Introduction to Partnership
Partnership: By mere agreement or partners Corporation: Created by operation of law
Differentiate Partnership and Corporation AS TO CREATION
PARTNERSHIP: Commences from the execution of the articles of partnership. CORPORATION: From the issuance of certificate of incorporation by the SEC
Differentiate Partnership and Corporation AS TO JURIDICAL PERSONALITY
Partnership: Two or more persons Corporation: Five (5) to Fifteen(15)
Differentiate Partnership and Corporation AS TO NUMBER
Partnership: Has no right of succession Corporation: There is a right of succession. Corporation has the capacity to continue existing.
Differentiate Partnership and Corporation AS TO SUCCESSION
1. Capitalist partner 2. Industrial partner 3. Capitalist Industrial Partner
Enumerate: Classification of Partners as to Contribution
1. General Partner 2. Limited partner. 3. General-Limited partner
Enumerate: Classification of Partners as to Liability
1. A commercial partnership 2. A professional partnership
Enumerate: Kinds of Partnership according to the Activities or Purpose
1. A de jure partnership 2. A de facto partnership
Enumerate: Kinds of Partnership according to the Legality of Existence
1. general partnership 2. limited partnership
Enumerate: Kinds of Partnership according to the Liabilities of the Partners
1. Orally agreed upon 2. Written in a public or private instrument
Enumerate: Kinds of Partnership according to the Manner of Creation
1. There must be a valid contract, 2. There must be a mutual contribution of money property or industry to a common fund 3. It must have a lawful object or purpose 4. It must be established for the common benefit or interest of the partners.
Enumerate: What are the essential requisites of Partnership
True
True or False: Mutual agency means that each partner has the right to bind the partnership to contracts.
True
True or False: A de jure partnership is one that has complied with all the legal requirements for its establishment.
True
True or False: A dormant partner is one who does not take active part in the partnership business and is known as a partner.
False
True or False: A dormant partner is one who does not take an active part in the partnership business though may be known as a partner.
True
True or False: A partner by estoppel is one who is actually not a partner but who represents himself as one.
False
True or False: A partner usually retains title to assets contributed to a partnership, so that certain assets may be identified as belonging to a given partner.
True
True or False: A partnership has a limited life because any change in the relationship of the partners dissolves the partnership.
True
True or False: A partnership involves mutual agency, unlimited liability for general partners, and limited life.
True
True or False: A partnership with a capital of P3,000 or more is valid even if it is unregistered with the Securities and Exchange Commission
True
True or False: A partnership with a capital of less than P3,000 is void if it is unregistered with the Securities and Exchange Commission.
False
True or False: A proprietorship has a limited life whereas a partnership may have an unlimited life.
False
True or False: A secret partner is one who does not take an active part in the partnership business and is not known as a partner.
False
True or False: A silent partner takes an active part in the business of the partnership and is not known by outsiders to be a partner.
False
True or False: All partnerships are subject to tax at the rate of 30% of taxable income.
True
True or False: All partnerships have a limited life and assets are co-owned by the partners.
True
True or False: Each partner is personally liable for all debts of the partnership.
False
True or False: In a general partnership, each partner's liability for losses is limited to his investment in the firm.
False
True or False: In a limited partnership, none of the partners has unlimited liability for the business all debts.
False
True or False: One advantage of a partnership over a corporate form of organization is the unlimited liability of partners.
True
True or False: The essence of partnership is that each partner must share in the profits or losses of the venture.
True
True or False: The limited partners are liable only to the extent of their personal contributions.
True
True or False: There can never be a partnership without the contribution of money, property, or industry to a common fund
False
True or False: There is no income tax imposed on a partnership
True
True or False: Work or services that may either be personal manual efforts or intellectual may also be contributed to a partnership