Partnership and Corporation Flashcards

All present properties are contributed

a) Universal partnership

b) General partnership

c)Limited partnership

d)None of the above

Composed of capitalist and industrial partners

a) Universal partnership

b)General partnership

c)Limited partnership

d)None of the above

Partners shall enjoy practically all the profits:

a) Universal partnership

b) General partnership

c)Limited partnership

d)None of the above

They have no voice in the management of partnership affairs:

a) Managing partners

b)Silent partners

c) Both A and B

They have priority if the partnership is insolvent:

a) Separate creditors

b)Partnership creditors

c) Both A and B

d) None of the above

May contribute money, property or industry to the common fund:

a) Both general and limited partners

b) Limited partner

c)General partners

d) Capitalist partners

One who takes charge of the winding up to partnership affairs upon dissolution:

a)Silent partner

b) General partner

c) Ostensiblepartner

d)Liquidating partner

A, B and C are partners. A contributed his servicesonly; B, P20,000; and C, P10,000. The partnership wasliquidated. After payment of the partnership’s obligation,only P9,000 worth of assets remained. The share of A will equal to:

a) P3,000

b)Equal of share of B

c)Equal of share of C

d) None

A and B entered into a universal partnership of all present property. The common property of the partnership shall be:

a)All the properties which belonged to each of the partners at the time of the constitution of the partnership.

b)All the properties which belonged to each of the partners after the constitution of the partnership.

c)All the properties which belonged to each of the partners at the time of the constitution of the partnership as well as the profits which they may acquire therewith.

d)All the properties which belonged to each of the partners at the time of the constitution of the partnership as well as the profits which they may acquire thereafter

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.

If a partner in a partnership is insolvent, the first order of preference in the distribution of his assets are:

a) Partnership creditors

b) Partners contribution to the partnership

c)Separate creditors of the debtor

d) Pro-rata between the separate creditors of thedebtor and the partnership creditor

A, B and C are partners in a partnership. C contributed his industry. After payments of the partnership’s obligations, only P6,000 cash remains. No other assets. In the absence of terms to the contrary, the share of C in the remaining assets is:

a) Equal to share of A

b) Equal to the share of B

c) P2,000

d) Nothing

X, Y and Z are equal partners of XYZ Partnership. A owes the 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.

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 contributions of Z in the partnership their respective share in the P3,000

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 inform him of his desire to buy the land and A did not tell to B about it. A bought B out of the partnership and afterwards sold the land to C with a big profit.

a)The partnership is dissolved when A became the sole owner

b) The sale of the land to C is void because it was without the knowledge of B.

c) A is not liable to B for the latter’s share in the profits

d)A is liable to B for the latter’s share in the profits

A, B and C are partners in ABC Partnership. D represented himself as a partner in ABC Partnership to E, who, on the belief of such representation, extended P50,000 credit to ABC Partnership. Assuming only B and C consented to such representation, who will beheld liable to E?

a) E extended the credit to ABC Partnership, so a partnership liability exists, thus, all the partners, A, Band C are liable

b) B, C and D are partners by estoppels and thus, are liable prorate to E

c) Partners A, B and C who benefited from the credit extended by E are liable.

d)D who made the representation is liable to E

A and B are partners in a real estate business. A and B were approached by X who offered to buy a parcel of land owned by the partnership. Thereafter, B sold to A, B’s share in the partnership. Then, A sold the land to X at a big profit.

a) A is liable to B for B’s share in the profits

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

c) A is not liable to B for the latter’s share in the profits

d) The sale of the land to X is void

One of the following incidents may be a cause for involuntary dissolution of a partnership. Which is?

a)Termination of the term of the partnership

b) Insolvency of any partner

c) Express will of any partner

d) Expulsion of any partner

A and B are equal partners in AB Partnership. Y presented himself as a partner in AB Partnership to Z, who relying on such representation, extended P50,000 credit to AB Partnership. Of the two (2)partners only B knew and consented to the representation of Y. Who should beheld liable to Z?

a) Only Y, who presented himself as partner is liable.

b) Since the credit was extended to AB Partnership, a partnership liability was created, so the two (2)partners and Y are liable.

c)Partners A and B who benefited from the credit extended to the partnership AB Partnership shall be liable to Z.

d)B and Y are partners by estoppel and, thus, are liable to Z

The following persons are disqualified to form a universal partnership. Who are the exception?

a)Brother and sister

b)Husband and wife

c) Those guilty of adultery and concubinage

d) Those guilty of the same criminal offense, if thepartnership is entered into a consideration of thesame

A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership P20,000 each. A collected and receive from X, P10,000 and he issued a receipt wherein it is stated that the amount is applied against his personal credit.

