BUSINESS LAW

QUIZ ON PARTNERSHIP
–
PART II
1. Partnership Assets and Liabilities are as follows
December 31, 2006 December 31, 2007
Assets P 200,000 P5
0,000
Liabilities 100,000 200,00
0
Capital:
A
-
P 50,000; B
-
P 50,000 P 100,000 P
150,000
A and B are general partners, have fully paid their capital contributions. What is the remedy of creditor C?
a. collect partnership liability from the partnership
b. collect partnership liability from B only;
c. collect partnership liability from A only;
d. collect partnership liability from A and B capital contributions (including personal assets)
2. A and B are partners. On January 15, 2007 when the total obligation of the partnership totals P80
, 000, C
was admitted as new partner. At the time of C’s admission, the partnership creditors were M for P50, 000
and N for P30, 000. After January 15,2007, the partnership borrowed from O, P20,000 and P40,000 from P.
On June 15,2007 ,
the partnership becomes insolvent leaving an obligation totaling after the separate
properties assets amounting to P30,000. The creditors are going after the separate properties of the partners
to satisfy their remaining claims. How is the cre
ditors claim satisfied?
Answer 1
–
M and N can go after the separate properties of A and B but C’s separate properties are not
answerable to their claims
Answer 2
-
O and P can go after the separate properties of A, B and C
Whi
ch of the following is correct?
a. both answers are wrong c. answer 1 is wrong but answer 2 is correct
b. both answers are correct
d. answer 1 is co
rrect but answer 2 is wrong
3. A is the managing partner of A and B Company. X is indebted to A for P20, 000 and to the partnership for
P60, 000. When both debts mature, X pays A for P20, 000 and the latter issues a receipt for his personal
cre
dit. The payment for P 20,000 shall be applied:
a. to whole debt owing to A;
b. ¼ in favor of A and ¾ in favor of partnership
c. debt owing to the partnership;
d.1/2 in favor of A and ½ in favor of partne
rship
4. XYZ partnership compose of three (3) capitalist partners and one industrial partner suffered business losses.
Its remaining assets amounting to P100, 000. The partnership is indebted to its supplier in the amount of
P160, 000. How can recover the P60, 000?
a. can recover from the partnership P100, 000 and the balance of P60, 000 from the other capitalist
partners.
b. can recover from the partnership P100, 000 and the balance of P60, 00
0 from any of the capitalist
solidarily;
c. can recover from the partnership P100, 000 and the balance of P60, 000 from the (4) partners
including industrial partner.
d. can cover from the partnership P100, 000 only
suffer as his lost in the balance of P60, 000
5. A and B formed a limited partnership with A as a general partner, B as limited partner and C as industrial
partners. A and B contributed P50, 000 each. The partnership failed and after disposing all i
ts assets to pay
partnership debts there still remains a note payable in the sum of P30, 000?
a. a legal representative of a limited partner
b. a and b are liable to pay P15, 000;
c. only a is liable to pay P30, 00
0 indebtedness
d. c is liable to pay P15, 000
6. Which of the following persons are not qualified to from a universal partnership?
a. those guilty of adultery and concubinage
b. husband and wife
c. brother and sister
d. those guilty of the same of the criminal offense, if the partnership is entered into a consideration of the
same.
7. A limited partnership formed in 2004 by X as a general partner and Y and Z as limited partners. In 2005, X
and Z got married. Did the marriage dissolve or change the form of the partnership?
1
st
answer
–
Yes the partnership is dissolved by the marriage because there is a change in equity and status among
the partners.
2
nd
answer
-
No,
because spouses can enter into a universal partnership
a.
both answer are correct
c. both answers are wrong
b.
1
st
answer wrong, 2
nd
answer is correct
d. 1
st
answer is correct, 2
nd
answer wrong
8. Which of the following incidents maybe a cause for involuntary dissolution of a partnership?
a. expulsion of any partner c. express will of any
partner
b. insolvency of any partner
d. termination of term of the partnership
9. Which of the following liabilities of the partnership shall rank first in the order of payment?
a. those owing to cre
ditors other than partners
b. those owing to partners in respect to profits
c. those owing to partners in respect to capital
d. those owing to partners other than for capital and profit
10. A, B and C are partners in joint venture eng
aged in real estate and land development. A without the
knowledge of B and C offered to sell to D all the remaining unsold lots at a price very much higher than the
prevailing market prices. Later, A bought out B and C from the partnership
and thereafter finally sold out
the lots at a very big profit.
