BUSINESS LAW QUIZ ON PARTNERSHIP
1. Which of the following is not correct? a. A- cash (Ltd); B-cash (Gen,); C-service (Gen) b. A –property (Ltd.); B –cash (Gen); C –service (Gen) c. A –service (Ltd.); B –cash (Gen); C –service (Gen) d. A – cash (Ltd.); B –cash (Gen); C –service (Gen) 2. A and B orally agreed to form partnership two years from today, each one to contribute 10,000.00 A arrival of the said. If one refuses to go ahead with the agreement, can the other one enforce the agreement? a. yes since the agreement is to be enforced after one year from the making thereof, the same should be in writing to be enforceable b. yes because the prior agreement was voluntarily made c. yes because the contract of partnership is not governed by the Statue of Frauds d. no because the agreement was merely oral 3. If partner is insolvent, the first order of preference in the distribution of his assets is a. partnership creditors b. partnership’s contribution to the partnership c.separate creditors of the debtor d.pro-rata between the separate creditors 4. The following, except one, are common characteristics of partnership and corporation which is the exception? a. the individuals composing both organizations have little voice in the conduct of the business b. both can acts through agents c.both are business organizations compose of a number of individuals d.both are juridical personalities separate and distinct from that of the members composing it 5. Which of the following is not a requisite prescribed by law in order that the partnership may be held to a third party for the acts of one of the partners a.the contracts bind the partnership by acquiescence for obligations he may have contracted in good faith b. the partner must have the authority to bind the partnership c. the contract must be in the name in partnership of for its own account d .the partner must act on behalf of the partnership 6. X, Y and Z are partners in Ace & Co. W represented himself as a partner in the said partnership to A, who, on the faith of such representation, granted P1M loan to the partnership. Assuming only
X and Y consented to such representation, who shall be liable to A? a. since the partnership benefited from the credit extended by A, all partners X, Y and Z are liable b. only X, Y, and W are partners by estoppel A and are liable pro rata c.since the loan was extended to the partnership; all the partners and W are liable d.only W who made the representation shall be liable 7.A,B and C are general partners in merchandising firm .Having contributed equal amounts to the capital, they also agreed on equal distribution of whatever profit is realized per fiscal period, After two years of operation however , C conveys her whole interest in the partnership to D, without the knowledge of A and B. Is the partnership dissolved? a.the partnership is not dissolved because the conveyance of a partner’s interest in the partnership does not of itself dissolve the partnership b. the partnership is not dissolved because the assignment made by C for his whole interest was without knowledge and consent of A and B c.the partnership was dissolved because the assignee D automatically becomes a new partner and strictly speaking there is a new entity d.it is dissolved because A has ceased to be a partner because of the assignment for his whole interest to D. 8. Based on the preceding facts:
a. D can participate in the management of the partnership b. D cannot inspect the books nor copy them for any information on the partnership affairs as a partner can. c. C has ceased to have the rights to use the partnership property d.C cannot take part in the control of the business anymore 9. Still based on the same facts: a. If A and B want to dissolve the partnership, C as a partner need not consent thereto because he had assigned his interest to D. b. D may himself ask the court for its dissolution being the assignee of C’s interest in the partnership c. A, B and D may dissolve the partnership even without the consent of D. d .A, B and C cannot dissolve the partnership without the consent of D. 10. Spouses A and B formed a limited partnership to engage in real estate business and A contributed P1M only Is the partnership between the spouses valid? a. the partnership is not valid because spouses cannot enter into a limited partnership b.the partnership is valid because spouses can enter into a partnership, limited or general, universal or particular c.the partnership is not valid because the spouses cannot enter into any kind of partnership for business except conjugal partnership d.the partnership is valid because spouses are prohibited to enter into a universal partnership only
