PRELIMINARY EXAMINATION

1. I. A corporation cannot become a member of a partnership in the absence of express

authorization by statute or charter.

II. A spouse can enter into a universal partnership with the other moreover, a spouse can enter into a
limited partnership with the other spouse.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

m
2. I. A capitalist partner must contribute additional capital to save the partnership in case there is

er as
imminent loss of the business.

co
eH w
II. If a capitalist partner fails to contribute in case of imminent loss, the partnership will be dissolved.

o.
a. Both are true
rs e
ou urc
b. Both are false

c. Only I is true
o

d. Only II is true
aC s
vi y re

3. X and Y are partners in XY partnership where X is the managing partner. Z owes X P40,000 and XY
partnership P60,000. Z paid X P10,000.
ed d

a. X should only collect P4,000 and apply the P6,000 to the debt of Z to the partnership.
ar stu

b. X should collect the entire P10,000 so that Z is no longer indebted to Z

C. X should apply the entire P10,000 to the debt of Z to XY partnership so that the balance would be
is

P50,000.
Th

d. X should apply it equally so that P5,000 would be deducted to the debt of Z to X and another P5,000
would be deducted to the debt of Z to XY partnership.
sh

4. X and Y entered into a partnership to engage in the operation of a car wash shop (XY Guapo car wash).
X is the capitalist partner while Y is the industrial partner. Adjoining the car wash shop, X opened a
carinderia (X busog Here), while on the other side, Y opened a convenience store (Y 24/7 sari sari store).

a. X cannot engage in a carinderia business but Y may engage in a convenience store.'

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
b. X may engage in a carinderia business but Y cannot engage in a convenience store.

c. X may engage in a carinderia business and Y may engage in a convenience store.

d. X and Y are prohibited from having separate business, they must form a partnership again for the
carinderia business and the convenience store.

5. Dissolution may be:

a. Judicial

b. Extrajudicial

a. Only I is correct

b. Only II is correct

m
c. Both of a and b are correct

er as
co
d. None of a and b are correct

eH w
o.
rs e
6. An insolvent partner is liable in the following order:
ou urc
a. Those owing to separate creditors.

b. Those owing to partnership creditors.

o
aC s

c. Those owing to partners by way of contribution. G

vi y re

a. I, II, III

b. I, III, II
ed d

c. III, II, I
ar stu

d. II, I, III
is

7. A partnership is one formed by two or more persons having as members one or more general partners
Th

and one or more and limited partners.

a. General

b. Limited
sh

c. Universal

d. Particular

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
8. Is a person admitted to all the rights of a limited partner who has died or has assigned his interest in
partnership.

a. Substituted general partner

b. Substituted limited partner

c. Substituted capitalist partner

d. Substituted industrial partner

9. I. A partnership is a preparatory contract.

II. A partnership has no juridical personality.

a. Both are true

m
b. Both are false

er as
co
c. Only I is true

eH w
d. Only II is true

o.
rs e
ou urc
10. The following are the effects if the purpose of the partnership is unlawful, except:

a. The partnership is voidable.

o
aC s

b. The profits of the partnership shall be confiscated in favor of the government.

vi y re

c. The instrument and proceeds shall be forfeited in favor of the government.

d. Answer not given.

ed d
ar stu

11. I. A partnership begins from the moment of the execution of the contract, unless it is otherwise
stipulated.
is

II. As a rule, a partnership is unlimited as to its duration.

Th

а. Both are true

b. Both are false

c. Only I is true
sh

d. Only II is true

12. Which of the following is prohibited from entering into a universal partnership?

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
a. Husband and wife

b. Those guilty of adultery or concubinage

c. Those guilty of the same criminal offense, if the partnership was entered in consideration of the same

d. All of the above

13. I. Articles of universal partnership, entered into without specification of its nature, only constitute
universal partnership of profits.

II. In a limited partnership, the limited partners as such shall be bound by the obligations of the
partnership.

a. Both are true

b. Both are false

m
er as
C. Only I is true

co
eH w
d. Only II is true

o.
rs e
ou urc
14. The following are the causes of extrajudicial dissolution of a partnership, except:

a. By the termination of the definite term or particular undertaking specified in the agreement.
o

b. by the express will of any partner, who must act in good faith, when no definite term or particular
aC s

undertaking is specified.
vi y re

c. A partner has been declared insane in any judicial proceeding.

d. By the express will of all the partners who have not assigned their interests or suffered them to be
ed d

charged for their separate debts, either before or after the termination of any specified term or
ar stu

particular undertaking.

