MIDTERM EXAM ON BusLAw 102 : Business Laws and Regulations
Name: ___________________________________
(Last Name, First Name, Middle Initial)
Course & Year: ___________________________________
1. A contract whereby two or more persons bind themselves to contribute money, property or
industry to a common fund with the intention of dividing the profits among themselves is a:
a. Partnership
b. Corporation
c. Sole Proprietorship
d. Joint Stock Company
2. A partnership is:
a. a contract
b. a business organization
c. both (a) and (b)
d. neither (a) nor (b)
3. A partnership is a consensual, principal and bilateral/multilateral contract. It is also the following,
except that it is not:
a. a preparatory contract
b. a nominate contract
c. an onerous contract
d. an aleatory contract
4. When, as a rule, does a partnership begin to exist?
a. On the date of the recording of the partnership agreement with the Securities and
Exchange Commission.
b. Upon the execution of the partnership agreement by the partners.
c. On the date when all the capitalist partners have delivered their contributions to the
partnership.
d. On the date when the partnership agreement is acknowledged before a notary public.
5. Which of the following is not an essential requisite of a partnership contract?
a. It must be established for the common benefit of the members which is to earn profits and
divide the profits among the members.
b. The articles are kept secret among the members.
c. There must be a mutual contribution of money, property or industry to a common fund.
d. It must have a lawful object or purpose.
6. Who/which of the following may not be a partner in a partnership?
a. Natural Person
b. Partnership
c. Corporation
d. None of the foregoing
7. The doctrine of delectus personae/personarum refers to the right of a person to choose:
a. The persons whom he wants to be associated in partnership.
b. The business in which he wishes to engage with another person or other persons.
c. Both (a) and (b)
d. Neither (a) nor (b)
8. The following may be contributed by a partner to a partnership, except:
a. Money
b. Tangible property such as a piece of land
c. Intellectual industry, such as that of a chemist, or manual industry such as that of a
mechanic.
d. Political connection or credit.
, d. His receipt of share of the profits realized from the use of a property that he co-possesses
with another.
10. A voluntary association or society whose articles are kept secret among its members and where
any one of the members may transact in his own name possesses which of the following
characteristics?
a. It is governed by the rules on co-ownership.
b. It has a juridical personality.
c. The members are treated as partners.
d. It shall be governed by the provisions on partnership.
11. A, B, C, D, E, F, G, H, I and J are members of “Alpha Association” whose articles are kept
among themselves and wherein any one of the members may transact in his own name.
a. The association may sue under the name “Alpha Association”.
b. The association may be sued under the name “Alpha Association”
c. Both (a) and (b).
d. Neither (a) nor (b).
12. Three years ago, Benjamin and Bienvenido, brothers, inherited a five-floor commercial building
and the lot on which it was constructed, from Facundo, their father, who died without a will. For
the past three years, the brothers have divided between the two of them the profit on the rental of
the property. Are Benjamin and Bienvenido partners?
a. Yes, because of their receipt of the profit from the use of the property.
b. No, they are merely co-owners of the whole property.
c. No, each one is a sole proprietor of one-half of the whole property.
d. No, they are considered as stockholders of the whole property.
13. Sanchez and Suarez are both real estate brokers. The two have not entered into any partnership
agreement, but to save on costs, they share at the Avenue Twin Towers the same office space on
the front door of which is the signage “Sanchez and Suarez, Real Estate Brokers”. They also use
the same stationery showing the name appearing on the signage and one telephone number, and
share the services of the same secretary. Sanchez, using the stationery, ordered a laptop computer
worth P100, 000.00 from Cyber Computers owned by Camarino, who himself delivered the
computer to the office. Camarino also issued a receipt acknowledging the down payment of P40,
000.00 from “Sanchez and Suarez” without any objection from Suarez. Sanchez later failed to
pay the balance of P60, 000.00. Camarino now seeks to recover the amount of P60, 000.00 from
both Sanchez and Suarez as partners.
a. Only Sanchez can be held liable by Camarino since the purchase of the laptop computer
is the personal transaction of Sanchez.
b. Only Sanchez can be held liable by Camarino since Sanchez and Suarez did not enter into
any partnership.
c. Both Sanchez and Suarez can be held liable by Camarino since the two are considered as
partners in so far as Camarino is concerned.
d. Only “Sanchez and Suarez, Real Estate Brokers”, as a juridical entity is liable to
Camarino since an actual partnership exists.
