Comprehensive Examinations

Matching

Select your answer from the pool of terms below.

a. Sole Proprietorship j. Service Cooperative
b. Partnership k. Credit Cooperative
c. Limited Partnership l. Consumer Cooperative
d. General Partnership m. Marketing Cooperatives
e. Limited Partners n. Dormant Partner
f. General Partners o. Secret Partner
g. Silent Partners p. Producers Cooperative
h. Corporation q. Cooperative
i. Honorary Partner
____ 1. A business owned and managed by one individual.
____ 2. It is an association of two or more persons who co-own a business for the purpose of making a
profit.
____ 3. A partnership, which is a modification of a general partnership and is comprised of at least one
general partner.
____ 4. It is a partnership that has unlimited liability.
____ 5. It is an association of persons who have voluntarily joined together to achieve a common end
through the formation of a democratically controlled organization, making equitable contribution
to the capital required, and accepting a fair share of the risks and benefits of the undertaking in
which the members actively participate.

Choose the correct answer from the pool of words below.

a.Incorporation i. Public Corporation
b.Corporation Aggregate j. Juridical Persons
c.Ecclesiastical Corporation k. Promotion
d.Lay Corporation l. Stock Corporation
e.Civil Corporation m. De Jure Corporation
f.Close Corporation n. De facto Corporation
g.Affiliated Corporation o. Open Corporation
h.Subsidiary Corporation p. Domestic Corporation

____ 6. It is one organized for religious purposes.

____ 7. It is one organized for a purpose other than for religion. Lay corporations, in turn, may be either
eleemosynary or civil.
____ 8. It is one which is limited to selected persons or members of a family.
____ 9. It is one related to another by owning or being owned by common management by long term lease
of its properties or other control device.
____ 10. It is one which is so related to another corporation that the majority of its directions can be elected
either directly or indirectly by such other corporation. It is one which another corporation owns at
least a majority of the shares and thus has control.

Choose the correct answer from the pool of words below.

a.Law of Demand e. Business Cycle
b.Money Supply f. Balance Sheet
c.Restrictive Monetary Policy g. Current Assets
d.Expansionary Monetary Policy
____ 11. There is an inverse relationship between the price of a good and the amount buyers are willing to
purchase of such a good.
____ 12. This is the amount of money that exists in the economy at any given time.
____ 13. This is accomplished by increasing bank reserve requirements, selling government securities in the
open market and raising the discount rates to banks.
____ 14. Increasing money supply by reducing reserve requirements. Buying government securities in the
open market and raising the discount rates to banks.
____ 15. Alternating periods of prosperity and depression.

Choose the correct answers from the pool of words below.

a.Debt Capital f. Financial Distress
b.Equity Capital g. Readjustments
c.Amortization h. Maturity
d.Indenture i. Equity Holder
e.Security
____ 16. Represented by funds borrowed by a business that must be repaid over a period of time.
____ 17. Represented by funds that are raised by a business.
____ 18. A written agreement between the corporate debt issuer and the lender, setting forth maturity date,
interest rate, and all other terms.
____ 19. A better phrase than bankruptcy cost.
____ 20. Amount of obligation or principal plus interest required to be paid in a specified date.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. Measures or actions taken by the Central Bank to regulate the supply of money in the economy.
a. Monetary Policy c. Rural Banks
b. Inflation Targeting d. Savings Banks

____ 2. Focuses mainly on achieving price stability as the ultimate objective of monetary policy.
a. Monetary Policy c. Rural Banks
b. Inflation Targeting d. Savings Banks

____ 3. This is established primarily to provide services which a member can avail of.
 a. Service Cooperative c. Consumer Cooperative
b. Credit Cooperative d. Marketing Cooperatives
____ 4. Usually in the form of credit union to promote savings.
a. Service Cooperative c. Consumer Cooperative
b. Credit Cooperative d. Marketing Cooperatives

____ 5. They are those formed or organized for the government or a portion of the State. As distinguished
from private corporations which are formed for some private purposes or benefit public
corporations have for their purposes the general good and welfare of the public.
a. Public Corporation c. Promotion
b. Juridical Persons d. Stock Corporation

____ 6. It includes corporations, partnerships, and associations.

a. Public Corporation c. Promotion
b. Juridical Persons d. Stock Corporation

____ 7. This is the stage wherein the incorporators make preliminary arrangements to set up a tentative
working condition to solicit subscription to raise sufficient capital for business.
a. Public Corporation c. Promotion
b. Juridical Persons d. Stock Corporation

____ 8. It is a corporation existing in fact and in law.

a. De Jure Corporation c. Open Corporation
b. De facto Corporation d. Domestic Corporation

____ 9. It is a corporation existing in fact but not in law.

a. De Jure Corporation c. Open Corporation
b. De facto Corporation d. Domestic Corporation

____ 10. It is one incorporated under the laws of the Philippines.

a. De Jure Corporation c. Open Corporation
b. De facto Corporation d. Domestic Corporation

____ 11. Persons who effect underwriting.

a. Corporation Management c. Principal
b. Investment Bankers d. Underwriting
____ 12. The purchase of a new issue from the issuing corporation at a fixed price and reselling of such
issue to the public.
a. Corporation Management c. Principal
b. Investment Bankers d. Underwriting

____ 13. Shares of ownership in a corporation.

a. Stocks c. Philippine Deposit Receipt
b. Common Stocks d. Street Name
____ 14. Determines the minimum number of shares one can purchase or sell at a specific price range.
a. Street Name c. Board Lot Table
b. Trade Confirmation d. Preferred Stocks

____ 15. Cannot be converted to debt, nor can it normally be converted to preferred stock.
 a. Common Shares c. Capital Appreciation
b. Dividends d. Convertible Preferred Stock (CPS)
____ 16. Taxable payments given to share-holders from the company's current or retained earnings.
a. Common Shares c. Capital Appreciation
b. Dividends d. Convertible Preferred Stock (CPS)

____ 17. Payment of long-term debt by installments.

a. Debt Capital c. Amortization
b. Equity Capital d. Indenture

____ 18. Fundamental changes in the capital structure.

a. Security c. Readjustments
b. Financial Distress d. Maturity

____ 19. Amount of obligation or principal plus interest required to be paid in a specified date.
a. Security c. Readjustments
b. Financial Distress d. Maturity

____ 20. Has a share in ownership of the capital.

a. Financial Distress c. Maturity
b. Readjustments d. Equity Holder
Comprehensive Examinations
Answer Section

MATCHING

1. ANS: A
2. ANS: B
3. ANS: C
4. ANS: D
5. ANS: Q

6. ANS: C
7. ANS: D
8. ANS: F
9. ANS: G
10. ANS: H

11. ANS: A
12. ANS: B
13. ANS: C
14. ANS: D
15. ANS: E

16. ANS: A
17. ANS: B
18. ANS: D
19. ANS: F
20. ANS: H

MULTIPLE CHOICE

1. ANS: A
2. ANS: B
3. ANS: A
4. ANS: B
5. ANS: A
6. ANS: B
7. ANS: C
8. ANS: A
9. ANS: B
10. ANS: D
11. ANS: B
12. ANS: D
13. ANS: A
14. ANS: C
15. ANS: A
16. ANS: B
17. ANS: C
18. ANS: C
19. ANS: D
20. ANS: D