1
st
conclusion
-
when A bought out B and C from the partnership, the partnership was dissolved so B and C
have no more share in the profit of the sale.
2
nd
conclusion
-
the sale of the lots between A and D is void because it was without the knowledge and
consent of B and C.
a. both conclusion are correct c. 1
st
conclusion correct, 2
nd
conclusion is wrong
b. b
oth conclusion are wrong
d. 1
st
conclusion wrong, 2
nd
conclusion correct
11. A and B are capitalist partners with C as industrial partner. A and B contributed P20, 000 each to the
capital of the partnership. A contractu
al liability of P50, 000 was incurred by the partnership in favor of X.
The assets of the partnership has been exhausted still leaving an unpaid liability of P12, 000. What are the
rights and obligation of the partner, if any?
a. a
and b only
b. c only
c. a, b and c are liable to x and c after giving his share may ask reimbursement
d. c has no right for reimbursement from a and b unless stipulated
12. The common property of a universal partnership
shall be:
a. all the properties shall belong to each partners after the constitution of the partnership
b. all the properties which belong to each of the partners at the time of the constitution of the partnership
as well as the pr
ofits which they may acquire.
c. all the properties which belong to which to each of the partners at the time of the constitution of the
partnership.
d. all the properties which belong to each to each of the partners at the time o
f the constitution of the
partnership as well as properties which may acquire therewith.
13. X, Y and Z are partners and contributed to the partnership P 40,000, 30,000 and services, respectively.
The partnership was later liquidated and
after payment of the partnership indebtedness, only P20, 000
worth of assets remained. How much is the share of Z?
a. zero
c. equal to the share of y
b. equal to the
share of x d. P6, 000
14. The following instances, except one , when a partnership is unlawful. Which is the exception?
a. a partnership formed to furnished apartment houses to be used as venue for illegal gambling
b. a partnership formed to create cartel for monopolies
c. a partnership formed for smuggling of contrabands
d. a partnership formed for the purpose of buying public lands
15. A partner in a partnership who is not really a partner, not
being a party to the partnership agreement but
is made liable as a partner for the protection of innocent third persons is known as:
a. dormant partner c. partnership by estoppel
b.
secret partner
d. partner by estoppel
16.
A, B and C are partners engaged in retail business. Their contribution is P20,000 each. D is admitted as new
partner with a contribution of P8,000.
At the time of his admission, the partnership has an outstanding obligation
to E in the amount of P80,000. In this case:
a. d is liable to e for this obligation so that after the assets of the partnership amounting to P68,000 will be exhau
sted
leaving a balance of P12,000 only A, B and C shall be liable jointly or pro rata , out of their separate property
b.
d is not liable to e for this obligation
c.
d is liable to e for this obligation so that the assets of
the partnership will be exhausted; leaving a balance of
P12, 000 all the partners shall be liable jointly or pro rata, out of their separate property
d.
answer not given
17.A
, B and C are equal partners in X partnership. On April 29, 2006, partner C died. Not knowing that C died,
on May 1, 2006, a contracted liability to D who also does not know the death of C, the liability is P 90,000.
A
fter D exhausted the net as
sets of X partnership in the amount of P60, 000, he can collect
a. P10,000 from estate of C; P10,000 from B
b.
P15, 000 from A and P15, 000 from B
c.
P20, 000 from A and P10, 000 from B
d. P30, 000 from A
18. A and B are part
ners of X partnership. A is the managing partner. E owes A P10,000 and X partnership
P30, 000. The obligations of E are both due. A collected from E the debt of E to A in the amount of P10,000
and issued a receipt in the name of A.
a.
the whole of the P10, 000 will be applied to debt of E to A
b. P10, 000 will be applied to debt of E to the partnership
c. P2, 500 to debt to E to A and P7,500 to debt
d. P5, 000 each to debt of E and A and to the partnership
19.
