1. Which of the following statements is TRUE:

1. A partnership is a contract of two persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.
2. A partnership is a contract of two persons or more persons who bind themselves to donate money, property or industry to a common fund, with the intention of dividing the profits among themselves.
3. A partnership is a contract of two persons or more persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.
4. A partnership is an agreement of two persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits to one of the partners.
5. A partnership is an agreement of two persons or more persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.

2. Which of the following statements is FALSE:

1. In order for a partnership to exist, there must be a voluntary agreement among the parties to carry on the business partners as business as business partners.
2. Its formation cannot be imposed or a person cannot be coerced to join a partnership.
3. The property that may be contributed may be real or persona but all contributions must be tangible.
4. Partnership must always have a legitimate object.
5. The partnership must be established for the common benefit and interest of the partners which is to obtain profits and to divide the profits among the partners.

3. All partnerships should be registered in a public instrument because it will affect the rights of third persons. How would you describe this statement.

1. False
2. True
3. It can be true if the partnerships referred to in this statement have capital contributions below PhP 2,000.
4. It can be true if the partnerships referred to in this statement have capital contributions which involve personal properties only.
5. It can be true is both the conditions of C and D are present.

4. Which of the statements are FALSE:

1. Persons who are not partners as to each other are not partners as to third persons except when a person represents himself or consents to another representing him to anyone, as a partner in an existing partnership or with one or more persons not actual partners.
2. Existence of co-ownership or co-possession is a presumption that a partnership has been formed, whether such co-owners or co-possessors do or do not share any profits made by the use of the property.
3. The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived.
4. The receipt by a person of a share of the profits or a business is a prima facie evidence that he is a partners in a business.
5. The receipt by a person of a share of the profits or a business is a prima facie evidence that he is a partners in a business except when it was done as payment for a debt by installments or otherwise.

5. Which of the statements about general partnership is FALSE :

1. Property belonging to the partners at the time of the constitution of the partnership shall belong exclusively to the partners and will not be affected by the liabilities incurred by the partnership.
2. Profits that may be acquired from the present property of the partnership shall belong to the common fund of the partnership.
3. Property acquired by each partner after the formation of the partnership but only if stipulated.
4. A universal partnership may either be a universal partnership of all present property or a universal partnership of profits.
5. Properties acquire through inheritance, legacy or donation shall not form part of the common fund.

6. Bonbon, Lani, ,Manuel, Inggo and Pong entered into a universal partnership of present property to establish an agricultural business. At the time of the creation of the partnership the partners owned the following:

• Bonbon owned agricultural equipment in the amount of PhP 30 million and gold in the amount of PhP 23 billion which he inherited from his father
• Lani owned an agricultural lot in the amount of PhP 14 million and pile of agricultural paraphernalia worth PhP 1 millon which she received from her friends
• Manuel owned a warehouse worth PhP 3.6 million which he won from his bet in a boxing match
• Inggo own a herd of carabaosworth PhP 1.8 million which he bought after being a barangay chairman for 3 years
• Pong contributed cash in the amount of PhP 800,000.00 which he saved from his earning as a baranggay tanod in their locality.

Which of the following statements is TRUE:

1. All the properties mentioned above belong to the partnership.
2. Bonbon's gold in the amount of PhP 23 billion belongs to him alone.
3. Lani's agricultural paraphernalia worth PhP 1 million belong to her alone.
4. Manuel's warehouse is not part of the partnership property.
5. The contribution of Inggo and Pong cannot included from the partnership property because these are coming from government salaries.

7. Coco, Kara, Toto, Lita and Wally established an management consultancy partnership to offer human resource management of companies providing services to buying and selling boats. They agreed that Kara will be in charge of managing the partnership and profits shall be divided equally among the partners.

The overall capital was PhP 1 million pesos coming from the following individual contributions:

• Kara contributed PhP 300,000.00
• Coco contributed PhP 250,000.00
• Toto contributed PhP 250,000.00
• Lita contributed PhP 150,000.00
• Wally contribute PhP 50,000.00

Which of the profit distribution below is correct:

1. The property should be distributed equally.
2. The property should be distributed equally but Kara should have an extra share.
3. The property should be distributed proportionately.
4. The property should be distributed proportionately but Kara should have an extra share.
5. None of the above.

8. Which of the following statements about limited partnership is TRUE:

1. A limited partnership is a kind of partnership where all the partners a general partners who are liable to the extent of their separate property after the partnership assets have been exhausted
2. A limited partner is liable only to the extent of his/her investment in the partnership except when the common fund is not sufficient to cover a liability to third persons. In this case, the limited partner's separate property shall be charged with the excess liability to third person.
3. A limited partner where the is at least one general partner and at lest one limited partner.
4. Statements A, B and C are all TRUE
5. Statements A, B, and C are all FALSE

9. Which of the following statements with respect to the duration of partnership is not TRUE:

1. A partnership with a fixed term has a fixed duration which should be stipulated anytime after the beginning of the partnership contract.
2. A partnership for a specific undertaking is organized for a certain undertaking which, when attained, will cause the termination of the partnership.
3. A partnership where there is no period or a specific undertaking is a partnership at will.
4. A partnership with a fixed term becomes a partnership at will when parties continue the partners even after the stipulated end of the term of the partnership.
5. A partnership at will may be terminated at will by the partners.

___ 10. Read the following statements carefully.

Statement 1: A general partner is one who is laible for partnership debts to the extent of his separate property after all the assets of the partnership have been exhausted.

Statement 2: A limited partner is one who is liable for partnership debts to the extent of his capital contributions only.

Statement 3: A general-limited partner is one who has all the rights an powers and is subject to all the restrictions of a general partner, except that, in respect to contribution, he shall have the rights against the other members which he would have had if he were not also a partner.

Which of the following statements below is not FALSE:

1. All of the statements are TRUE
2. All of the statements are FALSE
3. Statements A and B are FALSE
4. Statements B and C are FALSE
5. Statements A and C are FALSE