate members are those subscribing and holding preferred shares of the bank.
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false

100. It is a process whereby a neutral third party takes a vigorous and active role in assisting disputants
formulate solutions in order to reach an amicable settlement.
A. Conciliation
B. Mediation
C. Conference
D. Hearing