All present properties are contributed

A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above

Composed of capitalist and industrial partners

A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above

Partners shall enjoy practically all the profits:

A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above

May contribute money, property or industry to the common fund:

A. Both general and limited partners
B. Limited partner
C. General partners
D. Capitalist partners

One who takes charge of the winding up to partnership affairs upon dissolution:
A. Silent partner
B. General partner
C. Ostensible partner
D. Liquidating partner

A, B and C are partners. A contributed his services only; B, P20,000; and C, P10,000.The
partnership was liquidated. After payment of the partnership’s obligation, only P9,000
worth
of assets remained. The share of A will equal to:
A. P3,000
B. Equal of share of B
C. Equal of share of C

If a partner in a partnership is insolvent, the first order of preference in the distribution of his
assets are:
A. Partnership creditors
B. Partners contribution to the partnership
C. Separate creditors of the debtor
D. Pro-rata between the separate creditors of the debtor and the partnership creditor

A, B and C are partners in a partnership. C contributed his industry. After payments of the
partnership’s obligations, only P6,000 cash remains. No other assets. In the absence of
terms
to the contrary, the share of C in the remaining assets is:
A. Equal to share of A
B. Equal to the share of B
C. P2,000
D. Nothing

X, Y and Z are equal partners of Xyz Partnership. A owes the XYZ Partnership for p9,000.
Z, a partner collected from A, P3,000 before X and Y received anything. Z issued a
receipt
on the P3,000 as his share of what A owes. When X and Y collected from A, A was
insolvent.
A. Partner Z shall share partners X and Y with the P3,000
B. Z cannot be required to share X and Y with the P3,000
C. X and Y should first exhaust all remedies to collect from A.
D. X and Y can automatically deduct from the capital contributions of Z in the partnership
their respective share in the P3,000

A and B are partners in a real estate business. A and B were approached by X who offered to
buy a parcel of land owned by the partnership. Thereafter, b sold to A, B’s share in the
partnership. Then, A sold the land to X at a big profit.
A. A is liable to B for B’s share in the profits
B. The partnership is dissolved when A became the sole owner
C. A is not liable to B for the latter’s share in the profits
D. The sale of the land to X is void.

One of the following incidents may be a cause for involuntary dissolution of a partnership.
Which is?
A. Termination of the term of the partnership
B. Insolvency of any partner
C. Express will of any partner
D. Expulsion of any partner

A and B are equal partners in AB Partnership. Y presented himself as a partner in AB

Partnership to Z, who relying on such representation, extended P50,000 credit to AB
Partnership. Of the two (2) partners only B knew and consented to the representation of
Y.
Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a partnership liability was created, so
the two (2) partners and Y are liable.
C. Partners A and B who benefited from the credit extended to the partnership AB
Partnership shall be liable to Z.
D. B and Y are partners by estoppel and, thus, are liable to Z.

A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership
P20,000 each. A collected and receive from X, P10,000 and he issued a receipt wherein it
is
stated that the amount is applied against his personal credit.
A. The amount received will be applied in favor the partnership credit
B. The amount will be applied in proportion to both credits
C. The amount received will be applied in the credit of A
D. All the partners will decide as to whose favor it will apply

Three (3) of the following are similarities between a partnership and a corporation. Which is
not?
A. The individuals composing both have little voice in the conduct of the business
B. Both have juridical personality separate and distinct from that of the individuals
composing them.
C. Like a partnership, a corporation can act only through agents
D. Both are organizations composed of an aggregate of individuals

A, B and C are general partners in ABC Partnership. A, the managing partner engaged
personally in a business that is the same as the business of the partnership without the
consent of B and C.
A. If there are profits, A will give the profits to the partnership
B. If there are losses, the partnership will bear the losses
C. If there are profits, they will be shared by partner A and the ABC Partnership
D. The profits or losses will be shared equally by A and the ABC Partnership

Bears the loss of property contributed to the partnership

A. Capitalist partner
B. Limited partner
C. None of the above
D. Partners contributing usufructory rights
When cash or property worth P3,000 or more is contributed as capital. The Articles of Co-
Partnership shall be in a public instrument and be registered with the Securities and
Exchange commission. If the said requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.

