Partnership Law - Multiple Choice

A person who takes place of a limited partner who has died is called: A. Heir B. Successor in interest C. Assignor D. substituted Limited Partner

D. substituted Limited Partner

Coverage of Statute of Frauds in partnership contract, which is the exemption? a. Promise to answer for the debt, default or miscarriage of another by a partnership must be in writing. b. If the agreement to form a partnership shall be performed within a year the same must be in writing. c. Contracts for the sale of real property or any interest therein or leasing of partnership immovable property for more than one year must be in writing. d. Sale of partnership personal property at a price not less than P500 must be in writing, unless there is delivery or payment.

b. If the agreement to form a partnership shall be performed within a year the same must be in writing.

A substituted limited partner is: a. a person admitted as a partner by the other partners. b. a buyer of right of the deceased. c. An assignee admitted to all the rights of a limited partner. d. All of the above.

c. An assignee admitted to all the rights of a limited partner.

When the manner of management has not been agreed upon, who shall manage the affairs of the partnership? a. Capitalist partners b. Industrial partners c. Capitalist-industrialist partners d. All of the partners e. None of the above

d. All of the partners

Sometimes termed dormant partner: a. Limited partner b. Capitalist partner c. Secret partner d. Both Silent & Secret

d. Both Silent & Secret

Which of the following is considered prima facie evidence of the existence of a partnership? A. Where payment of interest on a loan varies with the profits of the business B. The receipts by a person of a share of the profits C. The sharing of gross returns of a business. D. Where the parties are established as co-owners of a property.

B. The receipts by a person of a share of the profits

Supposing A and B acceded to the wish of C, that his liability is only to the extent of his contribution but his name was included in the firm name and after several transaction the partnership incurred a labiality to X in the amount of P210,000. Which of the following statement is true? A. C is not liable to X B. X to get the P150,000, the balance of P60,000 to be divided equally between A and B C. Since C is only limited partner by agreement, A and B should pay X but they can risk reimbursement from him (C), X cannot compel to pay his share D. After C paid his share if any, his right is to ask reimbursement from A and B

D. After C paid his share if any, his right is to ask reimbursement from A and B

A and B were partners. A being the managing partner, invited C to associate with him in his a share in the partnership. What are the right of the partners? a. A may have C an associate in his share even without B's consent. b. A may not have C as an associate because he is already B's partner. c. C may become a partner upon invitation of A, the managing partner. d. B may refuse to accept C as A's associate due to conflict of interest.

a. A may have C an associate in his share even without B's consent.

Which of the following statements is correct regarding the division of profits in a general partnerships when the written partnership agreement only provides that losses be divided equally among the partners? Profits are to be divided: a. Based on the partners ratio of contribution to the partnership b. Based on the partners participation in day to day management c. Equally among the partners d. Profits will be divided according to the managing partner

a. Based on the partners ratio of contribution to the partnership

Management of a partnership is usually conferred upon the: a. Manager b. President c. Partners d. None of the above

a. Manager

Three of the following are the effects if immovable property is contributed in a partnership but the contract did not appear in a public instrument. Which is the exception? a. A partnership has no judicial personality. b. The parties may compel each other to observe the required form. c. The parties may request the return of their capital contribution. d. The contract of partnership is void.

b. The parties may compel each other to observe the required form.

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: a. Universal partnership of all present property b. Universal partnership of profits c. Particular partnership d. Partnership at will e. None of the above

b. Universal partnership of profits

A partner who has all the rights, power, and subject to all restrictions of the general partner but whose liability is, among themselves, limited to his capital contribution is called: a. General partner b. Limited partner c. General-Limited partner d. Dormant partner e. None of the above

c. General-Limited partner

65. A partnership is dissolved on the death of a:____, except a. General partner b. Industrial partner c. Limited partner d. General-Limited partner

c. Limited partner

Which of the following statements is correct concerning liability when a partner in a general partnership commits a tort while engaged in partnership business? a. The partner committing the tort is the only party liable b. The partnership is the only party liable c. The partners are jointly and severally liable d. The partnership and the partners are liable