A, B and C are general partners in ABC partnership. G is debtor to the partnership in the amount of P15,000
A receive from the debtor G the sum of P5,000 and issued a receipt identifying the amount collected as
P5,000.
a. a can compelled
to share b and c their P5,000
b. b and c should automatically sue g to collect the P10, 000
c. b and c can charge the capital of a with their share of the P5, 000
d. a cannot be compelled to share the P5, 000 with b and c
20. This
is the order of preference in the liquidation of a
general partnership
a. outside creditors; partners are creditors; partners capital; partners profit
b. outside creditors; partners are creditors; partners profits; partners creditors
c
. partners as creditors; outside creditors; partners’ capital; partners profit
d. partners capital; outside creditors; partners as creditors; partners’ profit
21. F, G, H and I are partners. They contributed as follows: F
–
P5, 000; H
-
P20, 000 and I , as the industrial
partner , his services. The partnership obligation to outsiders exceeds the total net assets by P18, 000
Who and by how much will
the partners be liable for the payment of the P18, 000?
a. F
-
P 9,000; G P 5,400 ; H
–
P 3,600; I
-
nothing
b. F
-
P 6,000; G P 6,000 ; H
–
P 6,000; I
-
nothing
c.
F
-
P 4,500; G P 2,700 ; H
–
P 1,800; I
-
nothing
d. F
-
P4
,500; G P 4,500 ; H
–
P 4,500; I
-
P 4,500
22. C, P are capitalist partners. I is the industrial partner , who in addition to his services , also contributed
capital to the partnership .There is no stipulation as to sharing of profits and losses. The
partnership
realized profits of P 21,000. The share of I in the profits.
a. c and p will determine ip’s in the profits c. i’s share is P17,000
b. pro
-
rata to his contributed capital
d.
nothing, because he is industrial partner
23. D and E are equal partners DE partnership by contributing P50,000 each on June 1,2005. On June 2,2005
the partnership contracted an obligation to pay Z the amount of P180,000 on July 15, 2005. F was adm
itted
as a new partner, F contributed P50,000. How will the obligation be paid?
a. A
-
P 60,000; B
–
P60,000; C
–
P 60,000 c. A
-
P 90,000; B
–
P90,000; C
–
P 90,000
b. A
-
P 65,000; B
–
P65,500; C
–
P 50,000
d. A
-
P 180,000; B
–
P180,000; C
–
none
24. B and Y orally agreed to form a partnership. Each contributed cash and properties worth P10,000 to
common fund . But they did not register with the Securities and Exchange Commission.
a. the partnership is void
c. the partnership is still valid
b. the partnership is voidable d. the partnership is unenforceable
25.
A part
nership which com
prises all that the partners may acquire by their work or industry during the
existence of the partnership is:
a. particular partnership c. universal partnership of all present property
b. general partnership d
. universal partnership of profits
26. X,Y and Z are partners. X contributed his services only Y, P50,000 and Z , P20,000. The partnership was
liquidated. After payment of the
partnership obligations, only P18,000 worth of assets remained. How much
will be the share of X?
a. equal to share of z c. equal to the share
b. P6,000
d. zero
27
.
Which of the following statements is correct?
a. a limited partner who takes active part in the management of the firm becomes liable as a general partner
b.
a
limited partnership contract is not covered by the statue of fraud
c.
a contract of partnership is void if it contains a stipulation which excludes a partner from sharing in the
profits of the firm.
d.
a limited part
nership shall not be liable for the obligations of the partnership
28
.
C and P are capitalist partners while I is industrial partner, who in addition to his services also contributed capital
to the partnership. There is no agreement as to the profi
ts and losses. The partnership realized profits in the amount
of P21,000.00. The share of I in the profits shall be:
a.
pro rata to his contributed capital
b.
c and p will determine I’s share in the profits
c.
