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BUSINESS LAWQUIZ ON PARTNERSHIP1. Which of the following is not correct?a. A- cash (Ltd); B-cash (Gen,); C-service (Gen)b. A –property (Ltd.); B –cash (Gen); C –service (Gen)c. A –service (Ltd.); B –cash (Gen); C –service (Gen)d. A – cash (Ltd.); B –cash (Gen); C –service (Gen)2. A and B orally agre...

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BUS BUSINE INE INESS SS LAW QUIZ ON PART PARTNERSHIP NERSHIP

1. Which of the following is not correct? a. A- cash (Ltd); B-cash (Gen,); C-service (Gen) b. A –property (Ltd.); B –cash (Gen); C –service (Gen) c. A –service (Ltd.); B –cash (Gen); C –service (Gen) d. A – cash (Ltd.); B –cash (Gen); C –service (Gen) 2. A and B orally agreed to form partnership two years from today, each one to contribute 10,000.00 A arrival of the said. If one refuses to go ahead with the agreement, can the other one enfor ce the agreement? a. yes since the agreement is to be enforced after one year from the making thereof, the same should be in writing to be enforceable b. yes because the prior agreement was voluntarily made c. yes because the contract of partnership is not governed by the Statue of Frauds d. no because the agreement was merely oral 3. If partner is insolvent, the first order of preference in the distribution of his assets is a. partnership creditors b. partnership’s contribution to the partnership c.separate creditors of the debtor d.pro-rata between the separate creditors 4.

The following, except one, are common characteristics of partnership and which is the exception? a. the individuals composing both organizations have little voice in the conduct of the business b. both can acts through agents c.both are business organizations compose of a number of individuals d.both are juridical personalities separate and distinct from that of the members composing it

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5. Which of the following is not a requisite prescribed by law in order that the partnership may be held to a third party for the acts of one of the partners a.the contracts bind the partnership by acquiescence for obligations he may have contracted in good faith b. the partner must have the authority to bind the partnership c. the contract must be in the name in partnership of for its own account d .the partner must act on behalf of the partnership 6. X, Y and Z are partners in Ace & Co. W represented himself as a partner in the said partnership to A, who, on the faith of such representation, granted P1M loan to the partnership. Assuming only X and Y consented to such representation, who shall be liable to A? a. since the partnership benefited from the credit extended by A, all partners X, Y and Z are liable b. only X, Y, and W are partners by estoppel A and are liable pro rata c.since the loan was extended to the partnership; all the partners and W are liable d.only W who made the representation shall be liable 7.A,B and C are general partners in merchandising firm .Having contributed equal amounts to the capital, they also agreed on equal distribution of whatever profit is realized per fiscal period, After two years of operation however , C conveys her whole interest in the partnership to D, without the knowledge of A and B. Is the partnership dissolved? a.the partnership is not dissolved because the conveyance of a partner’s interest in the partnership does not of itself dissolve the partnership b. the partnership is not dissolved because the assignment made by C for his whole interest was without knowledge and consent of A and B c.the partnership was dissolved because the assignee D automatically becomes a new partner and strictly speaking there is a new entity d.it is dissolved because A has ceased to be a partner because of the assignment for his whole interest to D.

8. Based on the preceding facts: a. D can participate in the management of the partnership b. D cannot inspect the books nor copy them for any partner can. c. C has ceased to have the rights to use the partnership property d.C cannot take part in the control of the business anymore