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

b)The amount will be applied in proportion to both credits

c) The amount received will be applied in the credit of A

d)All the partners will decide as to whose favor it will apply

A is the capitalist partner and B the industrial partner. A is engaged personally in the same kind of business the partnership is engaged in.

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

b)If there are profits, the profits will be shares by A and the partnership

c)If there are profits, A will give the profits to the partnership

d) A will be excluded from the partnership and paydamages

Three (3) of the following are similarities between a partnership and a corporation. Which is not?

a)The individuals composing both have little voice in the conduct of the business

b)Both have juridical personality separate and distinct from that of the individuals composing them.

c) Like a partnership, a corporation can act only through agents

d) Both are organizations composed of an aggregate of individuals

A, B and C are general partners in ABC Partnership. A, the managing partner engaged personally in a business that is the same as the business of the partnership without the consent of B and C.

a)If there are profits, A will give the profits to the partnership

b) If there are losses, the partnership will bear the losses

c) If there are profits, they will be shared by partner A and the ABC Partnership

d)The profits or losses will be shared equally by A andthe ABC Partnership

Three (3) of the following are rights of a general partner and also of a limited partner in a limited partnership. Which is not?

a) To inspect and copy at reasonable hours the books of the partnership and have them kept at the principal place of business

b) To demand true and full information of all matters affecting the partnership and a formal account of partnership affairs

c) To have dissolution and winding up by decree of court

d) None of the above

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

a)Partnership creditors

b) Partners separate creditors

c) Partners with respect to their capital

d) Partners with respect to their profits

Bears the loss of property contributed to the partnership

a) Capitalist partner

b) Limited partner

c) None of the above

d) Partners contributing usufructory rights

When cash or property worth P3,000 or more is contributed as capital. The Articles of Co-Partnership shall be in a public instrument and be registered with the Securities and Exchange commission. If the said requirements are not complied with: a) It will render the partnership void. b)It will not affect the liability of the partnership and the partners to third parties.

c) It will not give a legal personality to the partnership.

d) It will give the partnership a de-facto existence

A, B and C are equal partners in Santos Brothers Partnership. The partnership is indebted to PC forP150,000. Partner A is indebted to SC for P20,000 PC attached and took all the assets of the partnership amounting to P90,000. B and C are solvent while A is insolvent and all what he owns is a land valued atP15,000.

a) SC has the priority to the land of A as a separate creditor.

b) PC has priority to the land of A to cover A’s share of theP60,000 remaining liability of the partnership

c) B and C have priority to the land of A if they paid PC the 60,000 remaining liability of the partnership.

A partnership is not dissolved upon the death of a:

a) General partner

b) Industrial partner

c)Limited partner

d) General limited partner

A and B are equal partners in AB Partnership C contacted XYZ and Co. and represented himself as partner in AB Partnership. XYZ and Co. contacted A who confirmed that C is in fact a partner of AB Partnership XYZ and Co. extended credit to C for AB Partnership in the amount of P60,000. Who is liable to XYZ and Co.?

a)A and C are partners by estoppels and are liable to XYZ and Co.

b)XYZ and Co. extended the credit to C for AB Partnership, so a partnership liability exists, so both partners, A and B together with C are liable.

c) The AB Partnership benefited, so it is liable

d) Only C who made the representation is liable

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 to 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 in the profits in the sale.

d) When A was bought-out of the partnership, the partnership was dissolved so A has no more share in the profits in the sale.