d. The partnership and the partners are liable

A limited partner shall not become liable as a general partner unless: a. He takes part in the control of the business b. He contributes his services to the capital of the firm c. His surname appears in the partnership name d. The word "limited" is not added to the name of the partnership e. All of the above

e. All of the above

Except when authorized by the other partners, one or more but less than all the partners have no authority to: a. Assign the partnership property in trust for creditors b. Dispose of the goodwill of the business c. Confess a judgment d. Compromise a partnership claim or liability e. All of the above

e. All of the above

A partner shall have the right: a. to ask that the books of the partnership be kept at the principal place of business of the firm, and at any reasonable hour have access to and inspect and copy any of them. b. to demand true and full information of all things affecting the partnership c. to share in the profits and surplus assets of the firm. d. to ask for judicial dissolution. e. All of the above.

e. All of the above.

X, Y and Z are equal partners XYZ Partnership. A owes XYZ Partnership for P9 M. Z a partner, collected from A, P3M before X and Y received anything. Z issued a receipt on the P3M as his share of what A owes. When X and Y collected from A, A was insolvent. A. Partner Z shall share partners X and Y with the P3M B. Z cannot be required to share X and Y with the P3M C. X and Y should first exhaust all remedies to collect from A d. X and Y can automatically deduct from the capital contribution of Z in the partnership their respective shares in the P3M

A. Partner Z shall share partners X and Y with the P3M **Full accounting obligation for each partner.

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

C. B and C are liable to A for his share on the profits in the sale

Which of the following is not a common fund of a Universal Partnership of All Property? A. All the present property of each partner contributed B. All of the profits that may be derived from such properties. C. If stipulated, the properties acquired by a partner by inheritance, legacy or donation D. All of the above.

C. If stipulated, the properties acquired by a partner by inheritance, legacy or donation

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

C. Separate Creditor of the partner

A partnership automatically dissolved, except: A. By death of any partner B. By the insolvency of any partner or of the partnership C. By civil interdiction of any partner D. By the insanity of any partner E. All of the above

D. By the insanity of any partner Requires a court decree

On application by or for partner the court shall decree a dissolution, except: A. A partner becomes in any other way incapable of performing his part of the partnership contract. B. A partner has been guilty of conduct prejudicial to the company. C. A partner wilfully or persistently commits a breach of the partnership agreement. D. There is an imminent loss in their business.

D. There is an imminent loss in their business.

A and B are partners engaged in the real estate business. A learned that C was interested in buying a certain parcel of land owned by the partnership, even for a higher price . Without informing B, A was able to make B sell to him (A0 his (B's) share in the partnership. Then A sold the land at a big profit. a. A is liable to B for the latter's share in the profit. b. C is liable to B for the latter's share in the profit. c. The partnership is dissolved when A became the sole owner. d. The sale of the land to C is void since it was without the knowledge of B.

a. A is liable to B for the latter's share in the profit.

A, B and C are partners. Their contributions are as follows: A, P60,000; B, P40,000; C, services. The partners did not agree on how to divide profits and losses. If there is a loss of P10,000, how should the said loss of P10,000 be shared by the partners? a. A, P6,000; B, P4,000; C, 0 b. A, P3,000; B, P2,000; C, P3,500 c. A, P3,500; B, P3,500; C, P3,500 d. A, P3,500; B, P2,500; C, P4,000

a. A, P6,000; B, P4,000; C, 0

Statement No. 1: The general partners may continue the business of the limited partnership with partnership property on the death, retirement, civil interdiction or insolvency of another general partner Statement No. 2: Any stipulation exempting a general partner, whether capitalist or industrial, form his pro rate obligation to third persons shall be void, except as among the partners. a. Both are true b. both are false c. No.1 is true; No.2 is false d. No.1 is false;No.2 is true

a. Both are true

Without the written consent or ratification of the specific act by all the limited partners, a general partner or all of the general partners have no authority to: a. Do any act in contravention of the certificate. b. Do any act which would make it impossible to carry on the ordinary business of the partnership. c. Confess a judgement against the partnership. d. Possess partnership property, or assign their rights in specific partnership property, for other than a partnership purposes. e. All of the above.

a. Do any act in contravention of the certificate.

