MULTIPLE CHOICE

1. Statement No. 1: Every partner is responsible to the partnership for damages suffered by it through his fault, and he may compensate them with the profits and benefits which he may have earned for the partnership by his industry of work. Statement No. 2: When an unlawful partnership is dissolved by a judicial decree, the profits, but not partners' contributions, shall be confiscated in favor of the State. 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

2. 1st Statement: For failure to register the Certificate of Limited Partnership with the Securities and Exchange Commision (SEC), any and all contracts entered into by such par with third persons shall be considered void. There was absolutely, no partnership at all to speak of. 2nd Statement: When an unlawful partnership is dissolved by a judicial decree, all the contribution as well as the profits shall be confiscated by the State. A. No. 1 is false; No. 2 is true B. No. 1 is true, No. 2 is false C. Both are false D. Both are true

3. Which of the following statement is false? A. An industrial partner cannot, without the consent of all the other partners, engage in a business similar to the business of the partnership B. As to liability to third persons, an industrial partner is considered as a general partner C. All partners including industrial ones can be compelled to give additional contribution if the purpose is to save the business from certain loss. D. An agreement among partners that the managing partner shall determine the share of all partners in the profit is void

4. X, Y and Z are in partnership business. X contributed P10,000, Y contributed P5,000 and Z his services only. After payment of partnership debts, what remains of the partnership assets is P6,000 only. In the absence of terms to the contrary, the share of Z will be equal to: A. That of X B. That of Y C. Nothing D. P2,000

5. The remedy of capitalist partners against an industrial partner who engaged in a business for himself without the express permission from the partnership is: A. To expel him from the partnership and claim for damages. B. To compel the industrial partner to sell his interest to the said capitalist partners. C. To exclude him from sharing in the profits of the partnership. D. To remove him as manager if he is appointed as manager of the partnership

6. A partnership is dissolved: A. By the loss of the thing, whether before or after its delivery to the partnership, when the partner who contributed it having reserved the ownership thereof, has only transferred to the partnership the use or enjoyment of the same. B. When a specific thing which a partner had promised to contribute to the partnership perishes before its delivery to the partnership. C. By any event which makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in the partnership. D. All of the above E. In contravention of the partnership agreement by the express will of any partner at any time.

7. X and Y established a partnership by contributing P100,000 each. Z, a third party allowed his name to be included in the firm name of the partnership. If the partnership is solvent and the was a profit of P30,000, no stipulation as to the profit sharing, the participation of the partner on the profit will be A. The court will intervene. B. Just and equitable distribution C. Equally, P10,000 each D. Equally, between X and Y only

8. A, B and C formed a limited partnership, with A as a general partner, while B and C as limited partners, with the following contributions: (1.) A contribute a specific parcel of land (2.) B to contribute P10,000, the first P5,000 upon formation, and the last P5,000, 10 days after formation. (3.) C contributed a specific car as was stated in the article of partnership, when in fact it was not contributed., if B partner did not deliver the lastP5,000 to the partnership, the effect will be: A. B is considered a debtor of the partnership of P5,000 plus interest without the need of demand B. B holds a trustee for in behalf of the partnership the P5,000 C. B may be expelled from the firm plus the damages incurred D. B is considered a debtor of the firm for P5,000 plus interest after demand is made.

9. The duty to deliver the fruits of the promised contribution of things or money to the partnership common fund. A. Arises from the perfection of the contract of partnership without need of demand; B. Arises when the duty to deliver the promised contribution without the need of a demand; C. Arises from the perfection of the contract of partnership upon demand D. Arises when the duty to deliver the promised contribution arises upon demand;

10. A capitalist partner engaged for his own account in an operation which is of the kind of business in which the partnership is engaged. Said partner can be A. compelled to sell his interest in the partnership to the other capitalist partners. B. compelled to bring to the common funds of the partnership any profits accruing to him from his transactions. C. compelled to dissolve or discontinue the operation of his business. D. Denied his share in the profits of the partnership

11. A, B and C are partners. Their contributions are as follows: A, P60,000, B P40,000 and C, services. The partners divide profits and losses in the following proportions: A. 35%; B. 25% and C, 40%. 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, P3,000; B, P2,000; C, P5,000 C. A, P3,500; B, P3,500; C, P3,000 D. A, P3,500; B, P2,500; C, P4,000

12. Without the written consent or ratification of the specific act by all the limited partners, a general partner or all of the general partners have ne authority to: A. Confess a judgment against the partnership. B. Do any act which would make it impossible to carry ordinary business of the partnership. C. Possess partnership property, or assign their rights in specific partnership property, for other than a partnership purposes. D. Do any act in contravention of the certificate. E. All of the above.

13. A and B are partners engaged in the real estate business. A learned that C was interested in buying a certain parcel of land owned by the partnership, even for a higher price. Without informing B, A was able to make B sell to him (A) his share in the partnership. Then A sold the land at a big profit A. C is liable to B for the latter's share in the profit. B. The partnership was dissolved when A became the sole owner C. The sale of the land to C is void since it was without the knowledge of B. D. A is liable to B for the latter's share in the profit.

14. Common property in a universal partnership A. All present property and all property that they may acquire B. All present property and all profits that they may acquired therewith C. All future property. D. All present property.

15. A, B and C are partners where C as a capitalist partner is engaged in the same business in which the partnership is engaged in. In this situation, A. the partnership may oust C from the partnership B. the partnership may oust C from the partnership and at the same time avail of C's profit in her separate business C. the partnership may avail of C's profits in her separate business. D. the partnership has nothing to do with C since it is her right to engage in any business

16. A partnership which comprises all profits that the partners may acquire by their work or industry during the existence of the partnership; A. Particular partnership B. Partnership at will C. Universal partnership of profits D. Universal partnership of all present property

17. General partners shall have no right to perform the following acts without the written consent or ratification by all the limited partners, except: A. Admit a person as a general partner. B. Continue the business with partnership property on the death, retirement, insanity, civil interdiction or insolvency of a general partner, unless the right to do so is given in the certificate. C. None of the above D. To have the partnership books kept at the principal place of business of the partnership, and at a reasonable hour to inspect and copy any of them.

18. Admit a person as a limited partner, unless the right to do so is given in the certificate. May be required additional contribution in case of imminent loss: A. Industrial partner B. Limited partner C. None of the above D. Capitalist partner

19. X and Y established a partnership by contributing P100,000 each. Z, a third party allowed his name to be included in the firm name of the partnership. The partnership was insolvent and after exhausting all the remaining assets, there was left a liability to third persons of the amount of P30,000. The creditors can compel. A. X and Y to pay P15,000 each B. Z to pay the P30,000 remaining liability C. X or Y to pay the P30,000 remaining liability D. X, Y and Z to pay P10,000 each

20. A, B and C capitalist partners, contributed P10,000 and D, the industrial partner contributed his services. Suppose X, is the creditor of the firm to the amount of P90,000, after getting the P30,000 assets of the partnership A. X can recover P15,000 each from A, B, C and D B. X can recover P20,000 each from A, B and C only C. X can recover P15,000 each from A, B and C but D is exempt because he is an industrial D. X can recover P60,000 from either A, B or C