21. Statement I: As a rule, an industrial partner cannot engage in business himself, unless permitted by other partners. Statement II: If an industrial partner engages in a business similar to the business of partnership, capitalist partners have the right to expel him from the partnership. A. Statement I is False; Statement II is True B. Statement I is True; Statement II is False C. Both statements are True D. Both statements are False 22. Statement I: If a partner is financially capable, but refuses to contribute additional share to the business during a time of loss, he is obliged to sell his interest to other partners. Statement II:An industrial partner is exempted in additional contribution on the time of an imminent loss. A. Statement I is False; Statement II is True B. Statement I is True; Statement II is False C. Both statements are False D. Both statements are True 23. Statement I: If immovable property or real rights are contributed in the partnership, the contract must appear in a public instrument with inventory otherwise the contract is void.Statement II: The inventory attached to the public instrument, when there is an immovable property contributed, must be signed by the parties. A. Both statements are True B. Statement I is False; Statement II is True C. Both statements are False D. Statement I is True; Statement II is False 24. Statement I: The law does not allow the formation of a partnership for the exercise of profession because it is not a business undertaking or enterprise for profit. Statement II: Limited partners may contribute only money or property but not their industry. A. Both statements are True B. Both statements are False C. Statement I is True; Statement II is False D. Statement I is False; Statement II is True 25. Statement I : General rule, no special form is required for the validity or existence of the partnership.Statement II: The partners may stipulate some other date for the commencement of the partnership. A. Both statements are True B. Statement I is False; Statement II is True C. Statement I is True; Statement II is False D. Both statements are False 26. Statement I: A partnership is a legal relation based upon the expressed or implied agreement of two or more competent persons where they unite their property, labor or skill in carrying on some lawful or unlawful business. Statement II:The purpose of the partnership is the realization of profits while the co-ownership is for the common enjoyment of a thing or right. A. Both statements are False B. Statement I is False; Statement II is True C. Statement I is True; Statement II is False D. Both statements are True 27. Statement I:The partnership can possess or acquire property of all kinds. Statement II: The partnership may be adjudged insolvent even if the partners are solvent. A. Statement I is False; Statement II is True B. Both statements are False C. Statement I is True; Statement II is False D. Both statements are True 28. Statement I : Every partner is a debtor or the partnership for whatever he may have promised to contribute thereto.Statement II: The appraisal of the value of the goods contributed is not necessary in determining the contributed capital of the partner. A. Statement I is False; Statement II is True B. Statement I is True; Statement II is False C. Both statements are False D. Both statements are True 29. A partner who is known to the public as a partner in the business. A. Front Partner B. Public Partner C. Ostensible Partner D. Real Partner 30. A, B and C formed a universal partnership with the following contribution: A= car, B=Land, C=Building. Who is the owner of the things contributed? A. Partners, ownership is not transferred. B. Third person, because partnership is void. C. Government, because the partnership is unlawful. D. Partnership, ownership has been transferred upon contribution. 31. A partner who was appointed to take care of the closing up the affairs after the dissolution. A. Industrial Partner B. Liquidating Partner C. Managing Partner D. Close Up Partner 32. Statement I:In universal partnership the object is vague and indefinite. Statement II: In particular partnership the object is limited and well defined. A. Statement I is True; Statement II is False B. Both statements are False C. Both statements are True D. Statement I is False; Statement II is True 33. Statement I: A partnership in itself a juridical person, separate and distinct from partners composing it. Statement II: Having a juridical personality, a partnership cannot sue and be sued. A. Statement I is False; Statement II is True B. Statement I is True; Statement II is False C. Both statements are True D. Both statements are False 34. The contract of partnership can stand alone; its existence is not dependent upon another contract. Which characteristic of the Contract of partnership is this? A. Principal B. Bilateral C. Preparatory D. Onerous 35. Statement I: In partnership, there must be intent to engage in lawful business, trade or profession.Statement II: The purpose is to obtain profits and divide the same among partners. A. Statement I is False; Statement II is True B. Both statements are False C. Statement I is True; Statement II is False D. Both statements are True 36. A, B, and C are partners with the following contributed capital: A=P40,000 B=30,000 and C=30,000. They agreed to divide the profits and losses on the following proportions. A=50%; B=30% C=20%. If the partnership suffered losses amounting to P100,000. How much is their respective shares? A. A=50,000 B=30,000 C=20,000 B. A= 40,000, B=30,000 C=30,000 C. A=50,000 B=25,000 C=25,000 D. Each partner P33,333.33 37. Statement I: It is a general partnership if all partners are liable as to the extent of their separate or personal property. Statement II: It is a general partnership if at least one is a general partner and at least one is a limited partner. A. Statement I is False; Statement II is True B. Both statements are True C. Statement I is True; Statement II is False D. Both statements are False 38. A, B and C are partners with the following contribution. A=60,000 B=40,000 C =Services. They agreed to divide the profits on the following proportions. A=25% B=25% C=50%. If there is a profit of P100,000 how are they going to divide the profit? A. Divide the profits evenly. B. Based on capital contribution for A and B. C. Just and equitable share for C D. Based on the agreement E. Based on capital contribution 39. A, B, and C are partners with C as an industrial partner. Their contributions are:A=60,000 B=40,000 C = Services. The partners agreed that profit and loss sharing is A=50% B=25% C=25%If the partnership suffered a loss of P10,000. How much is their respective shares? A. A=5,000 B=5,000 C=0 B. A=6,000 B=4,000 C=0 C. A=3,333 B=3,333 C=3,333 D. A=5,000 B=2,500 C=2,500 40. Statement I: Every partner who undertakes to deliver a specific property is obliged to deliver the property on date of perfection or date fixed by the partners.Statement II: A partner who undertakes to deliver a specific property is not obliged to warrant the object against possible eviction. A. Both statements are False B. Statement I is False; Statement II is True C. Both statements are True D. Statement I is True; Statement II is False 41. A, B, and C are partners with C as an industrial partner. Their contributions are:A=60,000 B=40,000 C = Services. If the partnership suffered a loss of P10,000. How much is their respective shares? A. A=6,000 B=4,000 C=0 B. A=3,333 B=3,333 C=3,333 C. A=5,000 B=5,000 C=0 D. A=5,000 B=2,500 C=2,500 42. A, B and C are partners. They agreed to divide the profits and losses in the following proportion: A-40%; B-30%;C-30%. If there is a profit of P100,000. How much is their participation? A. A= 40,000, B=30,000 C=30,000 B. No answer should be based on capital contribution. C. A=50,000 B=25,000 C=25,000 D. Each partners P33,333.33 43. Statement I: Both a partnership and a voluntary association has a juridical personality distinct and separate from the partners and members composing it. Statement II: Both the partnership and voluntary associations are organized for a profit. A. Both statements are False B. Statement I is False; Statement II is True C. Both statements are True D. Statement I is True; Statement II is False 44. A, B, and C are partners. They have contributed the following capital: A=P50,000 B=P25,000 and C=P25,000. There is no stipulation as to the profit and loss sharing.If there is a profit of P100,000. How much is their participation? A. A= 40,000, B=30,000 C=30,000 B. Each partners P33,333.33 C. No answer should be based on capital contribution. D. A=50,000 B=25,000 C=25,000 45. The contract of partnership involves consideration in the form of contributions by the partners to a common fund. Which characteristic of the Contract of partnership is this? A. Onerous B. Principal C. Bilateral D. Preparatory