1. A limited partnership name 'A B and C Co.

td Was formed on October 25, 2016 by Aa general

partner and B and C as limited partners in 2017 A and B got married. Did the marriage dissolve
or put an end to the partnership?
 Yes, the partnership is dissolved by the marriage because there is a change in equity
among the partners
 No because spouses can enter into a universal partnership
 No the marriage did not dissolve the partnership
 Yes because spouses cannot enter into a particular partnership or be thereof
2. A and B entered into a universal partnership of all present property. The common property of
the partnership shall be
 All the properties which belonged to each of the partners at the time of the constitution
of the partnership.
 All the properties which belonged to each of the partners at the time of the constitution
of the partnership as well as properties which each may acquire thereafter
 All the properties which shall belonged to each of the partners after the constitution of
the partnership
 All the properties which belonged to each of the partners at the time of the constitution
of the partnership as well as the profits which they may acquire there with
3. If a partner in a partnership is insolvent the first order of preferences in the distribution on his
assets are:
 Separate creditors
 Pro-rata between the separate creditors of the debtor and the partnership creditors
 Partnership creditors
 Partnership contribution to
4. A capitalist partner is engaged for his own account in an operation which is of the kind of
business in which the partnership is engaged. Said partner can be
 Compelled to sell his interest in the partnership to the other capitalist partners.
 Compelled to bring to the common funds of the partnership any profits accruing to him
from his transactions.
 Compelled to dissolve or discontinue the operation of his business
 Denied his share in the profits of the partnership
5. A, B and C, capitalist partners, each contributed P30, 000P20, 000 and P10,000. respectively and
D, the industrial partner, contributed his services, suppose X, a customer. is the creditor of the
firm to the amount of P180, 000. How can X recover the P180,000?
 X can recover from the firm P60.000X can recover the balance of P120000 from any of
the partners solidarily
 X can recover from the firm P60, 000. X can still recover the balance of P120,000 from
the capitalist partners only
 X must sue the firm and get P60,000 from the entire partner including Dthe industrial
partner. X can still recover the balances of P120000 from the four partners jointly
 X can recover from the firm P60000 and consider the balance of P120, 000 as loss+

6. X, Y and Z were partners. X is an industrial partner. During the first year of operation, the firm
realized a profit of P60, 000. During the second year, the firm sustained a loss of P30. 000So the
net profit for the two years of operation was only P30,000. In the articles of partnership, it was
agreed that X, the industrial partner would get 1/3 of the profit but would not share in the
losses. How much will X the industrial partner, get?
 will share in the loss in the 2nd year
 X will get only P20,000 in the 1st year and none in the 2nd year
 X will get only P20, 000 which is 1/3 of the profit of the 1st year of operation
 X will get only P10, 000 which is 1/3 of the net profit
7. Aguas and Bautista are partners in a real estate partnership The partnership owns a piece of land
which Castro desired to buy Castro contacted Aguas and informed him of his desire to buy the
land and Aguas did not tell Bautista about it Aguas bought Bautista out of the partnership and
afterwards sold the land to Castro with a big profit
 Aguas is not liable to Bautista for the latter's share in the profits
 The sale of the land to Castro is void because it was without the knowledge of Bautista
 Aguas is liable to Bautista for the latter's share in the profits
 The partnership is dissolved when Aguas became the sole owner
8. A is the capitalist partner and B is the industrial partner A engaged personally in the same kind
of business the partnership is engaged in.
 If there are losses, the partnership will bear the losses
 If there are profits, the profits will be shared by A and the partnership
 If there are profits, A will give the profits to the partnership
 A will be excluded from the partnership and pay damages
 If there are profits, the profits will be shared by A and the partners
9. Bears the loss of property contributed to the partnership
 General partner
 Capitalist partner
 Limited partner
 Partners contributing usufructuary rights
10. B-1, B-2 and B-3 are equal partners in 3-Brothers Partnership. The partnership is indebted to PC
for P150,000Partner B-1 is indebted to amounting to P90, 000. B-2 and B-3 are solvent while B-1
is insolvent and all what he owns is a land valued at P15,000
 B-2 and B-3 have priority to the land of B-1 of they paid PC the P60, 000 remaining
liability of the partnership
 PC and SC shall both have priority to the land of B-1 in proportion to their claims of
P60,000 and P20, 000, respectively.
 OPC has priority to the land of B-1 to cover B-1's share of the P60. 000 remaining liability
of the partnership
 OSC has priority to the land of B-1 as a separate creditor
11. A partner's interest in the partnership is his share of the profits and surplus which he may assign
to a third person. Which of the following statements concerning such right is correct?
