1. Phoebe, limited partner with Peter and Anna in a bakeshop business, while vacationing in Italy, saw childhood friend Claire, who surprised her with a business proposal for the supply of croissant to the hotel that employs Claire. Phoebe, feeling doubly blessed by the proposal while also on vacation, immediately signed the supply contract. The contract binds the partnership.

a. true

b. false

2. The dissolution of apartnership cause by the death, insolvency, or civil interdiction of a partner is called

a. Voluntary dissolution

b. Involuntary dissolution

c. Judicial dissolution

d. None of the above

3. Apple, partner with Alejandro, Priscilla, and Elvis in a real estate business, bought a parcel of land for the partnership from Martha who promised him a 5% share in her commission. Apple received her commission from Martha only after the dissolution. Apple is legally bound to account for the commission she received as a result of the sale.

a. true

b. false

4. Partner Melencio agreed to split his share in partnership profits with Inocencio who is not member of the partnership. The other partners knew of this agreement between Melencio and Inocencio. Inocencio may participate in the management of the partnership.

a. true

b. false

5. Partners Susan, Dennis, and Nico each contributed P100,000 for the purpose of going into growing flowers and selling them to hotels. They agreed to divide profits as follows: Susan - 40%, Dennis - 30%, and Nico - 30%. The division of the profits should be:

a. Pro rata or per their contribution

b. As agreed between them

c. As determine by the controlling interest

d. As determined by a third party

6. As a general rule, a person admitted as a partner to an existing partnership is liable for the obligations of the partnership arising both before and after she is admitted to the partnership.

a. true

b. false