Bicol University

College of Business, Economics and Management

MIDTERM EXAMINATIN
!a" on Business rgani#ations
NAME$%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% CUR&E'(R'B!C)$%%%%%%%%% &CRE$ %%%%% E*UI+$%%%%%%%MC*
IN&TRUCTIN$ Encircle the best answer
,- A, B, and C are .artners contri/uting services, 012,222 and 032,222 res.ectively- If t4e 5ust and
e6uita/le s4are of t4e industrial .artner is 7,222, 4o" s4ould t4e 082,222 net assets /e
distri/ution9
a- A: 012,222 B:012,222 C:032,222
b. A- P5,000 B-P25,000 C-P50,000
c- A:0;1,222 B:0,<,222 C:0;1,222
d- A:01<,<<= B:01<,<<= C:01<,<<=
1- ne or more /ut less t4an all t4e .artners 4ave no aut4ority to .erform t4e follo"ing e>ce.t$
a- Renounce a .artners4i. claim
/- &u/mit a .artners4i. claim or lia/ility to ar/itration
c. Convey partnership property in the ordinary course of partnership business
d- Do any act "4ic4 "ould ma?e it im.ossi/le to carry on t4e ordinary /usiness of t4e .artners4i.
;- A limited .artners4i. 4as A, as general .artner, B, as limited .artner, and C, as an industrial .artner
contri/uting 072,222@ 072,222 and services res.ectively- T4e .artners4i. failed and after dis.osing
all its assets to .ay .artners4i. de/ts t4ere still remains a note .aya/le in t4e sum of 0;2,222-
Against "4om can t4e creditor demand .ayment9
a- A:0;2,222 B:02 C:02
/- A:0,7,222 B:0,7,222 C:02
c. A-P15,000 B-P0 C-P15,000
d- A:0,2,222 B:0,2,222 C:0,2,222
3- A4ic4 of t4e follo"ing is not correct9
a- A .artners4i. /egins from t4e moment of t4e e>ecution of t4e contract, unless it is ot4er"ise
sti.ulated-
/- 0ersons "4o are .ro4i/ited from giving eac4 ot4er any donation or advantage cannot enter into
universal .artners4i.-
c- A .articular .artners4i. 4as for its o/5ects determinate t4ings, t4eir use or fruits, or a s.eciBc
underta?ing or t4e e>ercise of a .rofession or vocation-
d- Articles of universal partnership entered into without specication of its nature, only
constitute a universal partnership of all present property-
7- T4e follo"ing are t4e rules in case a managing .artner collects a demanda/le de/t from a .erson
"4o also o"es t4e .artners4i. a demanda/le de/t, e>ce.t
a. !he su" collected shall be applied to the partnership credit
/- It s4all /e a..lied to t4e t"o credits in .ro.ortion to t4eir amounts
c- T4e sum s4all /e fully a..lied to t4e .artners4i. credit, if t4e recei.t given is for t4e account of
t4e .artners4i.
d- T4e de/tor 4as t4e rig4t to 4ave t4e .ayment a..lied in 4is de/t to t4e .artner if it s4ould /e
more onerous to 4im
<- A, B, C and D are .artners- T4eir contri/utions are as follo"s$ A:072,222@ B:0;2,222@ C: 012,222@
and D:services- T4e .artners4i. incurred o/ligations to t4ird .ersons, "4ic4 t4e Brm "as una/le to
.ay- After e>4austing all t4e assets of t4e .artners4i., t4ere is still an un.aid /alance of 0,2,222-
Co" muc4 s4ould eac4 .artner .ay to t4e creditors9
a- A:07,222 B:0;,222 C:01,222 D:02
b. A-P2,500 B-P2,500 C-P2,500 #-P2,500
c- A:03,222 B:0;,222 C:01,222 D:0,,722
d- A:03,222 B:03,222 C:01,222 D:02
=- &tatement No- , : Duridical .ersonality of .artners4i. /egins on t4e date of t4e e>ecution of t4e
articles of .artners4i. unless a s.eciBc date is agreed for its e>istence-
&tatement No- 1 E Duridical e>istence of cor.oration commences on t4e date of t4e e>ecution of
t4e articles of incor.oration unless a s.eciBc date is agreed for its e>istence-
a. &tatement No- , and &tatement No- 1 are /ot4 correct-
b. $tate"ent %o.1 and $tate"ent %o. 2 are both wron&.
