Question 1

The Philippine Information Agency (PIA),in coordination with the Department of Labor and Employment
(DOLE), the DILG and the DTI, shall ensure the proper and adequate information dissemination of the
contents and benefits of the BMBE Law to the general public especially to its intended beneficiaries
specifically in the barangay level.

The correct answer is ‘True’.

Question 2

The Office of the Mayor of each city or municipality shall register the BMBEs and issue a Certificate of
Authority to enable the BMBE to avail of the benefits.

The correct answer is ‘False’.

Question 3

Gerry Santa Ana has an accounting and auditing firm with total assets of P2,600,000. He derived a total
operating income of P1,500,000 in 2019. How much is taxable income? (answer must all be numbers,
no peso sign, no commas, no decimals & no extra spaces in between numbers)

The correct answer is: 1500000

Question 4

Financing refers to all borrowings of the BMBE from all sources after registration.

The correct answer is ‘True’.

Question 5

BMBE refers to any business entity or enterprise engaged in the production, processing or
manufacturing of products or commodities, including agro-processing, trading and services.

The correct answer is ‘True’.

Question 6

All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise.

The correct answer is ‘True’.

Question 7

Financial institutions (FIs) mandated to lend under the BMBE Law are encouraged to wholesale the
funds to accredited private financial institutions including community-based organizations such as
credit, cooperatives, non-government organizations (NGOs) and people’s organizations, which will in
turn, directly provide credit support to BMBEs.

The correct answer is ‘True’.

Possible imprisonment for violations of the BMBE law shall be a term of not less than six (6) months but
not more than two (2) years.

The correct answer is ‘True’.

Question 9

RA#9768 is also known as known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2002”.

The correct answer is ‘False’.

Question 10

For purposes of compliance with Presidential Decree No. 717 and Republic Act No. 6977, as amended,
loans granted to BMBEs under the BMEE Law shall be computed at thrice the amount of the face value
of the loans.

The correct answer is ‘False’.

Question 11

BMBE definition shall be subject to review and upward adjustment by the SMED Council, as mandated
under Republic Act No. 6977, as amended by Republic Act No. 8289.

The correct answer is ‘True’.

Question 12

To qualify as a BMBE, total assets must be .

The correct answer is:

Not more than P3,000,000

Question 13

The BMBE shall report to the city or municipality of any change in the status of its ownership structure,
and shall surrender the original copy of the BMBE Certificate of Authority for notation of the transfer.

The correct answer is ‘True’.

Question 14

RA#9178 is an act to promote the establishment of barangay micro business enterprises (BMBEs),
providing incentives and benefits therefor and for other purposes.

The correct answer is ‘True’.

Sulpicio has a bakery with total assets of P2,800,000 and has obtained a certification of authority to
operate as a BMBE. Following are his data for 2019:

Gross income from sales of bread P400,000

Interest on promissory notes of retail store customers 22,000

Royalties from sale of recipe books 46,000

Dividend income from domestic stocks 20,000

How much is income exempt from regular income tax? (answer must all be numbers, no peso sign, no
commas, no decimals & no extra spaces in between numbers)

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400,000 + 22,000

The correct answer is: 422000

Question 16

Only natural persons having the qualifications can apply for registration as BMBE.

The correct answer is ‘False’.

Question 17

Certificate of authority is the certificate issued granting the authority to the registered BMBE to operate
and be entitled to the benefits and privileges accorded thereto.

The correct answer is ‘True’.

Question 18

It is declared to be the policy of the State to hasten the country’s economic development by
encouraging the formation and growth of barangay micro business enterprises which effectively serve
as seedbeds of Filipino entrepreneurial talents , and integrating those in the informal sector with the
mainstream economy, through the rationalization of bureaucratic restrictions, the active intervention
of the government specially in the local level, and the granting of incentives and benefits to generate
much needed employment and alleviate poverty.

The correct answer is:

It is declared to be the policy of the State to [hasten] the country’s economic [development] by
encouraging the [formation] and growth of barangay micro business enterprises which effectively serve
as [seedbeds] of Filipino entrepreneurial [talents], and integrating those in the [informal] sector with the
mainstream economy, through the [rationalization] of bureaucratic restrictions, the [active] intervention
of the government specially in the [local] level, and the granting of [incentives] and benefits to generate
much needed employment and alleviate poverty.
Question 19

To defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee
not exceeding One Thousand Pesos.

The correct answer is ‘True’.

Question 20

To minimize the risks in lending to the BMBEs, the SBGFC and the Quedan and Rural Credit Guarantee
Corporation (QUEDANCOR) under the Department of Agriculture, in case of agribusiness activities, shall
set up a special guarantee window to provide the necessary credit guarantee to BMBEs under their
respective guarantee programs.

