1. J, R and M were partners. J committed a tort against Kenny while acting within the scope of his authority in the conduct of the business. Who shall be liable and to what extent?

A. All partners are liable jointly or pro rata after the partnership assets have been exhausted.

B. All partners and the partnership are liable jointly.

C. All the partners and the partnership are liable solidarily

D. All partners shall be liable solidarily after the partnership assets have been exhausted.

2. I. After dissolution, the partners can still enter into new business transactions in the name of the dissolved partnership although not for the purpose of winding up partnership affairs.

II. Insanity of either general or limited partner in a limited partnership shall dissolve the partnership. O

A. First is true, second is false.

B. Both statements are false.

C. First is false, second is true.

D. Both are true.

3. A partnership which must be in public instrument to be valid is:

A. Those where personal property or P3,000.00 is contributed.

B. General partnership.

C. Particular partnership.

D. Those where immovables or real rights therein are contributed, regardless of its value.

4. I. A universal partnership entered into without designation is considered one of profits.

II. A limited partner's surname cannot appear in the partnership name if it is also the surname of a general partner to prevent misrepresentation to third persons.

A. Both are true.

B. Both statements are false.

C. First is false, second is true.

D. First is true, second is false.

5. I. A partner's interest in the partnership is not assignable unless the other partner's consent.

II. An act of strict dominion may be performed by a partner without the consent of his co- partners if it is advantageous to the partnership.

A. Both statements are false.

B. Both are true.

C. First is false, second is true.

D. First is true, second is false.

6. I. The death, insanity, retirement, insolvency, or civil interdiction of a limited partner does not dissolve the partnership.

II. In a general partnership, the fact that the business can only be carried on at a loss does not result in the dissolution of the partnership.

A. Both are false.

B. Both are true

C. First statement is true, second is false.

D. Second statement is true, first is false.

7. I. A substituted limited partner becomes as such from the time the certificate of limited partnership is properly amended.

II. Only those whose interest have not been assigned may dissolve the partnership.

A. Both are true.

B. First is true, second is false.

C. Both statements are false.

D. First statement is false, second is true.

8. J and R entered into a universal partnership of profits. Later, J purchased a parcel of land. Will the fruits of the said land belong to the partnership?

A. No, because the fruits of property shall refer only to property possessed by the partners at the time of the celebration of the contract.

B. No, because partnership of profits refer only to present fruits.

C. Yes, because the fruits ate from the property of J.

D. Yes, because the fruits under the law shall covers after- acquired property also.

9. Jand R are partners. On 22 September 2021 when the total obligation of the partnership totaled P100,000.00, M was admitted as new partner. At the time of M's admission, the partnership creditors were Kenny for P70,000.00 and Calda for P30,000.00. After 22 September 2021. the partnership borrowed from Mang Ina, P20,000 and P40,000.00 from Goldi. On January 2022, the partnership became insolvent leaving an obligation totaling P30,000.00. The creditors asks you how their claims should be satisfied. What will your advise be?

A. Proceed against the individual partners properties.

B. Proceed by impugning contracts which appear that where entered by the partners to defraud them.

C. Proceed against M, being the new admitted partner.

D. Proceed with the separate properties of the partnership.

10. Jand R orally agreed to form a partnership. Each contributed cash and properties worth P10,000.00 to the common fund. However, they did not register the partnership with the Securities and Exchange Commission. The partnership is:

A. Void under Article 1773.

B. Valid

C. Voidable

D. Unenforceable

11. Which is the order of preference in the liquidation of a general partnership?

A. Partners capital, outside creditors, partners as creditors, partners profit.

B. Outside creditors, partners who are creditors, partners capital, partners profit.

C. Partners as creditors, outside creditors, partners capital, partners profits.

D. Outside creditors, partners creditors, partners profit, partners capital.

12. It was agreed and stipulated in the Articles of Partnership that the determination of the sharing of profits and losses is left to the will of the majority of the partners. Is this enforceable?

