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Business Law and Regulation Quiz 2
Business Law and Regulation Quiz 2
20. Statement 1: Partners representing the 23. Statement No. 1: Partners representing the
controlling interest are authorized to enter into a controlling interest are authorized to enter into a
compromise concerning a partnership claim or 27. In the absence of agreement as to the sharing of
liability. profits, how shall a capitalist-industrial partner
Statement No. 2: Partners representing the share in partnership profits?
controlling interest are authorized to dispose of a. He shall share on the basis of loss agreement
the goodwill of the business. ratio.
a. Only Statement No. 1 is true b. He shall receive an equal share in profit.
b. Only Statement No. 2 is true c. He shall receive the lowest share received by a
c. Both Statements are true capitalist partner
d. Both Statements are not true d. He shall receive a just and equitable share in
the profit for being an industrial partner and
24. A partner can engage in business for himself then he shall also share in the remaining
without the consent of his co-partners if he is profits as a capitalist partner on the basis of
capital contribution ratio.
a. A capitalist partner whether or not the business
he will engage in is of the same kind as or
28. D has two outstanding and matured obligations
different from the partnership business
to ABC Partnership and A, managing partner of
b. An industrial partner whether or not the business
he will engage in is of the same kind as or
ABC Partnership in the amount of P4,000 and
different from the partnership business P1,000, respectively. D paid P1,000 to A who
c. A capitalist partner and the business he will issued his personal receipt. How shall the P1,000
engage in is of a kind different from the be applied to the credits?
partnership business a. P1,000 to A's credit only
d. An industrial partner and the business he will b. P1,000 to ABC Partnership's credit only
engage in is of a kind different from the c. P800 to ABC Partnership and P200 to A's
partnership business credit
25. In the absence of agreement as to the sharing of d. P500 to ABC Partnership and P500 to A's credit
profits, how shall industrial partner share with it?
29. A and B put up a partnership to engage in
a. The industrial partner shall share on the basis of
distribution of books and school supplies. A
loss agreement ratio.
contributed Php1M while B his services. A wants
b. The industrial partner shall receive an equal share
in profit.
to put up a restaurant on the opposite side of the
street. On the other hand, B wants to have a
c. The industrial partner shall receive the lowest
share received by a capitalist partner. bakery beside A’s restaurant. Which of the
d. The industrial partner shall first receive a just following is correct?
and equitable share in the profits before a. A may put up his restaurant without need of
distribution to capitalist partners. securing B’s consent
b. B may put up his bakery without need of securing
26. Statement 1: Any stipulation against individual A’s consent
liability of the partners is valid against third c. Both A and B can put up their restaurant and
bakery businesses without the need of securing
persons.
each other’s consent
Statement 2: Any stipulation against individual
d. Neither A nor B can put up another business
liability of the partners is void among the
partners. 30. When the manner of management is not agreed
a. Only Statement 1 is true. upon:
b. Only Statement 2 is true. a. The party who has the controlling interest will be
c. Both Statements are true. considered as the agent of the partnership.
d. Both Statements are not true.
b. All capitalist partners will be considered as agents c. Things brought and appraised in the inventory of
of the partnership. partnership unless there is a stipulation to the
c. All industrial partners will be considered as agents contrary but the amount of partnership
of the partnership. obligation will be limited to the value at which
d. All partners will be considered as agents of the they were appraised.
partnership. d. Specific and determinate things owned by a
partner which are not fungible, contributed to
31. If a partner assigns his interest in the partnership the partnership so that only their use and
to his personal creditor or to a third person for fruits may be for the common benefit such as
value, the assignee acquires the right to property brought by partners in case of
universal partnership of profits.
a. demand an accounting of partnership affairs
b. inspect the books and records of the partnership
35. Andrea, John Lloyd, and Ellen are partners of AJE
c. receive the partner-assignor's share of the
Partnership. AJE Partnership had a long-time
profits
supplier named Derek. Derek made his payment
d. interfere in the management of the partnership
for the merchandise he brought to Ellen for
e. none of the above
Php300,000, considering that for years, it was
f. all of the above
Ellen who had collected the amounts with no
32. Which of the following partnership profit/loss
problems. However, Ellen used the funds for her
stipulation is valid?
European tour. Can the partnership recover from
a. Stipulation excluding any capitalist partner from
Derek?
share in partnership profit
a. No, the partnership is liable for loss because
b. Stipulation excluding any industrial partner from
Ellen was acting within the scope of her
share in partnership profit
apparent authority.
c. Stipulation excluding a capitalist partner from b. Yes, Derek is liable for loss because Ellen was
share in partnership loss
acting within the scope of her apparent authority.
d. Stipulation excluding an industrial partner from c. No, the partnership is liable for loss because there
share in partnership loss was no showing that Ellen was not authorized to
collect from Derek.
33. The partnership can recover real property d. Yes, Derek is liable for loss because Derek should
conveyed by any partner in the name of have known that Ellen was not authorized to
partnership when: collect from Derek.
a. The grantee does not have knowledge that the
partner exceeded his authority and the
36. A, B and C are capitalist partners, each
grantee is a holder for value.
contributed Php10,000. After exhausting the
b. The partner has authority to carry out the usual
assets of the firm, the firm’s indebtedness
business of the partnership.
amounts to Php90,000. It was stipulated that A
c. The real property has been conveyed by the
would be exempted from liability. Which is
grantee to a holder for value.
correct?
d. The person claiming the right under the grantee
a. A may recover his original capital of Php10,000
does not know that the partner has exceeded his
b. The creditors may collect Php30,000 each
authority.
from A, B and C
c. A can recover Php20,000 each from B and C
34. The partnership shall bear the risk of loss for the
should he be required to pay the creditors
following contributions of partners, except: d. The creditors can recover Php45,000 each from B
a. Fungible things or those that cannot be kept and C
without deteriorating.
b. Things contributed to the partnership to be sold. 37. In the partnership of A, B, C, and D, D was
designated as the managing partner. D's able
management prevented the firm to suffer from a. Y can collect Php20,000 from the partnership and
economic turbulence caused by the instability of from partners A, B and C at Php10,000 each.
the Philippine peso. Partners A, B and C became b. After exhausting the assets of the partnership
jealous of D's good name. As a result, D was amounting to Php20,000, Y can collect from
capriciously and whimsically removed as partners A, B, C and D at Php7,500 each.
manager without valid cause. Is the removal c. Y can collect Php20,000 from the partnership and
valid? Php30,000 from either partners A or B or C or D.
a. Yes, D's removal is valid even without his d. If Y succeeds in collecting the Php30,000 from
consent
the separate properties of the partners
b. Yes, provided it is approved by all the other
concerned, partners A, B and C will be required
partners
to make additional contribution.
c. No, D's appointment is irrevocable without a just
or lawful cause
d. No, D can only be removed for a valid cause with
vote of the partners owning controlling interest