Which of the following provision in Partnership Law is/are considered directory and not mandatory. a. If the capital is P3,000 or more it must appear in a public instrument. b. The partnership contract must be recorded with the SEC if limited partnership c. If immovable properties is contributed it must appear in a public instrument. d. B and C. e. A and B

a. If the capital is P3,000 or more it must appear in a public instrument.

B-1, B-2 and B-3 are equal partners in 3-Brothers Partnership. The partnership is indebted to PC for P150,000. Partner B-1 is indebted to SC for P20,000. Pc attached and took all the assets of the Partnership 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. a. SC has priority to the land of B-1 as a separate creditor. b. PC has priority to the land of B-1 to cover B-1's share of the P60,000 remaining liability of the partnership. c. B-2 and B-3 have priority to the land of B-1 if they paid PC the P60,000 remaining liability of the partnership d. 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.

a. SC has priority to the land of B-1 as a separate creditor.

A, B and C are partners in X and Company. D represent himself as a partner in X and Company to E, who on the faith of such representation, extended P10,000 credit to X and Company, Assuming only A and B consented to such representation, who shall be held liable to E? a. Since E extended the P10,000 credit to X and Company, a partnership liability exists, thus, all the partners and D are liable. b. Only A, B and D are partners by estoppel and, thus, are liable pro-rata to E. c. Only D, who made the representation shall be liable to E. d. Only partners, A, B and C who benefited from the credit extended by E shall be liable to E.

a. Since E extended the P10,000 credit to X and Company, a partnership liability exists, thus, all the partners and D are liable.

A partnership whereby the partners contribute to a common fund all the property actually belonging to them at the time of the constitution of the partnership, with the intention of dividing the same among themselves, as well as the profits which they may acquire therewith is called: a. Universal partnership of all present property b. Universal partnership of profits c. Particular partnership d. Partnership at will e. None of the above

a. Universal partnership of all present property

Every contract of partnership having a capital P3,000 or more in money or property shall appear in a public instrument which must be recorded in the Securities and Exchange Commission. Failure to comply with said requirements. a. Will not affect the liability of a partnership and the members thereof to third persons. b. Will render the partnership void. c. Will not give the partnership a legal personality. d. Will give the partnership a de facto existence.

a. Will not affect the liability of a partnership and the members thereof to third persons.

A, B and C, capitalist partners, each contributed P30,000, P20,000 and P10,0000 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. a. X must sue the firm and get P60,000 from all the partners including D, the industrial partner. X can still recover the balance of P120,000 from the four partners jointly. b. X can recover from the firm P60,000. X can still recover the balance of P120,000 from the capitalist partners only. c. X can recover from the firm P60,000. X can still recover the balance of P120,000 from any of the partners solidary. d. X can recover from the firm P60,000 and consider the balance of P120,000 as a loss.

a. X must sue the firm and get P60,000 from all the partners including D, the industrial partner. X can still recover the balance of P120,000 from the four partners jointly.

A, B and C, capitalist partners, each contributed P30,000, P20,000 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. a. X must sue the firm and get P60,000 from all the partners including D, the industrial partner. X can still recover the balance of P120,000 from the four partners jointly. b. X can recover from the firm P60,000. X can still recover the balance of the P120,000 from the capitalist partners only. c. X can recover from the firm P60,000. X can still recover the balance of P120,000 from any of the partners solidary. d. X can recover from the firm P60,000 and consider the balance of P120,000 as a loss.

a. X must sue the firm and get P60,000 from all the partners including D, the industrial partner. X can still recover the balance of P120,000 from the four partners jointly.