15. Which of the following is not correct? In a limited partnership composed of A, B and C, the
is

contribution may be as follows:

Th

a. A-services (limited partner); B-cash (general partner); C-services (general partner).

b. A-cash (limited partner); B-cash (general partner); C-services (general partner).

sh

c. A-property (limited partner); B-services (general partner); C-services (general partner).

d. A-cash (limited partner); B-property (general partner): C-services (general partner).

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
16. A and B are capitalist partners with C as industrial partner. A and B contributed P13,500 each to the
capital of the partnership. A contractual liability of P49,950 was incurred by the partnership in favor of X.
The assets of the partnership have been exhausted still leaving an unpaid liability of P8,825. What are
the rights and the obligation of the partners, if any?

a. A, B and C are liable to X, and C after giving his share may ask reimbursement from A and B, unless
otherwise stipulated.

b. A and B only

c. C only

d. A, B and C and C has no right for reimbursement from A and B unless expressly stipulated.

17. X Y and Z are partners. X is an industrial partner. During the first year operation (2019), the firm
realized a profit of P60,000. During the second year (2020), the firm sustained a loss of P30,000. So, the

m
er as
net profit for the two years of operation was only P30,000. In the articles of partnership, it was agreed

co
that X the industrial partner would get 1/3 of the profit but would not share in the losses. How much will

eH w
X, the industrial partner, get?

o.
a. X will get only P20,000 which is 1/3 of the profit of the 1st year operation.
rs e
ou urc
b. X will get only P20,000 in the first year and none in the second year.

c. X will get only P10,000 which is 1/3 of the net profit.

o

d. X will share in the loss in the second year.

aC s
vi y re

18. 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?
ed d
ar stu

a. X can recover from the firm P60, 000. X can still recover the balance of P120, 000 from the capitalist
partners only.

b. X can recover from the firm P60, 000. X can recover the balance of P120, 000 from any of the partner’s
is

solidarily.
Th

c. X can recover from the firm P60, 000 and consider the balance of P120, 000 as loss.

d. X can recover from the firm P60, 000. X can still recover the balance of
sh

P120,000 from the four partners jointly.

19. X, Y and Z are equal partner to XYZ Partnership. A owes XYZ Partnership for P9,000. Z, a partner
collected from A P3,000 before X and Y received anything. Z issued a receipt on the P3,000 as his share
of what A owes. When X and Y collected from A, A was insolvent.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
a. Partner Z shall share partners X and Y with the P3,000.

b. Z cannot be required to share X and Y with the P3,000.

c. X and Y should first exhaust all remedies to collect from A.

d. X and Y can automatically deduct from the capital contribution of Z in the partnership their respective
share in the P3,000.

20. A and B are partners in a real estate partnership. The partnership owns a piece of land which C
desired to buy. C contacted A and informed him in of his desire to buy the land and A did not tell B about
it. A bought B out of the partnership and afterwards sold the land to C with a big profit.

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

b. The partnership is dissolved when A became the sole owner.

m
er as
c. The sale of the land to C is void because it was without the knowledge

co
eH w
d. A is not-liable to B for the latter's share in the profits.

o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:22 GMT -05:00

https://www.coursehero.com/file/94726871/LAW-PRELIMINARY-EXAMINATION-1docx/
Powered by TCPDF (www.tcpdf.org)
21. A, B and C are general partners in ABC Partnership. A, the managing partner engaged
personally in a business that is the same as business that is the same as the business of the
partnership without the consent of B and C.

a. If there are losses, the partnership will bear the losses.

b. If there are profits, they will be shared by partner A and ABC Partnership.

c. The profits or losses will be shared equally by A and the Partnership.

d. If there are profits, A will give the profits to the partnership.

22. The partnership is insolvent. They are preferred as regards to the partnership property.

m
a. Partners' separate creditors

er as
co
b. Partners with respect to their capital0004 AA

eH w
c. Partners with respect to their profits 000A

o.
d. Partnership creditors rs e
ou urc
o

23. A partnership is not dissolved on the death of a:

aC s
vi y re

a. General partner

b. Industrial partner
ed d

c. Limited partner
ar stu

d. General limited partner

is

24. A as partner contributed P30,000; B as partner, P15,000; and C industrial partner, his services
Th

in the partnership. After payment of all liabilities and expenses, only P18,000.00 remain as
partnership assets. The distribution of the P18,000 cash shall be:
sh

a. A, P12,000; B, 6,000; C, None

b. А, Р6,000; В, Р6,000%;B С, 6,000

c. А, Р9,000;B В, Р9,000; С, None

d. A. P8,000;B В, Р4,000%;B С, Р6,000

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
25. M and 0 are partners in M & O Partnership. M is the managing partner N owes M P10,000
and M & 0 Partnership P30,000. The obligations of N are both due. M collected from N the debt
of N to M in the amount of P10,000 and issued a receipt in the name of M. To which obligation
will the P10,000 be applied?

