1. A partnership may be established for charity. A. True B. False

2. A person may be a general partner and a limited partner in the same partnership at the same time. A. True B. False

3. The retirement, death, insolvency or civil interdiction of a limited partner dissolves the limited partnership. A. True B. False

4. The sharing of gross returns is prima facie evidence that one is a partner in the business.

A. True B. False

5. If it becomes apparent that the business of the partnership becomes unprofitable and can only be carried on at a loss, partnership may be dissolved. A. True B. False

6. The retirement, death, insolvency, insanity or civil interdiction of a general partner dissolves the limited partnership. A. True B. False

7. A general partnership is automatically dissolved by the death, insolvency, insanity or civil interdiction of a partner. A. True B. False

8. The creditors of each partner shall be preferred to those of the partnership as regards the partnership property. A. True B. False

9. The dissolution of the partnership does not of itself discharge the existing liability of any partner. A. True B. False

10. If a partner is industrial partner, he is not obligated to give additional capital in case of imminent loss even if he agreed in the stipulation that he will contribute. A. True B. False

11. Unless there is a stipulation to the contrary, the partners shall contribute equal shares to the capital of the partnership. A. True B. False

12. Persons who are prohibited from giving each other any donation or advantage cannot enter into universal partnership. A. True B. False

13. A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the partners. A. True B. False

14. Articles of Universal Partnership entered into without specification of its nature is presumed to constitute only a universal partnership of all profits. A. True B. False

15. One of the partners in a proposed partnership is a multi-millionaire. The stipulation in the contract of partnership that this partner shall be exempted from sharing in the profit earned by the partnership is valid. A. True B. False

16. The partner who has been appointed manager in the Articles of Partnership may exercise all acts of administration despite the opposition of his partners and his power is irrevocable without just or lawful cause. A. True B. False

17. The partnership suffered damages in a particular undertaking through the fault of a partner. However, through the efforts of the partner at fault in other activities, the partnership realized unusual profits. He can compensate the damages suffered by the partnership through his fault with the unusual profits earned by the partnership through his industry. A. True B. False

18. A partnership may be dissolved at any time by any of the partners. A. True B. False

19. An industrial partner is not entitled to any share in the firm's capital on dissolution, but is limited to his share in profit as compensation for his services. A. True B. False

20. Articles of Universal Partnership, executed without specification of its nature, constitutes a universal partnership of all present property. A. True B. False

21. Partners shall render on demand true and full information of all things affecting the partnership to any partner or the legal representative of any deceased partner or of any partner under legal disability. A. True B. False

22. A partner shall have the right: A. to ask that the books of the partnership be kept at the principal place of business of the firm, and at any reasonable hour have access to and inspect and copy any of them. B. to demand true and full information of all things affecting the partnership C. to share in the profits and surplus assets of the firm. d. to ask for judicial dissolution D. all of the above

23. Coverage of Statute of Frauds in partnership contract, which is the exemption? A. Promise to answer for the debt, default or miscarriage of another by a partnership must be in writing B. If the agreement to form a partnership shall be performed within a year the same must be in writing C. Contracts for the sale of real property or any interest therein or leasing of partnership immovable property for more than one year must be in writing. D. Sale of partnership personal property at a price not less than P500 must be in writing, unless there is delivery or payment

24. A, B, C and D are partners. Per written agreement A and B are general partners while C and D are limited partners. In their written contract, it appears that the name of the partnership is A and Company partnership. Upon the death of B, the partnership is dissolved. After exhausting all the assets, A and Company still owes T, P12,000. T can collect A. P12,000 from A B. P6,000 from B C. P3,000 from C D. Nothing from D

25. Which of the following statements is correct concerning liability when a partner in a general partnership commits a tort while engaged in partnership business? A. The partner committing the tort is the only party liable B. The partnership is the only party liable C. The partners are jointly and severally liable D. None of the above

26. A partner whose connection is concealed and has no voice nor say in the management of the affair of the partnership is called: A. Nominal partner B. Secret partner C. Silent partner D. Dormant partner E. None of the above

