1. A, B and C are partners in a partnership. A and B contributed P10,000.

00 each while
C contributed his service. After payment of the partnership liabilities to creditors, only
P6,000.00 remains. In the absence of stipulation to the contrary, the share of C shall
be:

2. Which of the following will not qualify as incorporate in a corporation-

Response: A minor

3. Spouses A and B formed a limited partnership to engage in real estate business and
A contributed P1M only. Is the partnership between the spouses valid?
Response: The partnership is not valid because spouses cannot enter into a limited
partnership.
The partnership is valid because spouses are prohibited to enter into a universal
partnership only.

4. Which of the following statements pertaining to non-stock corporations is incorrect?

Response: Any incidental income that it may earn may be distributed as dividends to
its members

5. On November 1, 20X0. A, B and C executed a contract of partnership whereby A,B

and C as partners will contribute P100,000.00 cash, a land and a car on March 1,
20X1. It was agreed in the contract of partnership that the juridical personality of the
partnership shall commence on December 1, 20X0. When shall the juridical entity or
personality of the partnership begin?
Response: December 1, 20X0

6. A decree by the court is necessary to dissolve a general partnership based on three

of the following grounds. Which one will not require such decree but will cause the
automatic dissolution of the partnership?
Response: A partner is civilly interdicted

7. Which of the following shall be used first in the settlement of partnership liabilities?
Response: Partnership property.

8. An admission or representation made by any partner concerning partnership affairs

within the scope of authority is evidence against the partnership. The following are
the requisites in order for an admission or representation of a partner may be used
as evidence against the partnership, except:
Response: The admission must be in a public instrument.
 9. Samar, Leyte and Tacloban agreed to form a limited partnership with Samar and
Leyte as general partners contributing P50,000.00 each, and Tacloban as limited
partner contributing P100,000.00. The partnership which is to engage to the trading
of garments as indicated in the certificate signed and sworn to by the partners before
a notary public. However, the certificate was not filed with the Securities and
Exchange Commission. In the meantime, the partners already began operating the
business and transacting with third persons.
Response: The partnership will be considered a general partnership. Accordingly, all
partners will be liable with their separate property after the exhaustion of partnership
assets.

11. This is the order of priority in general partnership liabilities:

Response: Outside creditors, Creditor partner, Partner’s capital, Partner’s profit.

12. Which of the following statements pertaining to no-par shares is incorrect?

Response: Subscriptions to no-par shares in excess of the issued price shall be
available for distribution as stock dividends

13. The right of a corporation to exist as juridical person, during its term as stated in the
articles of incorporation despite the death of any of its stockholders is-
Response: Right of succession

14. Cesar Corporation is a foreign corporation that wants to operate a representative office
here in the Philippines. As required by the Corporation Code, there is a need to appoint a
resident agent as a condition precedent to the issuance of a license to transact business in
the Philippines. After 2 years, Cesar Corporation removed its resident agent and did not
appoint anyone anymore. Which statement is the most accurate?
Response: This can be ground for revocation or suspension of its license to do
business

15. Assuming that no fraud is committed by or consented to by the partner concerned,

which of the following statements is false?
Response: Knowledge of partner not acting on the particular matter obtained by him
before he became a partner is knowledge of the partnership.

16. SLTOP Company, a partnership engaged in the distribution of generators, is composed

of Samar,Leyte, Tacloban, Ormoc and Palo. Samar is the managing partner. During the
month of April, the following transactions were entered into by the following partners in
behalf of the partnership without any authority:
I. The sale of a generator by Leyte to Davao who was not aware that Leyte had no
authority. Davao has paid for the generator which is due for delivery.
II. The purchase of a car by Tacloban from Chevrolet Motors whose owner was not aware
of Tacloban’s lack of authority. The car and the price are due for delivery and payment,
respectively.

Based on the foregoing, the partnership is bound by:

Response: Transaction I only

16. Which of the following statements pertains to partnership dissolution?

Response: It is the change in relation of the partners cause by any partner ceasing to
be associated in the carrying on of the business.

