46. A, B and C wish to go into the business together to bottle mineral water. Each contributed P50,000, but C wanted to limit his liability to the extent of his contribution, and his name to appear in the partnership name. Which form of partnership as a business organization should they choose? A. No partnership organization is available B. Limited C. Limited partnership D. General partnership

47. A, B, and C formed a general partnership with a gross of P90,000. They agree that the profit and loss sharing is A- 50%; B-25%, C- 25%. Upon dissolution and exhausting the partnership capital, X has still a collectible amount of P30,000 from the firm. How much can A collect from C alone. A. 7,500 B. 15,000 C. 30,000 D. 10,000

48. Statement No. 1: A person may be a general partner and a limited partner in the same partnership at the same time. Statement No. 2: All partners, excluding industrial ones, shall be liable pro-rata with all their property and after all the partnership assets have been exhausted, for the contracts which may be entered into in the name of and for the account of the partnership, under its signature, and by authorized to act for the partnership. A. No. 1 is false; No. 2 is true B. Both are false C. No. 1 is true, No. 2 is false D. Both are true

49. As regards a limited partner, which statement is correct? A. He has no liability to partnership creditors even if he takes part in the management of the partnership, B. He can only contribute money and property but not services; C. He is automatically the agent of the partnership with general authority to bind the partnership to contracts with third persons; D. He cannot be allowed to transact business directly with the partnership of which he is a member as this would result into conflict of interest;

50. A, B and C formed a general partnership. A and B as general partners contributed P60,000 and P40,000 respectively while C is an industrial partner. The partners agreed that C, the industrial partner is exempted from liability to third person. Upon dissolution, the partnership suffered a loss consisting of a liability of X in the amount of P30,000. As stated, which of the following statements is true, A. Each partner is liable P10,000 to X B. C is not liable because it was agreed that the industrial partner is exempted from liability to third person. C. The P30,000 is considered a loss of the partnership, and C as an industrial partner is exempted up to P10,000 only. Dm A and B are liable for P15,000 each.

51. A, B, C and D are partners. Their contributions are as follows: A, P50,000; B, P30,000; C, P20,000; D, services. The partnership incurred obligations to third persons which the firm was unable to pay. After exhausting the assets of the partnership, there is still unpaid balance of P10,000. Who are liable for the payment of the unpaid balance of P10,000? How much each? A. A. P4,000; B, P3,000; C, P2,000; D, P1,000 B. A. P2,500; B, P2,500; C, P2,500; D, P2,500 C. A. P5,000; B, P3,000; C, P2,000; D, nothing D. A, P4,000; B, P4,000; C, P2,000; D, nothing

52. Which of the following may be a cause for involuntary dissolution? A. Express will of any partner B. Insolvency of any partner C. Termination of the term D. Expulsion of any partner

53. Statement No. 1: The risk of specific and determinate things not tangible, contributed to the partnership, so that only their use and fruits may be for the common benefit, shall be borne by the partner who owns them. Statement No. 2: A joint account is a sort of informal partnership, with no firm name but with legal personality. A. Both are true B. Both are False C. No. 1 is true: No. 2 is false D. No. 1 is false; No. 2 is true

54. K is an industrial partner. Besides his services, he also contributed capital to the partnership. There is no agreement or stipulation as to the profits or losses. The share of K in the profit is A. Pro-rata to his contributions. B. Such shares may be just and equitable under circumstances. C. The remaining partners will determine his share in profits D. Combination of C and D below.

55. A, B and C formed a partnership engaged in appliance business. A and B were general partners while C was a limited partner. Later, B and C got married, and afterwards A sold his interest to B. Based on the facts presented, is the partnership dissolved? A. No, the marriage of B and C and the selling of A's interest to B converts the partnership into a universal partnership. B. The selling of A's interest to B will not dissolve the partnership because the spouses can enter into a particular partnership. C. Yes, when B acquired the interest of A it became a sole proprietorship therefore the partnership was dissolved. D. No, the marriage of B and C will not dissolve the partnership unless there is judicial approval.

56. A partner whose liability for partnership debts is limited to his capital contribution is called: A. Limited partner B. General partner C. None of the above D. General-limited partner E. Secret partner

57. A substituted limited partner is: A. An assignee admitted to all the rights of a limited partner. B. a person admitted as a partner by the other partners. C. All of the above. D. a buyer of right of the deceased partner.