A, B, C and D are partners. Their contributions are as follows: A, P50,000; B, P30,000; C, P20,000; D, services. The partnership incurred obligations to third persons which the firm was unable to pay. After exhausting the assets of the partnership, there still unpaid balance of P10,000. Who are liable for the payment of the unpaid balance of P10,000? How much each? a. A, P5,000; B, P3,000; C, P2,000; D, nothing b. A, P2,500; B, P2,500; C, P2,500; D, P2,500 c. A, P4,000; B, P3,000; C, P2,000; D, P1,000 d. A, P4,000; B, P4,000; C, P2,000; D, nothing

b. A, P2,500; B, P2,500; C, P2,500; D, P2,500

1st Statement: The arrival of the term of partnership with a fixed term or period shall not dissolve the partnership if the partners continue with the business of the partnership but such partnership may be terminated anytime dependent on the will of the continuing partners. 2nd Statement: The general rule is that the loss of the specific thing contributed to the partnership dissolves the partnership when only the use of the thing is the contribution. Which is correct? a. Both statements are false b. Both statements are true c. 1st statement is true but 2nd statement is false d. 1st statement is false but 2nd statement is true

b. Both statements are true

In the preceding question, if the partnership is solvent and three was a profit P30,000, no stipulation as to the profit sharing, the participation of the partner on the profit will be a. Equally, P10,000 each. b. Equally, between X and Y only c. Just and equitable distribution d. The court will intervene.

b. Equally, between X and Y only

Coverage of Statute of Frauds in partnership contract, which is the exception? a. Promise to answer for the debt, default of miscarriage of another by a partnership must be in writing. b. If the agreement to form a partnership shall be performed within a year the same must be in writing c. Contracts for the sale of real property or any interest therein or leasing of partnership immovable property for more than one year must be in writing. d. Sale of partnership personal property at a price not less than P500 must be in writing, unless there is delivery or payment.

b. If the agreement to form a partnership shall be performed within a year the same must be in writing

Which of the following may be a cause for involuntary dissolution? a. Express will of any partner. b. Insolvency of any partner. c. Termination of the term d. Expulsion of any partner

b. Insolvency of any partner.

A partner whose liability for partnership debts is limited to his capital contribution is called: a. General partner b. Limited partner c. General-limited partner d. Secret partner e. None of the above

b. Limited partner

A person who, although not actually a partner, is made liable for the debts of the partnership to third person by reason of his acts or omissions is called: a. Ostensible partner b. Nominal partner c. Silent partner d. Dormant partner e. None of the above

b. Nominal partner

Which of the following is valid? a. Oral contract of partnership where a partner contributes real property with a value less than P3,000. b. Oral contract of partnership where the capital is P3,000 or more c. Written contract of universal partnership of present properties between husband and wife. d. None of them.

b. Oral contract of partnership where the capital is P3,000 or more

A partner whose connection with the partnership is open and public, such as by including his name in the firm name of the partnership is called: a. Nominal partner b. Ostensible partner c. Secret partner d. Dormant partner e. None of the above

b. Ostensible partner

A partnership having for its object determinate things, their use of fruits, or a specific undertaking, or the exercise of a profession or vocation is called: a. Partnership by estoppel b. Particular partnership c. Universal partnership of all present property d. Universal partnership of profits. e. None of the above.

b. Particular partnership

Three (3) of the following are rights of a partner. Which one(1) is not? a. Right to associate another person to his share. b. Right to admit another partner c. Right to inspect and copy partnership books d. Right to ask dissolution of the firm at the proper time.

b. Right to admit another partner

Three of the following do not prove the existence of a valid partnership. Which is the exception? a. The sharing of gross receipts b. There is the intention of dividing the profits among themselves. c. Receipts by a person of the share of the profits for payment of a partnership debt by instalments. d. When two or more persons are co-owners and they share correspondingly in the profits made from the sale or use of their property.

b. There is the intention of dividing the profits among themselves.

X, Y and Z are partners, with X contributing P60,000; Y P40,000; and Z service. They agreed to divide the profits and losses in the following proportions: X, 35%; Y,25%; Z, 40%. If the partnership incurred a loss of P10,000, how should that loss be shared by the partners? a. X P6,000; Y P4,000; Nothing b. X P3,500; Y P2,500; Z P4,000 c. X P5,000; Y P3,500; Z P2,000 d. X P4,500; Y P3,000; Z P2,500

b. X P3,500; Y P2,500; Z P4,000

X and Y established a partnership by contributing P100,000 each. Z, a third party allowed his name to be included in the firm name of the partnership. The partnership was insolvent and after exhausting all the remaining assets, there was left a liability to third persons the amount of P30,000. The creditors can compel. a. Z to pay the P30,000 remaining liability b. X, Y and Z to pay P10,000 each c. X or Y to pay the P30,000 remaining liability d. X and Y to pay P15,000 each.

