Under the law is the ability of a person

to take a recognized legal action. Also, it

is natural power or competency to
perform an act, as capacity to contract
and etc.
a. Supra
b. Capacity
c. Surety
d. Vendee
Occurs when one of the parties fails to
satisfy all of its obligations under a
contract.

a. Breach of contract
b. Tort
c. Negligence
d. Force majeure
Statute limiting the time period in which
a lawsuit may be brought.

a. Stipulation
b. Statute of limitations
c. Tender of payment
d. Nullity
The place where currency traded in a
foreign exchange market for which the
demand is consistently high in relation to
its supply.

a. Money
b. Treasury bill
c. Foreign bill
d. Hard currency
Fall after increase reaches certain
amount.

a. Inflation
b. Law of diminishing return
c. Law of supply and demand
d. Process factor
Ratio of annual revenues to the annual
expense

a. Benefit ratio
b. Benefit cost ratio
c. Rate of return
d. Income ratio
A fixed sum agreed upon, at the outset
of a contractual arrangement, as a
proper compensation to be paid to the
injured party in the event of breach.

a. Capacity
b. Depreciation
c. Liability
d. Liquidated damages
The ability of a company to meet its
obligations as they come due.

a. Due process
b. Auction
c. Liquidity
d. lien
The acquisition of all or a greater part of
stock and fixtures of a business in a
manner other than in the ordinary
course of its business.

a. Tenement
b. Chattel
c. Appeal
d. Bulk sale
Penal provision of a contract to
compensate for the losses incured by
one party due to the failure to comply
with contract provision.

a. Decision page
b. Force maseure
c. Liquidated damages
d. Quasi effects
To render void or null, reduce to nothing,
cancel, invalid.

a. Delict
b. Duress
c. Ejectment
d. Annulment
An index of short term paying ability is
called _____.

a. Cash index
b. Current ratio
c. Maturity index
d. Cut off index
A situation in which rival firms drive
prices down through attempts to under
cut each other prices called.

a. Price war
b. Price maneuver
c. Price control
d. Oligopoly
Parties whose consent or signature in a
contract is not considered intellegent.

a. Minors
b. Senior citizens
c. Dead person
d. Demented person
The ratio of the output power in watts
and the product of volts and amperes.

a. Capacity factor
b. Load factor
c. Power factor
d. Demand factor
A foreign Mechanical Engineer will be
allowed to practice in the Philippines if
the country where he is a citizen or
subject also allows Filipino engineers to
practice, this is called.
a. Foreign repatriation
b. Foreign policy
c. Foreign exchange
d. Foreign reciprocity
Which of the following methods of
advertising is most likely to violate
ethical standard for engineering design
firms.

a. Yellow pages (phone book) advertising

b. Radio or television advertising
c. Company brochures using self-laudatory
language
d. Distribution of company calendars to clients
The ratio of kilowatt rating of a motor to
its kilowatt ampere rating.

a. Generator efficiency
b. Power factor
c. Motor efficiency
d. Capacity factor
A court writ issued to compel the
performance of a public of official duty
owed by the person to whom the order
is directed.

a. Arrest
b. Bail
c. Mandamus
d. Payee
Indicates that a person does not have
the ability, due to his mental condition to
know the nature of his act.

a. Emancipation
b. Non compos mentis
c. Injunction
d. Estate
A collateral agreement in a transaction
Which gives one of the parties or both,
the right to choose a course of action.
Example option to buy a thing within a
specific period.
a. Executed
b. Option
c. Inventory
d. Interest
Consist of the totality of property to the
estate if there is no person legally
entitled to inherent it.

a. Payee
b. Tax
c. Title
d. Estate
Used in sales or ordinary contract,
describes any person who requires
property or negotiable instruments in
good faith and for valuable
consideration.
a. Liability
b. Asset
c. Bonafide purchaser for value
d. owner
A provision in the contract that indicates
possible adjustment of material and
labor cost.

a. Secondary clause
b. Escalatory clause
c. Specification
d. General provision
The annual change is made for
maintenance of investment in wasting
assets.

a. Maintenance cost
b. Depreciation
c. Depletion
d. Annual cost
Instead of profits being paid out
stockholders or owners as dividends they
are retained in the business and used as
finance expansion.

a. Retained earning
b. Bond
c. Flow back
d. Deposit
It is the return of the land or property to
the state if there is no person legally
entitled to inherent it.

a. Asset
b. Escheat
c. Liability
d. Cash
Consist of actual counting or
determination of the actual quantity of
materials on hand as of a given date.

a. Physical inventory
b. Material assesment
c. Material update
d. Material count
Tax on imports

a. Tariff tax
b. Value added tax
c. Import quote
d. Capital count
Mode extinguishing of obligations when
creditor abandons his right to collect.

a. Condonation
b. Debt cancellation
c. Forfeiture
d. Not liquidated