Business Law and Regulations

Quiz: Partnerships 3

1. All present properties are contributed

A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
2. Composed of capitalist and industrial partners
A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
3. Partners shall enjoy practically all the profits:
A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
4. They have no voice in the management of partnership affairs:
A. Managing partners
B. Silent partners
C. Both A and B
D. None of the above
5. They have priority if the partnership is insolvent:
A. Separate creditors
B. Partnership creditors
C. Both A and B
D. None of the above
6. May contribute money, property or industry to the common fund:
A. Both general and limited partners
B. Limited partner
C. General partners
D. Capitalist partners
7. One who takes charge of the winding up to partnership affairs upon dissolution:
A. Silent partner
B. General partner
C. Ostensible partner
D. Liquidating partner
8.
9.
10. A capitalist partner engaged for his own account in an operation which is of the
kind of business in which the partnership is engaged. Said partner can be
A. Compelled to sell his interest in the partnership to the other capitalist
partners.
B. Compelled to dissolve or discontinue the operation of his business
 C. Compelled to bring to the common funds of the partnership any profits
accruing to him from his transactions.
D. Denied his share in the profits of the partnership.
11. If a partner in a partnership is insolvent, the first order of preference in the
distribution of his assets are:
A. Partnership creditors
B. Partners contribution to the partnership
C. Separate creditors of the debtor
D. Pro-rata between the separate creditors of the debtor and the partnership
creditor
12.
13. Partnership as distinguished from corporation
A. Acquires juridical personality upon approval by the SEC and the issuance of
certificate.
B. Has limited liability.
C. Created by operation of law.
D. No power of succession.
14. Essential elements or feature of a partnership, except
A. Must have a lawful object or purpose
B. There must be a contribution of money, property or industry to a common
fund
C. With intention to divide and contribute whatever profits they make to other
people.
D. Must be established for the common benefit or interest of the partners.
15. Partner who contributes money and/ or property, except
A. General
B. Capitalist
C. Industrial
D. Managing
16. Partner who contributes industry or labor
A. General
B. Capitalist
C. Industrial
D. Managing
17. Partner who contributes both capital and industry
A. General
B. Limited
C. Managing
D. Capitalist-industrial
18. Partner who is liable beyond the extent of his contribution
A. General
B. Limited
C. Industrial
D. Silent
19. Partner who is liable only to the extent of his contribution
A. Limited
 B. General
C. Industrial
D. Managing
20. Partner who manages actively the firm's affairs
A. Silent
B. Liquidating
C. Managing
D. Dormant
21. Partner who does not participate in the management though he shares in the
profits or losses.
A. Liquidating
B. Nominal
C. Ostensible
D. Silent
22. Partner who winds up the affairs of the firm after it has been dissolved
A. Liquidating
B. Managing
C. Industrial
D. Capitalist
23. Partner whose connection with the firm is known to the public
A. Ostensible
B. Secret
C. Silent
D. Nominal
24. Partner whose connection with the firm is concealed or kept secret
A. Ostensible
B. Secret
C. Silent
D. Nominal
25. Partner who is both a secret and silent partner
A. Nominal
B. Ostensible
C. Limited
D. Dormant
26. Partner who is not really a partner but who may become liable as such insofar as
third persons are concerned
A. Nominal
B. Ostensible
C. Silent
D. Secret
27. May contribute money, property or industry to the common fund
A. Limited partner
B. General partner
C. Both limited and general partners
D. Dormant partner
28. May be required to make additional contribution in case of imminent loss:
 A. Capitalist partner
B. Limited partner
C. Industrial partner
D. Choices A, B and C
29. A, B and C are partners each contributing P10,000. The firm's indebtedness
amounts to P90,000. It was stipulated that A would be exempted from liability.
Assuming that the capital of P30,000 is still in the firm, which of the following is
not correct?
A. The creditors may get the P30,000 and still collect each P20,000 from A, B
and C.
B. A can recover P10,000 each from B and C should he (A) be required to pay
the creditors.
C. A cannot recover his original capital of P10,000.
D. The creditors can recover P45,000 each from B and C.
30.
31. Using the preceding number, but the obligations were contracted after his
admission, which of the following is correct?
A. He is liable to the creditors before and after his admission up to his separate
property.
B. He is liable to the creditors before and after his admission only up to his
capital contribution.
C. He is liable to the creditors before and after his admission up to his capital
contribution and to the creditors after his admission up to his separate property..
D. He is not liable to creditors existing before his admission.
32. A and B are partners engaged in the real estate business. A learned that C was
interested in buying a certain parcel of land owned by the partnership, even for a
higher price. Without informing B of C's offer A was able to convince B to sell to
him (A) his (B's) share in the partnership. Then A sold the land at a big profit.
Which of the following is correct?
A. A is liable to B for the latter's share in the profit.
B. C is liable to B for the latter's share in the profit.
C. A new partnership is formed between A and C.
D. The sale of the land to C is void since it was without the knowledge of B.
33. When the capital (of a partnership) is P3,000 or more, it must be in a public
instrument and must be recorded with the Securities and Exchange Commission
(Article 1772). A, B and C agreed to form a partnership and each contributed
P10,000 as capital of the partnership. There was no compliance in the provisions
of Article 1772.
