1. Upon the dissolution of a limited partnership, in the order of priority for distribution of remaining partnership assets, payment in respect of the capital contributions of the partners take precedence over (or comes before) that in respect of profits.

a. true

b. false

2.Janis, Mary, and Maria are managing partners without any specification as to their respective duties or any provision to the effect that any one of them shall not act without the consent of the others. If Janis disagrees with the plan of Mary to rent a place to sell their partnership products, the disagreement shall be settled by a vote of the majority of all the partners, including managing partners.

a. true

b. false

3. The partnership is responsible to every partner for the amounts s/he may have disbursed on behalf of the partnership and for the corresponding interest from a. The time when the court orders the payment of the expenses

b. The time the expenses were made

c. The time of demand for payment by the partner concerned.

d. None of the above.

4. Thelma, after the expiration of the term of her partnership with Serafina and Corazon under which they built all kinds of buildings, entered into a new contract to build a mansion for Ronan. The contract binds the partnership and the other partners.

a. true

b. false

5. Continuing from the facts in the immediately preceding number (No.6), the bakeshop, partly owing to the added burden of supplying croissant, went bankrupt. Susan, a supplier of specialty flour, sued the partnership together with all the partners for money owed by the partnership. Phoebe can set up the defense that she is a limited partner liable only to the extent of her contribution.

a. true

b. false

6. Alex, Mon, Tom, and Fidel signed the Articles of Limited Partnership which indicates Fidel as the sole limited partner but failed to register the same with the Securities and Exchange Commission. Fidel may raise the defense of his being a limited partner against any creditor with actual knowledge that he is a limited partner

a. true

b. false