BUSINESS LAW

TRUE OR FALSE

40.In the firm "Lilian, Bernadette, & Mayet", there was no partner assigned to manage. George owed Lilian P10,000 and owed the partnership P5,000, both debts being demandable. Lilian issued a receipt in her name to George who paid P5,000. The other partners have the right to demand of Lilian to apply the amount proportionately to the debts owed to the partnership and to Lilian.

41.Brenda, Ode, Aira, all surnamed Juan, and Carmen Cita set up a limited partnership, with Brenda being the sole limited partner. The firm name is Juan & Cita. Brenda's liability goes beyond her contribution to the partnership and extends to all her properties.

42.Upon the dissolution of a general 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

43.Trina contributed the use 2 storey building to her partnership with Antonio and Nelson, reserving the ownership thereof to herself. After the same had been used by the partnership in the conduct of business, an earthquake hit the area collapsing the building. The partnership is dissolved automatically.

44.The general partners have the privilege of being paid first before limited partners in the distribution of partnership assets remaining at dissolution.