 The assignee has a right to interfere in the management of the partnership business
 The assignee has the right to receive the profits which the assigning partner would
otherwise be entitled thereto
 The assignee becomes a partner
 The conveyance of the partner's interest will cause the dissolution of the partnership
12. A is the managing partner of ABC and Company. X owes A personally and ABC and Company
P20,000 each. A collected and received form X P10,000 and he issued a receipt wherein it is
stated that the amount is applied against his personal credit
 The amount received will be applied in favor of the partnership credit
 The amount received will apply in the credit of A
 The amount received will be applied in proportion to both credits
 All the partners will decide as to whose favor it will apply
13. 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 registered with the Securities and Exchange
Commission If the said requirements are not complied with:
 It will render the partnership void
 It will give the partnership a de facto existence
 It will not affect the liability of the partnership and the partners thereof to third parties
 It will not give a legal personality to the partnership
14. Three (3) of the following are rights of a partner. Which one (1) is not?
 Right to admit another partner
 Right to associate another person to his share
 Right to ask dissolution of the firm at the proper time
 Right to inspect and copy partnership book
15. One of the following is not a characteristic of contract of partnership
 Real in that the partners must deliver their contributions in order for the partnership
contract to be perfected
 Onerous, because the parties contribute money, property or industry to the common
fund
 Preparatory, because it is a means by which other contracts will be entered into
 Principal, because it can stand by itself
16. The partnership will bear the risk of loss of three of the following things, except
 Things brought and appraised in the inventory
 Non-fungible things contributed so that only their use and fruits will be for the common
benefit
 Things contributed to be sold
 Fungible things or those that cannot be kept without deteriorating
17. A and B put up a partnership to engage in distribution of books and school supplies. A
contributed P1M while B his services. A wants to put up a restaurant on the opposite side of the
street. On the other hand, B wants to have a bakery beside A's restaurant. Which of the
following is correct?
 Both A and B can put their restaurant and bakery business without the need of securing
each other's consent
 B may put up his bakery without need of securing A's consent
 A may put up his a restaurant without need of securing B's consent
 Neither A nor B put up another business
18. A, B and Care capitalist partners, each contributed P10,000. After exhausting the assets of the
firm, the firm's indebtedness amounts to P90.000It was stipulated that A would be exempted
from liability. Which is correct
 The creditors can recover P45,0000 each from and C
 A may recover his original capital of P10,000
 A can recover P20,000 each from B and C should he be required to pay the creditors
 The creditors may collect P30,000 each from A, Band C
19. A B and C, capitalist partners, each contributed P10,000 and D, the industrial partner contributed
his services Suppose X, is the creditor of the firm amounting to P90,000. After getting the
P30,000 capital assets of the partnership, which is correct?
 X can recover P20,000 each from A, B and C only
 X can recover P60,000 from either A or B or C
 X can recover P15,000 each from A, B, C and D
 X can recover P15,000 each from A, B and C but D is exempt because he is an industrial
partner
20. A, B and C are partners. D is admitted as a new partner. Will D be liable for partnership
obligations contracted prior to his admission to the partnership?
 Yes, and his liability would extend to his own individual property
 Yes, but his liability will extend only to his share in the partnership property and not to
his own individual property
 No, only for those contracted after his admission
 Yes, as if had been an original partner
21. A and B orally agreed to form a partnership two years from today, each one to contribute
P1,000If at the arrival of the period, one refuses to go ahead the agreement can the other
enforce the agreement
 Yes, because the partnership contract is not governed by the Statue of Frauds
 No, since the agreement is to be enforced after one year the making thereof, the same
should be in a public instrument to be enforceable
 Yes, because the prior agreement was voluntarily made
 No, because the agreement was merely oral and executory
22. Which of the following losses will not cause the dissolution of a partnership?
 Loss before delivery of a specific thing where the partner promised to contribute only its
use and enjoyment reserving the ownership thereof
 Loss before delivery of a specific thing which a partner had promised to contribute to
the partnership
 Loss after delivery of a specific thing where the partner contributed only its use and
enjoyment where such partner reserved the ownership thereof
 Loss of a specific thing after its delivery to and acquisition of its ownership by the
partnership from the partner who contributed the same.
23. The following persons are disqualified to form a universal partnership, except
 Husband and Wife
 Those found guilty of the same criminal offense, if the partnership is entered into in
consideration of the same
 Those guilty of adultery and concubinage
 Brother and Sister
24. a managing partner is B' creditor to the amount of P1,000 already demandable. B also owes the
partnership P1,000, also demandable. A collects P1,000 from B. One is not correct.