a. P2,500 to debt of N to M and P7,500 to debt of N to the partnership.

b. The whole of the P10,000 will be applied to debt of N to M.

c. The P10,000 will be applied to debt of N to the partnership.

d. P5,000 each to the debt of N to M and the partnership.

m
er as
26. F, G, H and I are partners. They contributed capital as follows: F, P50,000; G, P30,000; H

co
P20,000 and I, as the industrial partner, his services. The partnership's obligation to outsiders

eH w
exceeds the total net assets by P18,000. Who and by how much will the partners be liable for the

o.
payment of the P18,000?
rs e
ou urc
a. F, P9,000; G, 5,400; H, P3,600; I, nothing

b. F, P6,000; G, 6,000; H, P6,000; I, nothing

o
aC s

c. F, P4,500; G, 4,500; H, P4,500; I, P4,500

vi y re

d. F, nothing; G, 4,500; H, P4,500; I, P9,000 91E 91

ed d

27. A and B are equal partners in AB Partnership by contributing P50,000 each on July1, 2020.
ar stu

On July 2, 2020, the partnership contracted an obligation to pay Z the amount of P180,000 on
August 15, 2020. On August 1, 2020, C was admitted as a new partner, C contributed P50,000.
How will the obligation be paid?
is
Th

a. А, Р60,000%; В, Р60,000%;B С, Р60,000

b. A, P65,0003; B, P65,000; C, P50,000

sh

c. А, Р90,000;B В, Р90,000%;B С, none

d. A, none; B, P180,000 and C, none

28. X, Y and Z are partners. X contributed his services only; Y, P40,000; and Z, P20,000. The

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
partnership was liquidated. After payment of the a partnership obligations, only P18,000 worth of
assets remained. How much will be the share of X?

a. Equal to the share of Z

b. Р6,000

c. Equal to the share of Y

d. Zero

29. The elements of partnership are:

I. Two or more persons bound themselves to contribute money, property, or industry to a

m
common fund.

er as
co
II. They intend to divide the profits among themselves.

eH w
а. Both are true

o.
b. Both are false rs e
ou urc
c. Only I is true
o

d. Only II is true
aC s
vi y re

30. The contract of partnership is hence, it is perfected by mere consent, that is, by the meeting
of minds with respect to the object and consideration of the contract.
ed d
ar stu

a. Consensual

b. Real
is

c. Formal
Th

d. Solemn

31. I. The partnership is entitled to conduct business using its own firm name which name may or
sh

may not include the name or names of the partners.

II. The partners should be impleaded in case in an action involving a property registered in the
name of the partnership because it is the real party-in-interest therein.

a. Both are true

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
b. Both are false

c. Only I is true

d Only II is true

32. I. If there is no agreement, all of the partners will manage the partnership.

II. If there is agreement, one, or some, or all of the partners will manage the partnership.

a. Both are true

b. Both are false

C. Only I is true

m
er as
d. Only II is true

co
eH w
o.
rs e
33. In a partnership, the two modes of appointing a manager are:
ou urc
I. Appointment as manager made in an instrument other than articles of corporation.

II. Appointment as manager made in an instrument other than

o
aC s

a. Both are true

vi y re

b. Both are false

c. Only I is true
ed d
ar stu

d. Only II is true

34. The following are the important duties of every partner with regard to the contribution of
is

property, except:
Th

a. Duty to contribute what had been promised.

b. Duty to deliver the fruits of what should have been delivered.

sh

C. Duty to bound for warranty in case of eviction.

d. Duty to pay the interest, if he fails to pay his contribution on time.

35. I. An industrial partner cannot engage in any business for himself, unless the partnership
expressly permits him to do so.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
II. A Capitalist partner cannot engage for their own account in any operation which is of the kind
of business in which the partnership is engaged, unless there is a stipulation to the contrary.