A and B are equal partners in AB Partnership C contacted XYZ and Co. and represented
himself as partner in AB Partnership. XYZ and Co. contacted A who confirmed that C is
in
fact a partner of AB Partnership XYZ and Co. extended credit to C for AB Partnership in
the
amount of P60,000. Who is liable to XYZ and Co.?
A. A and C are partners by estoppels and are liable to XYZ and Co.
B. XYZ and Co. extended the credit to C for AB Partnership, so a partnership liability
exists, so both partners, A and B together with C are liable.
C. The AB Partnership benefited, so it is liable
D. Only C who made the representation is liable

A, B and C are partners in a trucking and freight business. B and C without the knowledge
of A approached X and offered to sell to X all the trucks of the partnership at a price very
much higher than their book value. Then B and C bought-out A from the partnership and
thereafter X bought all the trucks with a big profit of B and C.
A. The sale of the trucks to X is void because it is without the knowledge and consent of A.
B. B and C are not liable to A whatsoever
C. B and C are liable to A for his share in the profits in the sale.
D. When A was bought-out of the partnership, the partnership was dissolved so A has no
more share in the profits in the sale.

When the capital (of a partnership) is P3,000 or more, it must be in a public instrument and
must be recorded with the Securities and Exchange Commission (Article 1772). A, B and
C
agreed to form a partnership and each contributed P10,000 as capital of the partnership.
There was no compliance in the provisions of Article 1772.
A. The partnership was not established
B. The partnership did not have juridical personality
C. The partnership was established and any partner may compel the execution of a
public instrument
D. The partnership is void

Three (3) of the following are rights of a partners. Which one is not?
A. Right to associate another person to his share
B. Right to admit another partner
C. Right to inspect and copy partnership book
D. Right to ask dissolution of the firm at the proper time

The following are similarities between partnership and a corporation. Which is the
exception?
A. Both have juridical personalities separate and distinct from that of the individuals
composing them.
A. Like a partnership, a corporation can act only through agents
B. Both are organization of an aggregate of individuals
C. The individuals composing both have little voice in the conduct of the business.

In the partnership of A, B and C, A was appointed in the Articles of Co-Partnership as

managing partner. As such manager in good faith:
A. His power is revocable even without consent
B. His power can be revocable at any time even without just cause provided
C. He may execute all acts of administration despite the opposition of B and C
D. He can be removed for valid cause even without the vote of the partners owning the
controlling interest

W, X, Y and Z formed a partnership. W, X and Y are general partners and contributed

P50,000 each while Z, an industrial partner contributed his services only. All the partners
signed an agreement stipulating that the liability of W is limited to its contribution After
all
the assets of the partnership were exhausted there remains an unpaid liability of P40,000.
The creditors of the partnership can compel:
A. X and Y to pay the P40,000
B. X, Y and Z to pay the P40,000
C. W, X, Y and Z to pay P10,000 each and W and Z can demand reimbursement from
X and Y.
D. X and Y to pay P40,000

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. Secret partner
B. Dormant partner
C. Nominal partner or partner by estoppel
D. Answer not given

A and B are capitalist partners, with C as industrial partner. A and B contributed P15,000
each to the capital of the partnership. A contractual liability of P40,000 was incurred by
the
partnership in favor of X. The capital assets of P30,000 shall first be exhausted thereby
leaving an unsatisfied liability of P10,000. X can recover the amount from:
A. A and B only
B. A, B and C
C. A, B and C and C can recover for reimbursement from A and B
D. Answer not given

M and O are partners of M & O Partnership. M is the managing partner. N owes M P10,000
and M & O partnership P30,000. The obligations of N are both due. M collected from N
the
debt of N to M in the amount of P10,000 and issued a receipt in the name of M. To which
obligation will the P10,000 be applied?
A. The whole of the P10,000 be applied to debt of N to M
B. The P10,000 be applied to debt of N to M and to the partnership
C. P5,000 each of debt of N to M and to the partnership
D. P2,500 to debt of N to M and P7,500 debt of N to the partnership