17. The interest or right of the stockholder in the corporations’ profits or in the net assets of
corporation on dissolution is-
Response: Share of Stock

18. A partnership that is formed by two or more persons having as members one or more
general partners and one or more limited partners.
Response: Limited

19. A is the managing partner of A and B Company. X is indebted to A for P20,000 and to
the partnership for P60,000. When both debts mature, X pays A for P20,000 and the latter
issues a receipt for his personal credit. The payment for P20,000 shall be applied.
Response: ¼ in favor of A and ¾ in favor of partnership;

20. What is the effect if a partner has undertaken to contribute a sum of money and failed to
do so?
Response: He becomes a debtor to the partnership for the interest and damages
from the time he should have complied with his obligation

21. Which of the following liabilities of the partnership shall rank first in the order of
payment?
Response: Those owing to creditors other than partners

22. Under this doctrine, the separate personality of a corporation may be disregarded if it is
used for fraudulent or illegal purpose or to escape the faithful compliance of an obligation:
Response: Doctrine of piercing the veil of corporate entity.

23. Which of the following is a qualification of incorporators of a stock corporation?

Response: They must be of legal age.
They must be subscribers to at least 1 share of stock of the corporation
24. F, G, H and I are partners. They contributed capital as follows: F P5,000; G P30,000; H
P20,000 and I, as the industrial partner, his services. The partnership obligation to outsiders
exceeds the total net assets by P18,000. Who and by how much will the partners be liable
for the payment of the P18,000?
Response: F-P 4,500; G-P 4,500; H-P 4,500; I-P 4,500

25. X, Y and Z are partners and contributed to the partnership P40,000, P30,000 and
services, respectively. The partnership was later liquidated and after payment of the
partnership indebtedness, only P20,0all prese00 worth of assets remained. How much is
the share of Z?
Response: Zero

26. Partnership Assets and Liabilities are as follows:

December 31, 2020 December 31, 2022
Assets P200,000 P 50,000
Liabilities 100,000 200,000
Capital:
A – P 50,000: B – P 50,000 P100,000 P150,000
A and B general partners, have fully paid their capital contributions. What is the remedy of
creditor C?
Response: Collect partnership liability from A and B capital contributions (including
personal assets).

27. A corporate doctrine which the stockholders are not personally liable for corporate
debts-
Response: Separate legal entity

28. An agreement which excludes one or more partners from shares in the profits or losses
is valid as long as it is voluntary.
A power as managing partner granted after the partnership has been constituted may be
revoked at any time.
None of the partners may make any important alteration in the immovable property of the
partnership even if useful to the partnership without the consent of all partners.
Response: Only the second and third statements are correct.

29. Which of the following incidents maybe a cause for involuntary dissolution of a
partnership?
Response: Insolvency of any partner

30. Every partner is a debtor of the partnership for whatever he may have promised to
contribute thereto. The designation of losses and profits can be trusted to the managing
partner.
Response: First statement is true; second statement is false

31. Which of the following statements pertaining to treasury shares is incorrect?

Response: Treasury shares may be disposed of at a price lower than the par or
issued price provided it is reasonable and approved by the board of directors.
Treasury shares are not part of subscribed capital stock.

32. An individual or a domestic corporation designated in a written power of attorney, by a

foreign corporation authorized to transact business in the Philippines, on whom any
summons and other legal processes may be served in all actions or other legal proceeding
against such corporation is called-
Response: Resident agent

33. A stipulation which excludes one or more partners from any share in the profits or
losses is-

Response: Void

34. XYZ partnership composed of three (3) capitalist partners and one industrial partner
suffered business losses. Its remaining assets amounting to P100,000. The partnership is
indebted to its supplier in the amount of P160,000. How can recover the P60,000?

Response: Can recover from the partnership P100,000 and the balance of P60,000 from
the (4) partners jointly including the industrial partner.
35. There is partnership except:

Response: There is no fiduciary relationship

36. This partner cannot engage for his own account in any operation which is of the kind of
business in which the partnership is engaged

37. In three of the following wrongful acts of partners, the partnership is solidarily liable with
all the partners to third persons. Which one is the exception?

