LAW ON PARTNERSHIPS

I. TRUE OR FALSE

1. Dissolution of a partnership requires either the death of one general partner, or having an
additional limited partner join in the venture.
2. The articles of co-partnership is a contract that binds partners to each other, dictating the amounts
of either financial or industrial capital to be invested, and how profits are divided.
3. Ostensible partners may be general partners.
4. General professional partnerships may be formed even if the partners have different professions.
5. All partnerships are governed by the New Civil Code of the Philippines, while corporations are
governed by Batas Pambansa Blg. 68, as amended by R. A. 11232.
6. Any act of preserving common properties in a co-ownership requires the consent of all partners.
7. A liquidating partner takes charge of the winding up of operations.
8. If the partnership is liable to a third party, say X Co., then all partners are JOINTLY liable to the
latter.
9. In the absence of stipulation, the partnership net income is to be divided equally among partners.
10. Limited partnerships have limited liabilities to all of its partners.

II. MULTIPLE CHOICE

1. Which article of the Civil Code contains the definition of the term “partnership”?
a. Article 1767
b. Article 1521
c. Article 1108
d. Article 1677

2. The following may be a type of partner except:

a. General partner
b. Partner by estoppel
c. Dormant partner
d. Suspicious partner

3. General partners essentially have:

a. largest percentage of interest in the partnership.
b. unlimited liabilities.
c. least tendency to be solvent due to illiquidity.
d. the responsibilities in making the articles of incorporation.

4. The following are requisites for a partnership’s dissolution except:

a. Withdrawal of an old partner
b. Termination of the partnership’s term
c. None of the above
d. Both A & B

5. Assuming the is reasonable doubt of the existence of a partnership, which of the following cases
shall be enough to assume the existence of such?
 a. One person receives a share in profits of a business among other businessmen
b. Two or more people share the same apartment in Taguig, Manila
c. A sole proprietor’s best friend cooks food for his carinderia in San Mateo, Rizal
d. All of the above are prima facie evidence

6. Statement I: In the event a partner shall contribute an immovable, it shall be noted duly in a private
instrument.
Statement II: Particular partnerships are for special undertakings and are dissolved upon the
completion of the aforementioned.

a. Statement I is true.
b. Statement II is true
c. Both statements are true
d. Both statements are false

7. Which of the following scenarios exemplify the concept that all partners are agents of each other?

a. Upon fearing default of his personal creditors, Mickey Dallymote had assigned partnership
property as collateral.
b. The partners’ file separate estate tax reports for their decedents to the Bureau.
c. When the municipality of Mariveles, Bataan required all local businesses to renew their
business permits, Kamille Lim, daughter of Mayor Lim, went to the municipal hall on behalf
of her partners.
d. A & C.

8. Interests and, salaries and bonuses to partners are mere:

a. Additional burdens
b. Expenditures
c. Accounting policies
d. Allocation bases of profit or loss.

9. Capitalist-industrial partners may contribute the following EXCEPT

a. Receivables
b. Biological assets
c. New partners
d. Skillsets

10. Statement I: Universal partnerships are real objects.

Statement II: Industrial partners receive losses.

a. Statement I is true.
b. Statement II is true
c. Both statements are true
d. Both statements are false