A. The partnership was not established
B. The partnership did not have juridical personality
C. The partnership was established and any partner may compel the execution
of a public instrument
D. The partnership is void
34. The following persons are disqualified to form a universal partnership, except
A. Husband and wife
B. Brother and sister
 C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense; if the partnership is entered into in
consideration of the same
35.
36. Three (3) of the following are rights of a partners. Which one is not?
A. Right to associate another person to his share
B. Right to admit another partner
C. Right to inspect and copy partnership book
D. Right to ask dissolution of the firm at the proper time
37. The remedy of capitalist partners against an industrial partner who engaged in a
business for himself without the expressed permission from the partnership is:
A. To compel him to sell his interest to the said capitalist partners.
B. To exclude him from sharing in the profits of the partnership.
C. To remove him as manager if he is appointed as manger of the partnership.
D. To expel him from the partnership and claim for damages
38. A partnership which comprises all the profits that the partners may acquire by
their work or industry during the existence of the partnership is called:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will
39. A partnership whereby the partners contribute to a common fund all the property
actually belonging to them at the time of the constitution of the partnership, with
the intention of dividing the same among themselves, as well as the profits which
they may acquire therewith is:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will
40. A partnership without a definite period of existence and which can be dissolved
at any time by any of the partners is called:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will
41. A, B and C, capitalist partners, each contributed P10,000 and D, the industrial
partner contributed his services. Suppose X, is the creditor of the firm amounting
to P90,000. After getting the P30,000 capital assets of the partnership, which is
correct?
A. X can recover P20,000 each from A, B and C only.
B. X can recover P60,000 from either A, B and C only.
C. X can recover P15,000 each from A, B, C and D.
D. X can recover P15,000 each from A, B and C but D is exempt because he is
an industrial partner.
42. A partner in a partnership who is not really a partner, not being a party to the
partnership agreement, but is made liable as a partner for the protection of
innocent third persons is known as
A. Secret partner
B. Dormant partner
C. Nominal partner or partner by estoppel
D. Answer not given
43.
44. Bears the risk of things contributed to the partnership:
A. General partner
B. Limited partner
C. Partner contributing usufructuary rights over fungible things
D. Partner contributing usufructuary rights over non-fungible things
45. A, B and C are general partners in ABC Partnership. D is a debtor to the
partnership in the amount of P15,000. A received from Debtor D the sum of
P5,000 and issued a receipt identifying the amount as his share. Then D became
insolvent, B and C cannot collect the P10,000.
A. A cannot be compelled to share the P5,000 with B and C
B. B and C can charge the capital of A with their share of the P5,000
C. A can be compelled to share B and C the P5,000
D. B and C automatically sue D to collect the P10,000
46. Instances when a partnership is unlawful, except
A. A partnership formed to furnish apartment houses which would be used or
prostitution
B. A partnership formed for the purpose of acquiring parcels of land
C. A partnership formed for gambling purposes.
D. A partnership formed to create illegal monopolies or combinations in restraint
of trade.
47. A and B orally agreed to form a partnership two years from today, each one to
contribute P1,000. If at the arrival of the period, one refuses to go ahead with the
agreement, can the other enforce the agreement?
A. Yes, because the partnership contract is not governed by the Statute of
Frauds
B. Yes, because the prior agreement was voluntarily made.
C. No, because the agreement was merely oral and executor
D. No, since the agreement is to be enforced after one year from the making
thereof, the same should be in a public instrument to be enforceable.
48.
49. Where all the partners are general partners
A. General partnership
B. Partnership by estoppels
C. Partnership de facto
D. Limited partnership
50. A and B are equal partners in AB Partnership by contributing P50,000 each on
June 1, 2010. On July 1, 2010, the partnership contracted an obligation to pay Z
the amount of P180,000 on August 31, 2010. On August 10, 2010, C was
 admitted as a new partner. C contributed P50,000. How will the obligation be
paid?
A. A P60,000; B P60,000; C P60,000
B. A P90,000; B P90,000; C None
C. A P180,000 or B P180,000 and C P50,000
D. A P65,000; B P65,000; C P50,000
51. Which of the following is a characteristic of partnership as a contract?
A. Formal
B. Innominate
C. Gratuitous
D. Preparatory
52. One who takes active part in the business, but is not known to be a partner by
outside parties is:
A. Silent partner
B. Dormant partner
C. Nominal partner
D. Secret partner
53. Can the partners stipulate that the newly admitted partner shall not be held liable
for the obligations of the partnership arising before his admission? Which of the
following statement is not correct?
A. No, because the newly admitted partner should be deemed to have assumed
all the debts of the partnership upon his voluntary participation in the partnership.
B. No, because newly admitted partner is liable with respect to his capital
contribution which forms part of the partnership
C. No, because the third person are always protected by law.
D. No, because the subject of the stipulation is that the liability of the new
partner should not be satisfied out of the partnership property.
