01M- De Chavez

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.

02M-Pilar
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.

03M-Katigbak
A partner in a partnership who is not really a partner, not being a party to the
partnership agreement, but is made liable as a partner for the protection of innocent
third persons is known as
A. Secret partner 

B. Dormant partner 

C. Nominal partner or partner by estoppel

D. Silent partner

04M-Cueto
A capitalist partner engaged for his own account in an operation which is one of
the kind of business in which the partnership is engaged. Such partner can be
A. Compelled to sell his interest in the partnership to the other capitalist partners.

B. Compelled to dissolve or discontinue the operations of the business.

C. Compelled to bring to the common funds of the partnership any profits accruing
to him from his transactions.

Denied his share in the profits of the partnership.

05M-Aman
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.
06M-Salazar
A and B entered into contract of partnership for the purpose of buying and selling
generators, with A as capitalist partner and the latter as industrial partner. It was
agreed that A shall contribute P20,000 to the common fund on September 28,
2015. Upon arrival of the designated date, A failed to deliver the contribution he
promised.
A. B must demand from A the delivery of his contributions to render A in default.

B. The contract of partnership becomes void because A failed to give his
contribution to the common fund.

C. B can compel A to deliver his contribution with interest and/or damages
without the necessity of demand.

D. The contract of partnership was never perfected because there was no delivery
of contributions by the partners.

07M-Ricafort
Statement 1: When immovable property is contributed in the partnership and an
inventory of said property is not made, signed by the parties, and attached to the
public instrument, a contract of partnership is still valid.
Statement 2: Failure to register the contract of partnership having a capital of
P3,000 or more with the SEC will invalidate the contract of partnership. Which of
the following statement/s is/are correct?
a. Statement 1
b. Statement 2
c. Both statements
d. Neither of the statements

08M-Purisima
I. 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.
II. . Persons who are prohibited from giving each other any donation or advantage
cannot enter into a universal partnership.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.

09M-Soriano
Eduel, Floyd and Zedric are partners in EFZ Enterprise. Not having established yet
their credit standing, the three partners requested Angel, a well-known
businessman, to help them negotiate a loan from Carlos, a money lender. With the
consent of all of the partners, Angel represented himself as a partner of EFZ
Enterprise. Thereafter Carlos granted the loan of P 100,000,00 to the partnership.
What kind of partner is Angel?
A.Managing Partner

B.Liquidating Partner

C.Ostensible Partner

D.Partner by estoppel
11M-Mediarito
The liability of all the partners, including industrial partners for contracts entered
into in the company’s name and for its account, when all partnership assets have
been exhausted is
a. Joint

b. Pro-rata

c. Solidary

d. Voluntary

12M-Zoleta
A, B, and C formed a partnership with the name ABC & Co. Partnership as a
limited partnership in mind. It is therefore:
a. Limited partnership.

b. General partnership.

c. If registered with the SEC, it is a limited partnership.

d. Partnership by estoppel.

13M-Atentar
As regards a limited partner, which of the following is correct?
A. He is automatically an agent for the partnership with apparent authority to bind
the limited partnership in a contract.
B. He cannot own limited partnership interest in other competing limited
partnership.
C. He has no liability to creditors even if he takes part in the control of the
business as long as he is held out as being a limited partner. 

D. He can contribute money and/or property but not services.

14M-Constantino
These statements are presented to you:
I. A partner appointed as manager in the articles of partnership may be removed
for a
lawful cause by the vote of the partners owning the controlling interest.
II. A partner appointed as manager after the constitution of the partnership may be
removed even without just cause by the vote of the partners owning the controlling
interest.
In your evaluation of the foregoing
statements:
a. Both statements are true.
b. Both statements arefalse.
c. Only statement I is true.
d. Only statement II is true.