11. A corporation cannot enter into a partnership contract with a natural person but with a juridical person it can. A general partner is always the capitalist in a limited partnership a. both statements are false c. both are true b. first is true, second is false d. first is false, second is true 12.W,X,Y and Z organized a general partnership with W and X as industrial partners and Y and Z as capitalist partners contributed P.5M and Z contributed P.2M to the common fund.By a unanimous vote of the partners , W and X were appointed managing partners , without specification of their duties and powers. A applied as secretary and B applied as accountant of the partnership. The hiring of A was decided upon by W and X but was opposed by Y and Z. Whose decision shall prevail? a. the decision of w and x shall prevail because the hiring is an act of management and as managers they can do so. b. that of x and y because in case of tie in the decision of managing partners, that of the controlling interest shall prevail. c.the decision of y and z because they have controlling interest d.the decision of w and x because it is an act of ownership 13. In the same problem as fore mentioned, suppose the hiring of B was decided upon by W and Z, but was opposed by X and Y, whose decision shall prevail? a. the decision of w and z because w is the managing partner and the hiring is an act of administration b. the decision of x and y because in the case of tie in the decision of managing partners, that of the controlling interest shall prevail c.that of w and z because z is also a capitalist partner d.none of the decision because of the statements of equal rights 14. If a partner is insolvent, the first in the order of preference is: a. partnership creditors b. partners contribution to the partnership c.separate creditors of the partner d.pro rata between the separate creditors and the partnership creditors 15. A, B and C are partners in a partnership. A and B contributed P10, 000.00 each while C contributed his service. After payment of the partnership liabilities to creditors, only 6,000.00 remain. In the absence of stipulation to the contrary the share of C shall be: a. equal to the share of a c. 2,000.00 b. equal to the share of b d. nothing 16. X,Y and Z are partners who contributed equally to the capital of the partnership. A owes the partnership P9, 000.00. Z collected from A 3,000.00 before X and Y could receive anything from A, who later became insolvent and therefore they could not collect their shares a. Partner z shall share the 3,000.00 with his co-partners x and y b. z cannot required to share what he already received from a
c. z and y should first exhaust all remedies to collect from a d. x and y can automatically deduct from capital contribution of z in the partnership their respective shares in the 3,000.00
17. A and B are partners in real estate business. The partnership owns a parcel of land which C desires to buy. C contracted A and informed him of his intention to but the said land. A did not tell B such intention of C. A bought B out of the partnership and afterwards sold the land to C at a profit a. the partnership was dissolved when a became the sole owner b.the sale is void because it was without the knowledge of b c. as is not liable to b for share of the profits d. as is liable to b for his share in the profits 18. A, B and C are partners in ABC Company. D represented himself as a partner in the partnership to E, who on the belief of such representation, extended credit of P50, 000.00 to the partnership. Assuming only B and C consented to such presentation, who shall be liable to E? a. all of alb, c and d are liable because of partnership liability for the credit extended to the partnership by e b. b, c and d are partners by estoppel and thus, are liable to e c. partners a, b and c are liable to e for the benefit extended to them d.only d who made the representation is liable to e 19. May contribute money, property or industry to a common fund: a. limited partner c. both limited and general partner b. general partner d. both limited and industrial partner 20. One of the following incidents is a cause for involuntary dissolution of the partnership: a. termination of the definite term of partnership b. insolvency of a partner c.express will of a partner in a partnership at will d.expulsion of a partner of a cause as stated in the articles of part 21.The following are disqualified to form a universal partnership except one: a. brother and sister b. husband and wife c. those guilty of adultery or concubinage d.those guilty of the same offense, if the partnership is entered into consideration of the same 22.A is the capitalist partner and B the industrial one. A engaged personally in the same kind of business as that of the partnership: a. if there are losses, the partnership will bear the losses b. if there are profits , they will be shares by a and the partnership c.if there are profits, shall be given them to the partnership
d.a may be excluded from the partnership with the liability for damages
b. both are true
d. first is true, second is
false 23.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 profits, b and the partnership shall share equally b. if there are losses, b and the partnership shall equally share c.b may be excluded from the partnership but without damages d.b may excluded from the partnership with damages 24.A and B are capitalist partner while C is industrial partner .Both A and B equally contributed P15,000.00 each to the capital. A contractual liability in favor of X was incurred in the amount of P40,000.00. After exhausting partnership assets there is a balance recoverable from a. a and b only b. a,b and c c.a,b, and c and c can get reimbursement from a and b d.a,b and c without reimbursement from a and b in c’s favor 25.In the aforementioned facts, suppose A,B and C agreed that one of them shall not be liable to the creditors, is the management valid? a.the stipulation that one of them shall not be liable to the creditors is voidable at the instances of the creditors b. it shall be void agreement even among the partners because is for common benefit