а. Both are true

b. Both are false

c. Only I is true

d. Only II is true

36. The partners choose with whom they will enter into a partnership agreement, who will be
accepted in their partnership and whether they will remain to be partners. Ben a.

a. Delectus Personae

m
b. Bona Fide

er as
co
c. Accion Pauliana

eH w
d. Mora Solvendi

o.
rs e
37. I. In a stock corporation, shares are freely transferable without the consent of other
ou urc
stockholders, while interest in the partnership cannot be transferred without the consent of the
other partners.
o

II. In both partnership and stock corporation, it has juridical personality distinct from their
aC s

partners and stockholders, respectively.

vi y re

a. Both are true

b. Both are false

ed d
ar stu

c. Only I is true

d. Only II is true
is

38. I. In a general partnership, there are limited and general partners.

Th

II. In a limited partnership, there are limited and general partier

a. Both are true

sh

b. Both are false

c. Only I is true
d. . Only II is true
e.
39. He is not liable for losses but he is liable to third persons for partnership obligation.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
a. General partner

b. Industrial partner

c. Liquidating partner

d. Sub-partner

40. If there is no agreement to the contrary, in case of an imminent loss of the business of the
partnership, any partner who refuses to contribute an additional share to the capital, except an
industrial partner, to save the venture, shall be obliged:

a. To pay damages

b. To sell his interest to the other partners

m
c. To pay interest and penalty

er as
co
d. To be excluded from the partnership plus damages

eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:46:55 GMT -05:00

https://www.coursehero.com/file/94727056/LAW-1docx/
Powered by TCPDF (www.tcpdf.org)
41. I. The risk of specific and determinate things which are 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.

II. If the things contributed are fungible or cannot be kept without deteriorating, the risk shall be
borne by the partnership.

III. If the thing contributed is to be sold, the risk shall be borne by the partner.

IV. If the thing is brought and appraised in the inventory, the risk shall be borne by the
partnership.

a. I, II, III and IV are true

b. Only I, II and III are true

m
c. Only I, II and IV are true

er as
co
d. Only I, III and IV are true

eH w
o.
42. The responsibilities of the partnership to the partners are the following, except one:
rs e
ou urc
a. To refund amounts disbursed on behalf of the firm plus interest from the time of demand.
b. . To refund amounts disbursed on behalf of the firm plus interest from the time expenses
were made.
o

c. To answer to each partner for obligations he may have entered into in good faith in the
aC s

interest of the partnership.

vi y re

d. To answer for risks in consequence of its management.

43. In a partnership, the rules as to profit distribution are:
ed d

a. Profits are distributed according to agreement.

ar stu

b. If there is no agreement as to profit, according to contribution.

a. Both are true

is

b. Both are false

Th

c. Only I is true

d. Only Il is true
sh

44. A and B orally agreed to form a partnership two years from today, each one to contribute
Pl0,000. If at the arrival of the period, one refuses to e ahead with the agreement, can the other
enforce the agreement?

a. No, because the agreement was merely oral. Thus, governed by the statute of Frauds.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
b. Yes, since the agreement is to be enforced after one year from the making thereof, the
same should be in writing to be enforceable.
c. Yes, because the prior agreement was voluntarily made.
d. Yes, because the partnership contract is not governed by the Statute of frauds.
45. A limited partnership was formed in 2019 by X as general partner and Y and Z as limited
partners. In 2020, X and Z got married. Did the marriage dissolve or change the form of the
partnership?

1st Answer: Yes, partnership is dissolved by the márriage 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 answers are correct

m
b. Both answers are wrong

er as
co
c. 1st answer wrong, 2nd answer correct

eH w
o.
d. 1st answer correct, 2nd answer wrong
rs e
ou urc
46. A, B and C formed a limited partnership with A as general partner, B as limited partner and C
as industrial partner. A and B contributed P50,000 each. The partnership failed and after
disposing all its assets to pay partnership debts there still remains a note payable in the sum
o

P30,000. Against whom can the creditor demand payment of the note P30,000?
aC s
vi y re

a. A and C are liable to pay P15,000 each

b. A legal representative of a limited partner

ed d

c. A and B are liable to pay P15,000 each

ar stu

d. Only A is liable to pay the P30,000 indebtedness be

47. A partner owes a duty to inform his or her co-partners of all information regarding
is

partnership affairs.
Th

a. Duty of loyalty

b. Duty of obedience
sh

c. Duty of diligence

d. Duty to inform

48. I. As a rule, each partner may separately execute all acts of administration.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
II. Notice to the partner is notice to the partnership.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

49. The following are the rules in profit sharing in a partnership:

I. The share based on their agreement.

II. If there is no agreement, in proportion to the partners’ capital contribution.

m
er as
a. Both are true

co
b. Both are false

eH w
c. Only I is true

o.
d. Only II is true
rs e
ou urc
50. The property rights of a partner includes:

a. His rights in specific partnership property.

o

b. His interest in the partnership.

aC s
vi y re

c. His right to participate in the management.

d. All of the above.

ed d

51. A, B and C are partners in ABC Company. D represented himself as a partner in ABC
ar stu

Company to X, who, on the belief of such representation, extended a P150,000 credit to ABC
Company. Assuming only B and C consented to such representation, who will be held liable to
X?
is

a. B, C and D are partners by estoppel and thus, are liable pro-rata to X.

