PARTNERSHIP QUESTIONNAIRES NO.

29-32

29. Three of the following will cause the automatic dissolution of a general partnership.
Which one will not?

a. When any event makes it unlawful for the business of the partnership to be carried on
or for the members to carry it on in partnership.

b. expulsion of any partner from the business bona fide in accordance with such a
power conferred by the agreement between the partners

c. a partner becomes in any way incapable of performing his part of the partnership
contract

d. the insolvency of a partner or of the partnership

ANSWER: C. a partner becomes in any way incapable of performing his part of

the partnership contract

30. When is the partnership not bound by the act/s of a partner after dissolution in the
following cases?

a. Acts necessary to wind up partnership affairs

b. acts to complete transactions begun before dissolution

c. new transactions where the third person is a previous creditor and there was a
publication of the dissolution in a newspaper of general circulation in the place or places
where the business had been carried on but such third person has not read it.

d. new transactions where the third person is new creditor and there was publication of
the dissolution in a newspaper of general circulation in the place or places where the
business had been carried on but such creditor has not read it.

ANSWER: D. new transactions where the third person is new creditor and there
was publication of the dissolution in a newspaper of general circulation in the
place or places where the business had been carried on but such creditor has not
read it.

31. The partnership is not bound in three of the following acts of a partner after
dissolution. However, it is bound in one. Which is it?
a. where the partner acting is insolvent

b. when it is unlawful to carry on the business

c. when the partner has no authority to wind up partnership affairs and the third person
is a previous creditor who had no knowledge of the partner’s lack of authority

d. when a partner has no authority to wind up partnership affairs and the third person is
a new creditor who has not read the publication of the lack of authority of the partner in
a newspaper of general circulation in the place or places where the partnership
business is carried on.

ANSWER: C. when the partner has no authority to wind up partnership affairs and
the third person is a previous creditor who had no knowledge of the partner’s
lack of authority

32. What is the order of payment of liabilities of dissolved general partnership using the
code number of representing each liability?

I. Those owing to partners other than for capital or profits

II. Those owing to creditors other than partners

III. Those owing to partners in respect of profits

IV. Those owing to partners in respect of capital

a. I, II, III, IV
b. II, I, IV, III
c. II, I, III, IV
d. I, II, IV, III

ANSWER: B. II, I, IV, III