TEST BANK B. Compelled to dissolve or discontinue the operation D.
Expulsion of any partner
PARNERSHIP & CORPORATION of his business
FR: DIAZ C. Compelled to bring to the common funds of the
partnership any profits accruing to him from his
PARTNERSHIP transactions.
1. All present properties are contributed D. Denied his share in the profits of the partnership.
A. Universal partnership
B. General partnership 11. If a partner in a partnership is insolvent, the first
C. Limited partnership order of preference in the distribution of his assets are:
D. None of the above A. Partnership creditors
B. Partners contribution to the partnership
2. Composed of capitalist and industrial partners C. Separate creditors of the debtor
A. Universal partnership D. Pro-rata between the separate creditors of the
B. General partnership debtor and the partnership creditor
C. Limited partnership
D. None of the above 12. A, B and C are partners in a partnership. C
contributed his industry. After payments of the
3. Partners shall enjoy practically all the profits: partnership’s obligations, only P6,000 cash remains. No
A. Universal partnership other assets. In the absence of terms to the contrary,
B. General partnership the share of C in the remaining assets is:
C. Limited partnership A. Equal to share of A
D. None of the above B. Equal to the share of B
C. P2,000
4. They have no voice in the management of D. Nothing
partnership affairs:
A. Managing partners 13. X, Y and Z are equal partners of Xyz Partnership. A
B. Silent partners owes the XYZ Partnership for P9,000. Z, a partner
C. Both A and B collected from A, P3,000 before X and Y received
D. None of the above anything. Z issued a receipt on the P3,000 as his share
of what A owes. When X and Y collected from A, A was
5. They have priority if the partnership is insolvent: insolvent.
A. Separate creditors A. Partner Z shall share partners X and Y with the
B. Partnership creditors P3,000
C. Both A and B B. Z cannot be required to share X and Y with the P3,000
D. None of the above C. X and Y should first exhaust all remedies to collect
from A.
6. May contribute money, property or industry to the D. X and Y can automatically deduct from the capital
common fund: contributions of Z in the partnership their respective
A. Both general and limited partners share in the P3,000
B. Limited partner
C. General partners 14. A and B are partners in a real estate partnership.
D. Capitalist partners The partnership owns a piece of land which C desired
to buy. C contacted A and inform him of his desire to
7. One who takes charge of the winding up to buy the land and A did not tell to B about it. A bought B
partnership affairs upon dissolution: out of the partnership and afterwards sold the land to
A. Silent partner C with a big profit.
B. General partner A. The partnership is dissolved when A became the sole
C. Ostensible partner owner
D. Liquidating partner B. The sale of the land to C is void because it was
without the knowledge of B.
8. A, B and C are partners. A contributed his services C. A is not liable to B for the latter’s share in the profits
only; B, P20,000; and C, P10,000. The partnership was D. A is liable to B for the latter’s share in the profits
liquidated. After payment of the partnership’s
obligation, only P9,000 worth of assets remained. The 15. A, B and C are partners in ABC Partnership. D
share of A will equal to: represented himself as a partner in ABC Partnership to
A. P3,000 E, who, on the belief of such representation, extended
B. Equal of share of B P50,000 credit to ABC Partnership. Assuming only B and
C. Equal of share of C C consented to such representation, who will be held
D. Nothing liable to E?
A. E extended the credit to ABC Partnership, so a
9. A and B entered into a universal partnership of all partnership liability exists, thus, all the partners, A, B
present property. The common property of the and C are liable
partnership shall be: B. B, C and D are partners by estoppels and thus, are
A. All the properties which belonged to each of the liable prorate to E
partners at the time of the constitution of the C. Partners A, B and C who benefited from the credit
partnership. extended by E are liable.
B. All the properties which belonged to each of the D. D who made the representation is liable to E
partners after the constitution of the
partnership. 16. A and B are partners in a real estate business. A and
C. All the properties which belonged to each of the B were approached by X who offered to buy a parcel of
partners at the time of the constitution of the land owned by the partnership. Thereafter, b sold to A,
partnership as well as the profits which they may B’s share in the partnership. Then, A sold the land to X
acquire therewith. at a big profit.
D. All the properties which belonged to each of the A. A is liable to B for B’s share in the profits
partners at the time of the constitution of the B. The partnership is dissolved when A became the sole
partnership as well as the profits which they may owner
acquire thereafter. C. A is not liable to B for the latter’s share in the profits
D. The sale of the land to X is void.
10. A capitalist partner engaged for his own account in
an operation which is of the kind of business in which 17. One of the following incidents may be a cause for
the partnership is engaged. Said partner can be involuntary dissolution of a partnership. Which is?
A. Compelled to sell his interest in the partnership to A. Termination of the term of the partnership
the other capitalist partners. B. Insolvency of any partner
C. Express will of any partner
18. A and B are equal partners in AB Partnership. Y
presented himself as a partner in AB Partnership to Z,
who relying on such representation, extended P50,000
credit to AB Partnership. Of the two (2) partners only B
knew and consented to the representation of Y. Who
should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a
partnership liability was created, so the
two (2) partners and Y are liable.
C. Partners A and B who benefited from the credit
extended to the partnership AB Partnership shall be
liable to Z.
D. B and Y are partners by estoppel and, thus, are
liable to Z.