I’s share sh
all be P7,000
d.
just and equitable under the circumstances
29.Suppose, instead of profit, the partnership suffered loss in the same amount of P21,000.00, the share of
capitalist partners in the loss shall be: (Same facts in no. 28)
a. in accordance with their loss sharing agreement
b. equally among them
c. in accordance with their profit sharing agreement
d.in proportion to their capital contribution
30.In the preceding numbers, suppose I is only an i
ndustrial partner, his share in the profits shall be:
a. in proportion to the capital contribution of his co
-
partners
b. just an equitable under circumstances
c.average share of all the capitalist partners
d. equal to th
e least share in the profit of a capitalist partners
31.In the same facts as in no.28, as an industrial partner , the share of I in the loss shall be:
a. as agreed upon y the partners before the loss was realized
b. in proportion to their
capital contribution
c. just an equitable under the circumstances
d.none, he being an industrial partner
32. A is the capitalist partner and B
is the industrial partner. A engaged personally in the same kind of business
as that of the partnership.
a. if there are profits , a shall give them to the partnership
b. if there are losses, the partnership will bear the loss
c.if there are profits, a shall share the profit with the partnership
d.a may excluded from the partnership but without damages
33.Suppose in the same facts as forementioned, B engages in business on his own account but different from
that of the partnership:
a.if there are losses, bea and the partnersh
ip shall equally share
b. if there are profits, bea and the partnership shall share equally
c. bea may be excluded from the partnership with damages
d. bea may be excluded from the partnership but without damages
34.Which of the
following is incorrect?
a. a capitalist may engaged in the same line of business as that of the partnership
b. an offering capitalist partnership may not be excluded from the firm
c. an industrial partner may not engaged in busines
s for himself unless there is a contrary stipulation
d. just and equitable under the circumstances
35.Which of the following is not correct?
a. a limited partner shall not be bound by the obligations of the partnership
b. a partnersh
ip contract is not conveyed by the statue of frauds
c. a limited partner who takes part in the control of the business shall be liable as general partner
d. a stipulation which excludes a partner from sharing of the profits or loss is void
3
6. A. A partners interest in the partnership is not assignable unless the other partners consent.
B. After dissolution, the partners may still enter into contracts in the name of the dissolved partnership
if for purposes of winding up.
a. first statement is false, second is true
c both. statements are false
b. first statement is true, second is false d. both statements are true
37. A. A universal partnership prope
rty shall include the profits which the partners may acquire therewith
such as properties to be acquired through inheritance, legacy or donation.
B. A partnership contract begins from the moment of the execution of the contract unless it i
s otherwise
stipulated.
a. first statement is false, second is true
c. first statement is true, second is false
b. both statements are true d. both statements ar
e false
38. A. Death, insanity , retirement, insolvency or civil interdiction of a limited partner does not dissolve the
partnership.
B. In a general partnership, the fact that the business can only be carried on at a loss does not resu
lt in the
dissolution of the partnership.
a.
first statement is false, second is true c. first statement is true, second is false
b. both statements are true
d. both statements are false
39
.
Three of the following are property rights of a partner .Which is not?
a.
right to participate in the management
b. right to demand formal accounting of partnership
affairs
c.
right to specific partnership property
d.
right to the interest of a partner in the partnership
40
.
A. If a person shares in the gross returns by the use of property he is deemed to be a partner.
B.If a person received a sh
are in the profits of a business he is a prima facie presumed to be a partner in the
business.
a. first statement is fals, second is true
c. first statement is true, second is false
b.
bo
th statements are true d. both statements are false
41. A and B are partners in buying and selling cars. A, by the partners agreement was authorized to buy only in
cash. One day, A bought on credit a car from X, a client, who did not know of A’s lack of authority. A’s purchased
was made in the name of the partnership. Is the partnership bound in the sale?
a. the partnership is not bound b
ecause the contract is unenforceable, a exceed his authority.
b. it is not bound because the contract with x is not in the ordinary course of business
c. it is because x was in good faith and the act of a was apparently in the
conduct of the business
d.it is bound if it ratifies the contract of sale by acceptance of benefits.