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9. Still based on the same facts: a. If A and B want to dissolve the partnership, C as a partner need not consent thereto because he had assigned his interest to D. b. D may himself ask the court for its dissolution being the assignee of C’s interest in the partnership c. A, B and D may dissolve the partnership even without the consent of D. d .A, B and C cannot dissolve the partnership without the consent of D. 10. Spouses A and B formed a limited partnership to engage in real estate business and A contributed P1M only Is the partnership between the spouses valid? a. the partnership is not valid because spouses cannot enter into a limited partnership b.the partnership is valid because spouses can enter into a partnership, limited or general, universal or particular c.the partnership is not valid because the spouses cannot enter into any kind of partnership for business except conjugal partnership d.the partnership is valid because spouses are prohibited to enter into a universal partnership only 11. A corporation cannot enter into a partnership contract with a natural person but with a juridical person it can. A general partner is always the capitalist in a limited partnership a. both statements are false c. both are true b. first is true, second is false d. first is false, second is true 12.W,X,Y and Z organized a general partnership with W and X as industrial partners and Y and Z as capitalist partners contributed P.5M and Z contributed P.2M to the common fund.By a unanimous vote of the partners , W and X were appointed managing partners , without specification of their duties and powers. A applied as secretary and B applied as accountant of the partnership. The hiring of A was decided upon by W and X but was opposed by Y and Z. Whose decision shall prevail? a. the decision of w and x shall prevail because the hiring is an act of management and as managers they can do so. b. that of x and y because in case of tie in the decision of managing partners, that of the controlling interest shall prevail. c.the decision of y and z because they have controlling interest d.the decision of w and x because it is an act of ownership 13. In the same problem as fore mentioned, suppose the hiring of B was decided upon by W and Z, but was opposed by X and Y, whose decision shall prevail? a. the decision of w and z because w is the managing partner and the hiring is an act of administration b. the decision of x and y because in the case of tie in the decision of managing partners, that of the controlling interest shall prevail c.that of w and z because z is also a capitalist partner d.none of the decision because of the statements of equal rights 14. If a partner is insolvent, the first in the order of preference is: a. partnership creditors b. partners contribution to the partnership c.separate creditors of the partner d.pro rata between the separate creditors and the partnership creditors 15. A, B and C are partners in a partnership. A and B contributed P10, 000.00 each while C contributed his service. After payment of the partnership liabilities to creditors, only 6,000.00 remain. In the absence of stipulation to the contrary the share of C shall be: a. equal to the share of a c. 2,000.00 b. equal to the share of b d. nothing 16. X,Y and Z are partners who contributed equally to the capital of the partnership. A owes the partnership P9, 000.00. Z collected from A 3,000.00 before X and Y could receive anything from A, who later became insolvent and therefore they could not collect their shares a. Partner z shall share the 3,000.00 with his co-partners x and y b. z cannot required to share what he already received from a c. z and y should first exhaust all remedies to collect from a d. x and y can automatically deduct from capital contribution of z in the partnership their respective shares in the 3,000.00

17. A and B are partners in real estate business. The partnership owns a parcel of land which C desires to buy. C contracted A and informed him of his intention to but the said land. A did not tell B such intention of C. A bought B out of the partnership and afterwards sold the land to C at a profit a. the partnership was dissolved when a became the sole owner b.the sale is void because it was without the knowledge of b c. as is not liable to b for share of the profits d. as is liable to b for his share in the profits 18. A, B and C are partners in ABC Company. D represented himself as a partner in the partnership to E, who on the belief of such representation, extended credit of P50, 000.00 to the partnership. Assuming only B and C consented to such presentation, who shall be liable to E? a. all of alb, c and d are liable because of partnership liability for the credit extended to the partnership by e b. b, c and d are partners by estoppel and thus, are liable to e c. partners a, b and c are liable to e for the benefit extended to them d.only d who made the representation is liable to e 19. May contribute money, property or industry to a common fund: a. limited partner c. both limited and general partner b. general partner d. both limited and industrial partner 20. One of the following incidents is a cause for involuntary dissolution of the partnership: a. termination of the definite term of partnership b. insolvency of a partner c.express will of a partner in a partnership at will d.expulsion of a partner of a cause as stated in the articles of part 21.The following are disqualified to form a universal partnership except one: a. brother and sister b. husband and wife c. those guilty of adultery or concubinage d.those guilty of the same offense, if the partnership is entered into consideration of the same 22.A is the capitalist partner and B the industrial one. A engaged personally in the same kind of business as that of the partnership: a. if there are losses, the partnership will bear the losses b. if there are profits , they will be shares by a and the partnership c.if there are profits, shall be given them to the partnership d.a may be excluded from the partnership with the liability for damages 23.Suppose in the same facts as forementioned, B engages in business on his own account but different from that of the partnership a. if there are profits, b and the partnership shall share equally b. if there are losses, b and the partnership shall equally share c.b may be excluded from the partnership but without damages d.b may excluded from the partnership with damages 24.A and B are capitalist partner while C is industrial partner .Both A and B equally contributed P15,000.00 each to the capital. A contractual liability in favor of X was incurred in the amount of P40,000.00. After exhausting partnership assets there is a balance recoverable from a. a and b only b. a,b and c c.a,b, and c and c can get reimbursement from a and b d.a,b and c without reimbursement from a and b in c’s favor 25.In the aforementioned facts, suppose A,B and C agreed that one of them shall not be liable to the creditors, is the management valid? a.the stipulation that one of them shall not be liable to the creditors is voidable at the instances of the creditors b. it shall be void agreement even among the partners because is for common benefit and interest c.it shall be void insofar as the creditors are concerned d.it shall be voidable among the partners themselves