Th

b. Partners A, B and C who benefited from the credit extended by X are

sh

c. D who made the representation is liable to X.

d. X extended the credit to ABC Company so a partnership liability exists. Thus, all the partners
A, B, C and D are liable.

52. A and B are equal partners in AB and Company. C represented himself as a partner in AB and

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
Company to Z, who relying on such representation. Extended a P50,000 credit to AB and
Company. Of the two partners, only B knew and consented to the representation of C. who
should be held liable to Z?

a. Only C, who presented himself as partner, is liable.

b. Partners A and B who benefited from the credit extended to the partnership AB and
Company shall be liable to Z.
c. Since the credit was extended to AB and Company, a partnership liability was created so
the two partners and C are liable.
d. d. Band C are partners by estoppel and, thus, are liable to Z.
53. A is the managing partner of ABC and Company. X owes A personally and ABC and
Company P20,000 each. A collected and received from X P10,000 and he issued a receipt
wherein it is stated that the amount applied against his personal credit.

a. The amount received will be applied in favor of the partnership credit

m
er as
b. The amount received will be applied in the credit of A.

co
eH w
c. The amount received will be applied in proportion to both credits.

o.
rs e
d. All the partners will decide as to whose favor it will apply.
ou urc
54. There can be a partner by estoppel when:
o

a. He represents himself as a partner or consents himself to be represented as a partner of an

aC s

existing partnership with or without the consent of the partnership.

vi y re

b. He represents himself as a partner of a non-existent partnership.

a. Only I is correct
ed d

b. Only II is correct
ar stu

c. Both a and b are correct

is

d. None of a and b are correct

Th

55. The following are the remedies if an industrial partner who engages in business for himself.

I. The capitalist partners may either exclude him from the firm with damages.
sh

II. Avail themselves of the benefits which he may have obtained in violation of this provision
with damages.

a. Both are true

b. Both are false
c. Only I is true

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
d. Only II is true
56. The following are the remedies if a capitalist partner who engages business for himself.

I. The capitalist partners may either exclude him from the firm with damages.
II. The capitalist partner shall bring to the common fund any profits accruing to him from his
transactions and shall personally bear all losses.

a. Both are true

b. Both are false

C. Only I is true

d. Only II is true

m
er as
co
57 I. The interest of a partner in a partnership cannot be assigned.

eH w
II. In case a partner will assign his interest, the partnership is dissolved.

o.
a. Both are true rs e
ou urc
b. Both are false
o

c. Only I is true
aC s
vi y re

d. Only II is true

58 X. Y. and Z formed XYZ partnership. After three years, X assigned his interest in the
partnership to W. Upon having knowledge of the assignment, Y and Z decided to dissolve the
ed d

partnership without the consent of X and W.

ar stu

a. Y and Z cannot dissolve the partnership as they need the consent of X and Z.

b. Y and Z cannot dissolve the partnership as they need the consent of X, the original partner.
is
Th

c. Y and Z can dissolve the partnership as the consent of X and W are not necessary.

d. Y and Z can dissolve the partnership; however, it should be with the consent of W, the
assignee who became a partner by virtue of the assignment.
sh

59. I. The receipt by a person of a share of the profits of a business is conclusive evidence that he
is a partner in the business.

II. In a partnership, it is necessary that there is an intention to divide the profits among the
members and it is necessary that in equal shares.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
60. I. A corporation can become a partner.

