16. A is the capitalist partner and B is the industrial partner.

A engaged personally in the same kind

of business the partnership engaged in.
a. If there are losses, the partnership will bear the loss.
b. If there are profits, the profits will be shared by A and the partnership.
c. If there are profits, A will give the profit to the partnership.
d. A will be excluded from the partnership and pay damages

17. A is the managing partner of ABC and company. X owes A personally and ABC and Company
₱20,000 each. A collected and received from X ₱10,000 and he issued a receipt wherein it is
stated that the amount is applied against his personal credit.
a. The amount received will be applied in favor of the partnership credit.
b. The amount received will be applied in proportion to both credits.
c. The amount received will be applied in the credit of A.
d. All the partners will decide as to whose favor it will apply.

18. Three of the following are similarities between a partnership and a corporation. Which is not?
a. The individual composing both have little voice in the conduct of the business.
b. Both have juridical personality separate and distinct from that of the individual composing
them.
c. Like partnership, a corporation can act only through agents.
d. Both are organizations composed of an aggregate of individuals.

19. A, B, and C are general partners in ABC partnership. A, the managing partner engaged
personally in a business that is the same as the business of the partnership without the consent
of B and C.
a. If there are profits, A will give the profit to the partnership.
b. If there are losses, the partnership will bear the losses.
c. If there are profits, they will be shared by partner A and ABC Partnership.
d. If there are losses, the partnership will share in the losses.

20. Three of the following are rights of a general partner and also of a limited partner in a limited
partnership. Which is not?
a. To inspect and copy at a reasonable hours the book of the partnership and have them kept
at the principal place of business.
b. To demand true and full information of all matters affecting the partnership and a formal
account of the partnership affairs.
c. To have dissolution and winding up by decree of court.
d. None of the above.

21. A, B and C are partnership in ABC Company. D introduced himself as a partner in ABC
Company to X, who in belief such introduction, extended a ₱40,000 credit to ABC Company.
These facts are known to A who did not opposes. Who shall be held liable to X?
a. Since X extended the credit to ABC Company so a partnership liability exists. Thus, all the
partners A, B, C, and D are liable.
 b. Only A knows the transaction and D are partners by estoppel and thus, are liable to pro-rata
to X.
c. D who represented himself as partner in ABC Company is liable.
d. A, B, and C who benefited in the ₱40,000 credit shall be liable.

22. Bears the loss of property contributed to the partnership.

a. Capitalist partner
b. Limited partner
c. Partners contributing usufructuary rights.
d. None of the above.

23. B-1, B-2, and B-3 are equal partners in 3-Brothers Partnership. The partnership is indebted to P
for ₱150,000. Partner B-1 is indebted to S for ₱20,000. P attached and took all the assets of the
partnership amounting to ₱90,000. B-2 and B-3 are solvent while B-1 is insolvent and all what
he owns is a land valued at ₱15,000.
a. S has priority the land B-1 as a separate creditor.
b. P has priority to the land of B-1 to cover B-1 share of the ₱60,000 remaining liability of the
partnership.
c. B-2 and B-3 have priority to the land of B-1 if they paid P the ₱60,000 remaining liability of
the partnership.
d. P and S shall both have priority to the land of B-1 in proportion to their claims of ₱60,000
and ₱20,000, respectively.

24. Partnership is not dissolved on the death of a:

a. General Partner
b. Industrial Partner
c. Limited Partner
d. General Partner

25. A and B are equal partners in A and B Company. C contracted with XYZ and Co. and
represented himself as a partner in A and B Company. XYZ and Co. Contracted A who
confirmed that C is in fact a partner of A and B Company. XYZ and Co., extended credit to C
for A and B Company in the amount of ₱60,000. Who are liable to XYZ and Co.?
a. A and C are partners by estoppels are liable to XYZ and Co.
b. XYZ and Co. extended the credit to C for A and B Company so a partnership liability exists,
so both partners, A and B together with C are liable.
c. The partnership A and B Company benefited so it is liable.
d. Only C who made the representation is liable.

26. When the capital of the partnership is ₱3,000 or more, it must be in a public instrument and
must be recorded with the Securities and Exchange Commision (Art. 1772). A, B, and C agreed
to form a partnership and each contributed ₱10,000 as a capital of the partnership. There was no
compliance in the provision of Art. 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.

27. A as partner contributed ₱30,000.00, B as partner, ₱15,000.00; and C as industrial partner, his
services in the partnership. After payment of all liabilities and expenses, only ₱18,000.00 remain
as partnership assets. The distribution of the ₱18,000.00 cash shall be:
a. A, ₱12,000.00; B, ₱6,000.00; None
b. A, ₱6,000.00; B, ₱6,000.00; C, ₱6,000.00
c. A, ₱9,000.00; B, ₱9,000.00; C, None
d. A, ₱8,000.00; B, 4,000.00; ₱6,000.

28. This is the order of preference in the liquidation of partnership.

a. 1. Outside creditors
2. Partners with respect to their capital
3. Partners with respect to their profit
4. Partners aside from capital and profit
b. 1. Partners with respect to their capital
2. Partners with respect to their profit
3. Partners aside from capital and profit
4. Outside creditors
c. 1. Outside creditors
2. Partners aside from capital and profit
3. Partners with respect to their capital
4. Partners with respect to their profit
d. 1. Partners aside from capital and profit
2. Outside creditor
3. Partners with respect to their capital
4. Partners with respect to their profit

29. Three (3) of the following are rights of a partner. Which one (1) 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.

30. In the partnership of A, B and C, A was appointed in the Article of Co-partnership as managing
partner. As such manager and acting in good faith:
a. His power is revocable even without his consent
b. His power can be revocable at any time even without just cause provided that it is approved
by the partners owning the controlling interest.
c. He can be removed for valid cause even without the vote of the partners owning the
controlling interest.