and interest c.it shall be void insofar as the creditors are concerned d.it shall be voidable among the partners themselves 26. A, B and C are partners in a partnership engaged in retail with each contributing P20, 000.00 each. D is admitted as a new partner with an existing contribution of P80, 000.00. At the time of his admission the partnership has a pre-existing obligation to E in the amount of P80, 000.00: a. d is not liable to e for this obligation when was not yet a partner b. d is liable to e up to his assets which were not contributed c. d is liable up to his capital contribution d.d is liable up to his capital contribution in favor of creditors but with the right of reimbursement from a, b and c 27. The partners are liable to the third persons jointly or equally for torts or quasi delict committed by any partner in the conduct of the business or with authority of the partners. For contractual liability, their liability shall be solidary and all partners are liable a. both are false statements c. first is false, second is true
28. The partnership shall be bound in the contract entered into by the partner who has no authority provided the third person is in good faith although the act of the partner is not in usual way of business. The partners act although in not usual way of conducting the business shall bind the partnership provided he was authorized by his co-partners. a. both statements are true c. first is true, second is false b. both are false d. first is false, second is true 29. A and B are partners with A as the managing partner. C owes A P10, 000.00 and the partnership P30, 000.00 which are now both due. A issued a receipt for the payment of C in the amount of P10, 000.00 in his own name .The payment shall be applied to: a. This partnership credit totally b. the credit of a only since the receipt in his name c. the payment shall be applied equally to both credits d.the payment shall be applied proportionately to both credits 30. A, B and C are partners who contributed equally to the capital. D, without the knowledge of the death of C contracted with A who also was unaware of the death of C. The liability to D is P90, 000.00 and he can collect after exhausting partnership assets in the amount of P60, 000.00: a. P30, 000.00 from any one of A, B and C b. P15, 000.00 each from A and B c. P10, 000.00 from each of A and B and P100, 000.00 from C’s estate d.the partners are not liable beyond their capital contribution because the partnership was already dissolved at the time of liability 31. This is the order of priority in general partnership liabilities: a. outside creditors, creditor partner, partner’s capital , partner’s profit b. outside creditors, creditor partner, partner’s profit , partner’s capital c. creditor partner, outside creditor , partner’s profit , partner’s capital d. creditor partner, outside creditor, partner’s capital, partner’s profit 32. CP are capitalist partner while IP is industrial partner, who in addition to his services also contributed capital to the partnership. There is no agreement as to the profits and losses. The partnership realized profit in the amount of P21, 000.00. The share of IP as CP in the profits shall be: a. C and P will determine IP’s share in the profits b. IP’s share shall be P7, 000.00 c. Pro-rata to his contributed capital
d.Just and equitable under the circumstances 33. In the preceding number, suppose IP is only an industrial partner , shares in the profits shall be: a. just and equitable under the circumstances b. in proportion to the capital contribution of his co-partners c. equal to the least share in the profit of a capitalist partner d.the average share of all the capitalist partners 34. Suppose, instead of profits, the partnership suffered loss in the same amount of P21,000.00, the share of the capitalist partners in the loss shall be: (Same facts in NO. 32) a. in accordance to their profit sharing agreement b. in accordance with their loss sharing agreement c.in proportion to their capital contribution d. equally among them 35. With same facts as in No.32, as a industrial partner, the share of IP in the loss shall be: a. just and equitable under circumstances b. as agreed upon by the partners before the loss was realized c.none, he being an industrial partner d.in proportion to his capital contribution 36. After dissolution, the partners can still enter into new business transactions in the name of the dissolved partnership although not for the purpose of winding up partnership affairs. Insanity of either general or limited partner in a limited partnership shall dissolve the partnership a. both statements are false c. first is false, second is true b. both are true d.first is true, second is false 37. A and B orally entered into a partnership with each of them contributing P3,000.00 each and some personal properties in the amount of P1,000.00 each. The partnership contract is: a. unenforceable because the amount involved exceeds P500.00 b. void because it is not in public instrument c. valid d.void because it is not registered with the SEC 38. A partnership which must be in public instrument to be valid is: a. contribution immovable or real things therein regardless of the value thereof b. contribution is P3,000.00 or more personal property c. general partnership d.particular partnership 39. A universal partnership entered without designation is considered one of profits.