A, as a partner contributed P30,000; B as partner,P15,000; and C as industrial partner, his services in the partnership. After payment of all liabilities and expenses, only P18,000 remain as partnership assets.

a) A, P12,000; B, P6,000; C, None

b) A, P6,000; B, P6,000; C, P6,000

c) A, P9,000; B, P9,000; C, None

d) A, P8,000; B, P4,000; C, P6,000

When the capital (of a partnership) is P3,000 or more, it must be in a public instrument and must be recorded with the Securities and Exchange Commission (Article1772). A, B and C agreed to form a partnership and each contributed P10,000 as capital of the partnership. There was no compliance in the provisions of Article1772.

a) The partnership was not established

b) The partnership did not have juridical personality

c)The partnership was established and any partner may compel the execution of a public instrument

d) The partnership is void

Three (3) of the following are rights of a partners. Which one is not?

a) Right to associate another person to his share

b)Right to admit another partner

c) Right to inspect and copy partnership book

d) Right to ask dissolution of the firm at the proper time

The following are similarities between partnership and a corporation. Which is the exception?

a)Both have juridical personalities separate and distinct from that of the individuals composing them.

b) Like a partnership, a corporation can act only through agents

c) Both are organization of an aggregate of individuals

d)The individuals composing both have little voice in the conduct of the business

In the partnership of A, B and C, A was appointed in the Articles of Co-Partnership as managing partner. As such manager in good faith:

a) His power is revocable even without consent

b)His power can be revocable at any time even without just cause provided

c)He may execute all acts of administration despite the opposition of B and C

d)He can be removed for valid cause even without the vote of the partners owning the controlling interest

X and Y established a partnership by contributing, each at P50,000. 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 asset, there was left a liability to third persons the amount of P30,000. The creditors can compel:

a) Z to pay P30,000 remaining liability

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

c) X or Y to pay P30,000 remaining liability

d) X and Y to pay P15,000 each

W, X, Y and Z formed a partnership. W, X and Yare general partners and contributed P50,000 each while Z, an industrial partner contributed his services only. All the partners signed an agreement stipulating that the liability of W is limited to its contribution After all the assets of the partnership were exhausted there remains an unpaid liability of P40,000. The creditors of the partnership can compel:

a) X and Y to pay the P40,000

b) X, Y and Z to pay the P40,000

c) W, X, Y and Z to pay P10,000 each and W and Z can demand reimbursement from X and Y.

d) X and Y to pay P40,000

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) Secret partner

b) Dormant partner

c)Nominal partner or partner by estoppel

d) Answer not given

A and B are capitalist partners, with C as industrial partner. A and B contributed P15,000 each to the capital of the partnership. A contractual liability ofP40,000 was incurred by the partnership in favor of X. The capital assets of P30,000 shall first be exhausted thereby leaving an unsatisfied liability of P10,000. X can recover the amount from:

a) A and B only

b)A, B and C

c)A, B and C and C can recover for reimbursement from A and B

d) Answer not give

A, B and C are partners engaged in a retail business. Their contribution is P20,000 each. D is admitted as anew 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 not liable to E for this obligation

b)D is liable to E for this obligation so that 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.

c) D is liable to E for this obligation so that after the assets of the partnership will be exhausted, leaving a balance of P12,000, all the partners shall be liable jointly or pro- rata, out of their separate property.

d) Answer not given

A, B and C are general partners in ABC Partnership. D is a debtor to the partnership in the amount ofP15,000. A received from Debtor D the sum of P5,000and issued a receipt identifying the amount as his share. Then D became insolvent, B and C cannot collect theP10,000.a)A cannot be compelled to share the P5,000 with B and C

b) B and C can charge the capital of A with their share of the P5,000

c) A can be compelled to share B and C the P5,000

d)B and C automatically sue D to collect the P10,000

M and O are partners of M & O Partnership. M is the managing partner. N owes M P10,000 and M& O 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) The whole of the P10,000 be applied to debt of N to M

b) The P10,000 be applied to debt of N to M and to the partnership

c) P5,000 each of debt of N to M and to the partnership

d) P2,500 to debt of N to M and P7,500 debt of N to the partnership

A, B and C are partners in D-3 Partnership. On April 29,2010, partner C died. Not knowing that C died, on May 1, 2010, A contracted a liability to D who also do not know the death of C. The partnership debt is in the amount of P30,000, he can collect

a) P30,000 from A

b) P15,000 from A and P15,000 from B

c)P10,000 from estate of C; P10,000 from A ; P10,000 from B

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

This the order of preference in the liquidation of a general partnership:

