PARTNERSHIP AND CORPORATION

CORPORATION ACCOUNTING
Name: TIAMZON, GENEROSO JR.G Score:
Course: BSBA III Date:

True or False

Unlimited liability holds a sole !o!ieto! e!sonally !esonsible!esonsible "o! all the
 T 1.
debts o" the b#siness.
In a limited a!tne!shi, a limited a!tne!&s name m#st be in'l#ded in the
$ %.
a!tne!shi&s
a!tne!shi&s name.
$ (. E)e!
E)e!yy a!t
a!tne
ne!s!shi
hi m#st
m#st ha)e
ha)e at leas
leastt one
one limi
limite
tedd a!t
a!tnene!!.
A a!tne! +ho in)ests assets into a a!tne!shi !etains !etains 'ont!ol o)e! those
$ *.
se'i' assets.
A a!tne
a!tne!s
!shi
hi in)ol)
in)ol)eses m#t#al
m#t#al aen'
aen'y, y, #nlim
#nlimite
itedd liabil
liability
ity "o! ene!a
ene!all
 T -.
a!tne!s and limited li"e.
A a!tne
a!tne!&s
!&s 'aita
'aitall a''o#n
a''o#ntt is debite
debited d to !e0e'
!e0e'tt assets
assets e!man
e!manentently
ly
 T /.
+ithd!a+n.
A a!tne!shi +ith 'aital o" less than 2(,333 is )oid i" it is #n!eiste!ed
$ 
+ith the Se'#!ities and E4'hane 5ommission.
 T 6. A a!tne!shi
a!tne!shi 'annot be established
established "o!
"o! !eliio#s
!eliio#s #!oses.
#!oses.
A a!tne!shi has a 8#!idi'al e!sonality sea!ate and distin't "!om that o" 
 T 7.
ea'h o" the a!tne!s.
9hen the a!tne!shi 'aital is 2(,333 o! mo!e, the #bli' inst!#ment
 T 13.
m#st be !e'o!ded +ith the Se'#!ities and E4'hane 5ommission.
Unde! the a!tne!shi "o!m o" b#siness, la!e amo#nts o" 'aital 'an be
$ 11.
!aised easily.
easily.
All
All a!t
a!tne
ne!s!shi
his
s ha)e
ha)e limi
limite
ted
d li"e
li"e and
and asseassets
ts a!ea!e 'o:o+
'o:o+ne ned d by the
the
 T 1%.
a!tne!s.
A do!mant a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi
 T 1(.
b#siness and is not ;no+n as a a!tne!.
 T 1*. A a!tne!shi
a!tne!shi is a leal entity sea!ate and aa!t "!om "!om its o+ne!s.
o+ne!s.
In a limited a!tne!shi, the ene!al a!tne!&s liability is limited to his
$ 1-.
in)estment.
A a!tne! #s#ally !etains title to assets 'ont!ib#ted to a a!tne!shi, so
$ 1/.
that 'e!tain assets maybe identied as belonin to a i)en a!tne!.
In a limited a!tne!shi, none o" the a!tne!s has #nlimited liability "o! the
$ 1.
b#siness debts.
 The!e 'an ne)e! be a a!tne!shi
a!tne!shi +itho#t 'ont!ib#tion
'ont!ib#tion o" money, !oe!ty
 T 16.
o! ind#st!y to a 'ommon "#nd.
 The essen'e o" a!tne!shi is that ea'h a!tne! m#st sha!e in the !ots
 T 17.
o! losses o" the )ent#!e.
$ %3..
%3 A a!t
a!tne
ne!s
!shi
hi sho#
sho#ld ld al+a
al+aysys be 'ons
'onsti
tit#
t#te
ted
d in +!it
+!itinin.
.
One o" the a!tne!s in a !oosed a!tne!shi is a m#lti:millionai!e. The
 T %1. sti#lation in the a!ti'les o" a!tne!shi that this a!tne! shall be e4'l#ded
"!om sha!in in the !ots o" the a!tne!shi is )oid
9hen the a!tne!s in)est assets othe! than 'ash in a a!tne!shi, thei!
$ %%. 'aital a''o#nts sho#ld be '!edited +ith the '#!!ent "ai! ma!;et )al#es o" 
the assets.
 T %(. Ea'h a!tne! is e!sonally
e!sonally liable "o! all debts o" the a!tne!shi.
a!tne!shi.
All a!tne!s in a ene!al a!tne!shi a!e e!sonally liable "o! all debts
 T %*.
in'#!!ed by the a!tne!shi.
As lon as the a'tion +ithin the s'oe o" the a!tne!shi,
a!tne!shi, any a!tne! 'an
 T %-.
bind the a!tne!shi.
$ %/..
%/ One
One o" the
the a!
a!tn
tne!
e!ss in a !
!oos
oosed
ed a!
a!tn
tne!
e!sh
shi
i is
is a m#lt
m#lti: i:mi
mill
llio
iona
nai!
i!e.
e. The
The
sti#lation in the a!ti'les o" a!tne!shi that this a!tne! shall be e4'l#ded
 "!om sha!in in the !ots o" the a!tne!shi is )alid.
A a!tne!shi +ith a 'aital o" 2(,333 o! mo!e is )alid e)en i" it is
 T %.
#n!eiste!ed +ith the Se'#!ities and E4'hane 5ommission.
9hen a a!tne! in)ests assets in a a!tne!shi, the assets a!e !e'o!ded at
$ %6.
the a!tne!&s boo; )al#e.
$ %7. <a!tne!s& d!a+in a''o#nts ha)e no!mal '!edit balan'es.
 The a!tne!&s 'aital a''o#nt is debited "o! additional in)estments and
$ (3.
'!edited "o! his sha!e in !ot
A limited a!tne!shi no!mally has one o! mo!e ene!al a!tne!s +hose