Response: For loss or injury caused to a third person by reason of the use of
partnership property by a partner for personal purpose.

38. In which of the following corporations will those composing the corporation be liable as
general partners?

Response: Corporation by estoppel.

39. This partner cannot engage in business for himself, unless the partnership expressly
permits him to do so.

Response: Industrial

40. Samar, Leyte and Tacloban are partners in SLT Enterprises. Not having established yet
their
credit standing, the three partners requested Negros, a well-known businessman, to help
them
negotiate a loan from Oriental, a money lender. With the consent of Samar, Leyte and
Tacloban,
Negros represented himself as a partner of SLT Enterprises. Thereafter, Oriental granted a
loan
of P150,000.00 to SLT Enterprises. Assuming that SLT Enterprises was unable to pay loan
on due
date at which time the assets of the partnership amounted only to P120,000.00. From whom
may Oriental collect the payment?

Response: SLT Enterprises for its assets of P120,000.00; thereafter, Samar, Leyte,
Tacloban and Negros from their separate assets at P7,500.00 each.

41.SLTOP Company, a partnership engaged in the distribution of generators, is composed

of Samar, Leyte, Tacloban, Ormoc and Palo. Samar is the managing partner. During the
month of April, the following transactions were entered into by the following partners in
behalf of the partnership without any authority:

I. The sale of a generator by Leyte to Davao who was not aware that Leyte had no
authority. Davao has paid for the generator which is due for delivery.
II. The purchase of a car by Tacloban from Chevrolet Motors whose owner was not aware
of Tacloban’s lack of authority. The car and the price are due for delivery and payment,
respectively.

Based on the foregoing, the partnership is bound by:

Response: Transaction I only.

42. A corporation acquires juridical personality:

Response: Upon the issuance of the certificate of incorporation.

43. Which of the following persons are not disqualified to form a universal partnership?
Response: Brother and sister

44.Which of the following statements is false concerning treasury shares?

Response: They are entitled to dividends.

45.The partnership will bear the risk of the loss of three of the following things. Which is the
exception?

Response: Things contributed so that only their use and fruits will be for the
common benefit.

46.The following partnership contracts were presented to you for evaluation:

I. A partnership engaged in the sale of office supplies with a capital of P100,000.00 broken
down into: cash, P30,000.00; office supplies for sale, P50,000.00; and office equipment,
P20,000.00. The agreement is in a private instrument.
II. A partnership engaged in the lease of office spaces with a capital of P700,000.00 broken
down into: land, P100,000.00; building, P500,000.00; cash, P80,000.00; and office
equipment, P20,000.00. The agreement is in a public instrument attached to which is
the inventory of the land and the building signed by the partners. The agreement is not
recorded with the Securities and Exchange Commission.
III. A partnership engaged in the trading of computers whose name is “Surigao, Ltd.” It has
a total capital of P500,000.00 broken down into P100,000.00 cash and computers worth
P400,000.00, contributed by both general and limited partners. The agreement was
subscribed and sworn to by all the partners before a notary public but not recorded with
the Securities and Exchange Commission.

Based on the foregoing:

Response: None of the partnerships has a separate juridical personality.

Each

47.Under this theory, the nationality of a corporation is that of the country under whose laws
it was
formed.

Response: Incorporation test

48.Samar, Leyte and Tacloban are partners in SLT Enterprises. Not having established yet
their credit standing, the three partners requested Negros, a well-known businessman, to
help them negotiate a loan from Oriental, a money lender. With the consent of Samar, Leyte
and Tacloban, Negros represented himself as a partner of SLT Enterprises. Thereafter,
Oriental granted a loan of P150,000.00 to SLT Enterprises. Assuming that SLT Enterprises
was unable to pay loan on due date at which time the assets of the partnership amounted
only to P120,000.00. From whom may Oriental collect the payment?