19. The following persons are disqualified to form a
universal partnership. Who are the exception?
A. Brother and sister
B. Husband and wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the
partnership is entered into a consideration of
the same.
20. A is the capitalist partner and B the industrial
partner. A is engaged personally in the same kind of
business the partnership is engaged in.
A. If there are losses, the partnership will bear the
losses
B. If there are profits, the profits will be shares by A and
the partnership
C. If there are profits, A will give the profits to the
partnership
D. A will be excluded from the partnership and pay
damages.
21. A is the managing partner of ABC Partnership. X
owes A personally and ABC Partnership P20,000 each.
A collected and receive from X, P10,000 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 the
partnership credit
B. The amount 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
22. Three (3) of the following are similarities between a
partnership and a corporation. Which is not?
A. The individuals composing both have little voice in
the conduct of the business
B. Both have juridical personality separate and distinct
from that of the individuals composing them.
C. Like a partnership, a corporation can act only
through agents
D. Both are organizations composed of an aggregate of
individuals
23. 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 profits 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 the ABC Partnership
D. The profits or losses will be shared equally by A and
the ABC Partnership
24. Three (3) 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 reasonable hours the books
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
partnership affairs
C. To have dissolution and winding up by decree of
court
D. None of the above
25. The partnership is insolvent. These are preferred as
regards to the partnership property.
A. Partnership creditors
B. Partners separate creditors
C. Partners with respect to their capital
D. Partners with respect to their profits
26.
27. Bears the loss of property contributed to the
partnership
A. Capitalist partner
B. Limited partner
C. None of the above
D. Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is
contributed as capital. The Articles of Co-Partnership
shall be in a public instrument and be registered with
the Securities and Exchange Commission. If the said
requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and
the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers
Partnership. The partnership is indebted to PC for
P150,000. Partner A is indebted to SC for P20,000 PC
attached and took all the assets of the partnership
amounting to P90,000. B and C are solvent while A is
insolvent and all what he owns is a land valued at
P15,000.
A. SC has the priority to the land of A as a separate
creditor.
B. PC has priority to the land of A to cover A’s share of
the P60,000 remaining liability of the partnership
C. B and C have priority to the land of A if they paid PC
the 60,000 remaining liability of the partnership.
D. PC and AC shall have priority to the land o A in
proportion to their claim of P60,000 and P20,000
respectively
30. A partnership is not dissolved upon the death
of a:
A. General partner
B. Industrial partner
C. Limited partner
D. General limited partner
31. A and B are equal partners in AB Partnership C
contacted XYZ and Co. and represented himself as
partner in AB Partnership. XYZ and Co. contacted A who
confirmed that C is in fact a partner of AB Partnership
XYZ and Co. extended credit to C for AB Partnership in
the amount of P60,000. Who is liable to XYZ and Co.?
A. A and C are partners by estoppels and are liable to
XYZ and Co.
B. XYZ and Co. extended the credit to C for AB
Partnership, so a partnership liability exists, so both
partners, A and B together with C are liable.
C. The AB Partnership benefited, so it is liable
D. Only C who made the representation is liable
32. A, B and C are partners in a trucking and freight
business. B and C without the knowledge of A
approached X and offered to sell to X all the trucks of
the partnership at a price very much higher than their
book value. Then B and C bought-out A from the
partnership and thereafter X bought all the trucks with
a big profit of B and C.
A. The sale of the trucks to X is void because it is without
the knowledge and consent of A.
B. B and C are not liable to A whatsoever
C. B and C are liable to A for his share in the profits in
the sale.
D. When A was bought-out of the partnership, the
partnership was dissolved so A has no more
share in the profits in the sale.
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. A, as a partner contributed P30,000; B as partraner,
P15,000; and C as industrial partner, his services in the
partnership. After payment of all liabilities and
expenses, only P18,000 remain as partnership assets.
A. A, P12,000; B, P6,000; C, None
B. A, P6,000; B, P6,000; C, P6,000
C. A, P9,000; B, P9,000; C, None
D. A, P8,000; B, P4,000; C, P6,000
35. This is the order of preference in the liquidation of
a 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 creditors
3.Partners with respect to their capital
4.Partners with respect to their profit
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 following are similarities between partnership
and a corporation. Which is the exception?
A. Both have juridical personalities separate and
distinct from that of the individuals composing them.
B. Like a partnership, a corporation can act only
through agents
C. Both are organization of an aggregate of individuals
D. The individuals composing both have little voice in
the conduct of the business.