15M-Gabia
A partnership whereby the partners contribute to a common fund all the property
actually belonging to them at the time of the constitution of the partnership, with
the intention of dividing the same among themselves, as well as the profits which
they may acquire therewith is called:
a. Universal partnership of all present property
b. Universal partnership of profits

c. Limited Partnership

d. Particular Partnership

16M-Cuevas
Joseph, Aris, Dex and Earl are partners in JADE Enterprises, a jewelry store, with
Joseph contributing P50,000.00; Aris, P20,000.00; and Dex, P30,000.00. Earl is an
industrial partner and manages the partnership. Based on the foregoing
information, which one of the following statements is false?
a.Joseph may engage in the buying and selling of rice without the consent of the
other partners
b.Earl may engage in the buying and selling of rice without the consent of the other
partners
c.Earl is not liable for the losses of the partnership
d.Earl may be held liable by third persons for partnership debts with her separate
property

17M-Jornadal
I. Partners can dispose of partnership property even when in partnership name.
II. Any stipulation against personal liability of partners for partnership debts is void
, except as among them.
III. All partners are not liable solidarily with the partnership for everything
chargeable to the partnership when caused by the wrongful act or omission of any
partner acting in the ordinary course of business of the partnership or with
authority from the other partners and for partner's act or misapplication of
properties.

IV. A newly admitted partner into an existing partnership is not liable for all the
obligations of the partnership arising before his admission but out of partnership
property shares.
Which of the following Statement is/are incorrect?
a. I and II
b. III and IV
c. I, III and IV
d. I, II and IV

18M-Reyes
A, B and C are general partners in ABC Partnership. A, the managing partner
engaged 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

19M-Valdeavilla
Angel and Benedict are co-owners of a parcel of land from which they derive
profits in equal sharing being co-heirs in inheritance. Is there a partnership?
A. There is a partnership because of the equal sharing of profits

B. There is no partnership because co-ownership by itself does not establish a
partnership despite the sharing of profits

C. There is no partnership since in partnership division of profits is not always
necessary among partners

D. There is partnership they being co-owners and co-possessors

20M-Ilao
If the partnership has the minimum capital requirement of P3,000, but the contract
is not in a public instrument or the same is not recorded with the SEC, the
partnership:
A. Is void
B. Is voidable
C. Does not acquire juridical personality.
D. Still acquires juridical personality.

21M-Benedicto
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 shared 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.

22M-Meñez
I. Registration is necessary as a condition for the issuance of license to engage in
business or trade.
II. Recording or registration of the articles or contract of partnership is not for the
purpose of giving the partnership a juridical personality.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true D.
Only the second statement is true

23M-Obciana
A, B and C are partners in a partnership. C contributed his industry. After payments of
the partnership’s obligations, only P 6,000 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

24M-Santayana
All of the following are consequences if an industrial partner engages in any
business, except:
a. he can be excluded from the partnership
b. he may be required to bring to the common fund the profits he derived from the
other business
c. the capitalist partners can avail of the benefit he obtained from the business
d. the capitalist partners have the right to file an action for damages against the
industrial partner, in either case
25M-Albrando
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 the right to interfere in the management of the partnership.

D. The assignee has the right to receive the profits which the assigning partner
would otherwise entitled thereto.

26M-Camaligan
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 ofthe same.

27M-Magana
Which of the following statements is false when no one among the partners was
appointed as manager?
A. Each partner will be considered as agent of the partnership.

B. Any one may make an important alteration in the immovable property of the
partnership without the consent of the others provided it is useful to the
partnership.

C. In case the act of one partner is opposed by another, the decision of the majority
of the partners will prevail.

D. In case of a tie in the voting, the tie shall be resolved by the vote of the partner
owning the controlling interest.
28M-San Agustin
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

29M-De Leon
Which of the following stipulations 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.

30M-Padillo
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

31M-Tan
One of the following is not a requisite of a contract of partnership. Which is
it? A. There must be a valid contract

B. There must be a mutual contribution of money, property or industry to a
common fund.

C. It is established for the common benefit of the partners which is to obtain profits
and divide the same among themselves.

D. The articles are kept secret among the members.

32M-Pulumbarit
One of the following is not a characteristic of partnership.
A. Real, in that the partners must deliver their contributions in order for the
partnership contract to be perfected.

B. Principal, because it can stand by itself.

C. Preparatory, because it is a means by which other contracts will be entered into. 

D. Onerous, because the parties contribute money, property or industry to the
common fund.

33M-Mendoza
Suppose that a partnership is engaged in an automobile repair shop. Luke is the
industrial partner (chief mechanic) and works only up to 5PM every working day.
Can he go home and work on the partnership's customers' autos, even if he says it
to the capitalist partners EVERY DAY before he leaves? A. Yes, since he has an
implied permission.
B. Yes, since it is the partnership's customer.
C. No, because what he has is an implied permission only.