 T (1.
liability is #nlimited.
An ad)antae o" the a!tne!shi "o!m o" b#siness is that ea'h a!tne!&s
$ (%.
otential loss is limited to that a!tne!&s in)estment in the a!tne!shi.
 The basis o" )al#ation "o! non:'ash in)estments sho#ld be "ai! ma!;et
$ ((.
)al#e.
A silent a!tne! ta;es a'ti)e a!t in the b#siness o" the a!tne!shi and is
$ (*.
not ;no+n by o#tside!s to be a a!tne!.
$ (-. A a!tne!shi may be established "o! 'ha!ity.
 T (/. A limited a!tne!shi m#st ha)e at least one ene!al a!tne!.
 The basis o" )al#ation "o! non:'ash in)estments sho#ld be at )al#es
 T (.
a!eed #on by the a!tne!s.
A a!tne! by estoels is one +ho is a't#ally not a a!tne! b#t +ho
 T (6.
!e!esents himsel" as one.
$ (7. All a!tne!shis a!e s#b8e't to ta4 at the !ate o" (3= o" ta4able in'ome.
 The limited a!tne!s a!e liable only to the e4tent o" thei! e!sonal
 T *3.
'ont!ib#tions.
 T+o o! mo!e e!sons may "o!m a a!tne!shi "o! the e4e!'ise o" a
 T *1.
!o"ession.
A de 8#!e a!tne!shi is one +hi'h has 'omlied +ith all the leal
 T *%.
!e>#i!ements "o! its establishment.
9o!; o! se!)i'es that may eithe! be e!sonal man#al e?o!ts o!
 T *(.
intelle't#al may also be 'ont!ib#ted to a a!tne!shi.
 T **. A a!tne!shi and a 'o!o!ation 'annot "o!m a a!tne!shi.
$ *-. Ban;!#t'y o" a a!tne! +ill dissol)e the a!tne!shi.
$ */. O+ne!shi is easily t!ans"e!!ed in a a!tne!shi.
$ *. A a!tne!shi m#st al+ays ha)e at least t+o o+ne!s.
Not all o" the a!tne!s in a ene!al a!tne!shi a!e e!sonally liable "o! all
$ *6.
debts in'#!!ed by the a!tne!shi.
A !o!ieto!shi has a limited li"e +he!eas as a!tne!shi may ha)e an
$ *7.
#nlimited a li"e.
One ad)antae o" a a!tne!shi o)e! a 'o!o!ate "o!m o" o!ani@ation is
$ -3.
the #nlimited liability o" a!tne!s.
Assets in)ested in the a!tne!shi sho#ld be !e'o!ded at thei! 'ost to the
$ -1.
a!tne!.
A se'!et a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi
$ -%.
b#siness and is not ;no+n as a a!tne!.
In a 'ont!a't o" a!tne!shi, t+o o! mo!e e!sons bind themsel)es to
 T -(. 'ont!ib#te money, !oe!ty o! ind#st!y to a 'ommon "#nd, +ith the
intention o" di)idin the !ot amon themsel)es.
Ea'h a!tne! has a 'aital a''o#nt and a d!a+in a''o#nt. These
$ -*. a''o#nts a!e #sed in a slihtly di?e!ent +ay 'oma!ed to those in a sole
!o!ieto!shi.
 T --. A a!tne!shi is '!eated by me!e a!eement o" the a!tne!s.
Ad8#stments !io! to "o!mation may be omitted sin'e these +ill not a?e't
$ -/.
the a!tne!s& 'aital '!edits.
A do!mant a!tne! is one +ho does not ta;e a'ti)e a!t in the a!tne!shi
$ -.
b#siness tho#h may be ;no+n as a a!tne!.
 In a ene!al a!tne!shi, ea'h a!tne!&s liability "o! losses is limited to his
$ -6.
in)estment in the !m.
A a!tne!shi has a limited li"e be'a#se any 'hane in the !elationshi o" 
 T -7.
the a!tne!s dissol)es the a!tne!shi.
 The a!tne!&s 'aital a''o#nt is debited "o! the debit balan'e o" the
 T /3.
d!a+in a''o#nt at the end o" the e!iod.
A a!tne!shi a!eement sho#ld in'l#de the !o'ed#!e "o! endin the
 T /1.
b#siness.
A disad)antae o" a!tne!shis o)e! 'o!o!ations is the a!tne!s&
$ /%.
#nlimited liability.
$ /(. The!e is no in'ome ta4 imosed on a a!tne!shi.
 T /*. A a!tne!shi m#st al+ays ha)e t+o o! mo!e o+ne!s.
iabilities !elated to assets in)ested in a a!tne!shi by a ne+ a!tne!
$ /-.
'annot be t!ans"e!!ed to the a!tne!shi.
A''o#ntin "o! a a!tne!shi 'omes 'lose! to a''o#ntin "o! a sole
 T //.
!o!ieto!shi than to a''o#ntin "o! a 'o!o!ation.
 The manne! in +hi'h !ots a!e to e sha!ed sho#ld be se'ied in the
 T /.
a!ti'les o" a!tne!shi.
A #bli' inst!#ment needs to be e4e'#ted +hen immo)able !oe!ty o!
 T /6.
!eal !ihts a!e 'ont!ib#ted to the a!tne!shi.
M#t#al aen'y means that ea'h a!tne! has the !iht to bind the
 T /7.
a!tne!shi to 'ont!a'ts.
A a!tne!shi +ith a 'aital o" less than <(,333 is )alid e)en i" it is
 T 3.
#n!eiste!ed +ith the Se'#!ities and E4'hane 5ommission.