A limited partner’s surname cannot appear in the partnership name if it is also the surname of a general partner to prevent misrepresentation to third persons a. both statements are false c. both are true b. first is true, second is false d.first is false, second is true 40. Which of the following statements is not correct? a. a partnership contract is not conveyed by the statue of frauds b. a limited partner shall not be bound by the obligations of the partnership c. a limited partner who takes part in the control of the business shall be liable as a general partner d. a stipulation which excludes a partner from sharing in the profits or loss is void. 41. Which of the following is incorrect: a. an industrial partner who engages in business for himself may be excluded from the firm b. an industrial partner may not engage in business for himself unless there is a contrary stipulation. c. a capitalist partner may engage in the same of business as that of the partnership. d. an offending capitalist partner may not be excluded from the firm. 42. A partner’s interest in the partnership is not assignable unless the other partners consent. An act of strict dominion may be performed by a partner without the consent of his co-partners if it is advantageous to the partnership. a. both statements are false c. first is true, second is false b. both are true d. first is false, second is true 43. The death, insanity, retirement, insolvency or civil interdiction of a limited partner does not dissolve the partnership. not
In general partnership, the fact that the business can only be carried on at a loss does result the dissolution of the partnership. a. first statement is false, second is true c. both are true b. first is true, second is false d. both are false
44. A partnership contract begins form the moment of the execution of the contract unless it is otherwise stipulated. Even if a third person is in good faith, the partnership is not bound in contract entered by a partner after the dissolution of the partnership if the business of the partnership has become unlawful. a. first statement is false, second is true c. both are false into
b. first is true, second is false
d. both are true
45. A universal partnership of present property shall include the profits which the partners may acquire therewith such as properties to be acquired through legacy, donation or inheritance. After the 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 is true, second is false d. both are true 46. Three of the following are property rights of a partner. Which is not? a. right in specific partnership property b. right to participate in the management c. right to demand formal accounting of partnership affairs d.interest of the partner in the partnership 47. If a person receives a share in the profits of a business he is prima facie presumed to be a partner in the business. In partnership there is agency, co-ownership and co-possession of partnership property a. both statements are true c. first is false, second is true b. both are false d. first is true, second is false 48. If a person share in the gross returns by the use of a property he is deemed to be a partner If co-owners share in the profits derived from the use of the property owned in common, there is partnership. a. both are true c. first is true, second is false b. first is false, second is true d. both are false 49. A person represents himself as a partner when in fact he is not shall be liable as a partner by estoppel even if the third person has knowledge that he is not. A partnership is always created by agreement of the parties a. both are true c. first is true, second is false b. both are false d. first is false, second is true
c. his contribution is service d. he renounces his shares in the profits after knowledge of the error that he was made a general partner. 52. A partnership is dissolved, except: a. death of a partner b. insolvency of a partner or of the partnership c.partnership business can only be carried on at a loss d.partnership business has become unlawful 53. A, B and C as partners contributed the following: A – P6, 000.00; B – P4, 000.00 and Cservice. They agreed that the profits and losses shall be distirbuted as follows, to wit: A- 35%; B – 25% and C -40%. How shall the loss of P10, 000.00 be distributed? a. A – P6, 000.00; B – P4, 000.00; C- none b. A – P3, 333.33; B – P3, 333.33; C- P 3,333.33 c. A – P3, 500.00; B – P2,500.00; C- P 4,000.00 d. A – P5, 000.00; B – P5, 000.00; C- none 54. In the same facts in the preceding number, suppose it is a profit of P10, 000.00, how shall it be distirbuted? a. A – P5,000.00 ; B – P5,000.00 ; C- none b. A – P3,333.33 ; B – P3,333.33 ; C- P3,333.33 c. A – P6,000.00 ; B – P4,000.00; C- none d. A – P3,500.00 ; B – P2,500.00; C- P 4,000.00 55. Still with the same facts except that there is no agreement as to sharing of profits and losses, how shall the profit of P 10,000.00 be distributed? a. A – P3, 500.00; B – P2, 500.00; C- P4, 000.00 b. A – P6, 000.00 ; B – P4,000.00; C- just c. A – P5, 000.00; B – P5, 000.00; C- none d. A – P3, 333.33; B – P3, 333.33; C- P3, 333.33 56. With the same facts in the immediately preceding number, if it was a loss of P10, 000.00, how shall it be distributed? a. A – P3, 500.00; B – P2, 500.00; C- P4, 000.00 b. A – P6, 000.00; B – P4, 000.00; C- none c. A – P3, 333.33; B – P3, 333.33; C- P3, 333.33 d. A – P5, 000.00; B – P5, 000.00; C- none
