SUMMATIVE TEST

TEST I:

1. True
2. True
3. True
4. True
5. False
6. False
7. True
8. False
9. False (depende kung yung books ni sole proprietor ang ginamit ng partnership, kapag ginamit
false ang sagot, kapag hindi, true)
10. False

Learning Activity

A. 1. Yes, they can. In the Artcile 1767 of the Civil Code of the Philippines, partnership is
defined as "a contract whereby two or more persons bind themselves to contribute
money, property or industry into a common fund with the intention of dividing
profits among themselves". A partnership must have a minimum of 2 person,
however, there is no maximum limit to the number of partners that can be in a
partnership.

2. In terms of flexibility, of action in decision making we can claim that forming, managing, and
running a partnership is often easier. Due to the fact that partners have the exclusive say in how
the firm is operated, they are significantly more flexible in terms of management, as long as all
the partners can agree on the terms of the agreement before the business is formed. On the
other hand, business partners enter into an agreement known as mutual agency, which provides
them the ability to act on behalf of their company. A business agent is a person who has the
authority to act on behalf of a company.

B.
1. False
2. True
3. True
4. True
5. True
6. False
7. True
8. True
9. False
10. True