Multiple-choice tests

1, Olga, Pamela and Sonia, partners in TOPS Company Limited, a trading company, have contributions of P50,000.00 each. Teresa and Olga are general partners; Pamela, a limited partner; and Sonia, a general-limited partner. TOPS Company Limited purchased merchandise on credit from Moret Sales Co amounting to P180,000.00. On due date, however, TOPS Company Limited was unable to pay . Accordingly, Moret Sales Co. filed a cause of collection against the partnership which by then had assets amounting P150,000.000. from whom may Moret Sales Co. collect the sum of P180,000.00?

a. The partnership for its assets of P150,000.00, thereafter, from Teresa and Olga at P15,000.00 each from their separate assets.

b. Teresa and Olga only at P90,000.00 each from their separate assets.

c. The partnership for its assets of P150,000.00 thereafter, from Teresa, Olga, and Sonia at P10,000.00 each from their separate property. However, Sonia can recover P5,000.00 each from Teresa and Olga.

d. Teresa, Olga and Sonia at P60,000.00 each. Thereafter, Sonia can recover from Teresa and Olga P30,000 each.

2. Gregory, Edmond and Mark are partners in GEM Company with contributions of P10,000, P40,000 and P50,000 respectively. Their agreement shows that they will share in the profits in the ratio of 2:3:4. During the year, the partnership sustained a loss of P9,000.00. How shall this loss be divided among the partners?

a. Equally at P3,000.00 each.

b. Gregory, P900.00; Edmond, P3,600; and Mark P4,500

c. Gregory, P2,000.00; Edmond P3,000.00 and Mark P4,000.00

d. The partners must establish first a loss sharing agreement before the loss may be divided because they failed to have an agreement on the division of loss.

3. Which of the following stipulation is valid?

a. A stipulation excluding a capitalist partner from profits.

b. A stipulation exempting a capitalist partner from losses.

c. A stipulation exempting an industrial partner from losses.

d. A stipulation excluding an industrial partner from profits.

4. A partner can engage in business for himself without the consent of his co-partners if he is:

a. a capitalist partner whether or not the business he will engage in is of the same kind as or different from the partnership business.

b. an industrial partner whether or not the business he will engage in is of the same kind as or different from the partnership business.

c. a capitalist partner and the business he will engage in is of a kind different from the partnership business.

d. An industrial partner and the business he will engage in is of a kind different from the partnership business.

5. The partnership will bear the risk of the loss of three of the following things. Which is the exception?

a. Things contributed to be sold.

b. Fungible things or those that cannot be kept without deteriorating.

c. Things contributed so that only their use and fruits will be for the common benefit.

d. Things brought and appraised in the inventory.

6. A partner's interest in the partnership is his share of the profits and surplus which he may assign to a third person. Which of the following statements concerning such right is correct?

a. The conveyance of a partner's interest will cause the dissolution of the partnership

b. The assignee becomes a partner.

c. The assignee has a right to interfere in the management of the partnership business.

d. The assignee has the right to receive the profits which the assigning partner would otherwise be entitled to.

7. Torres is indebted for P5,000.000 to MACE Trading Company, a partnership managed by Mendoza to whom Torres also owes P10,000.00. The two debts which are both demandable are unsecured. Torres remits P4,500 to Mendoza in payment of his debt to him. Accordingly, Mendoza issues a receipt for his own credit. To which credit should the payment be applied?

a. To Mendoza's credit because the payment made by Torres is intended for his debt to Mendoza who issued his own receipt.

b. To both the partnership credit and Mendoza's credit proportionately at P1,500.00 and P3,000.00 respectively.

c. To Mendoza's credit because its amount is greater than that of the partnership credit.

d. To the partnership credit because the managing partner should not prefer his own interest to that of the partnership.

