HBL MID-TERMS

LAWS ON BUSINESS ORGANIZATION

III – BSA

INSTRUCTIONS:

On a piece of paper write only the Letter. Then explain why it is your answer using the pertinent law or by process of
deduction. Without any explanation the answer shall be considered as incorrect. After answering take a photo of your
answer and send it to me via PM.

1. ABC partnership is in danger of an imminent loss. In order to save the partnership, additional contributions from
the partners is necessary. Which of the following is incorrect?
A. A, a capitalist partner, is required to contribute, otherwise he shall be deemed removed from
the partnership.
B. B, a capitalist partner, is required to contribute, otherwise, he shall be required to sell his interest to the
other partners.
C. C, an industrial partner, is not required to make any contributions, except if there is stipulation to the
contrary.
D. D, a capitalist partner, is not required to make a contribution if there is stipulation to that effect.

2. D owed ABC partnership and A, the managing partner of ABC partnership, P7,000 and P3,000 respectively. A
was able to collect from D, P5,000. Which of the following is incorrect?
A. If A issued a receipt in his name, P3,500 will be applied to the partnership credit.
B. If A issued a receipt in his name, P1,500 will be applied to his credit.
C. If A issued a receipt in ABC Partnership’s name, the whole P5,000 applies to the partnership credit.
D. If A issued a receipt in ABC Partnership’s name, the P3,500 will apply to his credit.

3. A, B, C and D contributed P25,000 each to the partnership. They agreed to divide profits 1:1:2:2 and losses
2:2:1:1 The company earned P30,000 profit for the year. How much would be the share of A?
A. P7,500 C. P10,000
B. P5,000 D. A share which is equitable

4. In relation to this, if the partnership suffered a loss of (P30,000), how much is the share of B?
A. (P7,500) C. (P10,000)
B. (P5,000) D. A share which is equitable

5. In relation to the same situation, assuming there was no profit agreement, how much is the share of C?
A. P7,500 C. P10,000
B. P5,000 D. A share which is equitable

6. Further, in relation to this, if the partnership suffered a loss of (P30,000) and there was no agreement as to
sharing of losses, how much is the share of D?
A. (P7,500) C. (P10,000)
B. (P5,000) D. A share which is equitable

7. ABC is an already existing partnership. It was later on dissolved when D was admitted as a partner. Which of the
following is correct as to the liability of D?
A. D is liable for all debts contracted before and after his admission but only to the extent of his contribution.
B. D is liable for all debts contracted before and after his admission upto his personal properties.
C. D is liable for debts contracted before his admission but only as to his contribution.
D. D is liable for debts contracted after his admission but only as to his contribution.

8. The change in the relations of the partners caused by any partners ceasing to be associated in the carrying on of
the partnership.
A. Dissolution C. Termination
B. Winding up D. Liquidation
9. All of the following are extrajudicial causes of dissolution of the partnership, except:
A. Termination of the definite term of the partnership or its particular undertaking.
B. By express will of a partner whether in violation of the articles of partnership or not.
C. Any event which makes the business unlawful
D. When the partnership can only be carried on at a loss.

10. The following dissolves a partnership extrajudicially, except

A. Death C. Civil interdiction
B. Insolvency D. Insanity