Response: SLT Enterprises for its assets of P120,000.00; thereafter, Samar, Leyte,
Tacloban and Negros from their separate assets at P7,500.00 each.

49.A partner’s interest in the partnership is not assignable unless the other partners
consent.

An act of strict dominion may be performed by a partner without the consent of his
copartners
if it is advantageous to the partnership.

Response: Both statements are false.

50.A partnership is dissolved, except:

Response: Partnership business can only be cared on at a loss.

TITE
⇐=============3

—-----------------------------------------------------------------------------------------------------------------------
Question 1
Which of the following persons are not disqualified to form a universal partnership?

Response: Brother and sister

Score: 1 out of 1

Yes

Question 2
LSTOPBB Company, a partnership engaged in the buying and selling of car spare
parts, has for its

partners and their respective contributions the following: Leyte, P10,000.00; Samar,
P20,000.00;
Tacloban, P30,000.00; Ormoc, P40,000.00; Palo, P100,000.00; Biliran, P200,000.00;
and Baybay,

P300,000.00. No one was appointed as manager of the partnership. In the course of the

operation of the partnership, Leyte proposed to buy car spare parts form ADN Motors,
but his

proposal was opposed by Samar. A voting among the partners took place and
Tacloban, Ormoc

and Palo sided with Leyte, while Biliran and Baybay sided with Samar.

Response: The group of Leyte, Tacloban, Ormoc and Palo will prevail because
they constitute the majority.

Score: 1 out of 1

Yes

Question 3
The articles of incorporation differ from the by-law in that the articles of incorporation
are:

Response: A condition precedent in the acquisition by a corporation of a juridical

personality.

Score: 1 out of 1

Yes

Question 4
A: A partnership may refer to all the present property or to all the profits.

B: A universal partnership is that in which the partners contribute all the property which
actually belongs to them to a common fund, with the intention of dividing the same
among themselves, as well as all the profits which they may acquire therewith.

Response: Only B is correct.

Both statements are correct

Score: 0 out of 1

No

Question 5
If the partnership has the minimum capital of P3000.00, but the contract is not a in a
public

instrument or the same is not recorded with the SEC, the partnership:

Response: Still acquires juridical personality.

Score: 1 out of 1

Yes

Question 6
The following are instances, except one, when a partnership is unlawful. Which is the
exception?

Response: A partnership formed for the purpose of buying public lands

Score: 1 out of 1

Yes

Question 7
Cesar Corporation is a foreign corporation that wants to operate a representative office
here in

the Philippines. As required by the Corporation Code, there is a need to appoint a

resident agent

as a condition precedent to the issuance of a license to transact business in the

Philippines.

After 2 years, Cesar Corporation removed its resident agent and did not appoint anyone

anymore. Which statement is the most accurate?

Response: This can be ground for revocation or suspension of its license to do

business
Score: 1 out of 1

Yes

Question 8
A and B formed the limited partnership with A as general partner, B as limited partner
and C as industrial partner. A and B contributed P50,000 each. The partnership failed
and after disposing all its assets to pay partnership debts there still remains a note
payable in the sum of P30,000?

Response: A and B are liable to pay P15,000

Score: 0 out of 1

No

Question 9
A, B and C are partners in a joint venture engaged in real estate and land development.
A without the knowledge of B and C offered to sell to D all the remaining unsold lots at a
price very much higher than the prevailing market prices. Later, A bought out B and C
from the partnership and thereafter finally sold out the lots at a very big profit.

1st conclusion – when A bought out B and C from the partnership, the partnership was
dissolved so B and C have no more share in the profit of the sale.

2nd conclusion – the sale of the lots between A and D is void because it was without the
knowledge and consent of B and C.

Response: Both conclusion are correct

Score: 0 out of 1

No

Question 10
Which of the following statements pertaining to the purpose or purposes of a stock
corporation is
incorrect?

Response: The primary purpose and the secondary purposes may be stated together
as one purpose in the articles of incorporation.