a)Outside creditors; Partner as creditors; Partners capital; Partners profit

b)Partner as creditors; Outside creditors; Partners capital; Partners profit

c)Partnerscapital;Outsidecreditors;Partnerascreditors;Partnersprofit

d) Outside creditors; Partner capital; Partners profit;Partners as creditors

R, S and T are partners. T is the industrial partner who in addition to his services, he also contributed capital to the partnership. There is no stipulation as to sharing of profits and losses. The partnership realized profits of P21,000. The share of T in the profits:

a) R and will determine T’s share I, in the profits

b) T’s share is P7,000

c)Pro-rata to his contributed capital

d) Nothing, because he is anr industrial partne

Which of the following is a characteristic of partnership as a contract?

a) Formal

b)Innominate

c) Gratuitous

d)Preparatory

Can the partners stipulate that the newly admitted partner shall not be held liable for the obligations of the partnership arising before his admission? Which of the following statement is not correct?

a) No, because the newly admitted partner should be deemed to have assumed all the debts of the partnership upon his voluntary participation in the partnership.

b)No, because newly admitted partner is liable with respect to his capital contribution which forms part of the partnership

c) No, because the third person are always protected by law.

d)No, because the subject of the stipulation is that the liability of the new partner should not be satisfied out of the partnership property

I. The arrival of the term of a 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.

II. The general rule is that the loss of the specific thing contributed to the partnership when only the use of the thing is contributed by the partner and such thing after its transfer to the partnership which used the same or sometime was subsequently lost, the partnership is not dissolved.

A limited partner who takes active part in the management of the firm becomes:

a) A managing partner

b) Liable as a general partner

c) A general partner

d) A general partner and a limited partner at the same time

A is the managing partner of A and Company. X is indebted to A for P20,000 and to the partnership forP60,000. When both debts mature, X pays A P20,000and the latter issues a receipt for his personal credit. The payment for P20,000 shall be applied:

a) 1⁄4 in favor of A and 3⁄4 in favor of the partnership

b) To the whole debt owing to A

c) 1⁄2 in favor of A and 1⁄2 in favor of the partnership

d) To the debt owing to the partnership

I. A person may be a general and a limited partner in the same partnership at the same time.

II.A person admitted as a partner into an existing partnership is not liable for partnership

I.A partner cannot assign his interest in the partnership to a third person without the consent of the other partners.

II. A partner’s interest in the partnership is his personal property

I. The creditor of each partner shall be preferred to those of the partnership as regards the partner’s separate property.

II. An industrial partner is exempted from losses but not from partnership liabilities

I. If the capital contribution of the partners amount toP3,000 or more the contract of partnership must be in public a public document, otherwise the contract is void.

II. A contract of partnership is void, whenever immovable property is contributed thereto if an inventory of said property is not made, signed by the parties and attached to the public document.

I. All the partners in a general partnership are considered managing partners if there is no stipulation as to who shall act as managing partner.

II. A partner is liable to the partnership for whatever property he agrees to contribute without necessity of demand.

I. Dissolution does not terminate the partnership.

II. Insanity of a general partner in a limited partnership dissolves the partnership

I. A general partner in a limited partnership has all the rights, powers and liabilities as though the partnership is not limited.

II. A general partner is personally liable for partnership obligations while a limited partner is not liable for partnership liabilities

I. A limited partner is simply a contributor to the partnership.

II.A limited partner has a right to the return of his contribution upon the dissolution of the partnership.

One of the following is not a characteristic of a contract of partnership

a)Real, in that the partners must deliver their contributions in order for the partnership contract to be perfected.

b) Principal, because it can stand by itself.

c) Preparatory, because it is a means by which other contracts will be entered into.

d)Onerous, because the parties contribute money, property or industry to the common fund

One of the following is not a requisite of partnership. Which is it?

a) There must be a valid contract.

b)There must be a mutual contribution of money, property or industry to a common fund.

c)It is established for the common benefit of thepartners which is to obtain profits and divide thesame among themselves.

d)The articles are kept secret among the members.

The minimum capital in money or property except when immovable property or real rights thereto are contributed, that will require the contract of partnership to be in public instrument and be registered with SEC.