c. &tatement No-, is correct "4ile &tatement No- 1 is "rong-
d. &tatement No- , is "rong "4ile &tatement No- 1 is correct-
8- BNU&
F- X o"es ABC 0artners4i. 0F,222-22- T4e .artners are com.osed of A, B and C- X gave to A 0;,222 as
4is s4are of t4e credit- A issued a recei.t of 4is s4are to X- Ge" days t4ereafter, X /ecame insolvent-
Co" s4ould t4e 0;,222-22 /e distri/uted, if it can /e done9
a- A:0;,222, B:2 H C:2 c. A-P1,000, B-P1,000 ' C-
P1,000
/- A:01,222, B:0,,222 H C:2 d- A:2, B:0,,722 H C:0,,722
,2- A contri/uted to AB 0artners4i. t4e usufruct of 4is car for t4e BrmIs /usiness of car rental- B, a
.artner, drove t4e car from t4e air.ort fetc4ing a client /ut met an accident in t4e Marcelo B-
Gernan /ridge totally destroying t4e car- T4e client sustained in5uries re6uiring .ayment of damages
of 0,22,222- A4o s4ould /ear t4e loss of t4e car9
a. A /- AB 0artners4i. c- B d- client
,,- In .ro/lem no- 1;, su..osing t4e car "as t4e one contri/uted /y A as 4is ca.ital contri/ution "4o
s4ould /e lia/le for damages of t4e client9
a- A alone b. AB Partnership alone c- B alone d- A, B H AB 0artners4i. solidarily
,1- X, (, and J are .artners in Ace H Co- A re.resented 4imself as a .artner in t4e said .artners4i. to
A, "4o, on t4e fait4 of suc4 re.resentation, granted 0,M loan to t4e .artners4i.- Assuming only X
and ( consented to suc4 re.resentation, "4o s4all /e lia/le to A9
a. &ince t4e .artners4i. /eneBted from t4e credit e>tended /y A, all .artners X, (, and #
b. (nly ),*, and + are partners by estoppel and are liable pro rata
c. &ince t4e loan "as e>tended to t4e .artners4i., all t4e .artners and A are lia/le
d. nly A "4o made t4e re.resentation s4all /e lia/le
,;- A, B, and C are general .artners in a merc4andising Brm- Caving contri/uted e6ual amounts to t4e
ca.ital, t4ey also agreed on e6ual distri/ution of "4atever .roBt is reali#ed .er Bscal .eriod- After 1
years of o.eration 4o"ever, C conveys 4er "4ole interest in t4e .artners4i. to D, "it4out
?no"ledge and consent of A and B- Is t4e .artners4i. dissolved9
a. %o because the conveyance of a partner,s interest in the partnership does not in
itself dissolve the partnership
b. No /ecause t4e assignment made /y C of 4is "4ole interest "as "it4out t4e ?no"ledge and
consent of A and B
c. (es /ecause t4e assignee automatically /ecomes a ne" .artner and strictly s.ea?ing t4ere
is a ne" entity
d. (es /ecause A 4as ceased to /e a .artner due to t4e assignment of 4is "4ole interest to D
,3- Based on t4e .receding facts, "4ic4 of t4e follo"ing statements is correct9
a. D can .artici.ate in t4e management of t4e .artners4i.
b. # cannot inspect the boo-s nor copy the" for any infor"ation on the partnership
a.airs as a partner can.