8. In three of the following wrongful acts of partners, the partnership is solidarily liable with all the partners to third persons. Which one is the exception?

a. For loss or injury caused to a third person by reason of the wrongful act or omission of a partner acting in the ordinary course of business.

b. Where a partner acting within the scope of his apparent authority receives money or property of a third person and misappropriates it.

c. Where the partnership receives money or property of a third person in the ordinary course of business and such money or property is misapplied by a partner while it is in the custody of the partnership.

d. For loss or injury caused to a third person by reason of the use of partnership property by a partner for personal purpose.

9. Benito, Ignacio, Gregorio, Artemio and Servando are partners in BIGAS Company which is engaged in the buying and selling of rice. Benito is the manager. Ignacio was also given a special power of attorney by the partnership to buy a van for the company. No other power was given to all the partners. In which of the following acts or contracts is the partnership not bound by the act of the partner?

a. Ignacio buying rice for the partnership from Teodoro who has no knowledge of Ignacio's lack of authority.

b. Ignacio buying a van for the partnership from Teresa.

c. Gregorio buying a van for the partnership from Thelma who has no knowledge of Gregorio's lack of authority

d. Benito selling rice for the partnership.

10. Statement I.- The profits and losses of the partnership shall be divided among the partners if they have no profit and loss sharing agreement .

Statement II. - A stipulation exempting the capitalist partner from losses is valid.

a. Statement I is correct, and Statement II is incorrect.

b. Statement I is incorrect, and Statement II is correct.

c. Statements I and II are correct.

d. Statements I and II are incorrect.

11. Statement I. - A newly admitted partner is liable for partnership debts contracted before his admission to the extent of his contribution , unless there is contrary stipulation.

Statement II. - A partner may associate another person with him in his share, but the person associated shall not be admitted to the partnership without the consent of all the partners.

a. Statements I and II are correct.

b. Statements I and II are incorrect.

c. Statement I is correct, and Statement II is incorrect.

d. Statement I is incorrect, and Statement II is correct.

12. Statement I. - The partnership shall be solidarily liable with all the partners if one partner acting within the scope of his authority receives a money or property of a third person and misapplies it.

Statement II. - When a partner is not authorized to act for the partnership and the act of the partner is not for apparently carrying on the business of the partnership shall be bound by the act of such partner if the third person was not unaware of the partner's lack of authority.

a. Both statements are correct.

b. Both statements are incorrect

c. Statement I is correct, and statement II is incorrect.

d. Statement I is incorrect, and Statement II is correct.

13. The following statements pertain either to partner appointed as manager in the articles of partnership or through a document after the formation of the partnership.

I. He may be removed as manager only for a just or lawful cause by the vote of the partners owning the controlling interest.

II. He may be removed as manager with or without just or lawful cause by the vote of the partners owning the controlling interest.

III. He may perform all acts of administration despite the opposition of his partners provided he is in good faith.

IV. He may perform all acts of administration in good faith but opposing partners may resort to his removal if he persists.

Based on the foregoing :

a. I and III pertain to a partner appointed as manager in the articles of partnership.

b. I and III pertain to a partner appointed as manager through a document after the formation of the partnership.

c. II and III pertain to a partner appointed through a document after the formation of the partnership.

d. I and IV pertain to a partner appointed as manager in the articles of partnership.

14. It refers to the pro rata liability for partnership obligations of the partners including industrial ones , to the extent of their separate property after partnership assets have been exhausted.

a. Subsidiary liability

b. Secondary liability

c. Primary liability

d. None of the foregoing.

15. Statement I. - Persons who, not being partners, include their names in the firm name don't acquire the rights of a partner but they shall be subject the liability of a partner in so far as third persons without notice are concerned.

Statement II. - All partners including industrial ones , shall be liable pro rata with all their property and after all the partnership assets have been exhausted for the contract which may have been entered into in the name of the partnership.

a. Both statements are incorrect.

b. Both statements are correct.

c. Statement I is correct, and Statement II is incorrect.

d. Statement I is incorrect, and Statement II is correct.