Score: 1 out of 1

Yes

Question 11
LSTOPBB Company, a partnership engaged in the buying and selling of car spare
parts, has for its

partners and their respective contributions the following: Leyte, P10,000.00; Samar,
P20,000.00;

Tacloban, P30,000.00; Ormoc, P40,000.00; Palo, P100,000.00; Biliran, P200,000.00;

and Baybay,

P300,000.00. No one was appointed as manager of the partnership. In the course of the

operation of the partnership, Leyte proposed to buy car spare parts form ADN Motors,
but his

proposal was opposed by Samar. Assume the same facts except that in the articles of

partnership, Leyte, Samar, Tacloban, Ormoc and Palo were appointed managers. In the
course

of the operation of the partnership, Leyte proposed to buy car spare parts from ADN
Motors,

but his proposals was opposed by Samar. A voting among the managing partners took
place and

Tacloban and Ormoc sided with Leyte, while Palo sided with Samar.

Response: The group of Leyte, Tacloban and Ormoc will prevail because they
constitute the majority of the managing partners.

Score: 1 out of 1

Yes
Question 12
One of the distinctions between a partnership and a corporation is that a partnership:

Response: Is characterized by the principle of delectus personae.

Score: 1 out of 1

Yes

Question 13
Which of the following omissions will make a partnership formed as a limited
partnership liable

as a general partnership?

I. The certificate is not signed and sworn to by all the partners.

II. The certificate is not registered with the Securities and Exchange Commission.

III. The partnership name does not include the word “Limited” or “Ltd.”, its abbreviation,
in

the certificate.

Response: I, II and III.

Score: 1 out of 1

Yes

Question 14
A: A partnership begins from the moment the contract is entered into.

B: A partner who promised to contribute a sum of money and fails to do so becomes

debtor to

the partnership.

Response: Both statements are correct.

Score: 1 out of 1

Yes
Question 15
F, G, H and I are partners. They contributed capital as follows: F P5,000; G P30,000; H
P20,000

and I, as the industrial partner, his services. The partnership obligation to outsiders
exceeds the

total net assets by P18,000. Who and by how much will the partners be liable for the
payment of

the P18,000?

Response: F-P 4,500; G-P 4,500; H-P 4,500; I-P 4,500

Score: 1 out of 1

Yes

Question 16
The authorized capital stock of a proposed corporation is P1,000,000 divided into
10,000 shares with a

par value of P100 each. The minimum amount of subscription that must be paid up is-

Response: P62,500 or 625 shares

Score: 0 out of 1

No

Question 17
Which of the following will not qualify as incorporate in a corporation-

Response: A minor

Score: 1 out of 1

Yes

Question 18
Which of the following is incorrect:
Response: A capitalist may engage in the same line of business as that of the
partnership

Score: 1 out of 1

Yes

Question 19
Three of the following are property rights of a partner. Which is not?

Response: Right to demand formal accounting of partnership affairs

Score: 1 out of 1

Yes

Question 20
In a limited partnership where there are 4 partners:

Response: It is enough that there is one limited partner; the rest may all be general
partners.

Score: 1 out of 1

Yes

Question 21
A and B are partners of X Partnership. A is the managing partner. E owes A P10,000
and X

Partnership P30,000. The obligation of E are both due. A collected from E the debt of E
to A in

the amount of P10,000 and issued a receipt in the name of A.

Response: P2,500 to debt to E to A and P7,500 to debt of E to the partnership.

Score: 1 out of 1

Yes

Question 22
An auditing firm composed of Certified Public Accountants may validly form:

I. A partnership.

II. A corporation.

Response: The statement is true with respect to partnership; false with respect to
corporation.

Score: 1 out of 1

Yes

Question 23
A limited partnership formed in 2020 by X as general partner and Y and Z as limited
partners. In

2021, X and Z got married. Did the marriage dissolve or change the form of the
partnership?

1 st answer – Yes, partnership is dissolved by the marriage because there is a change

in equity

and status among the partners.