42. A and B entered into a universal partnership of profits. Later, A purchased a parcel of land. Will the fruits
of the said land
belong to the partnership
a. yes, because the fruits are from the property of A
b. yes, because the fruits under the law shall cover after
-
acquired property also
canoe, because partnership of profits refer only to pre
sent fruits.
donor, because the fruits of property shall refer only to property possessed by the partners at the time of
the celebration of the contract
43. X and Y entered into a universal partnership of profits. Subsequently,
X became a professor in a university.
Will X’s salary belong to the partnership?
a. no, because it is not considered a profit acquired from a partnership
b. no, unless it is stipulated that his salary shall be deemed contributed
c. yes, because the salary was acquired through X’s industry or work.
d.yes, is stipulated by the partners.
44. A and B entered into a universal partnership of all present property. Subsequently, A, inherited a parcel of land from
hi
s father. Will the land and its fruits belong to the partnership.
a. yes, because the universal partnership means contribution to all properties , present and future
b. yes, if there was stipulation that the land to be inherited shall be cons
idered contributed
c.no, because the land fruits are future properties , not existing at the time of the celebration of the contract
d. no, even if so stipulated that land inherited shall be considered contributed
45. X and Z entered into a
universal partnership without specification whether it is of profits or all present
property.
a.universal partnership of present profits c. universal partnership of all present property
b. universal partne
rship of profits
d. universal partnership of profits and property
46. A and B agreed on a profit sharing ratio in their partnership. A, being industrial partner and B as capitalist
partner. It was also stipulated that A shall also share in the same ration as to the losses. Is A liable for
losses?
a.yes, even the absence of stipulation
b. yes, because it was so stipulated
c.no, because the law exemp
ted the industrial partner from losses
d.no, because the partners cannot stipulated that the industrial partner shall be liable for losses
47. A,B and C were partners.While acting within the scope of his authority in the conduct of business. A, com
mitted a
tort against X, a third person.Who shall be liable and to what extent
a. all the partners and partnership are all liable solidarily
b. all the partners and partnership are liable jointly
c. all partners are liable jo
intly or pro
-
rata after the partnership assets have been exhausted.
d.all partners shall be liable solidarily after the partnership assets have been exhausted
48.A. Corporation cannot enter into a partnership contract with a natural person but wit
h juridical person it
can.
B. A general partner is always the capitalist in a limited partnership
a. both statements are false
c. first is true, second is false
b. both statem
ents are true d. first is false, second is true
49
.
A, B , C and D organized a general partnership with A and B as industrial partners and C and D as capitalist
partners. Contributed P2.5M and D contr
ibuted P.2M to the common fund. By a unanimous vote of the partners
A and B were appointed managing partners , without specification of their duties and powers. W applied as secretary
and X applied as accountant of partnership. The hiring of W
was decided upon by A and B but was opposed by C
and D. Whose decision shall prevail
a. the decision of a and b shall prevail because the hiring is an act of administration and as managers they can
do so
b.
th
e decision of c and d because they have the controlling interest
c.
the decision of a and b because it is an act of ownership
d.
answer not given
50
.
In
the same problem as above mentioned , supposed the hiring of X was decided upon by A and D but was opposed
by B and C whose decision shall prevail
a. the decision of b and c because in case of tie in the decision of managing partners, that
of the controlling
interest shall prevail
b.
the decision of a and d because a is the managing partner and the hiring is an act of administration
c.
that of a and d being also a capitalist partners
d.
non
of the decision because of the statement of equal rights
BUSINESS LAW
QUIZ
–
LAW ON PARTNERSHIP PART III
1.
There is a partnership except:
a. two or more parties consent to a contract, oral or written
b. they give money, property or
industry to a common fund
c. there is division of profits and losses among themselves.
d. there is no fiduciary relationship
2. Two or more juridical persons may also from a partnership for the exercise of a profession.
a. the statem
ent is wrong
b. it is correct statement
c. only natural person can form a professional partnership
d. (a) and (c) are true
3. A universal partnership is void except:
a. an inventory is not made when an immovable property is con
tributed
b. if the purpose or object is against the law, morals, public order, public policy and custom
c. when made by persons who are prohibited in giving each other donation
d. when there is no agreement as to profits and losses.