II. All partners in a partnership are agents of each other.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:38:14 GMT -05:00

https://www.coursehero.com/file/94727351/LAW-2docx/
Powered by TCPDF (www.tcpdf.org)
61. Partner by estoppel is also known as:

a. Quasi-partner

b. Limited partner

c. Industrial partner

d. Dormant partner

62. A partner who does not take active part in the business and not publicly known as a partner.

a. Dormant partner

b. Ostensible partner

c. Silent partner

m
er as
d. Secret partner

co
eH w
63. Bears the loss of property contributed to the partnership.

o.
a. Capitalist partner
rs e
ou urc
b. Partners contributing usufructuary rights

c. Limited partner
o
aC s

d. None of the above

vi y re

64. When cash or property worth P3,000 or more is contributed as capital, the Articles of
Partnership shall be in a public instrument and registered with the Securities and Exchange
ed d

Commission. If the said requirements are not complied with:

ar stu

a. It will render the partnership void.

b. It will not give a legal personality to the partnership.

is

c. It will not affect the liability of the partnership and the partners thereof to third parties.
Th

d. It will give the partnership a de facto existence.

sh

65. X, Y and Z are equal partners in XYZ Partnership. The partnership is indebted to B for
P150,000. Partner X is indebted to C for P20,000. B attached and took all the assets of the
partnership amounting to P90,000. Y and Z are solvent while X is insolvent and all what he owns
is a land valued at P15,000.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
a. B has priority to the land of X to cover X’s share of the P60,000 remaining liability of the
partnership.

b. Y and Z have priority to the land of X if they paid B the P60,000 remaining liability of the
partnership.

c. B and C shall both have priority to the land of X in proportion to their claims of P60,000 and
P20,000, respectively.19 A

d. C has priority to the land of X as a separate creditor.

66. I. A partner who wrongfully terminates the partnership in contravention of the agreement
may be held liable for damages by the other partners who are in good faith.

II. The court may dissolve the partnership upon the death of any partner.

m
a. Both are true

er as
co
b. Both are false

eH w
o.
c. Only I is true
rs e
ou urc
d. Only II is true

67. I. In case of dissolution, all the credits should be satisfied using the Partnership properties.
o

Those owing to partners are preferred over the claims of creditors.

aC s

I. The dissolution of the partnership does not discharge a partner from his existing liability as a
vi y re

partner including liability for losses.

a. Both are true

ed d

b. Both are false

ar stu

c. Only I is true
is

d. Only II is true
Th

68. After liquidation, the assets of the partnership are distributed in the following order:

a. Those owing to creditors other than partners.

sh

b. Those owing to partners other than for capital and profits.

c. Those owing to partners in respect of capital.

d. Those owing to partners in respect of profits.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
a. I, II, III, IV

b. I, III, II, IV

c. IV, III, II, I

d. III, IV, I, II

69. In the partnership of A, B, and C. A was appointed in the Article of Partnership as managing
partner. As such manager and acting in good faith:

a. His power is revocable even without it his consent.

b. He may execute all acts of administrations despite the opposition of B and C.

c. His power can be revocable at any time even without just cause provided that it is approved by

m
the partners owning the controlling interest.

er as
co
d. Be can be removed for valid cause even without the vote of the partners owning the

eH w
controlling interest.

o.
rs e
70. X and Y established a partnership by contributing each at P50,000. Z, A third party allowed
ou urc
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:
o
aC s

a. Z to pay the P30,000 remaining liability

vi y re

b. X or Y to pay the P30,000 remaining liability

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

ed d

d. X and Y to pay P15,000 each

ar stu

71. A, B and C are partners with capital contribution of P15,000, P10,000 and P5,000
respectively. Suppose on dissolution, the assets of their partnership amount to only P46,000 and
is

it owes D the amount of P50,000. C owes E on his personal account P6,000. The partners have
Th

no separate personal property except C whose separate property amounts to P7,000. Which is
correct?

a. E shall be preferred as regards C's separate property.

sh

b. D and E shall divide C's separate property equally.

c. D and E shall divide C's separate property pro-rata.

d. D shall be preferred as regard C's separate property.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
72. I. Every partner is the agent of the partnership for the purpose of its business.

II. The partnership is liable for the acts of a partner if the act is performed in the exercise of the
partner's authority.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

73. I. If the partnership is dissolved but some of them will continue the partnership, the retiring

m
partner may still be liable to third persons who are in good faith.

er as
co
II. A new partner who is admitted to the partnership is liable for the existing obligations of the

eH w
partnership to the extent of his capital contribution.

o.
a. Both are true
rs e
ou urc
b. Both are false

C. Only I is true
o
aC s

d. Only II is true
vi y re

74. I. A limited partner shall have the same rights as a general partner have on demand true and
full information of all things affecting the partnership.
ed d

II. A limited partner may not loan money to the partnership.

ar stu

a. Both are true

b. Both are false

is

C. Only I is true
Th

d. Only II is true
sh

75. No limited partner shall in respect to any claim on loan he or she extended:

a. Receive or hold as collateral security and partnership property.

b. Receive from a general partner or the partnership any payment, conveyance, or release from
liability if at the time the assets of the partnership are not sufficient to discharge partnership

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
liabilities.

a. Only I is correct
b. Only II is correct
c. Both of a and b are correct
d. None of a and b are correct
76. I. A limited partner’s interest is not assignable.