38. In the partnership of A, B and C, A was appointed in
the Articles of Co-Partnership as managing partner. As
such manager in good faith:
A. His power is revocable even without consent
B. His power can be revocable at any time even without
just cause provided
C. He may execute all acts of administration despite
the opposition of B and C
D. He can be removed for valid cause even without the
vote of the partners owning the controlling interest
39. In the ABC Partnership, A and B contributed
P20,000 each and C , his services. After paying all the
creditors of the partnership, only P18,000 in cash
remains. In the absence of terms to the contrary, the
share of C is equal to:
A. P6,000
B. The share of A
C. The share of B
D. Nothing
40. X and Y established a partnership by contributing,
each at P50,000. Z, a third party allowed his name to be
included in the firm name of the partnership. The
partnership was insolvent and after exhausting all the
remaining asset, there was left a liability to third
persons the
amount of P30,000. The creditors can compel:
A. Z to pay P30,000 remaining liability
B. X, Y and Z to pay P10,000 each
C. X or Y to pay P30,000 remaining liability
D. X and Y to pay P15,000 each
41. W, X, Y and Z formed a partnership. W, X and Y are
general partners and contributed P50,000 each while Z,
an industrial partner contributed his services only. All
the partners signed an agreement stipulating that the
liability of W is limited to its contribution After all the
assets of the partnership were exhausted there
remains an unpaid liability of P40,000. The creditors of
the partnership can compel:
A. X and Y to pay the P40,000
B. X, Y and Z to pay the P40,000
C. W, X, Y and Z to pay P10,000 each and W and Z can
demand reimbursement from X
and Y.
D. X and Y to pay P40,000
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. A and B are capitalist partners, with C as industrial
partner. A and B contributed P15,000 each to the
capital of the partnership. A contractual liability of
P40,000 was ‘ by the partnership in favor of X. The
capital assets of P30,000 shall first be exhausted
thereby In OKsleaving an unsatisfied liability of
P10,000. X can recover the amount from:
A. A and B only
B. A, B and C
C. A, B and C and C can recover for reimbursement
from A and B
D. Answer not given
44. A, B and C are partners engaged in a retail business.
Their contribution is P20,000 each. D is admitted as a
new partner with a contribution of P8,000. At the time
of his admission, the partnership has an outstanding
obligation to E in the amount of P80,000. In this case:
A. D is not liable to E for this obligation
B. D is liable to E for this obligation so that amounting
to P68,000 will be exhausted leaving a balance of
P12,000. Only A, B and C shall be liable jointly or pro-
rata, out of their separate property.
C. D is liable to E for this obligation so that after the
assets of the partnership will be exhausted, leaving a
balance of P12,000, all the partners shall be liable
jointly or pro-rata, out of their separate property.
D. Answer not given.
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. M and O are partners of M & O Partnership. M is
the managing partner. N owes M P10,000 and M & O
partnership P30,000. The obligations of N are both due.
M collected from N the debt of N to M in the amount
of P10,000 and issued a receipt in the name of M. To
which obligation will the P10,000 be applied?
A. The whole of the P10,000 be applied to debt of N to
M B. Answer 2 is wrong but answer 1 is correct
B. The P10,000 be applied to debt of N to M and to the
partnership
C. P5,000 each of debt of N to M and to the partnership
D. P2,500 to debt of N to M and P7,500 debt of N to
the partnership
47. A, B and C are partners in D-3 Partnership. On April
29,2010, partner C died. Not knowing that C died, on
May 1, 2010, A contracted a liability to D who also do
not know the death of C. The partnership debt is in the
amount of P30,000, he can collect
A. P30,000 from A
B. P15,000 from A and P15,000 from B
C. P10,000 from estate of C; P10,000 from A; P10,000
from B
D. P20,000 from A and P10,000 from B
48. This the order of preference in the liquidation of a
general partnership:
A. Outside creditors; Partner as creditors; Partners
capital; Partners profit
B. Partner as creditors; Outside creditors; Partners
capital; Partners profit
C. Partners capital; Outside creditors; Partner as
creditors; Partners profit
D. Outside creditors; Partner capital; Partners profit;
Partners as creditors
49. R, S and T are partners. T is the industrial partner
who in addition to his services, he also contributed
capital to the partnership. There is no stipulation as to
sharing of profits and losses. The partnership realized
profits of P21,000. The share of T in the profits:
A. R and will determine T’s share I, in the profits
B. T’s share is P7,000
C. Pro-rata to his contributed capital
D. Nothing, because he is an industrial partner
50. W, X, Y and Z are partners. They contributed capital
as follows: W, P50,000; X, P30,000; Y, P20,000 and Z, is
an industrial partner, his services. The partnership’s
obligation to outsiders exceed the total net assets by
P18,000. Who and by how much will the partners be
liable for the payment of the P18,000?
W X Y Z
A. P9,000 P5,400 P3,600 0 58. A is the managing partner of A and Company. X is
B. P4,500 P4,500 P4,500 P4,500
C. P6,000 P6,000 P6,000 P6,000
D. P4,500 P2,700 P1,800 P9,000
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.
I. The arrival of the term of a partnership with a fixed
term or period shall not dissolve the partnership if the
partners continue with the business of the partnership
but such partnership may be terminated anytime
dependent on the will of the continuing partners.
II. The general rule is that the loss of the specific thing
contributed to the partnership when only the use of the
thing is contributed by the partner and such thing after
its transfer to the partnership which used the same or
sometime was subsequently lost, the partnership is not
dissolved.
A. True; False
B. True; True
C. False; False
D. False; True
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 limited partner who takes active part in the
management of the firm becomes:
A. A managing partner
B. Liable as a general partner
C. A general partner
D. A general partner and a limited partner at the same
time
57. Which of the following statements is not correct?
A. A general partner in a limited partnership manages
the business of the partnership but cannot perform
acts of ownership without the consent of the limited
partners
B. Valid contributions of a limited partner are money
and property but not services.