A, B and C are partners in D-3 Partnership. On April 29,2010, partner C died. Not knowing
that C died, on May 1, 2010, A contracted a liability to D who also do not know the death
of
C. The partnership debt is in the amount of P30,000, he can collect
A. P30,000 from A
B. P15,000 from A and P15,000 from B
C. P10,000 from estate of C; P10,000 from A ; P10,000 from B
D. P20,000 from A and P10,000 from B

This the order of preference in the liquidation of a general partnership:

A. Outside creditors; Partner as creditors; Partners capital; Partners profit
B. Partner as creditors; Outside creditors; Partners capital; Partners profit
C. Partners capital; Outside creditors; Partner as creditors; Partners profit
D. Outside creditors; Partner capital; Partners profit; Partners as creditors

The nationality of a corporation is determined by the law of its domicile or place of principal
business. The test is known as:
A. The control theory
B. The full absorption theory
C. The incorporation theory
D. The management theory

This is unincorporated business organization created by an instrument by which property is to be

held and managed by trustees for the benefit and profit of such person as may be or become the
holders of transferable certificates evidencing the beneficial interests in the estate
A. Business Trust
B. Close Corporation
C. Condominium Corporation
D. Joint Stock Company

When preferred shares are issued by a corporation with a fixed annual interest on the face
thereof, the effect is:
A. The contract of subscription is between the corporation and the stockholder subsists
B. The stockholder is a plain investor who may rise or fall with the financial success or
failure of the corporation.
C. The stockholder is a creditor of the corporation
D. The shares of stock are negotiable instruments under the Negotiable Instruments Law

The power to invest corporate funds in another corporation or business or for any other purpose
as a corporate power is classified as an:
A. Express power
B. Incidental power
C. Implied power
D. Discretionary power

The power of conducting commercial contracts (to increase the business) and sponsoring athletic
contest for employees to keep them in good health or maintaining a hospital for the employees is
an example of:
A. Express power
B. Incidental power
C. Implied power
D. Discretionary power

To establish pension, retirement, and other plans for the benefits of its directors, trustees, officers
and employees is an example of:
A. Express power
B. Incidental power
C. Implied power
D. Discretionary power

This shall constitute a quorum for transaction of corporate business:

A. Majority of the members
B. Majority of the stockholders
C. Majority of the directors
D. All of them

Juridical personality of a corporation begins:

A. From the date of issuance of certificate of incorporation
B. By agreement of the parties
C. Acknowledgement before a Notary Public
D. None of them

Right which the existing stockholders of corporation cannot be deprived without the consent is
their right to subscribe or to purchase new stock issued by the corporation; or unissued original
stock, in proportion to their holdings before it can be offered to others:
A. Right of redemption
B. Pre-emptive right
C. Right to purchase
D. None of them
These are the shares of stock which have been issued and fully paid for, but subsequently
reacquired by the issuing corporation:
A. Redeemable shares
B. Treasury shares
C. Founder’s share
D. None of the three

In the amendment of the Articles of Incorporation of a stock corporation, the following is

necessary:
A. Amendment by the majority vote of the Board of Directors plus a vote or written
assent of the stockholders representing at lest 2/3 of the outstanding capital stock.
B. Amendment by a vote of 2/3 of the stockholders
C. Amendment by the majority vote of the Board of Directors
D. None of the three

Corporation governed by special laws, aside from the requirements specified under the
corporation laws, in order that their articles of incorporation may be approved or accepted, must
present before the Security and Exchange Commission:
A. A favorable recommendation from the Ministry of Finance
B. A copy of previous income tax return and a statement of assets, liabilities and net worth
C. A favorable recommendation of the appropriate government agency to the effect
that such articles or amendment is in accordance with law.
D. An undertaking to change the name of the corporation if found that there is already
registered with the SEC a name or a name similar to the name of this corporation

The secretary of a stock corporation shall be:

A. A director of the corporation
B. An incorporator of the corporation
C. A resident and citizen of the Philippines
D. Of legal age and citizen of the Philippines