26. A, B and C are partners in a partnership engaged in retail with each contributing P20, 000.00 each. D is admitted as a new partner with an existing contribution of P80, 000.00. At the time of his admission the partnership has a pre-existing obligation to E in the amount of P80, 000.00: a. d is not liable to e for this obligation when was not yet a partner b. d is liable to e up to his assets which were not contributed c. d is liable up to his capital contribution d.d is liable up to his capital contribution in favor of creditors but with the right of reimbursement from a, b and c 27. The partners are liable to the third persons jointly or equally for torts or quasi delict committed by any partner in the conduct of the business or with authority of the partners. For contractual liability, their liability shall be solidary and all partners are liable a. both are false statements c. first is false, second is true b. both are true d. first is true, second is false 28. The partnership shall be bound in the contract entered into by the partner who has no authority provided the third person is in good faith although the act of the partner is not in usual way of business. The partners act although in not usual way of conducting the business shall bind the partnership provided he was authorized by his co-partners. a. both statements are true c. first is true, second is false b. both are false d. first is false, second is true 29. A and B are partners with A as the managing partner. C owes A P10, 000.00 and the partnership P30, 000.00 which are now both due. A issued a receipt for the payment of C in the amount of P10, 000.00 in his own name .The payment shall be applied to: a. This partnership credit totally b. the credit of a only since the receipt in his name c. the payment shall be applied equally to both credits d.the payment shall be applied proportionately to both credits 30. A, B and C are partners who contributed equally to the capital. D, without the knowledge of the death of C contracted with A who also was unaware of the death of C. The liability to D is P90, 000.00 and he can collect after exhausting partnership assets in the amount of P60, 000.00: a. P30, 000.00 from any one of A, B and C b. P15, 000.00 each from A and B c. P10, 000.00 from each of A and B and P100, 000.00 from C’s estate d.the partners are not liable beyond their capital contribution because the partnership was already dissolved at the time of liability 31. This is the order of priority in general partnership liabilities: a. outside creditors, creditor partner, partner’s capital , partner’s profit b. outside creditors, creditor partner, partner’s profit , partner’s capital c. creditor partner, outside creditor , partner’s profit , partner’s capital d. creditor partner, outside creditor, partner’s capital, partner’s profit 32. CP are capitalist partner while IP is industrial partner, who in addition to his services also contributed capital to the partnership. There is no agreement as to the profits and losses. The partnership realized profit in the amount of P21, 000.00. The share of IP as CP in the profits shall be: a. C and P will determine IP’s share in the profits b. IP’s share shall be P7, 000.00 c. Pro-rata to his contributed capital d.Just and equitable under the circumstances 33. In the preceding number, suppose IP is only an industrial partner , shares in the profits shall be: a. just and equitable under the circumstances b. in proportion to the capital contribution of his co-partners c. equal to the least share in the profit of a capitalist partner d.the average share of all the capitalist partners 34. Suppose, instead of profits, the partnership suffered loss in the same amount of P21,000.00, the share of the capitalist partners in the loss shall be: (Same facts in NO. 32) a. in accordance to their profit sharing agreement b. in accordance with their loss sharing agreement c.in proportion to their capital contribution d. equally among them

