Question 1

1pts

Documents embodying partnership agreements:

Group of answer choices

Articles of partnership

Partnership books

Board Directors minutes of meetings

By laws of the partnership

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Question 2

1pts

A partnership characteristic which enables the partners to enter into a contract on behalf of the other partners is:

Group of answer choices

Voluntary association

Mutual agency

Unlimited liability

Limited life

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Question 3

1pts

When investing partners continue to own the real properties invested, the partnership created is:

Group of answer choices

Limited partnership

Universal partnership of all properties

Particular partnership

Universal partnership of all profits

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Question 4

1pts

A, B and C are friends who formed the partnership A and B Co., Ltd. Only A manages the partnership operations. The three partners contributed money as capital. A, in addition contributed his services as an engineer. Only A is liable to third parties up to his personal assets not invested in the partnership. Identify what kind of a partner is A.

GeneralCapitalistSecretManaginga.YesYesYesNob.YesNoNoYesc.YesYesNoYesd.NoYesNoYes

Group of answer choices

b

c

d

a

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Question 5

1pts

A, B and C are friends who formed the partnership A and B Co., Ltd. Only A manages the partnership operations. The three partners contributed money as capital. A, in addition contributed his services as an engineer. Only A is liable to third parties up to his personal assets not invested in the partnership. Identify what kind of a partner B is.

GeneralCapitalistSecretManaginga.YesNoYesNob.NoNoNoNoc.YesYesYesNod.NoYesNoNo

Group of answer choices

d

b

a

c

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Question 6

1pts

A, B and C are friends who formed the partnership A and B Co., Ltd. Only A manages the partnership operations. The three partners contributed money as capital. A, in addition contributed his services as an engineer. Only A is liable to third parties up to his personal assets not invested in the partnership. Identify what kind of a partner C is.

GeneralCapitalistSecretManaginga.NoYesYesNob.NoYesNoNoc.YesNoYesNod.NoYesYesYes

Group of answer choices

c

a

b

d

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Question 7

1pts

Mr. X, a partner in an oral partnership for the catching of fish, with P10,000 cash as the only contributions thereto refused to account for proceeds of the firm on the ground that the agreement was not in writing. Is he correct?

Group of answer choices

Yes, because partnership must be in writing for it to be valid.

No, because the oral partnership is valid, real properties not having been contributed.

Yes, because the partnership's capital is more that P3,000, therefore it must be in a public instrument.

No, because there must be mutual trust and confidence between the partners.

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Question 8

1pts

If there is no stipulation, when a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their

Group of answer choices

fair market value at the time of the contribution

book values on the partners' books prior to their being contributed to the partnership

original costs to the partner contributing them

assessed values for property purposes

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Question 9

1pts

The following partnership contracts were presented to you for evaluation:

I. A partnership engaged in the sale of office supplies with a capital of P100,000.00 broken down into: cash, P30,000.00; office supplies for sale, P50,000; and office equipment, P10.000.00; Land, P10,000. The agreement is in a private instrument.

II. A partnership engaged in the lease of office spaces with a capital of P700,000.00 broken down into: land, P100,000.00; building, P500,000.00; cash, P80,000.00; and office equipment, P20,000.00. The agreement is in a public instrument attached to which is the inventory of the land and the building signed by the partners. The agreement is not recorded with the Securities and Exchange Commission.

III. A partnership is engaged in the trading of computers whose name is "Lament Enterprises, Ltd." It has a total capital of P500,000.00 broken down into P100,000.00 cash and computers worth P400,000.00, contributed by both general and limited partners. The agreement was subscribed and sworn to by all the partners before a notary public but not recorded with the Securities and Exchange Commission.

Based on the foregoing:

Group of answer choices

II and III have separate juridical personalities.

Each partnership has a separate juridical personality.

None of the partnerships has a separate juridical personality.

I and II have separate juridical personality.

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Question 10

1pts

A, B and C all are capitalist partners, form a partnership and agree to have a total contributed capital of P30,000. However, the partners failed to agree as to the extent of their respective share in the capital contribution. In this case, which of the following statement is not correct:

Group of answer choices

The partnership contract is void because there is no agreement as to the capital contribution of each partner.

A, B and C must contribute P10,000 each to the partnership.

If A, B and C mutually agreed that partner A will be excluded from the share in the losses, such agreement is void.

If A, B and C failed to stipulate on how to distribute profit and loss, the profit and loss will be distributed equally between them.