4.
Which of the following statements are true?
A: A partnership like corporation has a juridical personality separate and distinct from that of each of the partners.
B: Sharing of gross returns by itself proves a partnership.
a. only A is
b. both A and B are correct
c. only B is correct
d. both A and B are incorrect
5. As to its object, a contract of partnership is:
a. universal or particular
b. universal or limited
c. particular or limited
d. general or limited
6. A: Co
-
ownership or co
-
possession establishes a partnership
B: Persons who are not partners as to each other are not partners as to third persons.
a. both statements are true
b. first statement is f
alse, second statement is true
c. both statements are false
d. first statement is true, second statement false
7. The receipt of a person of a share of the profits of a business is prima facie evidence that he is a partner in the
busin
ess and it is given:
a. as payment of a debt by installment or otherwise
b. as wages or rent
c. as an annuity to a widow or representative of deceased partner
d. as his interest in the partnership
8. A: Every
partner is a debtor of the partnership for whatever he may have promised to contribute thereto.
B: The designation of losses and profits can be in trusted to managing partner.
a. both statements are true
b. first statement is false,
second statement is true
c. both statements are false
d. first statement is true, second statement is false
9. Mr. Bee is a partner who was able to bring in enormous profits to the partnership. With the consent of the
other partn
ers, he used the partnership car in meeting with his client’s .Because of intoxication, he figured in a
collision resulting in damage to Mr. Jolly. As a consequence, the firm was sued and ordered by the court to pay
damages .Which of the followi
ng statements is not correct?
a. Mr. Bee is personally responsible to the partnership for the damages suffered by it through his fault.
b. he is obliged to compensate the partnership for the damages it was ordered to pay.
c. h
e can ask whatever damages he is responsible for shall be deducted from the profits and benefits which
he may have earned for the partnership.
d. the partnership and all the partners are solidarity liable.
10. A: All the partners
shall be considered agents whatever any one of them may do alone shall bind the partnership.
B: Every partner may, without the consent of the other partners, associate another person in his share
a. both statements are true
b. fir
st statement is false, second statement is true
c. both statements are false
d. first statement is true, second statement is false
11. Ms. Mwah
is an industrial partner in an Engineering Firm. Due to serious financial reverses, the partnership
suffered losses such that its properties are not sufficient to cover the partnerships debts. Which of the following is
incorrect?
a.
all the partners, including Ms. Mwah, shall contribute their personal properties to satisfy the partnership debts
b. she may get reimbursements from the capitalist partners.
c. ms. Mwah is liable pro rata to the partnership creditors
d. she is bound for partnership obligations.
12. Which of the following statements is incorrect?
a. a partnership may not be constituted in any form.
b. a partnership must have a lawful object or purpose
c. a partner
has a personality separate from the partnership
d. there is co
-
ownership, co
-
possession and agency in partnership
13. A: An agreement which excludes one or more partners from the shares in the profits or losses is valid as long
as it
is voluntary.
B: A power as managing partner granted after the partnership has been constituted may be revoked at any time.
C: None of the partners may make any important alteration in the immovable property of the partnership even
if useful to the partnership without the consent of all partners.
a. all statements are correct
b. only (C) is correct
c. only b is incorrect
d. only b and c are correct
14. Which of the followin
g statements is not true?
a. every partner must account to the partnership for any benefit received even if it is not owing to the partnership
b. a partner is a co
-
owner with his partners in relation to a specific partnership prope
rty.
c. a sale or assignment by a partner of his whole interest in the partnership does not itself dissolve the partnership
d. all the partners share in the losses always.
15. Can a partnership adopt the name of a person who is not
a partner to the common enterprise?
a. yes, because a partnership shall operate under a firm name, which may or may not include the name of one or
more of the partners.
b. yes, as long as the partners agree.
c. y
es, because a partnership has a distinct name or personality apart from the partners.
d. no, because only partners name can be adopted.
16. A: The partnership is bound to make good the loss where one partner acting within an apparent authority
receives money or property of a third person and misapplies it.