The correct answer is ‘True’.

Question 21

BMBE Law was approved on .

The correct answer is: November 13, 2002

Question 22

The BMBEs shall be exempt from the coverage of the Minimum Wage Law, provided that all employees
covered under the BMBE Law shall be entitled to the same benefits given to any regular employee such
as social security and healthcare benefits.

The correct answer is ‘True’.

Question 23

All loans from whatever sources granted to BMBEs under this Act shall be considered as part of
alternative compliance to Presidential Decree No. 717,otherwise known as the Agri-Agra Law, or to
Republic Act No. 6977, known as the Magna Carta for Small and Medium Enterprises, as amended.

The correct answer is ‘True’.

Question 24

The BMBE Law requires Land Bank of the Philippines (LBP), the Development Bank of the Philippines
(DBP), the Small Business Guarantee and Finance Corporation (SBGFC), and the People’s Credit and
Finance Corporation (PCFC) shall set up a special credit window that will service the financing needs of
registered BMBEs consistent with the Bangko Sentral ng Pilipinas (BSP) policies, rules and regulations.

The correct answer is ‘True’.

A BMBE Development Fund shall be set up with an endowment of Three Hundred Million Pesos
(P300,000,000.00) from the Philippine Amusement and Gaming Corporation (PAGCOR) and shall be
administered by the Bangko Sentral ng Pilipinas.

The correct answer is ‘False’.

Question 26

Professionals duly licensed by the government after having passed a government licensure examination,
in connection with the exercise of one’s profession, shall qualify as BMBE if their assets is within the
threshold under the law.

The correct answer is ‘False’.

Question 27

Any existing laws to the contrary notwithstanding, interests, commissions and discounts derived from
the loans by the LBP, DBP, PCFC and SBGFC granted to BMBEs as well as loans extended by the GSIS and
SSS to their respective member-employees under the BMBE Law shall be exempt from gross receipts tax
(GRT).

The correct answer is ‘True’.

Question 28

The Certificate of Authority granted to the BMBEs shall be effective for a period of one year, renewable
for a period of one year for every renewal.

The correct answer is ‘False’.

Question 29

In case of non-compliance with the provisions on Credit Delivery, the BSP shall impose administrative
sanctions and other penalties on the concerned government financial institutions, including a fine of not
less than five million pesos.

The correct answer is ‘False’.

Question 30

All BMBEs shall be exempt from capital gains tax on their dealings with real property capital asset and
domestic stocks directly to the buyer.

The correct answer is ‘False’.

Question 31

As much as possible, BMBEs shall be subject to minimal bureaucratic requirements and reasonable fees
and charges.

The correct answer is ‘True’.

The DTI, in coordination with the private sector and non-government organizations (NGOs), shall explore
the possibilities of linking or matching-up BMBEs with small, medium and large enterprises, and likewise
establish incentives therefor.

The correct answer is ‘True’.

Question 33

Any person who shall willfully violate any provision of the BMBE Law or who shall in any manner commit
any act to defeat any provision of the Law, upon conviction, be punished by a fine of not less than
Twenty-five Thousand Pesos (P25,000.00) but not more than Fifty Thousand Pesos (P50,000.00).

The correct answer is ‘True’.

Question 34

In determining whether the enterprise has met the total assets threshold, land must be included in the
computation.

The correct answer is ‘False’.

Question 35

Sulpicio has a bakery with total assets of P4,100,000 inclusive of a lot with a book value of P1,300,000. Is
he qualified as a BMBE? (answer must be: YES or NO )

The correct answer is: YES

Question 36

The Government Service Insurance System (GSIS) and Social Security System (SSS) shall set up a special
credit window that will serve the financing needs of their respective members who wish to establish a
BMBE.

The correct answer is ‘True’.

Question 37

The data gathered from business registration shall be made accessible to and shall be utilized by private
sector organizations and non-government organizations for purposes of business matching, trade and
investment promotion.

The correct answer is ‘True’.

Question 38

BMBEs need not be registered as such to qualify for the incentives under the law.

The correct answer is ‘False’.

The LGUs are encouraged either to reduce the amount of local taxes, fees and charges imposed or to
exempt the BMBEs from local taxes, fees and charges.

The correct answer is ‘True’.

Question 40

All BMBEs shall be exempt from final tax on their passive income earned within the Philippines.

The correct answer is ‘False’.

Question 41

Application for registration shall be processed within 30 working days upon submission of complete
documents, otherwise BMBE shall be deemed registered.

The correct answer is ‘False’.