54. When the manner of management has not been agreed upon, who shall mange
the affairs of the partnership?
A. Capitalist partners
B. Industrial partners
C. Capitalist-industrialist partners
D. All of the partners
55. May contribute money, property or industry to the common fund:
A. General partner
B. Industrial partner
C. Limited partner
D. Managing partner
56. A, B and C are partners in ABC Co. D owes the partnership P4,500. A, a partner,
received from D a share of P1,500 ahead of partners B and C, giving D a receipt
for his share only. When B and C were collecting from D, the latter was already
insolvent. Which of the following is correct?
A. Partner A can be required to share the P1,500 with B and C.
B. A cannot be required to share the P1,500 with B and C.
C. B and C should automatically exhaust first all remedies to collect from D.
 D. B and C can automatically deduct from the capital contribution of A in the
partnership, their respective share in the P1,500.
57. A partnership suffered losses in the first year of its operation. A, a capitalist
partner, cannot contribute an additional share to the capital because of
insolvency. Can A be obliged to sell his interest to the other partners on the
ground of such refusal?
A. Yes, A' refusal to contribute additional share reflects his lack of interest in the
continuance of the partnership.
B. No, because there is actually no imminent loss of the business.
C. Yes, provided that A is paid the value of his interest.
D. No, because his refusal is justifiable.
58. Which of the following is considered prima facie evidence of the existence of a
partnership?
A. Where payment of interest on a loan depends on the profit of the business.
B. The receipt by a person of a share in the profits.
C. The sharing of gross returns of a business.
D. Where the parties are established as co-owners of a property.
59. Which of the following is an essential element of partnership?
A. There must be a contribution of money, property, or industry to a common
fund.
B. It must an association for profit with the intention to divide the profits among
themselves.
C. There must be a valid and voluntary agreement.
D. All of the above.
60. A and B are partners. On June 15, 2009 when the total obligation of the
partnership totaled P80,000. C was admitted as new partner. At the time C's
admission, the partnership creditors were M for P50,000 and N for P30,000. After
June 15, the partnership borrowed from O P20,000 and P40,000 from P. On
December 15, 2009, the partnership became insolvent leaving an obligation
totaling P140,000 and partnership assets amounting to P30,000. The creditors
are going after the separate properties of the partners to satisfy their remaining
claims. How are the creditors' claims satisfied?
Answer 1 - M and N can go after the separate properties of A and B but C's
separates properties are not answerable to their claims.
Answer 2 - O and P can go after the separate properties of A, B and C.
A. Both answers are wrong
B. Answer 2 is wrong but answer 1 is correct
C. Both answers are correct
D. Answer 2 is correct but answer 1 is wrong
61. A and B are capitalist partners with C as industrial partner. A and B contributed
P20,000 each to the capital of the partnership. A contractual liability of P50,000
was incurred by the partnership in favor of X. The assets of the partnership had
been exhausted still leaving an unpaid liability of P10,000. X can recover the
amount from:
A. A, B and C and C can recover by way of reimbursement from A and B unless
stipulated otherwise.
 B. A and B only
C. C only
D. A, B and C and C has no right for reimbursement from A and B unless
expressly stipulated.
62. One or more but less than all the partners have no authority to perform the
following acts, except:
A. Do any act which would make it impossible to carry on the ordinary business
of the partnership.
B. Submit a partnership claim or liability to arbitration.
C. Renounce a claim of the partnership.
D. Convey partnership property in the ordinary course of partnership business.
63.
64.
65.
66. I. Partnership with a capital of three thousand pesos or more, in money or
property, shall appear in a public instrument, and recorded at SEC. Failure shall
not affect the liability of a partnership and members thereof to third person.
II. When immovable property is contributed, an inventory of said property is
needed, signed by the parties and attached to the public instrument, otherwise
the contract of partnership is void.
A. True; True
B. False; False
C. True; False
D. False; True
67. I. An industrial partner with the consent of the other partners can engage in
any business for his own account.
II. An industrial partner is not a general partner.
A. True; True
B. True; False
C. False; False
D. False; True
68. I. A general partner not a managing partner can engage in a business
different from the business of the partnership for his own account without the
consent of the other partners.
II. A general partnership can be formed orally.
A. True; True
B. True; False
C. False; False
D. False; True
69. I. In a universal partnership of all present property, the property which belong
to each of the partners at the time of constitution of the partnership becomes a
common fund of all partners and all profits which they may acquire through
inheritance, legacy, or donation cannot be included in such stipulation, except the
fruits thereof.
II. The universal partnership of profits comprises all that the partners may
acquire by industry or work during the existence of the partnership. Movable or
 immovable property which each may possess at the time of the celebration of the
contract shall continue to pertain exclusively to each, only the usufruct passing to
the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
70. I. A partnership must have a lawful object or purpose, and must be
established for the common benefit or interest of the partners.
II. When an unlawful partnership is dissolved by a judicial decree, the profits
and partners' contributions shall be confiscated in favor of the State.
A. True; True
B. False; False
C. True; False
D. False; True