58. When the manner of management has not been agreed upon, who shall manage the affairs of the partnership? A. Capitalist-industrialist partners B. None of the above C. Capitalist partners D. Industrial partners E. All of the partners

59. A, B and Care partners in ABC Company. D introduced himself as a partner in ABC Company to X, who in the belief of such introduction, extended a P60,000 credit to ABC Company. These facts are known by A who did not oppose. Who shall be held liable to X. A. Since X extended the credit to ABC Company, a partnership liability exists, thus, partner A, B and C and D are liable B. Only A, who knows the transaction and D are partners by estoppel are liable pro-rata to X. C.D who represented himself as partner in ABC Company is liable D. A, and C who benefited in the P60,000 credit shall be liable to X

60. Statement No. 1: The general partners may continue the business of the limited partnership with partnership property on the death, retirement, civil interdiction or insolvency of another general partner. Statement No. 2: Any stipulation exempting a general partner, whether capitalist or industrial, from his pro rate obligation to third persons shall be void, except as among the partners. A. Both are false B. No. 1 is true: No. 2 is false C. Both are true D. No. 1 is false; No. 2 is true

61. Every contract of partnership having a capital of P3,000 or more in money or property shall appear in a public instrument which must be recorded in the Securities and Exchange Commission. Failure to comply with said requirements A. will render the partnership void. B. will give the partnership a de facto existence. C. will not give the partnership a legal personality. D. will not affect the liability of a partnership and the members thereof to third persons.

62. B and C are partners. Their contributions are as follows: A, 60.000; B, P40,000; C, services. The partners did not agree on how to divide profits and losses. If there is a loss of P10,000, how should the said loss of P10,000 be shared by the partners? A. A, P6,000; B, P4,000; C, nothing B. A, P3,500; B, P3,500; C, P3,500 C. A, P3,000; B, P2,000; C, P5,000 D. A, P3,500; B, P2,500; C, P4,000

63. A and B are partners, with A as the managing partner. D is indebted to A in the amount of P10,000 and to the partnership in the amount of P5,000. Both debts are due and demandable. D paid A P3,000. A issued to D a receipt in his own name. How should the amount of P3,000 be applied? A. The P3,000 should be applied to the indebtedness of D to A. B. P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of D to A. C. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of D to A. D. None of the above

64. The P3,000 should be applied to the indebtedness of D to the partnership Unless otherwise provided in a general partnership agreement, which of the following statements is correct when a partner dies? (1)The deceased partner's executor would automatically become a partner (2) The deceased partner's estate would be free from any partnership liabilities (3)The partnership would be dissolve automatically A. True; True; True B. True; False; False C. False;True;False D. False;False;True

65. The following persons are disqualified to form a universal partnership. Who are the exceptions? A. Those guilty of adultery and concubinage B. Husband and Wife C. Those guilty of the same criminal offense, if the partnership is entered into in consideration of the same D. Brother and Sister

66. Sometimes termed dormant partner: A. Limited partner B. Capitalist partner C. Secret partner D. None of the above

67. B-1, B-2 and B-3 are equal partners in 3-Brothers Partnership. The partnership is indebted to PC for P150,000. Partner B-1 is indebted to SC for P20,000. PC attached and took all the assets of the Partnership amounting to P90,000. B-2 and B-3 are solvent while B-1 is insolvent and all what he owns is a land valued at P15,000 A. B-2 and B-3 have priority to the land of B-1 if they paid PC the P60,000 remaining liability of the partnership B. PC has priority to the land of B-1 to cover B-1's share of the P60,000 remaining liability of the partnership. C. SC has priority to the land of B-1 as a separate creditor. D. PC and SC shall both have priority to the land of B-1 in proportion to their claims of P60,000 and P20,000 respectively

68. A partnership without a definite period of existence and which can be dissolved at any time by any of the partners is called; A. None of the above B. Particular partnership C. Universal partnership of profits D. Universal partnership of all present property E. Partnership at will

69. A and B formed a general partnership and contributed P500,000 each. C, a brother-in-law of A, allowed his name to be included in the partnership firm name. The partnership became insolvent and there remains unpaid partnership obligation to X to the tune of P60,000. X can compel: A. A, B and C to pay P20,000 each B. A and B to pay P30,000 each C. Any of A, B and C to pay the P60,000 liability D. Either A or B to pay the P60,000 liability

70. As a general rule, a partner cannot ask for a formal accounting of the affairs of the partnership during its existence and before it is dissolved, except: A. When he is wrongfully excluded from the partnership business B. When the right exists under the terms of any agreement C. As provided by Article1807 D. Whenever other circumstances render it just and reasonable E. All of the above