63. A, B and C are partners in a partnership with each contributing P100,000 each. D is admitted as a new partner with a contribution of P50,000. At the time of his admission, the partnership has a pre-existing obligation to E in the amount of P150,000.

a. D is not liable to E for this obligation incurred when he was not yet a partner.

b. D is liable up to P50,000.

c. D is liable up to P25,000.

d. D is liable up to P16,667.

34. A is a managing partner of A and B partnership. X is indebted to A for P25,000 and the partnership for P75,000. When both debts mature, X pays A P10,000 and the latter issues a receipt for his personal credit. The payment for P10,000 shall be applied.

a. To the whole debt owing to A.

b. 1/4 in favor of A and 3/4 in favor of partnership.

c. Debt owing to the partnership.

d.1/2 in favour of A and 1/2 in favour of the partnership.

73. The following are obligations of partners, except:

a. Obligation to share with the other partners the share of the partnership credit which they have received from an insolvent partnership debtor.

b. Obligation of a managing partner to credit to the partnership the payment made by a debtor who owes them and the partnership.

c. Not to engage in any busines which is of the kind in which the partnership is engaged.

d. Pay for damages suffered by the partnership without their fault.

69. A and B are partners with A as the managing partner. C owes A P100,000 and the partnership P300,000 which are now both due. A issued a receipt for the payment of C in the amount of P100,00 in his own name. The payment shall be applied to:

a. The partnership credit totally.

b. The credit of A only since the receipt is in his name.

c. The payments shall be applied proportionately to both credits.

d. The payment shall be applied equally in both credits.

127. When can the contributions of a limited partner be returned

a. On the dissolution of a partnership.

b. When the date specified in the certificate for its return has arrived.

c. After he has given six months' notice in writing to all other members, if no time is specified in the certificate, either for the return of the contribution or for the dissolution of the partnership.

d. After he has given nine months' notice in writing to all other members, if no time is specified in the certificate, either for the return of the contribution or for the dissolution of partnership.

77. A, B and C are general partners in ABC partnership. X is a debtor to the partnership in the amount of P180,000. A received from the debtor X the sum of P60,000 and issued a receipt identifying the amount collected as P60,000.

a. A cannot be compelled to share the P60,000 with B and C.

b. A can be compelled to share with B and C their P60,000.

c. B and C should automatically sue X to collect the P120,000.

d. B and C can deduct from the capital of A their share of P60,000.

75. The following are the rights of partners, except:

a. Appraisal right

b. Rights in specific partnership property

c. Interest in the partnership

d. Right to participate in the management.

82. I. The transfer by a partner of his partnership interest does not make the assignee of such interest a partner of the firm, nor entitle the assignee to interfere in the management of the partnership business or to receive anything except the assignee's profits. II. Generally understood to mean an organization formed for some temporary purpose, a joint venture is likened to a particular partnership.

a. Only I is correct.

b. Only II is correct.

c. Both are correct.

d. Both are true.

68. The following are the rights of an assignee, except:

a. To receive the profits to which the signing partner would otherwise be entitled.

b. In case of dissolution, the assignee may require an account from the date of liquidation.

c. In case of fraud in the management of the partnership, the assignee may avail himself of the usual remedies provided by law;

d. In case of dissolution, to receive the assignor's interest ; and

56. A, B, C and E are partners. They contributed to the capital as follows: A-P50,000; B-P100,000; C-P150,000; and E as the industrial partner, his services. The partnership obligation to outsiders exceeds the total net assets by P200,000. Who and by how much will the partners be liable for the payment of the P200,000?

a. A-zero; B- zero; C-zero; E-zero

b. A- P33,333; B-P66,666;C-P100,000;E-zero

c. A-P45,000; B-P45,000; C-P55,000; E- P55,000

d. A-P50,000; B-P50,000; C-P50,500; E-P50,000

62. The following are the remedies of capitalist partners against an industrial partner who engaged in business for himself: I. The capitalist partners may exclude the industrial partner from the partnership plus damages. II. The capitalist partners may avail themselves of the benefits which the industrial partner may have obtained plus damages.

a. Only I is correct

b. Only II is correct

c. Both are true

d. Both are false

47. A, B, C and D organized a general partnership with A and B as industrial partners and C and D as capitalist partners. C contributed P800,000 and D contributed P600,000 to the common fund. A and B were appointed managing partners. J applied as office assistant while K applied as accountant of the partnership. The hiring of J was decided upon by A and B but was opposed by C and D. Whose decision shall prevail?

a. The decision of A and B shall prevail because they are the managers.

b. The decision of C and D shall prevail because they are the capitalist.

c. The decision of C and D because they have the controlling interest.

d. The decision of A and B because it is an act of ownership.

130. Statement 1. As a rule, a person admitted as a partner into an existing partnership is liable for all the obligations of the partnership arising before his admission as though, he had been a partner when such obligations were incurred. Statement 2. Creditors of the partnership are preferred over the personal creditors of the partners.

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

92. I. The legal personality of the expiring partnership persists for the limited purpose of winding up and closing of the affairs of the partnership. II. After dissolution, all the transactions of the partnership should only pertain to liquidation which will happen over a short period of time.

a. Only I is correct

b. Only II is correct

c. Both are true

d. Both are false

128. Statement 1. In partnership of all profits, ownership of movables owned by the partners at the constitution of the partnership remains with the partner only the usufruct passing to the partnership. Statement 2. Sociedad anonima is one where all partners are exempted from any liability for the debts or obligations beyond their personal contributions.

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

129. Statement 1. In universal partnership of profits, the risk of loss of the movable property which was delivered to the partnership remains with the contributing partner. Statement 2. Rights over specific partnership property can be assigned to the other partners discreetly.

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

41. Those partner in an existing legal partnership.

a. Secret partner

b. Partner by estoppel

c. De facto partner

d. Real partner

120. The following are characteristics of a limited partnership, except:

a. One or more special partners contribute to the capital and share in the profits but do not participate in the management of the business.

b. The limited partners are not personally liable for partnership obligations beyond their capital contributions.

c. The partnership debts are paid out of the common fund and the separate properties of the limited partners.

d. The limited partners may ask for the return of their capital contributions.

45. The following are the legal relations created by a contract of partnership, except:

a. Relations between third persons.

b. Relations between the partners on one hand and the partnership on the other hand.

c. Relations between the partners on one hand and third persons on the other hand.

d. Relations between the partnership and the third persons.

76.A, B and C formed a commercial partnership. D represented himself as a partner in the partnership to E who, on the belief of such representation, extended credit of P50,000 to the partnership. Assuming only B and C consented to such representation, who shall be liable to E?

a. B, C and D are partners by estoppels and thus, are liable to E?

b. Only partners A, B and C are liable to E for the benefit extended to them.

c. Only D who made the representation is liable to E.

d. All of A, B, C and D are liable because of partnership liability for the credit extended to the partnership by E.