A .P5,000 B. P10,000 C. P 3,000 D. P30,000

X and Y entered into a universal partnership of all present property. At the time of their agreement. X had a four-door apartment which he inherited from his father 3 years earlier. Y, on the other hand, had a fishpond which he acquired by dacion en pago from Z. During the first year of the partnership, rentals collected on the four-door apartment amounted to P480,000; while fish harvested from the fishpond were sold for P300,000.During the same period. B received by way of donation a vacant lot from an uncle. The partners had a stipulation that future property shall belong to the partnership. Which of the following does not belong to the common fund of the partnership?

A. Fish pond B. Rental of P480,000 C. Apartment D. Vacant lot

A and B are equal partners in AB Partnership. C contacted XYZ and Co. and represented himself as partner in AB Partnership. XYZ and Co. contacted A who confirmed that C is in fact a partner of AB Partnership XYZ and Co. extended credit to C for AB Partnership in the amount of P60,000. Who is liable to XYZ and Co.?

a)A and C are partners by estoppels and are liable to XYZ and Co.

b)XYZ and Co. extended the credit to C for AB Partnership, so a partnership liability exists, so both partners, A and B together with C are liable.

c) The AB Partnership benefited, so it is liable

d) Only C who made the representation is liable

A partnership formed for the exercised of a profession which is duly registered is an example of

A Universal partnership of profits

B. Universal partnership of all present property

C. Particular partnership

D. Partnership by estoppel

A, B and C are partners in ABC Enterprises. Not having established yet their credit standing, the three partners requested D, a well known businessman, to help them negotiate a loan from E, a money lender. With the consent of A, B and C, D represented himself as a partner of ABC Enterprises. Thereafter, E granted a loan of P150,000 to ABC enterprises. What kind of partner is D?

A. Managing partner

B. Liquidating partner

C. Ostensible partner

D. Partner by estoppel

Which of the following losses will not cause the dissolution of a partnership?

A. Loss before delivery of a specific thing which a partner had promised to contribute to the partnership.

B. Loss of a specific thing after its delivery to and acquisition of its ownership by the partnership from the partner who contributed the same.

C. Loss after delivery of a specific thing where the partner contributed only its use and enjoyment where such partner reserved the ownership thereof.

D. Loss before delivery of a specific thing where the partner promised to contribute only its use and enjoyment, reserving the ownership thereof.

A partner can engage in business for himself without the consent of his co-partners if he is:

A. A capitalist partner whether or not the business he will engage in is of the same kind as or different from the partnership business.

B. An industrial partner whether or not the business he will engage in is of the same kind as or different from the partnership business.

C. A capitalist partner and the business he will engage in is of a kind different from the partnership business.

D. An industrial partner and the business he will engage in is of a kind different from the partnership business.

The partnership will bear the risk of loss of three of the following things, except:

A. Things contributed to be sold.

B. Fungible things or those that cannot be kept without deteriorating.

C. Non-fungible things contributed so that only their use and fruits will be for the common benefit.

D. Things brought and appraised in the inventory

A and B orally agreed to form a partnership two years from today, each one to contribute P1,000. If at the arrival of the period, one refuses to go ahead with the agreement, can the other enforce the agreement?

a)Yes, because the partnership contract is not governed by the Statute of Frauds

b)Yes, because the prior agreement was voluntarily made.

c)No, because the agreement was merely oral and executory.

d)No, since the agreement is to be enforced after one year from the making thereof, the same should be in a public instrument to be enforceable

Partnership as distinguished from corporation:

A. Acquires juridical personality upon approval by the SEC and the issuance of certificate.

B. Has limited liability.

C. Created by operation of law.

D. No power of succession

Partner who does not participate in the management though he shares in the profits or losses.

