1. Choose the proper answer and explain thoroughly with a legal basis. (10pts)Local government units (LGUs) derive their revenues from local and external sources. Local sources include tax revenues from the real property tax and the business tax,non-tax revenues from fees and charges, receipts from government businessoperations, and proceeds from the sale of assets.Prior to the enactment of the LGU Codestated that;

"Consumer cooperatives registered under the Cooperative Development Act enjoyed exemption from all taxes by a local government. With these provisions of the Local Government Code in terms of the withdrawal of exemptions, could these cooperatives continue to enjoy such exemptions"?

A. Yes, because the Local Government Code, a general law, could not amend a special law such as the Cooperative Development Act.

B. Yes, their exemption is specifically mentioned among those not withdrawn by the Local Government Code

C. No, Congress has not by the majority vote of all its members granted an exemption to consumers' cooperatives.

D. No, the exemption has been withdrawn to level the playing field for all taxpayers and preserve the LGUs' financial position.

Discuss the importance of Negotiable instrument law and when is an instrument negotiable? Explain thoroughly with a legal basis.