b. X, Y and Z to pay P10,000 each

Which of the following statements is incorrect? a. An industrial partner who engaged in business for himself may be excluded from the partnership plus damages b. An industrial partner may not engage in business for himself without the consent of his co-partner c. A capitalist partner may engage in the same line of business in which the partnership is engaged d. An offending capitalist partner may not be excluded from the partnership.

c. A capitalist partner may engage in the same line of business in which the partnership is engaged

A, B and C are partners. Their contributions are as follows: A, P60,000; B P40,000, and C, services. The partners agreed to divide the profits and losses in the following proportions: A, 35% B, 25% and C, 40%. IF there is a profit of P10,000, how should the said profit of P10,000 be distributed among the partners? a. A, P6,000; BP4,000; C, nothing b. A, P3,000; B P2,000; C, P5,000 c. A, P3,500; B P2,500; C, P4,000 d. A, P3,500; B P3,500; C, P3,000 e. None of the above.

c. A, P3,500; B P2,500; C, P4,000

A and B entered into contract of partnership for the purpose of buying and selling generators, with A as capitalist partner and the latter as industrial partner. It was agreed that A shall contribute P20,000 to the common fund on September 28, 1997. Upon arrival of the designated date, A failed to deliver the contribution he promised. a. B must demand from A the delivery of his contributions to render A in default b. The contract of partnership becomes void because A failed to give his contribution to the common fund. c. B can compel A to deliver his contribution with interest and/or damages without the necessity of demand. d. The contract of partnership was never perfected because there was no delivery of contributions by the partners.

c. B can compel A to deliver his contribution with interest and/or damages without the necessity of demand.

A, B and C formed a general partnership, each to contribute P100,000. The partnership began its operation but C's contribution is not yet fully paid leaving a balance of P30,000. The partners agreed that C exempted from losses. Upon dissolution there was an outstanding obligation to X in the amount of P360,000. X therefore, exhausted the capital of P270,000 leaving a balance of P90,000. Under this premise, which of the following statement is TRUE. a. C's share in the balance of P90,000 is nothing because this was stipulated b. C's share in the balance of P90,000 is P60,000 that is, his share in the contribution and his share in the loss. c. C's obligation to X and the partnership is P50,000. d. Each partner share in the balance

c. C's obligation to X and the partnership is P50,000.

In the preceding question, if c is a limited partner and there is no stipulation that C exempted from losses, which of the following statement is correct? a. C's share in the balance of P90,000 is nothing because he is only a limited partner. b. C's share in the balance of P90,000 is P60,000, that is his share in the loss and his unpaid contribution. c. C's share in the balance of P90,000 is only P30,000. d. Each partner share in the balance of P90,000 is P30,000.

c. C's share in the balance of P90,000 is only P30,000.

A, B and C formed a general partnership. A and B as general partners contributing P60,000 and P40,000 respectively while C is an industrial partner. The partners agreed that C, the industrial partner is exempted from liability to third person. Upon dissolution, the partnership suffered a loss consisting of a liability of X in the amount ofP30,000. As stated, which of the following statements is true, a. C is not liable because it was agreed that the industrial partner is exempted from liability to third person. b. The P30,000 is considered a loss of the partnership, and C as an industrial partner is exempted up to P10,000 only. c. Each partner is liable P10,000 only. d. A and B are liable for P15,000 each.

c. Each partner is liable P10,000 only.