c. C 4as ceased to 4ave t4e rig4ts to use t4e .artners4i. .ro.erty
d. C cannot ta?e .art in t4e control of t4e /usiness anymore
,7- Based on t4e facts of Item No- ,;, "4ic4 of t4e follo"ing statements is correct9
a. /f A and B want to dissolve the partnership, C as a partner need not consent
thereto because he has assi&ned his interest to #
b. D may 4imself as? t4e court for its dissolution /eing an assignee of CIs interest in t4e
.artners4i.
c. A,B and D may dissolve t4e .artners4i. even "it4out t4e consent of C
d. A, B, and C cannot dissolve t4e .artners4i. "it4out t4e consent of D
,<- ne of t4e follo"ing incidents is a cause of involuntary dissolution of t4e .artners4i.
a. termination of t4e deBnite term of a .artners4i.
b. insolvency of partner
c. e>.ress "ill of a .artner in a .artners4i. at "ill
d. e>.ulsion of a .artner for cause stated in t4e articles of .artners4i.
,=- A, X, ( and J organi#ed a general .artners4i. "it4 X and A as industrial .artners and ( and J as
ca.italist .artners- ( contri/uted 02-7M "4ile J contri/uted 02-1M to t4e common fund- By a
unanimous vote of t4e .artners, A and X "ere a..ointed managing .artners, "it4out s.eciBcations
of t4eir .o"ers and duties- A a..lied for secretary and B a..lied as accountant of t4e .artners4i.-
T4e 4iring of A "as decided u.on /y A and X /ut "as o..osed /y ( and J- A4ose decision s4ould
.revail9
a. ) and +,s decision. !he hirin& was an act of "ana&e"ent and as "ana&ers they
can do so
b. ( and JIs decision- T4ey are t4e ca.italist .artners-
c. ( and JIs decision- T4ey t4e controlling interest
d. A and XIs decision- It "as an act of o"ners4i.
,8- Based on t4e .receding facts, su..ose t4e 4iring "as decided u.on /y A and J, /ut o..osed /y X
and (- A4ose decision s4ould .revail9
a. T4e decision of A and J /ecause A is managing .artner and t4e 4iring is an act of
administration
b. !he decision of ) and * because in case of tie in decision of "ana&in& partners,
that of the controllin& interest shall prevail
c. T4at of A and J /ecause J is also a ca.italist .artner
d. None /ecause all 4ave e6ual rig4ts
,F- If a .artner is insolvent, t4e Brst in t4e order of .reference is
a. .artners4i. creditors
b. .artnerIs contri/ution to t4e .artners4i.
c. separate creditors of the partners
d. .ro rata /et"een t4e se.arate creditors and t4e .artners4i.s creditors
12- A is o"ner of a de.artment store in Manila valued at 0,2M and B is t4e o"ner of anot4er
de.artment store in Ma?ati valued at 0 12M- A and B agreed t4at t4ey "ill s4are in t4e .roBts of
/ot4 /usinesses- Due to /usiness reverses, B is no" inde/ted to Ban? of de ro for 072,222-22 and
cannot .ay due to insolvency- A4ic4 of t4e follo"ing statements is correct9
a. (nly B is liable to the ban- because there is no partnership between hi" and A
b. T4e fact t4at A and B s4are t4eir .roBts s4o" t4at .artners4i. e>ists
c. Ban? of de ro s4all Brst e>4aust all t4e assets of A and B, if not enoug4, 4old t4em lia/le
for t4e /alance of t4e de/t
d. T4e /an? can 4old A and B solidarily lia/le
1,- X, (, and J are .artners "4ere X "as a..ointed manager "it4 aut4ority to collect- D is inde/ted to
X(J .artners4i. in t4e amount of 0,22,222 "4ic4 is already due and demanda/le and is also
inde/ted to X .ersonally and li?e"ise due and demanda/le in t4e amount of 072,222- X collected
from D 037,222- A4ic4 of t4e follo"ing is not a correct statement9
a. If X gave a recei.t in 4is o"n name, 4e is /ound to give X(J .artners4i. a .ro.ortionate
"4ic4 is 0;2,222
b. If X gave a recei.t in t4e name of .artners4i. 4e 4as to give t4e 037,222 to X(J .artners4i.
