TEST BANK
PARNERSHIP & CORPORATION
FR: DIAZ A+
PARTNERSHIP
1. All present properties are contributed
A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above
2. Composed of capitalist and industrial partners
A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
3. Partners shall enjoy practically all the profits:
A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above
4. They have no voice in the management of partnership affairs:
A. Managing partners
B. Silent partners
C. Both A and B
D. None of the above
5. They have priority if the partnership is insolvent:
A. Separate creditors
B. Partnership creditors
C. Both A and B
D. None of the above
6. May contribute money, property or industry to the common fund:
A. Both general and limited partners
B. Limited partner
C. General partners
D. Capitalist partners
7. One who takes charge of the winding up to partnership affairs upon dissolution:
A. Silent partner
B. General partner
C. Ostensible partner
D. Liquidating partner
8. A, B and C are partners. A contributed his services only; B, P20,000; and C, P10,000.The
partnership was liquidated. After payment of the partnership’s obligation, only P9,000
worth of assets remained. The share of A will equal to:
A. P3,000
B. Equal of share of B
C. Equal of share of C
,9. A and B entered into a universal partnership of all present property. The common property
of the partnership shall be:
A. All the properties which belonged to each of the partners at the time of the constitution of the
partnership.
B. All the properties which belonged to each of the partners after the constitution of the
partnership.
C. All the properties which belonged to each of the partners at the time of the
constitution of the partnership as well as the profits which they may acquire therewith.
D. All the properties which belonged to each of the partners at the time of the constitution of the
partnership as well as the profits which they may acquire thereafter.
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 dissolve or discontinue the operation of his business
C. Compelled to bring to the common funds of the partnership any profits accruing to
him from his transactions.
D. Denied his share in the profits of the partnership.
11. If a partner in a partnership is insolvent, the first order of preference in the distribution of his
assets are:
A. Partnership creditors
B. Partners contribution to the partnership
C. Separate creditors of the debtor
D. Pro-rata between the separate creditors of the debtor and the partnership creditor
12. A, B and C are partners in a partnership. C contributed his industry. After payments of the
partnership’s obligations, only P6,000 cash remains. No other assets. In the absence of terms
to the contrary, the share of C in the remaining assets is:
A. Equal to share of A
B. Equal to the share of B
C. P2,000
D. Nothing
13. X, Y and Z are equal partners of Xyz Partnership. A owes the XYZ Partnership for
p9,000. Z, a partner collected from A, P3,000 before X and Y received anything. Z issued
a receipt on the P3,000 as his share of what A owes. When X and Y collected from A, A
was insolvent.
A. Partner Z shall share partners X and Y with the P3,000
B. Z cannot be required to share X and Y with the P3,000
C. X and Y should first exhaust all remedies to collect from A.
D. X and Y can automatically deduct from the capital contributions of Z in the partnership their
respective share in the P3,000
14. A and B are partners in a real estate partnership . The partnership owns a piece of land which
C desired to buy. C contacted A and inform him of his desire to buy the land and A did not
tell to B about it. A bought B out of the partnership and afterwards sold the land to C with a
big profit.
A. The partnership is dissolved when A became the sole owner
B. The sale of the land to C is void because it was without the knowledge of B.
C. A is not liable to B for the latter’s share in the profits
D. A is liable to B for the latter’s share in the profits
,15. A, B and C are partners in ABC Partnership. D represented himself as a partner in ABC
Partnership to E, who, on the belief of such representation, extended P50,000 credit to
ABC Partnership. Assuming only B and C consented to such representation, who will be
held liable to E?
A. E extended the credit to ABC Partnership, so a partnership liability exists, thus, all
the partners, A, B and C are liable
B. B, C and D are partners by estoppels and thus, are liable prorate to E
C. Partners A, B and C who benefited from the credit extended by E are liable.
D. D who made the representation is liable to E
16. A and B are partners in a real estate business. A and B were approached by X who offered
to buy a parcel of land owned by the partnership. Thereafter, b sold to A, B’s share in the
partnership. Then, A sold the land to X at a big profit.
A. A is liable to B for B’s share in the profits
B. The partnership is dissolved when A became the sole owner
C. A is not liable to B for the latter’s share in the profits
D. The sale of the land to X is void.
17. One of the following incidents may be a cause for involuntary dissolution of a partnership.
Which is?
A. Termination of the term of the partnership
B. Insolvency of any partner
C. Express will of any partner
D. Expulsion of any partner
18. A and B are equal partners in AB Partnership. Y presented himself as a partner in AB
Partnership to Z, who relying on such representation, extended P50,000 credit to AB
Partnership. Of the two (2) partners only B knew and consented to the representation of Y.
Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a partnership liability was created, so
the two (2) partners and Y are liable.
C. Partners A and B who benefited from the credit extended to the partnership AB
Partnership shall be liable to Z.
D. B and Y are partners by estoppel and, thus, are liable to Z.
19. The following persons are disqualified to form a universal partnership. Who are the
exception?
A. Brother and sister
B. Husband and wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the partnership is entered into a consideration of
the same.