27. All partners are liable solidarily with the partnership for the purpose of making good the loss: A. Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it. B. Where the partnership in the course of its business receives money or property of a third person and the same is misappropriated by any partner while it is in the custody of the partnership. C. Where by any wrongful act or omission of any partner acting in the ordinary course of the business of the partnership or with the consent of his co-partners loss or injury is caused to any person who is not a partner in the partnership D. All of the above E. None of the above

28. A partnership where all the partners are general partners who as such are liable for partnership debts to the extent of their separate property after all the partnership assets have been exhausted is called: A. Limited partnership B. General partnership C. Universal partnership D. Particular partnership E. None of the above

29. Which of the following contracts of partnership will not affect its validity even if not in a public instrument? A. Limited partnership B. Partnership where immovables are contributed C. Partnership having a capital of P3,000 or more D. None of the above E. All of the above

30. A, B and C partners of A and Company with B as managing partner. The partnership is to exist for ten years. After only two years of existence, can B dissolve A and Company? A. No, because it is contrary to agreement B. No, because the term has not yet expired C. Yes, because B is the managing partner D. Yes, but B is liable to A and C for damages.

31. A partnership suffered losses in the first year of its operation. X, a capitalist partner, cannot contribute an additional share to the capital because of insolvency. Can X be obliged to sell his interest to the other partners on the ground of such refusal? A. Yes, X's refusal to contribute his 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 X is paid the value of his interest. D. No, because his refusal is justifiable.

32. In three of the following instances, the certificate of a limited partnership may be amended. Which is the exception? A. Change in the character of the business. B. There is a false or erroneous statement in the certificate C. Death of a general partner D. A person is substituted as a limited partner

31. 1st Statement: The arrival of the term of 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. 2nd Statement: The general rule is that the loss of the specific thing contributed to the partnership dissolves the partnership when only the use of the thing is contributed by the partner and such thing after its subsequently lost, the partnership is not dissolved. Which is correct? A. Both statements are false B. Both statements are true C. 1st statement is true but 2nd statement is false D. 1st statement is false but 2nd statement is true

32. A partner who has all the rights, power, and subject to all restrictions of the general partner but whose liability is, among themselves, limited to his capital contribution is called: A. General partner B. Limited partner C. General-Limited partner D. Dormant partner E. None of the above

33. Three (3) of the following are rights of a partner. 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 books D. Right to ask dissolution of the firm at the proper time.

34. A partnership A. is created by agreement of the partners. B. has a juridical personality separate and distinct from that of each of the partners C. may be constituted in any form, except where immovable property or real rights are contributed thereto, in which case a public instrument shall be necessary. D. is dissolved by the death of a partner. E. All of the above

35. A and B entered into a contract of partnership for the purpose of buying and selling generators, with A as capitalist part and the latter as industrial partner. It was agreed that A shall contribute P20,000 to the common fund on September 28, 2006. Upon the arrival of the designated date, A failed to deliver the contribution he promised. A. B must demand from A the delivery of his contribution to render A in default B. The contract of partnership becomes void because A failed to give his contribution to the common fund C. B can compel A to deliver his contribution with interest and/or damages without the necessity of demand D. The contract of partnership was never perfected because there was no delivery of contributions by the partners.

36. Has a priority over partnership assets: A. Debtors B. Creditors C. Partners D. All of the above

37. A. B and C are partners in X and Company. D represented himself as a partner in X and Company to E, who on the faith of such representation, extended P10.000 credit to X and Company. Assuming only A and B consented to such representation, who shall be held liable to E? A. Since E extended the P10,000 credit to X and Company, a partnership liability exists, thus, all the partners and D are liable. B. Only A, B and D are partners by estoppel and, thus, are liable pro-rata to E C. Only D, who made the representation shall be liable to E. D. Only partners, A, B and C who benefited from the credit extended by E shall be liable to E.

38. A limited partner shall not become liable as a general partner unless: A. He takes part in the control of the business B. He contributes his services to the capital of the firm C. His surname appears in the partnership name D. The word "limited" is not added to the name of the partnership E. All of the above