c. /f ),s credit to # carries an interest of 101 and )*2 partnership,s credit to # has
an interest of 131 only, when ) collects fro" # 35,000 and &ives a eceipt in his
own na"e he also has to share the collection with the partnership in proportion
d. None of t4e a/ove
11- A, B, and C are .artners in an im.ort and e>.ort /usiness "4ere customers desiring to .lace an
order are re6uired to ma?e a de.osit of ;2K to t4e .artners4i.- T, a regular customer de.osited
0;22,222 to .artner A "4o instead of turning over t4e money to ABC .artners4i., misa..ro.riated
it to 4is o"n use, In t4is case$
a. T s4ould sue A only for misa..ro.riating t4e amount of 0;22,222
b. ! can sue A or B or C or the partnership ABC solidarily for the a"ount of P
400,000
c. T can only sue t4e .artners A, B, and C 5ointly
d. Correct remedy not indicated
1;- A ca.italist .artner engaged for 4is o"n account in an o.eration "4ic4 is of t4e ?ind of /usiness in
"4ic4 t4e .artners4i. is engaged- &aid .artner can /e$
a. Com.elled to sell 4is interest in t4e interest to anot4er ca.italist .artners
b. Com.elled to dissolve or discontinue t4e o.eration of t4e its /usiness
c. Co"pelled to brin& to co""on funds of the partnership any prot accruin& to hi"
fro" his transactions
d. Denied 4is s4ares in t4e .roBts of t4e .artners4i.
13- A4ic4 of t4e follo"ing statements is incorrect9
a. An industrial .artner "4o engaged in /usiness for 4imself may /e e>cluded from t4e
.artners4i.
b. An industrial .artner may not engage in /usiness for 4imself "it4out t4e consent of 4is co:
.artner
c. A capitalist partner "ay en&a&e in the sa"e line of business in which the
partnership is en&a&ed
d. An oLending ca.italist .artner may not /e e>cluded from t4e .artners4i.
17- A .artners4i. t4at 4as for its o/5ect determinate t4ings, t4eir use o fruits, or s.eciBc underta?ing, or
t4e e>ercise of .rofession or vocation is called$
a. .articular /- general c- limited d- universal
1<- Can t4e .artners sti.ulate t4at t4e ne"ly admitted .artner s4all not /e 4eld lia/le for t4e
o/ligations of t4e .artners4i. /efore 4is admission9 A4ic4 of t4e follo"ing ans"ers is not correct9
a. No, /ecause ;
rd
.ersons are al"ays .rotected /y la"
b. No, /ecause t4e ne"ly admitted .artner s4ould / deemed to 4ave assumed all t4e de/ts of
t4e .artners4i. u.on 4is voluntary .artici.ation in t4e .artners4i.
c. %o because the sub5ect of the stipulation is that the liability of the new partner
should not be satised out of the partnership property
d. No /ecause t4e ne"ly admitted .artner is lia/le "it4 res.ect to 4is ca.ital contri/ution
"4ic4 forms .art of t4e .artners4i.
1=- B and ( orally agreed to form a .artners4i.- Eac4 contri/uted cas4 and .ro.erties "ort4 0 ,2,222 to
common fund /ut t4ey failed to register t4e .artners4i. "it4 &EC- A4at is t4e status of t4e
.artners4i.
a. valid /- void c- voida/le D- unenforcea/le
18- A .artners4i. must /e in .u/lic instrument to /e valid is "4en
a. there is contribution of i""ovable or real ri&hts re&ardless of the value thereof
b. contri/ution is 0 ;,222 or more and itIs a .ersonal .ro.erty
c. limited .artners4i.
d. .articular .artners4i.