II. The assignee absolutely cannot become a substituted limited partner.

a. Both are true

b. Both are false
c. Only I is true
d. Only Il is true
77. In A, B, C and D partnership, only. B did not deliver his agreed capital contribution in the

m
er as
form of a specific house and lot. The remedy against him is:

co
eH w
a. Dissolution or annulment of the partnership contract.

o.
b. For specific performance.
rs e
ou urc
c. For A, C and D to get back their contribution.

d. Remedy not indicated.

o
aC s

78. A and B are capitalist partners, with C as an industrial partner. A and B contributed P15,000
vi y re

each to the capital of the partnership. A contractual liability of P40,000 was incurred by the
partnership in favor of X. In the case bar, the capital assets of P30,000 shall first be exhausted
thereby lleaving an unsatisfied liability of P10,000 X can recover the amount from:
ed d

a. A and B only
ar stu

b. A, B and C

C. A, B and C and C can recover for reimbursement from A and B

is
Th

d. Band C only

79. I. The interest of a partner in a partnership is his personal property.

sh

II. The interest of a partner in a partnership cannot be assigned.

a. Both are true

b. Both are false

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
C. Only I is true

d. Only II is true

80. The administration of the assets of the partnership for the purpose of terminating the business
and discharging the obligations of the partnership.

a. Dissolution

b. Winding-up

c. Termination

d. Liquidation

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:44:18 GMT -05:00

https://www.coursehero.com/file/94727318/LAW-3docx/
Powered by TCPDF (www.tcpdf.org)
81. I. A stipulation which excludes one or more partners from any share in the profits or losses is
voidable.

II. Partners shall render on demand true and full information of all things affecting the
partnership to any partner or the legal representative of any deceased partner or of any partner
under legal disability.

a. Both are true

b. Both are false

C. Only I is true

d. Only II is true

82. Which of the following is not included in the property rights of a partner?

m
er as
a. Right in specific partnership property

co
eH w
b. Interest in the partnership

o.
rs e
c. Right to participate in the management
ou urc
d. Right to a formal account of partnership affairs

83. In case of assignment of partner’s interest in a partnership, the assignee has no right to:
o
aC s

a. Interfere in the management

vi y re

b. Require any information or account

c. Inspect any of the partnership
d. All of the above
ed d

84. I. In a limited partnership, the general partners as such shall not be bound by the obligations
ar stu

of the partnership.

I. In a limited partnership, only limited partners are supposed to be involved in the

management of the partnership.
is

a. Both are true

Th

b. Both are false

sh

C. Only I is true

d. Only II is true

85. Partners who will form a limited partnership shall comply with the following requirements:

a. Sign and swear to a certificate of limited partnership.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
b. File the certificate of limited partnership in the Securities and Exchange of Commission
(SEC)
a. Both are true

b. Both are false

C. Only I is true

d. Only II is true

86. In a partnership, the rules as to losses distribution are:

a. Losses are distributed according to agreement.

b. If there is no agreement as to losses, but profit sharing has been agreed upon, loses shall be
distributed according to the same proportion.

m
er as
c. If there is no agreement, losses shall be distributed proportionately according to amount of

co
eH w
contribution.

o.
a. Only I and Il are true
b. rs e
Only l and III are true
ou urc
c. Only II and III are true
d. I, IlI and III are true
o

87. The following, except one, are the causes of extrajudicial dissolution of a partnership:
aC s
vi y re

a. In contravention of the agreement between the partners.

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 Partnership.
c. The business of the partnership can only be carried on at a loss.
ed d

d. By the death of any partner.

ar stu

88. Which of the following is a ground for judicial dissolution?

a. By the insolvency of any partner or of the partnership.

is

b. A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the
Th

business.

C. By the civil interdiction of any partner.

sh

d. By the expulsion of any partner from the business bona fide in accordance with such power
conferred by the agreement between the partners.

89. The certificate of limited partnership shall be amended when, except:

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
a. There is a change in the name of the partnership or in the amount or character of the
contribution of any limited partner.

b. A person is substituted as a general partner.

c. An additional limited partner is admitted.

d. There is a change in the character of the business of the partnership.