A. Liquidating

B. Nominal

C. Ostensible

D. Silent

Partner who winds up the affairs of the firm after it has been dissolved

A. Liquidating

B. Managing

C. Industrial

D. Capitalist

Partner whose connection with the firm is known to the public

A. Ostensible

B. Secret

C. Silent

D. Nominal

Partner who is both a secret and silent partner

A. Nominal

B. Ostensible

C. Limited

D. Dormant

Partner who is not really a partner but who may become liable as such insofar as third persons are concerned

A. Nominal

B. Ostensible

C. Silent

May be required to make additional contribution in case of imminent loss:

a) Capitalist partner

b) Limited partner

c) Industrial partner

d)Choices A, B and C

A, B and C are partners each contributing P10,000. The firm’s indebtedness amounts to P90,000. It was stipulated that A would be exempted from liability. Assuming that the capital of P30,000 is still in the firm, which of the following is not correct?

a)The creditors may get the P30,000 and still collect each P20,000 from A, B and C.

b)A can recover P10,000 each from B and C should he (A) be required to pay the creditors.

c) A cannot recover his original capital of P10,000.

d)The creditors can recover P45,000 each from B and C

A newly admitted general partner is liable to creditors existing at the time of his admission and his liability is

a) Up to his capital contribution only if there is stipulation.

b) Up to his separate property even there is no stipulation.

c) Up to his capital contribution even if there is stipulation.

d) Up to his separate property only if there is stipulation.

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 of C’s offer A was able to convince B to sell to him (A) his (B’s) share in the partnership. Then A sold the land at a big profit. Which of the following is correct?

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) A new partnership is formed between A and C.

d) The sale of the land to C is void since it was without the knowledge of B

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 him 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 manger of the partnership.

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

A, B and C, capitalist partners, each contributed P10,000 and D, the industrial partner contributed his services. Suppose X, is the creditor of the firm amounting to P90,000. After getting the P30,000 capital assets of the partnership, which is correct?

a) X can recover P20,000 each from A, B and C only.

b) X can recover P60,000 from either A, B and C only.

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 partner

A, B and C are partners. D is admitted as a new partner. Will D be liable for partnership obligations contracted prior to his admission to the partnership?

a) No, only for those contracted after his admission.

b)Yes, and his liability would extend to his own individual property.

c)Yes, but his liability will extend only to his share in the partnership property and not to his own individual property.

d) Yes, as if he had been an original partner.

Bears the risk of things contributed to the partnership:

a) General partner

b) Limited partner

c)Partner contributing usufructuary rights over fungible things

d)Partner contributing usufructuary rights over non-fungible things

A, B and C, capitalist partners, each contributedP10,000. After exhausting the assets of the firm, the firm’s indebtedness amounts to P90,000. It was stipulated that A would be exempted from liability. Which is correct?

a) A may recover his original capital of P10,000.

b)The creditors may collect P30,000 each from A, B and C.

c)A can recover P20,000 each from B and C should he be required to pay the creditors.

d)The creditors can recover P45,000 each from B and C.

Instances when a partnership is unlawful, except

a) A partnership formed to furnish apartment houses which would be used or prostitution

b) A partnership formed for the purpose of acquiring parcels of land

c) A partnership formed for gambling purposes

d) A partnership formed to create illegal monopolies or combinations in restraint of trade

A and B orally agreed to form a partnership two years from today, each one to contribute P1,000. If at the arrival of the period, one refuses to go ahead with the agreement, can the other enforce the agreement?

a)Yes, because the partnership contract is not governed by the Statute of Frauds

b)Yes, because the prior agreement was voluntarily made.

c)No, because the agreement was merely oral and executor

d)No, since the agreement is to be enforced after one year from the making thereof, the same should be in a public instrument to be enforceable

A and B are equal partners in AB Partnership by contributing P50,000 each on June 1, 2010. On July 1, 2010, the partnership contracted an obligation to pay Z the amount of P180,000 on August 31, 2010. On August 10, 2010, C was admitted as a new partner. C contributed P50,000. How will the obligation be paid?

a) A P60,000; B P60,000; C P60,000

b) A P90,000; B P90,000; C None

c) A P180,000 or B P180,000 and C P50,000

d) A P65,000; B P65,000; C P50,000

A, B and C are partners in a partnership business. A contributed P10,000, B contributed P5,000 and C his services only. After payment of partnership debts, what remains of the partnership assets is P6,000 only. In the absence of stipulation to the contrary, the share of C will equal to:

a) That of A

b) P2,000

c) That of B

d) Nothing

A, B and C are partners in ABC Co. D owes the partnership P4,500. A, a partner, received from D a share of P1,500 ahead of partners B and C, giving D a receipt for his share only. When B and C were collecting from D, the latter was already insolvent. Which of the following is correct?