C. Additional limited partners may be admitted into the
limited partnership with the consent of all the partners.
D. A person who is both a general partner and a limited
partner is deemed a limited partner only with respect
to the return of his contribution.
indebted to A for P20,000 and to the partnership for
P60,000. When both debts mature, X pays A P20,000
and the latter issues a receipt for his personal credit.
The payment for P20,000 shall be applied:
A. ¼ in favor of A and ¾ in favor of the partnership
B. To the whole debt owing to A
C. ½ in favor of A and ½ in favor of the partnership
D. To the debt owing to the partnership
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
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. Which of the following liabilities of the partnership
shall rank first in the order of payment?
A. Those owing to creditors other than partners
B. Those owing to partners in respect to profits
C. Those owing to partners in respect to capital
D. Those owing to partners other than for capital and
profits
63. I. The contribution of a limited partner may be cash,
property or service.
II. A limited partner who takes part in the management
of the business of the partnership is
not a general partner but he shall be liable as a general
partner.
A. True; True
B. True; False
C. False; False
D. False; True
64. I. A person may be a general and a limited partner
in the same partnership at the same time.
II. A person admitted as a partner into an existing
partnership is not liable for partnership
obligations existing before his admission.
A. True; True
B. True; False
C. False; False
D. False; True
65. I. A partner cannot assign his interest in the
partnership to a third person without the
consent of the other partners.
II. A partner’s interest in the partnership is his personal
property.
A. True; True
B. True; False
C. False; False
D. False; True
66. I. The creditor of each partner shall be preferred to
those of the partnership as regards the
partner’s separate property.
II. An industrial partner is exempted from losses but not
from partnership liabilities
A. True; True
B. True; False
C. False; 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 B. Principal, because it can stand by itself.
in a business different from the business of the C. Preparatory, because it is a means by which other
partnership for his own account without the consent of contracts will be entered into.
the other partners. D. Onerous, because the parties contribute money,
II. A general partnership can be formed orally. property or industry to the common fund.
A. True; True
B. True; False 2. One of the following is not a requisite of partnership.
C. False; False Which is it?
D. False; True A. There must be a valid contract.
B. There must be a mutual contribution of money,
69. property or industry to a common fund.
I. All the partners in a general partnership are C. It is established for the common benefit of the
considered managing partners if there is no stipulation partners which is to obtain profits and divide
as to who shall act as managing partner. the same among themselves.
II. A partner is liable to the partnership for whatever D. The articles are kept secret among the members.
property he agrees to contribute without necessity of
demand. 3. The minimum capital in money or property except
A. True; True when immovable property or real rights thereto are
B. True; False contributed, that will require the contract of
C. False; False partnership to be in public instrument and be
D. False; True registered with SEC.
A. P 5,000
70. B. P10,000
I. If the capital contribution of the partners amount to C. P 3,000
P3,000 or more the contract of partnership must be in D. P30,000
public a public document, otherwise the contract is
void. 4. X and Y entered into a universal partnership of all
II. A contract of partnership is void, whenever present property. At the time of their agreement. X had
immovable property is contributed thereto if an a four-door apartment which he inherited from his
inventory of said property is not made, signed by the father 3 years earlier. Y, on the other hand, had a
parties and attached to the public document. fishpond which he acquired by dacion en pago from Z.
A. True; True During the first year of the partnership, rentals
B. True; False collected on the four-door apartment amounted to
C. False; False P480,000; while fish harvested from the fishpond were
D. False; True sold for P300,000. During the same period. B received
by way of donation a vacant lot from an uncle. The
71. partners had an stipulation that future property shall
I. Dissolution does not terminate the partnership. belong to the partnership. Which of the following does
II. Insanity of a general partner in a limited partnership not belong to the common fund of the partnership?
dissolves the partnership. A. Fish pond
A. True; True B. Rental of P480,000
B. True; False C. Apartment
C. False; False D. Vacant lot
D. False; True
5. D and E entered into a universal partnership of
72. profits. At the time of execution of the articles of
I. A general partner in a limited partnership has all the partnership, D had a two-door apartment which he
rights, powers and liabilities as though the partnership inherited from his father 3 years earlier. E on the other
is not limited. hand, had fleet of taxis which he purchased two years
II. A general partner is personally liable for partnership before. In the first year of the partnership, D earned
obligations while a limited partner is not liable for P500,000 as radio talent while E won P1,000,000 in the
partnership liabilities. lotto. During the same period, rentals of P120,000 were
A. True; True collected from the apartment, while fare revenues of
B. True; False P200,000 were realized from the operation of the fleet
C. False; False of taxis. Which of the following belongs to the
D. False; True partnership?
A. Two-door apartment
73. B. Lotto winnings of P1,000,000
I. A limited partner is simply a contributor to the C. Salary of P500,000
partnership. D. Fleet of taxis
II. A limited partner has a right to the return of his
contribution upon the dissolution of the partnership. 6. A partnership formed for the exercised of a
A. True; True profession which is duly registered is an example of
B. True; False A. Universal partnership of profits
C. False; False B. Universal partnership of all present property
D. False; True C. Particular partnership
D. Partnership by estoppel
7. A, B and C are partners in ABC Enterprises. Not having
established yet their credit standing, the three partners
requested D, a well known businessman, to help them
negotiate a loan from E, a money lender. With the
consent of A, B and C, D represented himself as a
partner of ABC Enterprises. Thereafter, E granted a loan
of P150,000 to ABC enterprises. What kind of partner is
TEST BANK D?