1F- A4en t4e manner of .artners4i. "as not agreed u.on, all .artners s4all /e considered as$
a. manager b. a&entsc- administrators d- co:o"ners
;2- 0artners4i. /egins u.on
a. a- delivery of contri/utions /- issuance of certiBcate from &EC c. consent d-
notari#ation
E&&A(- Answer in a concise, logical and legible manner.
,- &tate t4e rules in t4e distri/ution of .roBts and losses
1- &,U0ER Enter.rises "4ose /usiness is car .ainting and re.airs- All .artners
are ca.italist .artners "it4 & as managing .artner- After 7 years of o.eration, R
resigned from t4e .artners4i.- Alt4oug4 & "as a"are of t4e resignation of R, 4e still
/oug4t 72 gallons of car .aint from M "4o 4ave /een dealing "it4 &U0ER for t4e .ast
7 years and car s.are .arts from D "4o "as transacting "it4 &U0ER for t4e Brst time-
T4e dissolution "as .u/lis4ed in 04ili..ine &tar /ut neit4er M nor D read it- M and D are
also not a"are of t4e resignation of R- A4o s4ould /e lia/le to M and D9 E>.lain-
;- +incent and Dames entered into a universal .artners4i. of .roBts- At t4e
time of e>ecution of t4e articles of .artners4i., +ince 4ad a 1:door a.artment "4ic4
4e in4erited from 4is mot4er ; years earlier- Dames on t4e ot4er 4and, 4ad a Meet of
ta>is "4ic4 4e .urc4ased ; years ago- In t4e Brst year of .artners4i. +incent earned
0,M as commercial model "4ile Dames "on t4e &"ee.sta?es- During t4e same .eriod,
rentals of 0132,222 "ere collected from t4e a.artment "4ile revenues of 0322,222
"ere earned from t4e o.eration of t4e Meet of ta>is- Identify t4e .ro.erty is
considered as .artners4i. assets- E>.lain-
3- 0artners4i. XJ "as dissolved- X .romised to sign t4e last and Bnal
statement of accounts as soon as 4e receives 4is s4are as s4o"n in said statement- X
acce.ted suc4 s4are "it4out reservation /ut "4en t4e statement "as latter on given
for signing 4e refused demanding furt4er li6uidation- I& X still entitled to li6uidation9
E>.lain-
7- After o.erating for sometime a limited .artners4i., X and Co, com.osed of
A, B, and C, as general .artners, "4o contri/uted ;2,222 eac4, and D and E as limited
.artners "4o contri/uted 012,222 eac4, 4as a total assets of0 ,72,222 and t4e
follo"ing lia/ilities$
a- Gor return of contri/utions of limited .artners D and E 0
32,222
/- Due to t4ird .arty credits 72,222
c- Gor loan e>tended /y C 17,222
d- Gor loan e>tended /y D ;7,222
e- Gor ta>es ,7,222
f- Gor indemnity to B for damages suLered in conse6uence of management
7,222
In case X and Co-, "ill /e dissolved 4o" s4ould t4e assets /e distri/uted- Dustify-
<- M entered into a contract "it4 T for t4e renovation of t4e latterIs /uilding
and on /e4alf of t4e .artners4i. of NO and MP- M received t4e Brst .ayment of T "it4 a
c4ec? made out in 4is QMIsR name- M indorsed t4e c4ec? in favor of O so t4at t4e latter
could .ay for t4e materials and la/or used in t4e .ro5ect- O "as a/le to encas4 t4e
second c4ec? after T c4anged t4e name of t4e .ayee from NMP to NO and M,P t4e duly
registered name of t4e .artners4i.- O misa..ro.riated t4e funds- C and D su..lied
materials on credit to t4e .artners4i.- &tate t4e lia/ilities of M, O, and NO and MP-