D. No, because his duty is until 5pm only.

34M-Palayan
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.

35M-Jumaquio
If Alex and Xander inherited land from their parents and subsequently leased the
land out for P50,000/month, then it can be said that they share profits, but are they
in a partnership?
A.Yes, because Alex and Xander share profits.
B.No, because they are merely co-owners

C.Yes, because they have a joint or common right

D.No, because there is no written article of partnership.

36M-Degran
The doctrine of delectus personae refers to the right of a person to choose:
A. The person 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) or (b)

37M-Buenaventura
An unlawful partnership which constitutes a crime procedures which of the
following effects?
A. The partnership is void.
B. The proceeds of the crime and instruments or tools through which it was
committed shall be confiscated in favour of the government. C. The partners will
be criminally prosecuted.
D. All of the foregoing.

38M-Laceda
One of the distinctions between a partnership and a corporation is that a
partnership:
A. May be formed by one person
B. Is created by operation of law
C. Acts through a board of directors
D. May exist for an indefinite period

Answer:

39M-Eud
Canuto, Ambrosio, Romualdo, and Egmidio are partners in CARE Company,
whose business is trading of herbal products. Canuto contributed P60,000.00,
Ambrosio, P30,000.00, Romualdo, P20,000.00 and Egmidio, P10,000.00. The
partners failed to agree on who shall manage the partnership.
A. Canuto shall be the manager because he owns the controlling interest.

B. Canuto and Ambrosio will be the managers because they own the controlling
interest and there should be at least two managers who can discuss and decide for
the partnership.

C. All the partners will be considered the managers or agents of the partnership.

D. No one among the partners can manage the partnership because it is void when
the partners failed to designate the manager.

40M-Rodil
The following are obligations of a partner who has promised to contribute specific
property to the partnership, except:
A. To deliver to the partnership at the time it was constituted or on the date
stipulated the property he has promised to contribute.

B. To take care of the property before its delivery to the partnership with the
diligence of a good father of a family.

C. To answer for eviction in case the partnership is deprived of the property he has
contributed.

D. To be liable for damages only after he fails to deliver the property upon demand
by the other partners.

41M-Edrad
I. Person who are not partners as to each other are partners as to third persons
except when a person represents himself or consents to another representing him to
anyone, as a partner in an existing partnership or with one or more persons not
actual partners.
II. Co-ownership or co-possession does not of itself establish a partnership.
a. True, False
b. True, True

c. False, True

d. False, False

42M-Ramirez
One of the following is not a requisite of a contract of partnership. Which is
it? A. There must be a valid contract.
B. There must be a mutual contribution of money, property or industry to a
common fund.
C. It is established for the common benefit of the partners which is to obtain profits
and divide the same among themselves
D. The articles are kept secret among the members.

43M-Vital
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

44M-Batayola
In which of the following cases is there a prima facie evidence that one is a partner
in a business?
a. His receipt of a share in the gross returns derived from a property where he has a
joint or common interest with another.
b. His receipt of a share of the profits realized from the use of property that he co-
owns with another.
c. His receipt of a share of the net profits of a business.
d. His receipt of share of the profits realized from the use of a property that he co-
possesses with another.

45M-Aldovino
The conveyance such as by assignment by a partner of his whole interest in the
partnership produces the following effects, except:
a. The partnership still remains.

b. The assignee becomes a partner.

c. The assignee is entitled to receive the assignor-partner’s interest in the profits.

d. The assignee cannot participate in the management of the partnership.

Answer: B. The assignee becomes the partner

46M-Magadia
Which of the following will not cause the automatic dissolution of a limited
partnership?
A. Death of a general partner

B. Death of a limited partnership

C. Insolvency of a general partner

D. Insanity of a general partner

47M-Rivera
Which of the following is not true about the dissolution of the partnership?
a) On dissolution the partnership is not terminated, but continues until the winding
up of partnership affairs is completed.
b) The dissolution of a partnership is the change in the relation of the partners
caused by any partner ceasing to be associated in the carrying on as distinguished
from the winding up of the business.
c) The death of one of the partners dissolves the partnership.

d) The dissolution of the partnership discharge the existing liability of any partner.