B: A person accepted a partner into an existing partnership is liable for all obligations of the partnership.
C: The creditors of the partnership shall be pre
ferred to those of each partner as regards the partnership property
a. all statements are correct.
b. only b is wrong
c. only (c) is true
d. b and c are correct
17. A: Partnership i
nvolves a fiduciary relation
B: It is preparatory contract
C: It is real and accessory contract
D: Partnership contract is perfected by mere consent
a. statements a, b and d are correct
b. only b is correct
c. only c is correct
d. only d is correct
18. A: A partnership of all present property may refer to all the present property or to all the profits.
B: A universal partnership is that in which the partners contribute all the prope
rty which actually belongs to
them to a common fund, with the intention of dividing the same among themselves, as well as all the profits
which they may acquire.
a. both statements are incorrect
b. only a is correct
c. only b is correct
d. both statements are correct
19. A: A particular partnership has for its object determined things, their use fruits, or specific undertaking, or the
exerci
se of a profession or vocation.
B: Articles of universal partnership, entered into without specification of its nature, only constitute a universal
partnership of profits.
C: Persons who are prohibited from giving each other any dona
tion or advantage can enter into universal partnership.
a. all statements are incorrect.
b. only a and b are correct
c. all statements are correct
d. only b and c are correct
20. A: A partnership begins from
the moment the contract is entered into.
B: A partner who promised to contribute a sum of money and fails to do so become debtor to the partnership
a. both statements are incorrect.
b. only a and b are correct
c. all s
tatements are correct
d. only b and c are correct
21. A and B had agreed that the latter will repair the car of A, sell it and between them divide the profit. Is there a
partnership created between them?
a. no, because there is
no contribution of money, property or services between the parties.
b. yes, because there is no contribution of money, property or services between the parties.
c. no, because their agreement was not put in writing.
d. yes, t
here is contribution of property and industry. A as the capitalist partner and B as an industrial partner.
22. A, B and C collected money among themselves to purchase lotto ticket for the purpose of dividing the winnings
among themselves. Is a part
nership formed among them?
a. no, because there is no contribution of money, property or services between the parties.
b. yes, because there is no contribution of money among the parties with the intention of dividing the winnings
among them.
c. no, because their agreement was not put in writing.
d. yes,
because the profit is divided equally among them.
23. What describes the nature of partnership contract?
a. it is a consensual contract
b
. it is a real contract
c. it is not a preparatory contract.
d. it is nominate.
24. D, E are capitalist partners while F is an industrial partner in their restaurant business. Later, F put up a
cellular phone loading stations, sells call cards and other cell phone accessories. Has F any liability under
circumstances?
a. no, since his other business is not competing with the business of the partnership
b. yes, b
ecause he can’t engage in business for himself always.
c. yes, because he is precluded by law to engage in any other business, except if there is stipulation allowing him
d. no, there is no showing that the business of the partnership i
s being prejudiced
25. In question no.24, will your answer be the same if F is a capitalist partner?
a. no, because a capitalist partner is allowed to engage in other business that is not related to or in line
with the business of th
e partnership.
b. no, because he is free to engage in any business
c. yes, because the partnership did not allow him to engage in business
d. yes, because it competes with and prejudices the business of the partnership
26. It was
agreed and stipulated in the Articles of Partnership that the determination of the sharing of profits
and losses is left to the will of majority of the partners. Is this enforceable?
a. yes, since the partners freely stipulated in it.
b. no, because this is void stipulation since the designation of losses and profits cannot be entrusted to one of them.
c. yes, since the agreement of the parties was approved by the majority of the partners.
d. no, because all the pa
rtners must agree on the sharing.
27. Which is not a property right of a partner?
a. right in specific partnership property
b. interest in partnership
c. right to participate in the management
d. right to require infor
mation on partnership affairs
28. A partner is personally indebted to his creditor. If such creditor obtains a judgment award against that partner,
can the creditor enforce judgment against partnership property?
a. yes, being the partne
r he has an interest over the property of the partnership which can be attached
b. no, the partners right over the specific property is free from execution and attachment if it is not a
claim against the partnership.
c. no, the partners right over the specific property is free from execution and attachment if it is not a claim
against the partnership.
d. no, because the partnership was not sued therein.