a) Partner A can be required to share the P1,500 with B and C.

b) A cannot be required to share the P1,500 with Band C.

c) B and C should automatically exhaust first all remedies to collect from D.

d) B and C can automatically deduct from the capital contribution of A in the partnership, their respective share in the P1,500

A, B and C are equal partners in ABC Partnership. On April 29, 2010, C died. Not knowing that C is dead, on May 2, 2010, A contracted a liability to D who also did not know about the death of C. The liability is P90,000. After D exhausted the net assets of the partnership in the amount of P60,000, he can collect

a) P30,000 from A or P30,000 from B.

b) P15,000 from A and P15,000 from B.

c) P10,000 from the estate of C, P10,000 from A and P10,000 from B.

d) P30,000 from the estate of C or P30,000 from B orP30,000 from C

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 profits and losses in the following proportions: A, 35%; B, 25% and C 40%. If there is a loss of P10,000, how should the said loss be shared by the partners?

a) A P6,000; B P4,000; C nothing

b) A P3,000; B P2,000; C P5,000

c) A P3,500; B P3,500; C P3,000

d) A P3,500; B P2,500; C P4,000

When the manner of management has not been agreed upon, who shall mange the affairs of the partnership?

A. Capitalist partners

B. Industrial partners

C. Capitalist-industrialist partners

D. All of the partners

Which of the following is considered prima facie evidence of the existence of a partnership?

a) Where payment of interest on a loan depends on the profit of the business.

b) The receipt by a person of a share in the profits.

c) The sharing of gross returns of a business.

d) Where the parties are established as co-owners of a property.

A and B are partners, with A as the managing partner. D is indebted to A in the amount of P10,000 and to the partnership in the amount of P5,000. Both debts are due and demandable. D paid AP3,000. A issued to D a receipt in his own name. How should the amount of P3,000 be applied?

a) The P3,000 should be applied to the indebtedness of D to A.

b) The P3,000 should be applied to the indebtedness of D to the partnership.

c) P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of D to A.

d) P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of D to A

A, B, C and D are partners. Their contributions areas 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 is unpaid balance of P10,000 to E. Who are liable to E for the payment of the unpaid balance of P10,000 and how much should each pay to E?

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

One or more but less than all the partners have no authority to perform the following acts, except:

a) Do any act which would make it impossible to carry on the ordinary business of the partnership.

b) Submit a partnership claim or liability to arbitration.

c) Renounce a claim of the partnership.

d)Convey partnership property in the ordinary course of partnership business

A, B and C are equal partners in ABC Partnership. The partnership is indebted to D for P150,000. Partner A is indebted to E for P20,000. D attached and took all the assets of the partnership amounting to P90,000. B and C are solvent while A is insolvent and that he owns is a land valued at P15,000. Which is correct?

a) E has priority to the land of A as a separate creditor

b) D has priority to the land of A to cover A’s share oftheP60,000 remaining liability of the partnership.

c) B and C have priority to the land of A if they paid Dthe P60,000 remaining liability of the partnership.

d) D and E shall both have priority to the land of A inproportion to their claims of P60,000 and P20,000,respectively.

A, B and C are partners. A is an industrial partner. During the first year of operation, the firm realized a profit of P60,000. During the second year, the firm sustained a loss of P30,000. So, the net profit for the two years of operation was only P30,000. In the Articles of Partnership, it was agreed that A, the industrial partner would get 1/3 of the profit but would not share in the losses. How much will A, the industrial partner will get?

a) A will get only P20,000 which is 1/3 of the profit of the 1st year of operation.

b) A will get only P10,000 which is 1/3 of the net profit.

c) A will get only P20,000 in the first year and none in the second year.

d)A will share in the loss in the second year

I. A person admitted as a partner into an existing partnership is liable for all the obligations of the partnership arising before his admission as though he had been a partner when incurred and that such liability will extend to his own individual property.

II. B has worked for M and Co., as procurer of contracts for fertilizers to be manufactured by the firm, and as supervisor of the mixing of the fertilizers. However, he had no voice in the management of the business except in his task of supervising the mixing of said fertilizers. For his service, he is entitled to 35% of the profits in the fertilizer business. He is a partner in M and Co