20. A is the capitalist partner and B the industrial partner. A is engaged personally in the
same kind of business the partnership is engaged in.
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shares by A and the partnership
C. If there are profits, A will give the profits to the partnership
D. A will be excluded from the partnership and pay damages.
21. A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership
P20,000 each. A collected and receive from X, P10,000 and he issued a receipt wherein it
is stated that the amount is applied against his personal credit.
A. The amount received will be applied in favor the partnership credit
, D. All the partners will decide as to whose favor it will apply
22. Three (3) of the following are similarities between a partnership and a corporation. Which
is not?
A. The individuals composing both have little voice in the conduct of the business
B. Both have juridical personality separate and distinct from that of the individuals composing
them.
C. Like a partnership, a corporation can act only through agents
D. Both are organizations composed of an aggregate of individuals
23. A, B and C are general partners in ABC Partnership. A, the managing partnerengaged
personally in a business that is the same as the business of the partnership without the
consent of B and C.
A. If there are profits, A will give the profits to the partnership
B. If there are losses, the partnership will bear the losses
C. If there are profits, they will be shared by partner A and the ABC Partnership
D. The profits or losses will be shared equally by A and the ABC Partnership
24. Three (3) of the following are rights of a general partner and also of a limited partner in a
limited partnership. Which is not?
A. To inspect and copy at reasonable hours the books of the partnership and have them kept at
the principal place of business
B. To demand true and full information of all matters affecting the partnership and a formal
account of partnership affairs
C. To have dissolution and winding up by decree of court
D. None of the above
25. The partnership is insolvent. These are preferred as regards to the partnership property.
A. Partnership creditors
B. Partners separate creditors
C. Partners with respect to their capital
D. Partners with respect to their profits
26. 26.
27. Bears the loss of property contributed to the partnership
A. Capitalist partner
B. Limited partner
C. None of the above
D. Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is contributed as capital. The Articles of Co-
Partnership shall be in a public instrument and be registered with the Securities and
Exchange commission. If the said requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers Partnership. The partnership is indebted to
PC for P150,000. Partner A is indebted to SC for P20,000 PC attached and took all the
assets of the partnership amounting to P90,000. B and C are solvent while A is insolvent and
all what he owns is a land valued at P15,000.
A. SC has the priority to the land of A as a separate creditor.
B. PC has priority to the land of A to cover A’s share of the P60,000 remaining liability of the
partnership
C. B and C have priority to the land of A if they paid PC the 60,000 remaining liability of
PARNERSHIP & CORPORATION
FR: DIAZ A+
PARTNERSHIP
1. All present properties are contributed
A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above
2. Composed of capitalist and industrial partners
A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
3. Partners shall enjoy practically all the profits:
A. Universal partnership[
B. General partnership
C. Limited partnership
D. None of the above
4. They have no voice in the management of partnership affairs:
A. Managing partners
B. Silent partners
C. Both A and B
D. None of the above
5. They have priority if the partnership is insolvent:
A. Separate creditors
B. Partnership creditors
C. Both A and B
D. None of the above
6. May contribute money, property or industry to the common fund:
A. Both general and limited partners
B. Limited partner
C. General partners
D. Capitalist partners
7. One who takes charge of the winding up to partnership affairs upon dissolution:
A. Silent partner
B. General partner
C. Ostensible partner
D. Liquidating partner
8. A, B and C are partners. A contributed his services only; B, P20,000; and C, P10,000.The
partnership was liquidated. After payment of the partnership’s obligation, only P9,000
worth of assets remained. The share of A will equal to:
A. P3,000
B. Equal of share of B
C. Equal of share of C
,9. A and B entered into a universal partnership of all present property. The common property
of the partnership shall be:
A. All the properties which belonged to each of the partners at the time of the constitution of the
partnership.
B. All the properties which belonged to each of the partners after the constitution of the
partnership.
C. All the properties which belonged to each of the partners at the time of the
constitution of the partnership as well as the profits which they may acquire therewith.
D. All the properties which belonged to each of the partners at the time of the constitution of the
partnership as well as the profits which they may acquire thereafter.
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 dissolve or discontinue the operation of his business
C. Compelled to bring to the common funds of the partnership any profits accruing to
him from his transactions.
D. Denied his share in the profits of the partnership.
11. If a partner in a partnership is insolvent, the first order of preference in the distribution of his
assets are:
A. Partnership creditors
B. Partners contribution to the partnership
C. Separate creditors of the debtor
D. Pro-rata between the separate creditors of the debtor and the partnership creditor
12. A, B and C are partners in a partnership. C contributed his industry. After payments of the
partnership’s obligations, only P6,000 cash remains. No other assets. In the absence of terms
to the contrary, the share of C in the remaining assets is:
A. Equal to share of A
B. Equal to the share of B
C. P2,000
D. Nothing
13. X, Y and Z are equal partners of Xyz Partnership. A owes the XYZ Partnership for
p9,000. Z, a partner collected from A, P3,000 before X and Y received anything. Z issued
a receipt on the P3,000 as his share of what A owes. When X and Y collected from A, A
was insolvent.