LAW ON PARTNERSHIP & CORPORATION A. Managing partner
fr: cpar B. Liquidating partner
PARTNERSHIP C. Ostensible partner
1. One of the following is not a characteristic of a D. Partner by estoppel
contract of partnership
A. Real, in that the partners must deliver their 8. Using the preceding number, assuming ABC
contributions in order for the partnership contract to Enterprises was unable to pay the loan on due date at
be perfected.
which time the assets of the partnership amounted to
P120,000. From whom may E collect the payment?
A. D only for the whole amount of P120,000.
B. A, B and C who are liable jointly for P50,000 each.
C. ABC Enterprises for its assets of P120,000; hereafter,
A, B and C from their separate assets at
P10,000 each.
D. ABC Enterprises for its assets of P120,000
thereafter, A, B, C and D from their separate assets at
P7,500 each.
9. Which of the following losses will not cause the
dissolution of a partnership?
A. Loss before delivery of a specific thing which a
partner had promised to contribute to the partnership.
B. Loss of a specific thing after its delivery to and
acquisition of its ownership by the partnership from
the partner who contributed the same.
C. Loss after delivery of a specific thing where the
partner contributed only its use and enjoyment where
such partner reserved the ownership thereof.
D. Loss before delivery of a specific thing where the
partner promised to contribute only its use and
enjoyment, reserving the ownership thereof.
10. A partner can engage in business for himself
without the consent of his co-partners if he is
A. A capitalist partner whether or not the business he
will engage in is of the same kind as or
different from the partnership business.
B. An industrial partner whether or not the business he
will engage in is of the same kind as or different from
the partnership business.
C. A capitalist partner and the business he will engage
in is of a kind different from the partnership business.
D. An industrial partner and the business he will engage
in is of a kind different from the partnership business.
11. The partnership will bear the risk of loss of three of
the following things, except
A. Things contributed to be sold.
B. Fungible things or those that cannot be kept without
deteriorating.
C. Non-fungible things contributed so that only their
use and fruits will be for the common benefit.
D. Things brought and appraised in the inventory.
12. A partner’s interest in the partnership is his share of
the profits and surplus which he may assign to a third
person. Which of the following statements concerning
such right is correct?
A. The conveyance of a partner’s interest will cause the
dissolution of the partnership.
B. The assignee becomes a partner.
C. The assignee has the right to interfere in the
management of the partnership business.
D. The assignee has the right to receive the profits
which the assigning partner would otherwise be
entitled thereto.
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 B. Limited partner C. If there are profits, A will give the profits to the
A. General C. Industrial partner partnership.
B. Capitalist D. Choices A, B and C D. A will be excluded from the partnership and will pay
C. Industrial damages.
D. Managing 29. A, B and C are partners each contributing P10,000.
The firm’s indebtedness amounts to P90,000. It was 36. A, a managing partner is B’s creditor to the amount
17. Partner who contributes both capital and industry stipulated that A would be exempted from liability. of P1,000 already demandable. B also owes the
A. General Assuming that the capital of P30,000 is still in the firm, partnership P1,000, also demandable. A collects P1,000
B. Limited which of the following is not correct? from B. One is not correct.
C. Managing A. The creditors may get the P30,000 and still collect A. If A gives a receipt for the partnership it is the
D. Capitalist-industrial each P20,000 from A, B and C. partnership’s credit that has been collected.
B. A can recover P10,000 each from B and C should he B. If A gives a receipt for his own credit, it is A’s credit
18. Partner who is liable beyond the extent of his (A) be required to pay the creditors. that has been collected.
contribution C. A cannot recover his original capital of P10,000. C. If A gives a receipt for his own credit, P500 will be
A. General D. The creditors can recover P45,000 each from B and given to him, P500 to the partnership.
B. Limited C. D. B may decide that he is paying only A’s credit if the
C. Industrial personal credit of A is more onerous to
D. Silent 30. A newly admitted general partner is liable to B.
creditors existing at the time of his admission and his
19. Partner who is liable only to the extent of his liability is 37. The remedy of capitalist partners against an
contribution A. Up to his capital contribution only if there is industrial partner who engaged in a business for
A. Limited stipulation. himself without the expressed permission from the
B. General B. Up to his separate property even there is no partnership is:
C. Industrial stipulation. A. To compel him to sell his interest to the said capitalist
D. Managing C. Up to his capital contribution even if there is partners.
stipulation. B. To exclude him from sharing in the profits of the
20. Partner who manages actively the firm’s affairs D. Up to his separate property only if there is partnership.
A. Silent stipulation. C. To remove him as manager if he is appointed as
B. Liquidating manger of the partnership.
C. Managing 31. Using the preceding number, but the obligations D. To expel him from the partnership and claim for
D. Dormant were contracted after his admission, which of damages.
the following is correct?