2 nd answer – No, because spouses can enter into a universal partnership.

Response: Both answers are wrong

Score: 1 out of 1

Yes

Question 24
Samar, Leyte, Tacloban and Palo, partners in SLTP Company Limited, a training
company, have contributions of P50,000.00 each. Samar and Leyte are general
partners; Tacloban, a limited partner; and Palo, a general-limited partner. SLTP
Company Limited purchased merchandise on credit from Ormoc Sales Co. amounting
to P180,000.00. On due date, however, SLTP Company Limited was unable to pay.
Accordingly, Ormoc Sales Co. filed a case of collection against the partnership which by
then had assets amounting to P150,000.00. From whom may Ormoc Sales Co. collect
the sum of P180,000.00?

Response: The partnership for its assets of P150,000.00; thereafter, from Samar,
Leyte, and Palo at P10,000.00 each from their separate property. However, Palo can
recover P5,000.00 each from Samar and Leyte.

Score: 1 out of 1

Yes

Question 25
Samar, Leyte, Tacloban, Ormoc, and Palo are partners of SLTOP Enterprise whose
business is car

painting and repairs. All partners are capitalist partners with Samar as manager. After
five years

of operations, Palo resigned from the partnership. Although Samar was aware of the
resignation

of Palo, he still bought 50 gallons of car paint from Super Paint owned by Surigao who
had been

dealing with SLTOP for the past 5 years, and car spare parts from Hicar-Parts, owned
by

Cabanatuan who is transacting for the first time with SLTOP. The dissolution of SLTOP
was

published in the Marikina Bulletin but neither Surigao nor Cabanatuan read it. Neither
one knew

at the time they transacted with Samar that the partnership had been dissolved.

Response: SLTOP is liable to Super Paint only.

Score: 1 out of 1

Yes

Question 26
The following are the rules in preference of credits of partnership creditors and
partner's creditors, except:

Response: Partnership creditors shall be paid our first using a partner's separate
assets while the partner's personal creditors shall be paid out first using the partnership
assets.

Score: 1 out of 1

Yes

Question 27
J, A and W are partners in JAW Enterprises. Not having established yet their credit
standings, the three partners requested S, a well-known businessman, to help them
negotiate a loan from C, a money lender. With the consent of J, A and W, Simon
represented himself as a partner of JAW Enterprises. Thereafter, C granted a loan of
P150,000.00 to JAW Enterprises. What kind of partner is S?

Response: Partner by Estoppel

Score: 1 out of 1

Yes

Question 28
A, B and C are partners in ABC Company. D represented himself as a partner in the
partnership to E who, on the belief of such representation, extended credit of
P50,000.00 to the partnership. Assuming only B and C consented to such
representation, who shall be liable to E?

Response: B, C and D are partners by estoppel and thus, are liable to E.

Score: 1 out of 1

Yes

Question 29
Which of the following incidents maybe a cause for involuntary dissolution of a
partnership?
Response: Termination of term of the partnership

Score: 0 out of 1

No

Question 30
Which of the following statements are true:

A. A partnership like a corporation has a judicial personality separate and distinct from
that of each of the partners.

B. Sharing of gross returns by itself proves a partnership.

Response: Only A is correct

Score: 1 out of 1

Yes

Question 31
A stipulation which excludes one or more partners from any share in the profits or
losses is-

I. Void as to third persons

II. Valid as to the partners

Response: I, true. II, false.

Score: 1 out of 1

Yes

Question 32
An individual or a domestic corporation designated in a written power of attorney, by a
foreign

corporation authorized to transact business in the Philippines, on whom any summons

and other legal

processes may be served in all actions or other legal proceeding against such
corporation is called-

Response: Resident agent

Score: 1 out of 1

Yes

Question 33
As a general rule, notice to any partner of any matter relating to partnership affairs
binds the partnership. The following knowledge of a partner binds the partnership,
except:

Response: Notice or knowledge of a partner in case of fraud committed on or against

the partnership by the partner having notice or knowledge.