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Question 11

1pts

A partnership records a partner's investment of assets in the business at:

Group of answer choices

The assessed value of the asset invested

A value set by the partners

The partner's book value of the assets invested

The market value of the asset invested

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Question 12

1pts

If the partnership agreement does not specify how profit is to be allocated, profits and losses should be allocated:

Group of answer choices

Equitably so that partners are well compensated for their time and effort

Equally

In proportion to the average of capital invested during the period

In accordance with their capital contributions

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Question 13

1pts

A and B today orally agreed to form a partnership one and a half years from today, each one to contribute P100,000. If at the arrival of the period, A refuses to go ahead with the agreement, can B enforce the agreement?

Group of answer choices

Yes. A partnership contract is not governed by the Statute of Frauds.

No. Since the agreement is to be enforced after one year from the making thereof, the same should be in writing to be enforceable under the Statute of Frauds.

No. An agreement to form a partnership does not of itself create a partnership even after the arrival of the term or the fulfillment of the conditions.

Yes, a partnership may be constituted in any form.

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Question 14

1pts

Three of the following partnership contracts are void. Which one is not?

Group of answer choices

A universal partnership of present property between husband and wife

A particular partnership between husband and wife

A universal partnership between a private individual and a public officer

A universal partnership of profits between a man and a woman living together as husband and wife without the benefit of marriage

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Question 15

1pts

D, to carry on a business, borrowed money from C. It was agreed that D would return the money in installments and that said installments would come from D's profits in the business. Is a partnership created between D and C?

Group of answer choices

No, because the payment was in installments.

No, because no inference shall be drawn if such profits were received in payment of a debt by installments or otherwise.

Yes, because such inference shall be drawn if such profits were received in payment of a debt by installments or otherwise.

Yes, because the receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business.

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Question 16

1pts

In 2015, L, M, N, 0 and P formed a partnership. L, M and N were capitalist partners who contributed P500,000 each, while 0, a limited partner, contributed P1 ,000,000. P joined as an industrial partner, contributing only his services. The Articles of Partnership, registered with the Securities and Exchange Commission, designated L and 0 as managing partners; L was liable only to the extent of his capital contribution; and P was not liable for losses. In 2016, the partnership earned a net profit of P800,000. In the same year, P engaged in a different business with the consent of all the partners. However, in 2017, the partnership incurred a net loss of P500,000. In 2018,the partners dissolved the partnership. The proceeds of the sale of partnership assets were insufficient to settle its obligation. After liquidation, the partnership had an unpaid liability ofP300,000.

Assuming that the just and equitable share of the industrial partner, P, in the profit in 2016 amounted to P1 00,000, how much is the share of 0, a limited partner, in the P800,000 net profit?

Group of answer choices

P160,000

P175,000

P280,000

P200,000

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Question 17

1pts

Which of the following stipulations is valid?

Group of answer choices

A stipulation excluding an industrial partner from profits.

A stipulation exempting an industrial partner from losses.

A stipulation excluding a capitalist partner from profits.

A stipulation exempting a capitalist partner from losses.

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Question 18

1pts

A, B, C and D are partners where A, B, and C contributed P1,000,000 each and D his services. The partnership is engaged in the manufacture and export of garments. Due to a very strong typhoon, the entire roofing of the factory was blown by the strong winds and if not repaired immediately would aggravate the damage. A, B, C and D agreed on an additional contribution of P200,000 each in order to save the business from imminent loss. Which of these is the correct statement?

Group of answer choices

If A no longer has money, he can be complied to sell his interest in the partnership to the other partners.

If C still has money, but refuses to make the contribution, he can be compelled to sell his interest in the partnership to the other partners.

B can question the decision because he did not vote for the additional contribution.

D is duty bound to contribute 20% more of his time to the business of the partnership.

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Question 19

1pts

A, B and C all are capitalist partners, form a partnership and agree to have a total contributed capital of P30,000. However, the partners failed to agree as to the extent of their respective share in the capital contribution. In this case, which of the following statement is not correct:

Group of answer choices

If A, B and C failed to stipulate on how to distribute profit and loss, the profit and loss will be distributed equally between them.

A, B and C must contribute P10,000 each to the partnership.

The partnership contract is void because there is no agreement as to the capital contribution of each partner.

If A, B and C mutually agreed that partner A will be excluded from the share in the losses, such agreement is void.

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Question 20

1pts

Three (3) of the following are rights of a partner. Which one (1) is not? (Phil CPA, 90-1)

Group of answer choices

Right to admit another partner.

Right to ask dissolution of the firm at the proper time.

Right to associate another person to his share.

Right to inspect and copy partnership book.