A partner who is liable for the payment of partnership debts to the extent of his separate property after the partnership assets are exhausted is called: a. Managing partner b. Limited partner c. General partner d. Silent partner

c. General partner

The following are causes of dissolution of a limited partnership, EXCEPT: a. Death of general partner b. Retirement of general partner c. Insanity of a limited partner d. None of the above

c. Insanity of a limited partner

Statement No.1: The risk of specific and determinate things not fungible, contributed to the partnership, so that only their use and fruits may be for the common benefit, shall be borne by the partner who owns them. Statement No. 2: A joint account is a sort of informal partnership, with no firm name but with legal personality. a. Both are true b. Both are false c. No.1 is true; No.2 is false d. No.1 is false; No.2 is true

c. No.1 is true; No.2 is false

A, B, C and D are partners. Per written agreement A and B are general partners while C and D are limited partners. In their written contract, it appears that the name of the partnership is A and Company partnership. Upon the death of B, the partnership is dissolved. After exhausting the assets, A and Company still owes T, P12,000. T can collect a. P12,000 from A b. P6,000 from B c. P3,000 from C d. Nothing from D

c. P3,000 from C

D, newly admitted partner of ABC Co., with capital contribution of P200,000 each, invested P400,000 for equal share in the Profit and Losses. It turned out ABC Co. has outstanding obligation of P2M. Assuming there are no other assets except the capital contributions, the share of D in the P2M is: a. P1M divided by 4 or P500,000 each after exhausting their capital contribution. b. P400,000 unless stipulated that he will not share in the old obligation. c. P400,000 unless stipulated that he will share more beyond his capital contribution. d. None, because it is an old obligation.

c. P400,000 unless stipulated that he will share more beyond his capital contribution.

Bears the risk of things contributed to the partnership: a. Contributing partner b. Limited partner c. Partner contributing usufructuary rights d. All of the above

c. Partner contributing usufructuary rights

Which of the following contracts of partnership will not affect its validity even if not in a public instrument? a. Limited partnership b. Partnership where immovable are contributed c. Partnership having a capital of P3,000.00 or more d. None of the above e. All of the above

c. Partnership having a capital of P3,000.00 or more

A, B and C capitalist partners, contributed P10,000 each and D, the industrial partner contributed his services. Suppose X, is the creditor of the firm to the amount of P90,000, after getting the P30,000 assets of the partnership a. X can recover P20,000 each from A, B and C only b. X can recover P60,000 from either A, B or C c. X can recover P15,000 each from A, B, C and D d. X can recover P15,000 each from A, B and C but D is exempt because he is an industrial.

c. X can recover P15,000 each from A, B, C and D

A capitalist partner 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 a. compelled to sell his interest in the partnership to the other capitalist partners. b. compelled to dissolve or discontinue the operation of his business. c. compelled to bring to the common funds of the partnership any profits accruing to him from his transactions. d. Denied his share in the profits of the partnership.

c. compelled to bring to the common funds of the partnership any profits accruing to him from his transactions.

Refers to a partnership whereby the persons who represents themselves, or consent to another or others to represent them to anyone that they are partners: a. General partnership b. Limited partnership c. partnership by estoppel d. None of the above

c. partnership by estoppel

Which of the following statement is false? a. An industrial partner cannot, without the consent of all the other partners, engage in a business similar to the business of the partnership. b. As to liability to third persons, an industrial partners is considered as a general partner. c. An agreement among partners that the managing partner shall determine the share of all partners in the profit is void. d. All partners including industrial ones can be compelled to give additional contribution if the purpose is to save the business from certain loss.

d. All partners including industrial ones can be compelled to give additional contribution if the purpose is to save the business from certain loss.

A partner who does not participate in the management of the affairs of the partnership and whose connection with it is not made known to the public is called: a. Ostensible partner b. Secret partner c. Silent partner d. Dormant partner e. None of the above

d. Dormant partner

A partner whose connection is concealed and has no voice nor say in the management of the affair of the partnership is called: a. Nominal partner b. Secret partner c. Silent partner d. Dormant partner e. None of the above

d. Dormant partner

In case of an imminent loss of the business of the partnership, the following partners are required to give additional contribution, except: a. Capitalist partner b. General partner c. Capitalist-industrial partner d. Industrial partner e. None of the above.

d. Industrial partner

A partnership suffered losses in the first year of its operation. X, a capitalist partner, cannot contribute an additional share to the capital because of insolvency. Can X be obliged to sell his interest to the other partners on the ground of such refusal? a. Yes, X's refusal to contribute his additional share reflects his lack of interest in the continuance of the partnership. b. NO, because there is actually no imminent loss of the business. c. Yes, provided that X is paid the value of his interest. d. No, because his refusal is justifiable.

d. No, because his refusal is justifiable.