A. Partner Z shall share partners X and Y with the P3,000
B. Z cannot be required to share X and Y with the P3,000
C. X and Y should first exhaust all remedies to collect from A.
D. X and Y can automatically deduct from the capital contributions of Z in the partnership their
respective share in the P3,000
14. A and B are partners in a real estate partnership . The partnership owns a piece of land which
C desired to buy. C contacted A and inform him of his desire to buy the land and A did not
tell to B about it. A bought B out of the partnership and afterwards sold the land to C with a
big profit.
A. The partnership is dissolved when A became the sole owner
B. The sale of the land to C is void because it was without the knowledge of B.
C. A is not liable to B for the latter’s share in the profits
D. A is liable to B for the latter’s share in the profits
,15. A, B and C are partners in ABC Partnership. D represented himself as a partner in ABC
Partnership to E, who, on the belief of such representation, extended P50,000 credit to
ABC Partnership. Assuming only B and C consented to such representation, who will be
held liable to E?
A. E extended the credit to ABC Partnership, so a partnership liability exists, thus, all
the partners, A, B and C are liable
B. B, C and D are partners by estoppels and thus, are liable prorate to E
C. Partners A, B and C who benefited from the credit extended by E are liable.
D. D who made the representation is liable to E
16. A and B are partners in a real estate business. A and B were approached by X who offered
to buy a parcel of land owned by the partnership. Thereafter, b sold to A, B’s share in the
partnership. Then, A sold the land to X at a big profit.
A. A is liable to B for B’s share in the profits
B. The partnership is dissolved when A became the sole owner
C. A is not liable to B for the latter’s share in the profits
D. The sale of the land to X is void.
17. One of the following incidents may be a cause for involuntary dissolution of a partnership.
Which is?
A. Termination of the term of the partnership
B. Insolvency of any partner
C. Express will of any partner
D. Expulsion of any partner
18. A and B are equal partners in AB Partnership. Y presented himself as a partner in AB
Partnership to Z, who relying on such representation, extended P50,000 credit to AB
Partnership. Of the two (2) partners only B knew and consented to the representation of Y.
Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a partnership liability was created, so
the two (2) partners and Y are liable.
C. Partners A and B who benefited from the credit extended to the partnership AB
Partnership shall be liable to Z.
D. B and Y are partners by estoppel and, thus, are liable to Z.
19. The following persons are disqualified to form a universal partnership. Who are the
exception?
A. Brother and sister
B. Husband and wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the partnership is entered into a consideration of
the same.
20. A is the capitalist partner and B the industrial partner. A is engaged personally in the
same kind of business the partnership is engaged in.
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shares by A and the partnership
C. If there are profits, A will give the profits to the partnership
D. A will be excluded from the partnership and pay damages.
21. A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership
P20,000 each. A collected and receive from X, P10,000 and he issued a receipt wherein it
is stated that the amount is applied against his personal credit.
A. The amount received will be applied in favor the partnership credit
, D. All the partners will decide as to whose favor it will apply
22. Three (3) of the following are similarities between a partnership and a corporation. Which
is not?
A. The individuals composing both have little voice in the conduct of the business
B. Both have juridical personality separate and distinct from that of the individuals composing
them.
C. Like a partnership, a corporation can act only through agents
D. Both are organizations composed of an aggregate of individuals
23. A, B and C are general partners in ABC Partnership. A, the managing partnerengaged
personally in a business that is the same as the business of the partnership without the
consent of B and C.
A. If there are profits, A will give the profits to the partnership
B. If there are losses, the partnership will bear the losses
C. If there are profits, they will be shared by partner A and the ABC Partnership
D. The profits or losses will be shared equally by A and the ABC Partnership
24. Three (3) of the following are rights of a general partner and also of a limited partner in a
limited partnership. Which is not?
A. To inspect and copy at reasonable hours the books of the partnership and have them kept at
the principal place of business
B. To demand true and full information of all matters affecting the partnership and a formal
account of partnership affairs
C. To have dissolution and winding up by decree of court
D. None of the above
25. The partnership is insolvent. These are preferred as regards to the partnership property.
A. Partnership creditors
B. Partners separate creditors
C. Partners with respect to their capital
D. Partners with respect to their profits
26. 26.
27. Bears the loss of property contributed to the partnership
A. Capitalist partner
B. Limited partner
C. None of the above
D. Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is contributed as capital. The Articles of Co-
Partnership shall be in a public instrument and be registered with the Securities and
Exchange commission. If the said requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers Partnership. The partnership is indebted to
PC for P150,000. Partner A is indebted to SC for P20,000 PC attached and took all the
assets of the partnership amounting to P90,000. B and C are solvent while A is insolvent and
all what he owns is a land valued at P15,000.
A. SC has the priority to the land of A as a separate creditor.
B. PC has priority to the land of A to cover A’s share of the P60,000 remaining liability of the
partnership
C. B and C have priority to the land of A if they paid PC the 60,000 remaining liability of