 If A gives a receipt for his own creditP500 will be given to him, P500 to the partnership
 If A gives a receipt for his own credit, it is A's credit that has been collected
 B may decide that he is paying only A's credit if the personal credit of A is more onerous
to B.
 If A gives a receipt for the partnership it is the partnership's credit has been collected
25. The remedy of capitalist partners against an industrial partner who engaged in a business for
himself without the expressed permission from the partnership is
 To remove him as manager if he is appointed as manager of the partnership
 To expel him from the partnership and claim for damages
 To exclude him from sharing in the profits of the partnership
 To compel him to sell his interest to the said capitalist partners
26. A, B and C are partners in ABC Co. D owes the partnership P4,500. A. a partner, received from D
a share of p1,500 ahead of partners B and C, giving D a receipt for his share only. When B and C
were collecting from D, the latter was already insolvent. Which of the following is correct?
 B and C should automatically exhaust first all remedies to collect from
 A cannot be required to share the P1,500 with B and C
 B and C can automatically deduct from the capital contribution of A in the partnership
their respective share in the P1,500.
 Partner A can be required to share the P1,500 with B and C
27. Instances when a partnership is unlawful, except
 A partnership formed for the purpose of acquiring parcels of land
 A partnership formed to furnish apartment houses which would be used for prostitution
 A partnership formed gambling purposes
 A partnership formed to create illegal monopolies or combinations in restraint of trade
28. A partnership without a definite period of existence and which can be dissolved at any time by
any of the partners is called:
 Universal partnership of profits
 Universal partnership of all present property
 Particular partnership
 Partnership at will
29. A, B, and C are equal partners in ABC Partnership. The partnership is indebted to D for P150,000.
Partner A is indebted to E for P20,000. D attached and took all the assets of the partnership
amounting to P90,000. B and C are solvent while A is insolvent and all that he owns is a land
valued at P15.000. Which is correct?
 E has priority to the land of A as a separate creditor
 D has priority to the land of A to cover A's share of the P60.000 remaining liability of the
partnership.
 D and E shall both have priority to the land of A in proportion to their claims of P60,000
and P20,000, respectively.
 B and C have priority to the land of A if they paid D the P60,000 remaining liability of the
partnership.
30. A. B and C are partners. A is an industrial partner. During the first year of operation, the firm
realized a profit of P60,000. During the second year, the firm sustained a loss of P30,000. So, the
net profit for the two years of operation was only P30,000. In the Article of Partnership, it was
agreed that A, the industrial partner would get 1/3 of the profit but would not share in the
losses. How much will A, the industrial partner get?
 A will get only P10.000 which is 1/3 of the net profit.
 A will get only P20,000 which is 1/3 of the profit of the 1st year of operation
 A will get only p20,000 in the first year and none in the second year.
 A will share in the second year.
31. Which of the following is considered prima facie evidence of the existence of a partnership?
 Where the parties are established as co-owners of a property.
 Where payment of interest on a loan depends on the profit of the business
 The sharing of gross returns of a business
 The receipt by a person of a share in the profits
32. One or more but less than all the partners have no authority to perform the following acts.
except:
 Submit a partnership claim or liability to arbitration
 Do any act which would make it impossible to carry on the ordinary business of the
partnership.
 Renounce a claim of the partnership.
 Convey partnership property in the ordinary course of partnership business.
33. A. B and C are partners in CAB Enterprises. Not having established yet their credit standing, the
three partners requested D, a well known businessman, to help them negotiate a loan from E, a
money lender. With the consent of A, B and C. D represented himself as a partner of CAB
Enterprises. Thereafter, E granted a loan of P150,000 to CAB Enterprises. What kind of partner is
D?