35. With same facts as in No.32, as a industrial partner, the share of IP in the loss shall be: a. just and equitable under circumstances b. as agreed upon by the partners before the loss was realized c.none, he being an industrial partner d.in proportion to his capital contribution 36. After dissolution, the partners can still enter into new business transactions in the name of the dissolved partnership although not for the purpose of winding up partnership affairs. Insanity of either general or limited partner in a limited partnership shall dissolve the partnership a. both statements are false c. first is false, second is true b. both are true d.first is true, second is false 37. A and B orally entered into a partnership with each of them contributing P3,000.00 each and some personal properties in the amount of P1,000.00 each. The partnership contract is: a. unenforceable because the amount involved exceeds P500.00 b. void because it is not in public instrument c. valid d.void because it is not registered with the SEC 38. A partnership which must be in public instrument to be valid is: a. contribution immovable or real things therein regardless of the value thereof b. contribution is P3,000.00 or more personal property c. general partnership d.particular partnership 39. A universal partnership entered without designation is considered one of profits. A limited partner’s surname cannot appear in the partnership name if it is also the surname of a general partner to prevent misrepresentation to third persons a. both statements are false c. both are true b. first is true, second is false d.first is false, second is true 40. Which of the following statements is not correct? a. a partnership contract is not conveyed by the statue of frauds b. a limited partner shall not be bound by the obligations of the partnership c. a limited partner who takes part in the control of the business shall be liable as a general partner d. a stipulation which excludes a partner from sharing in the profits or loss is void. 41. Which of the following is incorrect: a. an industrial partner who engages in business for himself may be excluded from the firm b. an industrial partner may not engage in business for himself unless there is a contrary stipulation. c. a capitalist partner may engage in the same of business as that of the partnership. d. an offending capitalist partner may not be excluded from the firm. 42. A partner’s interest in the partnership is not assignable unless the other partners consent. An act of strict dominion may be performed by a partner without the consent of his co-partners if it is advantageous to the partnership. a. both statements are false c. first is true, second is false b. both are true d. first is false, second is true 43. The death, insanity, retirement, insolvency or civil interdiction of a limited partner does not dissolve the partnership. In general partnership, the fact that the business can only be carried on at a loss does not result the dissolution of the partnership. a. first statement is false, second is true c. both are true b. first is true, second is false d. both are false 44. A partnership contract begins form the moment of the execution of the contract unless it is otherwise stipulated. Even if a third person is in good faith, the partnership is not bound in contract entered into by a partner after the dissolution of the partnership if the business of the partnership has become unlawful. a. first statement is false, second is true c. both are false b. first is true, second is false d. both are true

45. A universal partnership of present property shall include the profits which the partners may acquire therewith such as properties to be acquired through legacy, donation or inheritance. After the dissolution, the partners may still enter into contracts in the name of the dissolved partnership if for purposes of winding up a. first statement is false, second is true c. both statements are false b. first is true, second is false d. both are true 46. Three of the following are property rights of a partner. Which is not? a. right in specific partnership property b. right to participate in the management c. right to demand formal accounting of partnership affairs d.interest of the partner in the partnership 47. If a person receives a share in the profits of a business he is prima facie presumed to be a partner in the business. In partnership there is agency, co-ownership and co-possession of partnership property a. both statements are true c. first is false, second is true b. both are false d. first is true, second is false 48. If a person share in the gross returns by the use of a property he is deemed to be a partner If co-owners share in the profits derived from the use of the property owned in common, there is partnership. a. both are true c. first is true, second is false b. first is false, second is true d. both are false 49. A person represents himself as a partner when in fact he is not shall be liable as a partner by estoppel even if the third person has knowledge that he is not. A partnership is always created by agreement of the parties ...