Directors or trustees who willfully and knowingly vote or assent to patently unlawful act of the
corporation or who are guilty of gross negligence or had faith in directing the affairs of the
corporation or acquire any personal or pecuniary interest in conflict with their duty shall be
liable:
A. As trustee for the corporation
B. Criminally for violation of the corporation code
C. Jointly and severally for the damages suffered by the corporation
D. None of the above

The following are methods of dissolving a corporation:

A. Expiration of the term
B. Failure to organize and commence business within two (2) years from date of issuance of
certificate of incorporation
C. Shortening of the corporate term
D. All of the above

The authorized capital stock of a proposed corporation is P100,000 divided into 1,000 shares
with a par value of P100.00 each. The minimum amount of subscription that must be paid is:
A. P8,750 or 87.5 shares C. P5,000 or 50 shares
B. P6,250 or 62.5 shares D. P7,500 or 75 shares

In the matter of management of the business affairs of a corporation, this is supreme:

A. Majority of the stockholders
B. 2/3 of the stockholders
C. Board of Directors
D. President of the corporation

This is the equitable right of stockholders to subscribe to newly issued shares of the corporation
in proportion to their present shares in order to maintain their equity in the corporation.
A. Right of redemption
B. Concept of corporation entity
C. Right to sue and be sued
D. Pre-emptive right

Choose the minimum requirement of the Corporation Law to corporate formation:

Authorized Capital Subscribed Capital Paid-In Capital

A. P100,000 P20,000 P5,000
B. 100,000 20,000 4,000
C. 100,000 25,000 5,000
D. 100,000 25,000 6,250

They provide and regulate the internal matters of the corporation, such as calling the Board of
Directors and Stockholders meetings.
A. Board of Directors C. By-laws
B. Majority of Stockholders D. Articles of Incorporation

This is an authority to vote in a corporation stockholders meeting.

A. Proxy C. Certificate of stock
B. By-laws D. Share of stock

One of the following is the limitation on proxies. Which is?

A. Proxy acquires legal title to the shares of the stock
B. A proxy votes even in the presence of the stockholder
C. The proxy is voted only for the meeting for which it was intended
D. A proxy is revocable at any time

The number of the Board of Trustees in a non-stock corporation:

A. Shall not be less than five but not more than eleven
B. May be more than fifteen upon its organization
C. May be less than five upon its organization
D. Shall not be less than five but not more than fifteen

One of the following is a ground for the suspension or revocation of the certificate of
incorporation by the Securities and Exchange Commission.
A. If the corporation has commenced its business transactions and afterwards ceased
operation continuously for a period of at least five (5) years
B. If the corporation fails to commence and start to operate and the failure is due to causes
beyond the control of the Corporation
C. If the corporation does not formally commence its business transaction and subsequently
become continuously inoperative for a period of two (2) years

They regulate different internal matters of the corporation such as calling and defining the
conduct of the meeting of stockholders and directors.
A. Board of directors C. Articles of incorporation
B. By-laws D. Proxy

The document conferring authority to vote stock in a corporate meeting:

A. Power of attorney C. Capital stock
B. Shares of stock D. Proxy

The minimum requirement of Corporation Law to corporate formation.

Authorized Subscribed Capital Paid in Capital

A. P500,000 P100,000 P25,000
B. 500,000 125,000 31,250
C. 500,000 100,000 20,000
D. 500,000 125,000 25,000

The voting requirement to increase or decrease capital stock

A. Majority vote of the board of directors and consented by the stockholders
representing two-thirds (2/3) of the outstanding capital stock
B. Two-thirds (2/3) vote of the board of directors with the consent of majority of
outstanding capital stock
C. Majority vote of the board of directors and with consent if majority of the outstanding
capital stock
D. Majority vote of the board of directors and three-fourths (3/4) vote of the outstanding
capital stock

A dividend payable partly in cash and partly in stocks, as to class of dividend, is a :

A. Optional dividend C. Liquidation dividend
B. Property dividend D. Composite dividend

Bonds which are not secured by any specific mortgage lien of pledge or corporate property but
by the general corporation are:
A. Guaranteed bonds C. Income bonds
B. Debenture bonds D. Redeemable bonds