50. A general partnership is dissolved by the insanity of a partner. A limited partnership is dissolved by the insanity of a limited partner. a. both statements are false c. first is false, second is true b. both are true d. first is true, second is false 51. A limited partner shall be liable as a general partner unless: a. he takes part in the control of business b. his surname appears in the partnership name.
57. A substituted limited partner becomes as such from the time the certificate of limited partnership is properly amended. Only those whose interests have not been assigned may dissolve the partnership. a. both statements are true c. first is true, second is false
b. both are false is true
d. first is false, second
58. A partnership acquires juridical personality separate and distinct from partners from the of its registration with the Securities and Exchange Commission.
that of the time
A contract of limited partnership must be in public instrument and registered with the SEC. a. both statements are true c. first is true, second is false b. both are false d. first is false, second is true 59. A, B, and C formed a partnership with the name ABC& Co. Partnership as a limited partnership in mind. It is therefore: a. limited partnership b. general partnership c.if registered with the SEC, it is a limited partnership d.partnership by estoppel 60. In the absence of stipulation , the share of the industrial partner in the profits shall be equal to the share of a capitalist partner with the smallest share. The industrial partner shall not share in the losses unless stipulated a. first statement is false, second is true b. first is true, second is false c. both are true d.both are false 61. A,B, and C were partners, the first being an industrial partner, In the first year of operation, the firm realized a profit of P300,000.00. In the second year, a loss of P150,000.00 was sustained. Thus, the net profit for the two years of operation was only P150,000.00. It was stipulated among the partners that A would get 1/3 of the profits but would not share in the losses. A is therefore entitled to: a. 1/3 of P300,000.00 b. 1/3 of P150,000.00 c. 1/3 of P150,000.00 if the other partners consented d. 1/3 of P300,000.00 with or without the partner’s consent 62. A, B and C were partners. While acting within the scope of his authority in the conduct of business , A committed a tort against X, a third person . Who shall be liable to what extent? a. all partners are liable jointly or pro rata after the partnership assets have been exhausted; b. all partners are liable solidarily after the partnership assets have been exhausted; c. all partners and the partnership are liable jointly;
d.all the partners and the partnership are liable solidarily 63. A limited partner shall not be bound by the obligations of the partnership. A general partner shall be bound by the obligations of the partnership. a. both statements are true. b. both are false c. first is false, second is true d.first is true, second is false 64. A sub-partner or an associate partner is a mere assignee of a partner’s interest and shall become a partner only with the consent of all the managing partners. A substituted limited partner is a partner when the certificate of a limited partnership is properly amended. a. first statement is false, while the second is true b. first is true, second is false c.both statements are false d.both are true. 65. A and B are partners in buying and selling cars. A, by the partner’s agreement, was authorized to buy 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 purchase was made in the name of partnership. Is the partnership bound in the sale? a. the partnership is not bound because 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 bound because X was good 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. 66. A and B entered into a universal partnership of profits. Subsequently A become a professor in a university. Will A’s salary belong to the partnership? a. yes, because the salary was acquired through A’s industry or work b. no, unless it is stipulated that his salary shall be deemed contributed c. no, because it is not considered a profit acquired from a property d.yes, if stipulated by the partners 67. 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. no, because the fruits of property shall refer only to property possessed by the partners at the time of celebration of the contract. b. yes, because the fruits are from the property of A c. yes, because the fruits under the law shall cover after –acquired property also. d.no, because partnership of profits refer only to present fruits.