 silent partner
 managing partner
 secret partner
 newly-admitted partner
 liquidating partner
 partner by estoppel
34. A partnership which comprises all the profits that the partners may acquire by their work or
industry during the existence of the partnership is called:
 Universal partnership of profits
 Particular partnership
 Universal partnership of all present property
 Partnership at will
35. A partner who has all the rights, powers and subject to all the restrictions of a general partner
but whose liability is, among themselves, limited to his capital contribution is:
 Dormant partner
 General partner
 Limited partner
 General-limited partner
36. In the partnership of A, B and C, A was appointed in the Article of Co-partnership as managing
partner. As such manager and acting in good faith-
 He can be removed for valid cause even without the vote of the partners owning the
controlling interest
 His power is revocable even without it his consent
 He may execute all acts of administrations despite the opposition of B and C
 His power can be revocable at any time even without just cause provided that it is
approved by the partners owning the controlling interest

37. In the ABC partnership A and B contributed P20,000 each and C his services. After paying all
creditor of the partnership, only P18, 000 in cash remains. In the absence of terms to the
country, the share of C is equal to
  Nothing
 P6,000
 The share of A
 The share of B
38. Which of the following is now correct? In a limited partnership composed of A, B and C, the
contribution may be as follows except:
 A-services (limited partner); B-cash (general partner)C-services (general partner
 A-cash (limited partner): B-cash (general partner); C services (general partner)
 A-cash (limited partner); B-property (general partner)C-services (general partner)
 A-property (limited partner): B-services (general partner); C-cash (general partner)
39. In A, BC and D partnership, only B did not deliver his agreed capital contribution in the form of a
specific house and lot. The remedy against him is:
 Remedy not indicated
 Amendment of certificate
 Dissolution or annulment of the partnership contract
 For specific performance
 For A, C and D to get back their contribution
40. A limited partner who takes active part in the management of the firm becomes:
 a general partner and a limited partner at the same time
 a general partner
 liable as a general partner
 a managing partner
41. A limited partner who takes active part in the management of the firm becomes:
 a managing partner
 liable as a general partner
 a general partner and a limited partner at the same time
 a general partner
42. A is the managing partner in A & B Company. X is indebted to A for P20,000.00 and to the
partnership for P60.000.00. When both debts mature X pays A P20,000.00 and the latter issues a
receipt for the personal credit. The payment for P20,000.00 shall be applied:
 To the debt owing to the partnership
 ½ favor of A and favor of the partnership
 To the whole debt owing to A
 % in favor of A and % favor of partnership
43. A and B are partners. On June 15, 2019 when the total obligation of the partnership totals
P80,000, C was admitted as a new partner. At the C's admission, the partnership creditors were
M for P50,000 and N for P30,000After June 15, the partnership borrowed from O P20,000 and
P10,000 from P. On December 15, 2019, the partnership becomes insolvent leaving an obligation
totalling P140,000 and partnership assets amounting to P30,000. the creditors are going after
the separate properties of the partners to satisfy their remaining claims. How are the creditors'
claims 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 2-0 and P can go after the separate properties of A, Band C. Which of the following is
correct?
 Both answers are correct
 Both answers are wrong
 Answer 1 is correct but answer 2 is wrong
 Answer 1 is wrong but answer 2 is correct

44. 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 contractual liability of P50,000was incurred by the partnership in
favor of X The assets of the partnership have been exhausted still leaving an unpaid liability of
P12,000What are the rights and the obligation of the partners, if any?
  A and B only
 C only
 A, B and C has no right for reimbursement from A and B unless expressly stipulated
 A, B and C are liable to Xand C after giving his share may ask reimbursement from A and
B unless otherwise stipulated.
45. XYZ Partnership composed of three (3) capitalist partners and one industrial partner suffered
business losses. Its remaining assets amounted to P100,000. The partnership indebted to its
supplier Mr. Cruz, in the amount of P160, 000. How can Cruz recover the P60,000?
 Cruz can recover from the partnership P100000 and the balances of P60,000 from the
four partners jointly including the industrial partner
 Cruz can recover from the partnership P100000 only and suffer as his loss in the balance
of P60, 000
 Cruz can recover from the partnership P100000 and the balances of P60, 000 from any
of the partner solidarity
 Cruz can recover from the partnership P100000 and the balance of P60, 000 from the
three capitalist partners only
46. A, B and C formed a limited partnership with A as general partner, B as limited partner and C as
industrial partner. A and B contributed P50, 000 each The partnership failed and after disposing
all its assets to pay partnership debts there still remains a note payable in the sum of P30000.
Against whom can the creditor demand payment of the note of P30,000
 A and C are liable to pay P15, 000 each
 A and B are liable to pay P15,000 each
 A legal representative of limited partner
 Only A is liable to pay the P30, 000 indebtedness
47. X, Y and Z are partners in Able Co W represented himself as a partner in Able Co. to B. who, on
the faith of such representation granted P300,000 loan to the partnership. Assuming only X and
Y consented on such representation who shall be liable for B?
 Since the partnership benefited from the credit extended by B. all partners X, Y and Z are
liable
 Only X, Y and W who are partners by estoppel are liable to pro-rata to B
 Only W who made the representation shall be liable to B
 Since the loan was extended to the partnership, all the partners and W are liable
48. The partnership is insolvent. They are preferred as regards to the partnership property.
 Partners’ separate creditors
 Partnership creditors
 Partners with respect to their profits
 Partners with respect to their capital
49. 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 (Art1772)A, B and C agreed to form a
partnership and each contributed P10, 000 as capital of the partnershipThere was no compliance
in the provision or Art. 1772.