Which of the following is not an element of a partnership? a. There must be a valid contract. b. There must be a mutual contribution of money, property or industry to a common fund. c. There must be an intent to engage in lawful business, trade or profession. d. None of the above.

d. None of the above.

A, B and C are partners of A Co. by contributing P10,000; P20,000 and services, respectively to the capital. After 5 years, the assets of the partnership is only P9,000. The share of C in the remaining asset is: a. Equal to the share of A b. Equal to the share of B c. P9,000 d. Nothing

d. Nothing

A partnership without a definite period of existence and which can be dissolved at any time by any of the partners is called: a. Universal partnership of all present property b. Universal partnership of profits c. Particular partnership d. Partnership at will e. None of the above

d. Partnership at will

Which of the following is not a property right of a partner? a. His rights in specific partnerships property. b. His interest in the partnership c. His right to participate in the management d. To demand true and full information of all things affecting the partnership

d. To demand true and full information of all things affecting the partnership

The remedy of capitalist partners against an industrial partner who engaged in a business for himself without the expressed permission from the partnership is: a. To compel the industrial partner to sell his interest to the said capitalist partners. b. To exclude him from sharing in the profits of the partnership. c. To remove him as manager if he is appointed as manager of a partnership. d. To expel him from the partnership and claim for damages.

d. To expel him from the partnership and claim for damages.

Three of the following enumerations are rights of a general partner in a limited partnership, which are also enjoyed by a limited partner? Which is the exception? a. To have the books of the partnership kept at the principal place of business of the partnership, and at a reasonable hour to inspect and copy of them; b. To have on demand true and full information of all things affecting the partnership and a formal account of partnership affairs whenever circumstances render it just and reasonable; c. To have dissolution and winding up by decree of court; d. To have all rights and be subject to all the restrictions and liabilities of a partner in a partnership without limited partners. e. None of the above.

d. To have all rights and be subject to all the restrictions and liabilities of a partner in a partnership without limited partners.

General partners shall have no right to perform the following act without the written consent or ratification by all the limited partners, except: a. Admit a person as a general partner. b. Admit a person as a limited partner, unless the right to do so is given in the certificate. c. Continue the business with partnership property on the death, retirement, so is given in the certificate. d. To have the partnership books kept at the principal place of business of the partnership, and at a reasonable hour to inspect and copy any of them. e. None of the above.

d. To have the partnership books kept at the principal place of business of the partnership, and at a reasonable hour to inspect and copy any of them

As a general rule, a partner cannot ask for a formal accounting of the affairs of the partnership during the existence and before it is dissolved, except: a. When he is wrongfully excluded from the partnership business b. When the right exists under the terms of any agreement c. As provided by Article 1807 d. Whenever other circumstances render it just and reasonable e. All of the above

e. All of the above

The receipt by a person of a share of the profits of a business is a prima facie evidence that he is a partner in the business, except where such profits were received in payment: a. As a debt by instalments b. As a wages of an employee or rent to a landlord c. As an annuity to a widow or representative of a decrease partner d. As interest on a loan e. All of the above

e. All of the above DWAIC RULE

A partnership a. is created by agreements of the partners. b. has a juridical personality separate and distinct from that of each of the partners c. may be constituted in any form, except where immovable property or real rights are contributed thereto, in which case a public instrument shall be necessary d. is dissolved by the death of a partner. e. All of the above.

e. All of the above.

A partnership is dissolved: a. In contravention of the partnership agreement by the express will of any partner at any time. b. By any event which makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in the partnership. c. When a specific thing which a partner had promised to contribute to the partnership perishes before its delivery to the partnership. d. By the loss of the thing, whether before or after its delivery to the partnership, when the partner who contributed it having reserved the ownership thereof, has only transferred the use or enjoyment of the same. e. All of the above.

e. All of the above.

An Industrial Partner who engages in a separate business without the consent of the other partners: a. May be expelled from the Partnership plus damages b. May be liable as a debtor c. May be required to give to the Partnership whatever profits or benefits he may have derived from his separate business plus damages. d. Both A and C e. Either A or C

e. Either A or C