29. G is an accountan
t and H is a lawyer. Can they from a particular partnership for an accounting practice?
a. yes. they are both professionals.
b. yes. partnership may pertain to the practice of profession.
c. no. because they have different
fields of interest
d. no. because in the practice of profession, all partners must belong to the same profession and the partnership should
be for the exercise of common profession.
30.
Three lawyers formed a law partnership. T
he senior and well
-
known partner died. Can they still continue using the
name of such deceased partner?
a. yes, since he was a partner.
b. yes, as long as they will put some mark in that name indicating that such partner is
already deceased
c. no, as the partnership has been dissolved
d. no, as he is already excluded from the partnership
31. A: Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall ap
pear in a
public (notarized) instrument
, which must be recorded in the
a. officer of the Civil Registrar
b. Securities and Exchange Commission
c. Register of Deeds
d. Department of Trade and Industr
y
32. Whenever an immovable property is contributed and in inventory of said property is not made, signed by the parties, and
attached, and attached to the public
instrument, the partnership is
a. void
b. unenforceable
c. rescissible
d.voidable
33. As regards the liability of the partners, a partnership may be
a. General and limited at the same time.
b. Universal and particular at the same time
c. Either general or
limited
d. Universal or particular
34. It is partnership contract that comprises all that the partners may acquire by their industry or work during the existenc
e
of the partnership.
a. a universal partnership of profits
b general partnership
c.
d. limited partnership
35. A partnership that has for its object determinate things, their use or fruits, or specific undertaking, or the exercise o
f a
profession or vocation
a. particul
ar
b. general
c. limited
d. universal
36. When the capital which a partner is bound to contribute consists of goods, this must be made
a. appraisal or valuation
b. sod to the partnershi
p
c. title must be transferred to the partners
d. delivery otherwise there is no partnership
37. This partner cannot engage in business for himself, unless the partnership expressly permits him to do so.
a. industrial
b
. general
c. limited
d. capitalist
38. A stipulation which excludes one or more partners from any share in the profits or losses is
a. void
c.
unenforceable
b. valid
d.
voidable
39. When the manner of partnership management has not been agreed upon, all the partners shall be considered
a. managers’
c. administrators
b. agents’
d.co
-
owners
40. A partnership begins from the moment of.
a. distribution of profit
s
b. consent
c. delivery of contributions
d. issuance of certificate by the S.E.C
41. Every partner is a _______ of the partnership for whatever he may have promised to contribute thereto
a. debtor
c. manager
b. agent
d. none of the above
42. The managing partner appointed in the articles of partnership may
execute these acts despite the opposition of the other
partners.
a. acts of domination or ownership
b. act of administration or management
c. all other acts that will bind the partnership
d. dissolve the partnership
43
. This partner cannot engage for his own account in any operation which is of the kind of business in which
the partnership is engaged.
a. industrial
c. general
b. capitalist d. limited
44. These partners shall be liable pro rata with all their property and after all the partnership assets have been
exhausted.
a. only capitalist partne
r’s
b. only general partners
c. all partners, including industrial ones
d. only limited partners
45. The nature of the partner’s liability with the partnership for everything chargeable to the partnership due to
quasi
-
delict or delict.
a. joint
c. jointly and severally
b. indivisible d. none of the above
46. The change in the
relation of the partners caused by an partner ceasing to be associated in the carrying on of the
business.
a. winding up
c. dissolution
b. withdrawal
d. termination of the partnership
47. A partnership that is formed by two or more persons having as the members one or more general partners
and one or more limited partners.
a. limited
c. general
b. universal d. particular
48. The contributions of a limited partner may be
a. cash
c. services
b. property
d. both a and b
49. A limited partner shall not become liable as a ____________ partner unless he takes part in control of the
business.
a. general
c. managing
b. particular d. none of these
50. This partner shall have all the rights and powers and be subject to all the
restrictions and liabilities of a partner
in partnership without limited partners.
a. general
c. managing
b. particular d.
none of these