90. The surname of a limited partner shall not appear in the partnership name unless:

a. It is also the surname of a general partner.

b. Prior to the time when the limited partner became such, the business has been carried on under
a name in which his surname appeared.

m
a. Only I is correct

er as
co
b. Only II is correct

eH w
c. Both of a and b are correct

o.
d. None of a and b are correctrs e
ou urc
91. A limited partner may rightfully demand the return of his contribution in the following cases.
One is not correct,
o
aC s

a. On the dissolution of a partnership.

vi y re

b. When the date specified in the certificate for its return has arrived

c. After three months' notice in writing to all other members, if no time is specified in the
ed d

certificate, either for the return of the contribution for the dissolution of the partnership.
ar stu

d. Answer not given.

92. Limited partners are liable as general partners in the following cases:
is

a. If the limited partner does not take part in the control of the business
Th

b. A limited partner whose surname appears in a partnership name is liable as a general partner to
partnership creditors who extend credit to the partnership without actual knowledge that he is not
sh

a general partner.

a. Only I is correct

b. Only II is correct

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
c. Both of a and b are correct

d. None of a and b are correct

93. Under the following circumstances, there is no disputable presumption that a person is a
partner in a business, except:

a. If money is received in payment of a debt by installment or otherwise.

b. If money is received in payment of interest on a loan.

C. If money is received in payment of wages of an employee or rent to a landlord.

d. If money is received in payment of a share of the profits of a business.

94. A partner who participates in the profits and losses but does not take any active part in the

m
partnership.

er as
co
a. Dormant partner

eH w
b. Ostensible partner

o.
c. Silent partner rs e
ou urc
d. Secret partner
o

95. I. As a rule, a partnership may be constituted in any form.

aC s
vi y re

II. In cases where a personal property is contributed in a partnership and if the capital is less than
P3,000, it shall appear in a public instrument.

a. Both are true

ed d
ar stu

b. Both are false

c. Only I is true
is

d. Only II is true
Th

96. X, Y and Z capitalist partners, each contributed P10,000 and W, industrial partner contributed
his industry. The partnership is indebted to B in the amount of P90,000. The remaining assets of
the partnership amounted to only P30,000. Suppose B got the P30,000, how can be recover the
sh

deficiency of his credit?

a. B can recover P60,000 from either X, Y and Z.

b. B can recover P15,000 each from X, Y and Z, but W is exempt because he is an industrial
partner.

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
c. B can recover P20,000 each from X, Y and Z only.

d. B can recover P15,000 each from X, Y, Z and W.

97. A, B and C are general partners in ABC partnership. D is a debtor to the partnership in the
amount of P15,000. A received from the debtor D the sum of P5,000 and issued a receipt
identifying the amount as his share. Then D became insolvent, B and C cannot collect the
P10,000.

a. A cannot be compelled to share the P5,000 with B and C.

b. A can be compelled to share the P5,000 with B and C with.

c. B and C can charge the capital of A with their share of the P5,000.

d. Band C should automatically sue D to collect the P10,000.

m
er as
98. I. A partnership where all the partners are "limited partners" can exist as a limited

co
partnership.

eH w
o.
II. If the partnership is a universal partnership, a husband and wife can enter into such contract.
rs e
ou urc
a. Both are true

b. Both are false

o

C. Only I is true
aC s
vi y re

d. Only II is true

99. A. B and C are equal partners in ABC Partnership. On April 29, 2020, partner C died. Not
knowing that C died, on May 1, 2020, A contracted a liability to D who also does not know the
ed d

death of C. The liability is P90, 000. After D, exhausted the net assets of ABC Partnership in the
ar stu

amount of P60, 000, he can collect:

a. P30, 000 from A

is

b. P10, 000 from estate of C; P10, 000 from A; P10, 000 from B
Th

c. P15, 000 from A and P15, 000 from B

d. P20, 000 from A and P10, 000 from B

sh

100. A, B and C are partners. C is the industrial partner, who, in addition to his services, also
contributed capital to the partnership. There is stipulation as to the sharing of profits and losses.
The partnership realized profits of P21, 000. The share of C in the profits:

a. A and B will determine C's share in the profits

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
b. Pro-rata to his contributed capital

c. C's share is P7, 000

d. Nothing, because he is an industrial partner

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000804498833 from CourseHero.com on 10-14-2021 03:40:51 GMT -05:00

https://www.coursehero.com/file/94727663/LAW-4docx/
Powered by TCPDF (www.tcpdf.org)