21. Partner who does not participate in the A. He is liable to the creditors before and after his 38. A partnership which comprises all the profits that
management though he shares in the profits or losses. admission up to his separate property. the partners may acquire by their work or industry
A. Liquidating B. He is liable to the creditors before and after his during the existence of the partnership is called:
B. Nominal admission only up to his capital contribution. A. Universal partnership of all present property
C. Ostensible C. He is liable to the creditors before and after his B. Universal partnership of profits
D. Silent admission up to his capital contribution and to the C. Particular partnership
creditors after his admission up to his separate D. Partnership at will
22. Partner who winds up the affairs of the firm after it property.
has been dissolved D. He is not liable to creditors existing before his 39. A partnership whereby the partners contribute to a
A. Liquidating admission. common fund all the property actually belonging to
B. Managing them at the time of the constitution of the partnership,
C. Industrial 32. A and B are partners engaged in the real estate with the intention of dividing the same among
D. Capitalist business. A learned that C was interested in buying a themselves, as well as the profits which they may
certain parcel of land owned by the partnership, even acquire therewith is:
23. Partner whose connection with the firm is known to for a higher price. Without informing B of C’s offer A A. Universal partnership of all present property
the public was able to convince B to sell to him (A) his (B’s) share B. Universal partnership of profits
A. Ostensible in the partnership. Then A sold the land at a big profit. C. Particular partnership
B. Secret Which of the following is correct? D. Partnership at will
C. Silent A. A is liable to B for the latter’s share in the profit.
D. Nominal B. C is liable to B for the latter’s share in the profit. 40. A partnership without a definite period of existence
C. A new partnership is formed between A and C. and which can be dissolved at any time by
24. Partner whose connection with the firm is D. The sale of the land to C is void since it was without any of the partners is called:
concealed or kept secret the knowledge of B. A. Universal partnership of all present property
A. . Ostensible B. Universal partnership of profits
B. Secret 33. A and B are partners in a real estate business. A and C. Particular partnership
C. Silent B were approached by X who offered to buy a parcel of D. Partnership at will
D. Nominal land owned by the partnership. Thereafter B sold to A,
B’s share in the partnership. Then A sold the land to X 41. A, B and C, capitalist partners, each contributed
25. Partner who is both a secret and silent partner at a big profit. Which is correct? P10,000 and D, the industrial partner
A. Nominal A. The sale of the land to X is void contributed his services. Suppose X, is the creditor of
B. Ostensible B. A is liable to B for B’s share in the profits. the firm amounting to P90,000. After
C. Limited C. B may rescind the contract between A and X getting the P30,000 capital assets of the partnership,
D. Dormant D. A is not liable to B for any share in the profits. which is correct?
A. X can recover P20,000 each from A, B and C only.
26. Partner who is not really a partner but who may 34. The following persons are disqualified to form a B. X can recover P60,000 from either A, B and C only.
become liable as such insofar as third persons are universal partnership, except C. X can recover P15,000 each from A, B, C and D.
concerned A. Husband and wife D. X can recover P15,000 each from A, B and C but D is
A. Nominal B. Brother and sister exempt because he is an industrial
B. Ostensible C. Those guilty of adultery and concubinage partner.
C. Silent D. Those guilty of the same criminal offense; if the
D. Secret partnership is entered into in consideration 42. A, B and C are partners. D is admitted as a new
of the same. partner. Will D be liable for partnership obligations
27. May contribute money, property or industry to the contracted prior to his admission to the partnership?
common fund 35. A, B and C are capitalist partners while D is an A. No, only for those contracted after his admission.
A. Limited partner industrial partner. A, the managing partner engaged B. Yes, and his liability would extend to his own
B. General partner personally in a business that is the same as the business individual property.
C. Both limited and general partners of the partnership without the consent of the other C. Yes, but his liability will extend only to his share in
D. Dormant partner partners. As a result, the partnership property and not to his own individual
A. If there are losses, the partnership will bear the property.
28. May be required to make additional contribution in losses D. Yes, as if he had been an original partner.
case of imminent loss: B. If there are profits, the profits will be shared by A and
A. Capitalist partner the partnership.
43. A partner who has all the rights, powers and subject
to all restrictions of a general partner but whose
liability is, among themselves, limited to his capital
contribution is:
A. General partner
B. Limited partner
C. General-limited partner
D. Dormant partner
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, capitalist partners, each contributed
P10,000. After exhausting the assets of the firm, the
firm’s indebtedness amounts to P90,000. It was
stipulated that A would be exempted from liability.
Which is correct?
A. A may recover his original capital of P10,000.
B. The creditors may collect P30,000 each from A, B
and C.
C. A can recover P20,000 each from B and C should he
be required to pay the creditors.
D. The creditors can recover P45,000 each from B and
C.
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. Where at least one partner is a general partner and
the rest are limited partners
A. General partnership
B. Partnership by estoppels
C. Partnership de facto
D. Limited partnership
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. A, B and C are equal partners in ABC Partnership.
On April 29, 2010, C died. Not knowing that C is dead,
on May 2, 2010, A contracted a liability to D who also
did not know about the death of C. The liability is
P90,000. After D exhausted the net assets of the
partnership in the amount of P60,000, he can collect
A. P30,000 from A or P30,000 from B.
B. P15,000 from A and P15,000 from B.
C. P10,000 from the estate of C, P10,000 from A and
P10,000 from B.
D. P30,000 from the estate of C or P30,000 from B or
P30,000 from C.