A. Yes, since under Art. 1306, parties can freely stipulate terms they deem convenient.

B. No, the stipulation is void since the designation of profits and losses cannot be entrusted to one of them.

C. No, because all the partners would have to agree on the sharing.

D. Yes, since the agreement was approved by the majority of the partners.

13. Whenever an immovable property is contributed and an inventory of said property is not made, signed by the parties, and attached to the public instrument, the partnership is:

A. Rescissible

B. Void

C. Voidable

D. Unenforceable

14. Jimmy is an accountant and Carlo is a lawyer. Can they form a particular partnership for an accounting practice?

A. Yes, they are both professionals.

B. No, because in the practice of profession, all partners must belong to the same profession and the partnership should be for the exercise of a common profession.

C. No, because they have different fields of interest.

D. Yes, a partnership may be formed for the exercise of a profession.

15. A partner is personally indebted to his creditor. If such creditor obtains a judgment award against that partner, can the creditor enforce judgment against a specific partnership property?

A. Yes, being a partner he has an interest over the property of the partnership which can be attached.

B. No, because the partnership was not sued in the case.

C. Yes, in order not to defeat the judgment of the court.

D. No, the partner's right over the specific property is free from execution and attachment if it is not a claim against the partnership.

16. Three lawyers formed a law firm. The senior and well-known partner died. Can they still continue using the name of such deceased partner?

A. No, as he is considered expelled from the partnership.

B. Yes, as long as they will put some mark in the name indicating that such partner is already deceased.

C. No, his death dissolved the partnership.

D. Yes, since he was a partner.

17. Article 1772 provides that a contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument. Where should the same be recorded?

A. Office of the Civil Register.

B. Department of Trade and Industry.

C. Office of the Securities and Exchange Commission.

D. Office of the Register of Deeds.

18. These partners shall be liable pro rate with all their property and after all the partnership assets have been exhausted.

A. All partners, including industrial ones.

B. Only general partners.

C. Only capitalist partners.

D. Only limited partners.

19. The contributions of a limited partner may be:

A. Cash

B. Property

C. Either cash or property

D. Industry

20. It refers to the change in the relation of the partners caused by a partner ceasing to be associated in the carrying on of the business:

A. Prescription

B. Winding-up

C. Termination

D. Dissolution

21. As regards the liability of the partners, a partnership may be

A. General and limited at the same time.

B. Universal and particular at the same time.

C. Either general or limited

D. Universal or particular.

22. A partnership that is formed by two or more persons having as members one or more general partners and one or more limited partners.

A. Universal

B. Particular

C. General

D. Limited

23. What should be done if goods are contributed?

A. Title must be transferred to the partners.

B. They must be delivered, else ownership will not pass to the partnership.

C. The partnership should buy them.

D. They should be appraised or valued.

24. For whatever a partner has promised to contribute the partnership, he is a:

A. Agent

B. Debtor

C. None of the above.

D. Manager

25. He is the partner who cannot engage for his own account in any operation which is of the kind of business in which the partnership is engaged.

A. Limited

B. General

C. Indsutrial

D. Capitalist

26. When the manner of partnership management has not been agreed upon, all the partners shall be considered:

A. Administrators

B. Agents

C. Co-owners

D. Owners

27. A stipulation which excludes one or more partners from any share in the profits or losses is:

A. Unenforceable

B. Valid

C. Voidable

D. Void

28. A limited partnership was formed by Ronald- as general partner and Goldi and BK as limited partners. In 2021, Ronald and Goldi got married. Did the marriage dissolve or change the form of the partnership?

1st Answer- Yes, a partnership is dissolved by the marriage because there is a change in equity and status among the partners.

2nd Answer- No, because spouses can enter into a universal partnership.

A. Both answers are wrong

B. 1st answer wrong, 2nd is correct

C. Both answers are correct

D. 1st answer is correct, 2nd is wrong

29. Which of the following incidents maybe a cause for involuntary dissolution of a partnership?

A. Express will of any partner

B. Expulsion of any partner

C. Termination of term of the partnership

D. Insolvency of any partner

30. J and R are partners in real estate business. The partnership owns a parcel of land which M desires to buy. M contacted J and informed him of his intention to buy the said land. J did not tell R such intention of M. J bought R out of the partnership and afterwards sold the land to M at a profit.

A. The partnership was dissolved when J became the sole owner.

B. J is not liable to R for his share in the profits.

C. J is liable to R for his share in the profits.

D. The sale is void because it was without the knowledge of R.