 The partnership was established and any partner may compel the execution of a public
instrument.
 The partnership did not have juridical personality
 The partnership is void
 The partnership was not established

50. This is the order of preference in the liquidation of a partnership:

 1outside creditors 2. Partners aside from their capital and profit 3. Partners with respect
to the capital 4. Partners with respect to the profit
  1. Partners aside from their capital and profit 2. outside creditors 3. Partners with
respect to the capital 4. Partners with respect to the profit
 1. Partners with respect to the capital 2. Partners with respect to the profit 3. Partners
aside from their capital and profit 4. outside creditors
 1. Outside creditors 2. Partners with respect to their capital 3. Partners with respect to
their profit 4. Partners aside from capital and profit
51. A, B and C are general partners in ABC partnership. D is a debtor to the partnership in the
amount of P15,000. A received from the debtor D the sum of P5, 000 and issued a receipt
identifying the amount as his share. Then D became insolvent, B and C cannot collect the
P10,000.
 B and C can charge the capital of A with their share of the P5, 000
 A can be compelled to share B and C with the P5, 000
 A cannot be compelled to share the P5, 000 with B and C
 B and C should automatically sue D to collect the P10,000
52. A and B are capitalist partners, with C as an industrial partner. A and B contributed P15. 000.00
each to the capital of partnership. A contractual liability of P40,000.00 was incurred by the
partnership in favor of X In the case bar, the capital assets of P30,000.00 shall first be exhausted
thereby leaving an unsatisfied liability of P10,000.00. X can recover the amount from:
 A, B and C
 A and B only
 A, B and C and C can recover for reimbursement from A and B
 Answer not given
53. Partnership as distinguished from co-ownership:
 It has juridical personality
 Profits are divided in proportion to one's interest
 Created not only by agreement of the parties but also by law
 Purpose is to make profits
54. A, B and C are equal partners in D-3 Partnership On April 29, 2020, partner C died. Not knowing
that C died, on May 12020, A contracted a liability to D who also does not know the death of C
The liability is P90000After D, exhausted the net assets of D-3 Partnership in the amount of
P60,000 he can collect:
 P15,000 from A and P15,000 from B
 P20,000 from A and P10, 000 from B
 P30, 000 from A
 P10,000 from estate of C: P10000 from A; P10,000 from B
55. Which of the following statements is correct?
 The contract of partnership is void if it contains a stipulation which excludes a partner
from sharing in the profits of the firm
 A limited partnership is one having at least one general partner or one limited partner
and the limited partner shall not be liable for the obligations of the partnership
 A partnership contract is not covered by Statute of Fraud
 A limited partner who takes active part in the management of the firm becomes liable as
a general partner
56. A partnership which compromises all that the partners may acquire by their work or industry
during the existence of the partnership is:
 Particular Partnership
 Universal partnership of present property
 Limited Partnership
 Universal partnership of profits
 General Partnership
57. Which of the following liabilities of the partnership shall first in the order of payment?
 Those owing to creditors other than partner
 Those owing to partners other than capital and profits
 Those owing to partners in respect to capital
 Those owing to partners in respect to profits
58. A B and C are partners engaged in a retail business Their contribution is P20,000,00 each. D is
admitted as a new partner with a contribution of P8,000.00At the time of his admission, the
partnership has an outstanding obligation to E in the amount of P80. 000.00In this case:
  D is liable to E for this obligation so that after the assets of the partnership amounting to
P68,000.00 will be exhausted leaving a balance of P12000. only AB and C shall be liable
jointly or pro rata out of their separate property
 D is not liable to E for his obligation.
 answer not given
 D is liable to E for this obligation so that after the assets of the partnership will be
exhausted, leaving a balance of P12,000.00, all the partners shall be liable jointly or pro
rata, out of their separate property
59. Which of the following statement is correct?
 An industrial partner may not engage in business for himself without the consent of his
co partner
 An industrial partner who engaged in business for himself may be excluded from the
partnership
 A capitalist partner may not engage in the same line of business in which the partnership
is engaged
 An offending capitalist partner may not be excluded from the partnership
60. Which of the following statements is not correct?
 Valid contribution of a limited partner are money and property but not services
 A limited partner in a partnership manages the business of the partnership but cannot
perform acts of ownership without the consent of all the limited partners
 A person who is both a general partner and a limited partner is deemed a limited
partner only with respect to the return of his contribution
 Additional limited partners may be admitted into the limited partnership with the
consent of all partners