52. A, B and C are partners. Their contributions are as
follows: A, P60,000; B, P40,000 and C, services. The
partners agreed to divide profits and losses in the
following proportions: A, 35%; B, 25% and C 40%. If
there is a loss of P10,000, how should the said loss be
shared by the
partners?
A. A P6,000; B P4,000; C nothing
B. A P3,000; B P2,000; C P5,000
C. A P3,500; B P3,500; C P3,000
D. A P3,500; B P2,500; C P4,000
53. Using the preceding number, but the partners did
not agree on how to divide profits and losses. If
there is a loss of P10,000, how should the said loss be
shared by the partners?
A. A P6,000; B P4,000; C nothing
B. A P3,000; B P2,000; C P5,000
C. A P3,500; B P3,500; C P3,000
D. A P3,500; B P2,500; C P4,000
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. A, B and C are partners in a partnership business. A
contributed P10,000, B contributed P5,000 and C his
services only. After payment of partnership debts, what
remains of the partnership
kbassets is P6,000 only. In the absence of stipulation to
the contrary, the share of C will equal to:
A. That of A
B. P2,000
C. That of B
D. Nothing
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. A and B are partners, with A as the managing
partner. D is indebted to A in the amount of P10,000
and to the partnership in the amount of P5,000. Both
debts are due and demandable. D paid A P3,000. A
issued to D a receipt in his own name. How should the
amount of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of
D to A.
B. The P3,000 should be applied to the indebtedness of
D to the partnership.
C. P2,000 should be applied to the indebtedness of D to
the partnership and P1,000 to the
indebtedness of D to A.
D. P1,000 should be applied to the indebtedness of D
to the partnership and P2,000 to the indebtedness of
D to A.
60. Using the preceding no. but A issued to D a receipt
in the name of the partnership. How should the
payment of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of
D to A.
B. The P3,000 should be applied to the indebtedness
of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to
the partnership and P1,000 to the indebtedness of D to
A.
D. P1,000 should be applied to the indebtedness of D
to the partnership and P2,000 to the indebtedness of D
to A.
61. A, B, C and D are partners. Their contributions are
as follows: A, P50,000; B, P30,000; C, P20,000; D,
services. The partnership incurred obligations to third
persons which the firm was unable to pay. After
exhausting the assets of the partnership, there still is
unpaid balance of P10,000 to E. Who are liable to E for
the payment of the unpaid balance of P10,000 and how
much should each pay to E?
A. A P5,000; B P3,000; C P2,000; D nothing
B. A P2,500; B P2,500; C P2,500; D P2,500
C. A P4,000; B P3,000; C P2,000; D P1,000
D. A P4,000; B P4,000; C P2,000; D nothing
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. A, B and C are equal partners in ABC Partnership.
The partnership is indebted to D for P150,000. Partner
A is indebted to E for P20,000. D attached and took all
the assets of the partnership amounting to P90,000. B
and C are solvent while A is insolvent and that he owns
is a land valued at P15,000. Which is correct?
A. E has priority to the land of A as a separate creditor
B. D has priority to the land of A to cover A’s share of
the P60,000 remaining liability of the partnership.
C. B and C have priority to the land of A if they paid D
the P60,000 remaining liability of the partnership.
D. D and E shall both have priority to the land of A in
proportion to their claims of P60,000 and P20,000,
respectively.
64. A, B and C are partners. A is an industrial partner.
During the first year of operation, the firm realized a
profit of P60,000. During the second year, the firm
sustained a loss of P30,000. So, the net profit for the
two years of operation was only P30,000. In the Articles
of Partnership, it was agreed that A, the industrial
partner would get 1/3 of the profit but would not share
in the losses. How much will A, the industrial partner
will get?
A. A will get only P20,000 which is 1/3 of the profit of
the 1st year of operation.
B. A will get only P10,000 which is 1/3 of the net profit.
C. A will get only P20,000 in the first year and none in
the second year.
D. A will share in the loss in the second year.
65. 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 books
D. Right to ask dissolution of the firm at the proper
time.
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. Co-ownership or co-possession does not in itself
establish a partnership, except when such co-owners or
co-possessors share in the profits made by the use of
the property.
II. The sharing of gross returns does not of itself
establish a partnership, except when the persons
sharing them have a joint or common right or interest
in any property from which the returns are derived.
A. True; True
B. False; False
C. True; False
D. False; True
68.
I. The receipt by a person of a share of the profits of a
business is conclusive evidence that he is a partner in
the business.
II. A partnership of all present property is where the
partners contribute all property which actually belong
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.
A. True; True
B. False; False
C. True; 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
71. I. A partnership may be constituted in any form,
except where immovable property or real rights are
contributed thereto, in which case a written instrument
shall be necessary.
II. Every contract of partnership having a capital of
three thousand pesos or more in money or property
shall appear in a public instrument which must be
recorded in the office of the SEC, otherwise the
partnership is void.
A. True; True
B. False; False
C. True; False
D. False; True
72. I. A contract of partnership is void, whenever
immovable property is contributed thereto, if an
inventory of said property is not made, signed by the
parties and attached to the public instrument.
II. A universal partnership of profits 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 the profits which they
may acquired therewith.
A. True; True
B. False; False
C. True; False
D. False; True
73.