Score: 1 out of 1

Yes

Question 34
1. Corporators are incorporators; 2. Incorporators are corporators.

Response: 1 is wrong but 2 is correct

Score: 1 out of 1

Yes

Question 35
All the partners shall be considered agents and whatever any one of them may do
alone shall bind the partnership.
Every partner may, without the consent of the other partners, associate another person
in his share.

Response: First statement is true; second statement is false

Score: 0 out of 1

No

Question 36
Which is the operative act that will give juridical personality upon a corporation?

Response: The issuance of the certificate of incorporation.

Score: 1 out of 1

Yes

Question 37
When a partnership for a fixed term or particular undertaking is continued after the
termination of such term or particular undertaking without any express agreement, what
shall govern the rights and duties of the partners?

Response: The rights and obligations remain the same, so far as consistent with a
partnership at will.

Score: 1 out of 1

Yes

Question 38
C and P are capitalist partners while I is industrial partner, who in addition to his
services also contributed capital to the partnership. There is no agreement as to the
profits and losses. The partnership suffered loss in the amount of P21,000.00, the share
of capitalist partners in the loss shall be:

Response: In proportion to their capital distribution

Score: 1 out of 1

Yes
Question 39
The following statements were presented to you:

I. All ultra-vires acts are illegal acts.

II. All illegal acts are ultra-vires acts.

Response: I is false; II is true.

Score: 1 out of 1

Yes

Question 40
Samar, Leyte, Tacloban, Ormoc, Palo and Surigao are partners in SLTOPS
Enterprises, a dealer in

cosmetics and other beauty products, with contributions of P60,000.00, P50,000.00,

P40,000.00,

P30,000.00, P20,000.00, and P10,000.00, respectively. No one was appointed as

manager in the

articles of partnership.

Response: All the partners are agents or managers of the partnership and any one of
them may perform acts of administration.

Score: 1 out of 1

Yes

Question 41
Under this theory, the nationality of a corporation is that of the country under whose
laws it was

formed.

Response: Incorporation test.

Score: 1 out of 1
Yes

Question 42
A and B entered into a universal partnership without specification whether it is of profits
or of

all present property. It shall be:

Response: Universal partnership of profits.

Score: 1 out of 1

Yes

Question 43
These partners shall be liable pro rata with all their property and after all the
partnership assets

have been exhausted.

Response: Only general partners

Score: 0 out of 1

No

Question 44
A, B and C are partners in ABC Trust Fund Partnership. A receives cash from a client
for purposes of trust fund management. Partner A misappropriated the fund given by
such client. Which is CORRECT?

Response: ABC Partnership, Partner A, Partner B, and Partner C may be held

solidarily liable by third parties who cash was misapplied by Partner A.

Score: 1 out of 1

Yes

Question 45
The interest or right of the stockholder in the corporations’ profits or in the net assets of
corporation on
dissolution is-

Response: Share of stock

Score: 1 out of 1

Yes

Question 46
Which of the following statements pertaining to no-par shares is incorrect?

Response: Subscriptions to no-par shares in excess of the issued price shall be

available for distribution as stock dividends.

Score: 1 out of 1

Yes

Question 47
Which of the following stipulations is valid?

Response: A stipulation exempting an industrial partner from losses.

Score: 1 out of 1

Yes

Question 48
A person who represents himself as a partner when in fact he is not shall be liable as a
partner

by estoppel even if the third person has knowledge that he is not.

A partnership is always created by agreement of the parties.

Response: First is false, second is true.

Score: 1 out of 1

Yes
Question 49
Which of the following is the disadvantage of forming a corporation-

Response: The subservience of minority stockholders to the wishes of the majority

subject only to equitable restraints

Score: 1 out of 1

Yes

Question 50
In the absence of stipulation, the share of the industrial partner in the profits shall be
equal to the share of a capitalist partner with the smallest share.

The industrial partner shall not share in the losses unless stipulated.

Response: First statement is false, second is true.

Score: 1 out of 1