TEST 16 November 2017, questions PDF

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TEST BANKPARNERSHIP & CORPORATIONFR: DIAZPARTNERSHIP 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 p...

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TEST BANK PARNERSHIP & CORPORATION FR: DIAZ PARTNERSHIP 1. All present properties are contributed A. Universal partnership[ B. General partnership C. Limited partnership D. None of the above 2. Composed of capitalist and industrial partners A. Universal partnership B. General partnership C. Limited partnership D. None of the above 3. Partners shall enjoy practically all the profits: A. Universal partnership[ B. General partnership C. Limited partnership D. None of the above 4. They have no voice in the management of partnership affairs: A. Managing partners B. Silent partners C. Both A and B D. None of the above 5. They have priority if the partnership is insolvent: A. Separate creditors B. Partnership creditors C. Both A and B D. None of the above 6. 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 7. One who takes charge of the winding up to partnership affairs upon dissolution: A. Silent partner B. General partner C. Ostensible partner D. Liquidating partner

8. A, B and C are partners. A contributed his services only; B, P20,000; and C, P10,000.The partnership was liquidated. 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 9. 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. 10. 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. 11. 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 the debtor and the partnership creditor 12. 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 13. 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 14. 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 . 15. 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 be held liable to E? A. E extended the credit to ABC Partnership, so a partnership liability exists, thus, all the partners, A, B and 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 16. 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. 17. 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 18. 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 be held 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. 19. 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 the partnership is entered into a consideration of the same. 20. 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 pay damages. 21. 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 22. 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 23. 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 and the ABC Partnership 24. 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 25. 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 26. 27. 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 28. When cash or property worth P3,000 or more is contributed as capital. The Articles of CoPartnership 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. 29. A, B and C are equal partners in Santos Brothers Partnership. The partnership is indebted to PC for P150,000. 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 at P15,000. 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 the P60,000 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. D. PC and AC shall have priority to the land o A in proportion to their claim of P60,000 and P20,000 respectively 30. A partnership is not dissolved upon the death of a: A. General partner B. Industrial partner C. Limited partner D. General limited partner

31. 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 32. 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. 33. 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 (Article 1772). 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 Article 1772. 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 34. 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 35. This is the order of preference in the liquidation of a partnership: A. 1.Outside creditors 2.Partners with respect to their capital 3.Partners with respect to their profit 4.Partners aside from capital and profit B. 1. Partners with respect to their capital 2.Partners with respect to their profit 3.Partners aside from capital and profit

4. Outside creditors C. 1. Outside creditors 2. Partners aside from capital and profit 3. Partners with respect to their capital 4.Partners with respect to their profit D. 1. Partners aside from capital and profit 2. Outside creditors 3.Partners with respect to their capital 4.Partners with respect to their profit 36. 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 37 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. 38. 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 39. In the ABC Partnership, A and B contributed P20,000 each and C , his services. After paying all the creditors of the partnership, only P18,000 in cash remains. In the absence of terms to the contrary, the share of C is equal to: A. P6,000 B. The share of A C. The share of B D. Nothing 40 . 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 41. W, X, Y and Z formed a partnership. W, X and Y are 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 42. 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 43. 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 of P40,000 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 given 44. A, B and C are partners engaged in a retail business. Their contribution is P20,000 each. D is admitted as a new 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. 45. 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 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. 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 46. 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 47. 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. P20,000 from A and P10,000 from B 48. 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. Partners capital; Outside creditors; Partner as creditors; Partners profit D. Outside creditors; Partner capital; Partners profit; Partners as creditors 49. 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 an industrial partner 50. W, X, Y and Z are partners. They contributed capital as follows: W, P50,000; X, P30,000; Y, P20,000 and Z, is an industrial partner, his services. The partnership’s obligation to outsiders exceed the total net assets by P18,000. Who and by how much will the partners be liable for the payment of the P18,000? WXY Z A. P9,000 P5,400 P3,600 0 B. P4,500 P4,500 P4,500 P4,500 C. P6,000 P6,000 P6,000 P6,000 D. P4,500 P2,700 P1,800 P9,000

51. Which of the following is a characteristic of partnership as a contract? A. Formal B. Innominate C. Gratuitous D. Preparatory 52. One who tak...