I. In a universal partnership of profits, the property
which belong to each of the partners at the time of the
constitution of the partnership becomes the common
property of all the partners, as well as all the profits
which they may acquire therewith.
II. A universal partnership of all present property
comprises only all that the partners may
acquire by their industry or work during the existence
of the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
74.
I. A universal partnership of profits comprises all
movable or immovable property which each of the
partners may possess at the time of the celebration of
the contract and all that the partners may acquire by
their industry or work during the existence of the
partnership.
II. Future property by inheritance, legacy or donation,
including the fruits thereof cannot be included in the
stipulation regarding the universal partnership of all
present property.
A. True; True
B. False; False
C. True; False
D. False; True
75.
I. A and B are partners in a universal partnership of
profits. Subsequently, A won first prize in the
sweepstakes. The prize money will belong to the
partnership.
II. A and B are partners in a universal partnership of
profits. Later A purchased a parcel of land. The fruits of
said land belong to the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
76.
I. Persons who are prohibited from giving each other
any donation or advantage cannot enter into universal
or particular partnership.
II. A partnership begins from the moment of the
execution of the contract, unless it is otherwise
stipulated.
A. True; True
B. False; False
C. True; False
D. False; True
77. I. If property has been promised by a partner as
contribution to the partnership, the fruits arising from
the time the property should have been delivered
should also be given provided prior demand was made.
II. A partner who has undertaken to contribute a sum
of money and fails to do so becomes a debtor for the
interest and damages from the time he should have
complied with his obligation, without the need of any
demand.
A. True; True
B. False; False
C. True; False
D. False; True
78.
I. The partners shall contribute equal shares to the
capital of the partnership.
II. If there is no agreement to the contrary, in case of an
imminent loss of the business of the partnership, any
partner who refuses to contribute additional share to
the capital, to save the venture, shall be obliged to sell
his interest to the other partners.
A. True; True
B. False; False
C. True; False
D. False; True
79.
I. If a partner collects a demandable sum, which was
owed to him in his own name, from a person who owed
the partnership another sum also demandable, the sum
thus collected shall be applied to the two credits in
proportion to their amounts, even though he may have
given a receipt for his own credit only, but should he
have given it for the account of the partnership credit,
the amount shall be fully applied to the latter.
II. The risk of specific and determinate things
contributed to the partnership so that only their use
and fruits may be for the common benefit, shall be
borne by the partner who owns them.
A. True; True
B. False; False
C. True; False
D. False; True
80.
I. In the absence of stipulation, the share of each
partner in the profits and losses shall be equal to each
other.
II. A stipulation which excludes one or more partners
from any share in the profits or losses is void, as a
general rule.
A. True; True
B. False; False
C. True; False
D. False; True
81.
I. The partner who has been appointed manager may
execute all acts of administration despite the
opposition of his partners, unless he should act in bad
faith and his power is irrevocable without just or lawful
cause.
II. When the manner of management has not been
agreed upon, none of the partners may, without the
consent of the others, make any important alterations
in the property of the partnership, even if it may be
useful to the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
82.
I. Every partner may associate another person with him
in his share, provided it is with the consent of all of the
other partners.
II. The capitalist partners cannot engage for their own
account in any operation which is of the kind of
business in which the partnership is engaged, unless
there is stipulation to the contrary.
A. True; True
B. False; False
C. True; False
D. False; True

83.
I. Every partnership shall operate under a firm name,
which shall include the name of one or more of the
partner.
II. All partners, excluding industrial ones, shall be liable
pro-rata with all their property and after all partnership
assets have been exhausted, for the contracts which
may be entered into in the name of and for the account
of the partnership, under its signature, and by a person
authorized to act for the partnership.
A. True; True
B. False; False
C. True; False
D. False; True

84.
I. Persons who are not partners as to each other are not
partners as to third persons, except in cases of
estoppel.
II. An admission or representation made by any partner
concerning partnership affairs is evidence against the
partnership.
A. True; True
B. False; False
C. True; False
D. False; True

85.
I. A person admitted as a partner into an existing
partnership is liable for all the obligations of the
partnership arising before his admission as though he
had been a partner when incurred and that such
liability will extend to his own individual property.
II. B has worked for M and Co., as procurer of contracts
for fertilizers to be manufactured by the firm, and as
supervisor of the mixing of the fertilizers. However, he
had no voice in the management of the business except
in his task of supervising the mixing of said fertilizers.
For his service, he is entitled to 35% of the profits in the
fertilizer business. He is a partner in M and Co.
A. True; True
B. False; False
C. True; False
D. False; True

86.
I. C was a bookkeeper in a partnership named “AB”,
with a yearly salary amounting t 5% of the net profits or
each year. C, however had no vote at all in the
management of the business. He is a partner in AB.
II. Unless there is a stipulation to the contrary, the
partners shall contribute equal shares to the capital of
the partnership.
A. True; True
B. False; False
C. True; False
D. False; True

87.
I. Every partner may associate another person with him
in his share, but the associate shall not be admitted in
the partnership without the consent of all the other
partners, even if the partner having an associate should
be a manager.
II. Articles of universal partnership, entered into
without specification of its nature, only constitute
universal partnership of profits.
A. True; True
B. False; False
C. True; False
D. False; True