68. A and B entered into a universal partnership of all present property. Subsequently, A inherited a parcel of land from his father. Will the land and its fruits belong to the partnership? a. yes, because the universal partnership means the contribution of all properties, present and future. b. no, because the land and the fruits are future properties, not existing at the time of the celebration of the contract. c.no, even if so stipulated, both as to the fruits and the land. d.yes, if there was stipulation that the land to be inherited shall be considered contributed. 69. A and B entered into a universal partnership without specification whether it is of profits or of all present property. It shall be: a. universal partnership of all present property b. universal partnership of present profits c. universal partnership of property and profits. d. universal partnership of profits. 70. A and B agreed on a profit sharing ratio in their partnership. A, being the industrial partner and B as capitalist partner. It was also stipulated that A shall also in the same ratio as to the losses. Is A liable for losses? a. no, because the law exempts the industrial partner losses. b. no, because the partners cannot stipulate that the industrial partner shall be liable for losses. c. yes, even in the absence of stipulation d.yes, because it was stipulated QUIZ ON PARTNERSHIP –PART II 1. Partnership Assets and Liabilities are as follows December 31, 2006 December 31, 2007 Assets P 200,000 P 50,000 Liabilities 100,000 200,000 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 creditors 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 Which 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 correct 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 credit. 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 partnership 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, 000 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 its 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, 000 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? 1st answer – Yes the partnership is dissolved by the marriage because there is a change in equity and status among the partners. 2nd 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, 2nd answer is correct d. 1 st answer is correct, 2nd 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 creditors 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 engaged 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. 1st 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. nd 2 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, 2nd conclusion is wrong b. both conclusion are wrong d. 1st conclusion wrong, 2nd 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 contractual 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 profits which they may acquire.
of the
c. all the properties which belong to which to each of the partners at the time of the constitution the partnership. d. all the properties which belong to each to each of the partners at the time of the constitution of 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 exhausted 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. After D exhausted the net assets 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 partners 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
25. A partnership which comprises 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. Howmuch will be the share of X? a. equal to share of z c. equal to the share b. P6,000 d. zero
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
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 partnership shall not be liable for the obligations of the partnership
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-P 4,500; G P 4,500 ; H –P 4,500; I- P 4,500
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 profits 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 shall be P7,000 d. just and equitable under the circumstances
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
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)
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 admitted 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
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 industrial 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 the 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 partnership 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 business 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 partnership 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 36. 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 property 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 is 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 are 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 result 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 share 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. both 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 because 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 present 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 his 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 considered 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 partnership of profits property
d. universal partnership of profits and
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 exempted 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, committed 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 jointly 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 with 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 statements 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 contributed 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. the 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 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 statement 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 contributed 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 false, 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 business 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 partners, 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 following 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. he 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. first 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 following 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 property.
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. yes, 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 preferred 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 involves 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 property 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 exercise 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 donation 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 statements 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, there 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 partnership 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, because 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 is 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 the 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 partners 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 information 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 partner 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 accountant 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. The 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 appear 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 Industry 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 existence of the partnership. a. a universal partnership of profits b general partnership c. d. limited partnership
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 business in which the partnership is engaged. a. industrial b. capitalist
account in any operation which is of the kind of c. general d. limited
35. A partnership that has for its object determinate things, their use or fruits, or specific undertaking, or the exercise of a profession or vocation a. particular b. general c. limited d. universal
44. These partners shall be liable pro rata with all their property and after all the partnership assets have been exhausted. a. only capitalist partner’s b. only general partners c. all partners, including industrial ones d. only limited partners
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 partnership c. title must be transferred to the partners d. delivery otherwise there is no partnership
45. The nature of the partner’s liability with the partnership for everything chargeable to the partnership due to quasi-delict or delict.
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 profits 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
a. joint b. indivisible
c. jointly and severally 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 b. property
c. services 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