14. Belinda purchased Cut-N-Curl, a beauty salon owned by Sophia, for P100, 000.00. To finance the
acquisition of the business, Belinda obtained from Cristina a loan of P60, 000.00 (at 12% interest
per annum) which the parties agreed would be paid by Belinda in an amount equivalent to 20% of
the monthly net profits of the salon until the loan and the interest thereon are fully paid. Belinda
then gave the P60, 000.00 to Sophia as down payment, promising to pay the balance of P40,
000.00 at an amount equivalent to 10% of the monthly net profits until it is fully paid.
a. Cristina is a partner of Belinda until Belinda has paid in full her loan obligation of P60,
000.00 and the interest thereon to Cristina.
b. Sophia is a partner of Belinda until Belinda has paid in full her balance of P40, 000.00 on
Name: ___________________________________
(Last Name, First Name, Middle Initial)
Course & Year: ___________________________________
1. A contract whereby two or more persons bind themselves to contribute money, property or
industry to a common fund with the intention of dividing the profits among themselves is a:
a. Partnership
b. Corporation
c. Sole Proprietorship
d. Joint Stock Company
2. A partnership is:
a. a contract
b. a business organization
c. both (a) and (b)
d. neither (a) nor (b)
3. A partnership is a consensual, principal and bilateral/multilateral contract. It is also the following,
except that it is not:
a. a preparatory contract
b. a nominate contract
c. an onerous contract
d. an aleatory contract
4. When, as a rule, does a partnership begin to exist?
a. On the date of the recording of the partnership agreement with the Securities and
Exchange Commission.
b. Upon the execution of the partnership agreement by the partners.
c. On the date when all the capitalist partners have delivered their contributions to the
partnership.
d. On the date when the partnership agreement is acknowledged before a notary public.
5. Which of the following is not an essential requisite of a partnership contract?
a. It must be established for the common benefit of the members which is to earn profits and
divide the profits among the members.
b. The articles are kept secret among the members.
c. There must be a mutual contribution of money, property or industry to a common fund.
d. It must have a lawful object or purpose.
6. Who/which of the following may not be a partner in a partnership?
a. Natural Person
b. Partnership
c. Corporation
d. None of the foregoing
7. The doctrine of delectus personae/personarum refers to the right of a person to choose:
a. The persons whom he wants to be associated in partnership.
b. The business in which he wishes to engage with another person or other persons.
c. Both (a) and (b)
d. Neither (a) nor (b)
8. The following may be contributed by a partner to a partnership, except:
a. Money
b. Tangible property such as a piece of land
c. Intellectual industry, such as that of a chemist, or manual industry such as that of a
mechanic.
d. Political connection or credit.
, d. His receipt of share of the profits realized from the use of a property that he co-possesses
with another.
10. A voluntary association or society whose articles are kept secret among its members and where
any one of the members may transact in his own name possesses which of the following
characteristics?
a. It is governed by the rules on co-ownership.
b. It has a juridical personality.
c. The members are treated as partners.
d. It shall be governed by the provisions on partnership.
11. A, B, C, D, E, F, G, H, I and J are members of “Alpha Association” whose articles are kept
among themselves and wherein any one of the members may transact in his own name.
a. The association may sue under the name “Alpha Association”.
b. The association may be sued under the name “Alpha Association”
c. Both (a) and (b).
d. Neither (a) nor (b).
12. Three years ago, Benjamin and Bienvenido, brothers, inherited a five-floor commercial building
and the lot on which it was constructed, from Facundo, their father, who died without a will. For
the past three years, the brothers have divided between the two of them the profit on the rental of
the property. Are Benjamin and Bienvenido partners?
a. Yes, because of their receipt of the profit from the use of the property.
b. No, they are merely co-owners of the whole property.
c. No, each one is a sole proprietor of one-half of the whole property.
d. No, they are considered as stockholders of the whole property.
13. Sanchez and Suarez are both real estate brokers. The two have not entered into any partnership
agreement, but to save on costs, they share at the Avenue Twin Towers the same office space on
the front door of which is the signage “Sanchez and Suarez, Real Estate Brokers”. They also use
the same stationery showing the name appearing on the signage and one telephone number, and
share the services of the same secretary. Sanchez, using the stationery, ordered a laptop computer
worth P100, 000.00 from Cyber Computers owned by Camarino, who himself delivered the
computer to the office. Camarino also issued a receipt acknowledging the down payment of P40,
000.00 from “Sanchez and Suarez” without any objection from Suarez. Sanchez later failed to
pay the balance of P60, 000.00. Camarino now seeks to recover the amount of P60, 000.00 from
both Sanchez and Suarez as partners.
a. Only Sanchez can be held liable by Camarino since the purchase of the laptop computer
is the personal transaction of Sanchez.
b. Only Sanchez can be held liable by Camarino since Sanchez and Suarez did not enter into
any partnership.
c. Both Sanchez and Suarez can be held liable by Camarino since the two are considered as
partners in so far as Camarino is concerned.
d. Only “Sanchez and Suarez, Real Estate Brokers”, as a juridical entity is liable to
Camarino since an actual partnership exists.
14. Belinda purchased Cut-N-Curl, a beauty salon owned by Sophia, for P100, 000.00. To finance the
acquisition of the business, Belinda obtained from Cristina a loan of P60, 000.00 (at 12% interest
per annum) which the parties agreed would be paid by Belinda in an amount equivalent to 20% of
the monthly net profits of the salon until the loan and the interest thereon are fully paid. Belinda
then gave the P60, 000.00 to Sophia as down payment, promising to pay the balance of P40,
000.00 at an amount equivalent to 10% of the monthly net profits until it is fully paid.
a. Cristina is a partner of Belinda until Belinda has paid in full her loan obligation of P60,
000.00 and the interest thereon to Cristina.
b. Sophia is a partner of Belinda until Belinda has paid in full her balance of P40, 000.00 on
