1.

This statements are presented to you:

I. A limited partner cannot receive or hold as collateral security any partnership property.
II. A limited partner cannot receive from general partner or the partnership any conveyance or
release from liability, if partnership assets are not sufficient to discharge partnership liabilities to
outside creditors.
In your evaluation of the foregoing statements:
A. Both Statements are true.
B. Both Statements are false.
C. Only Statement I is true.
D. Only Statement II is true.

2. This statements are presented to you:

I. Every contract of partnership having a capital of three thousand pesos below, in money or
property, shall appear in a public instrument.
II. Failure to comply with the requirements shall affect the liability of the partnership.
III. Article 1768 of the Civil Code explicitly provides that the partnership retains its juridical
personality even if it fails to register.
In your evaluation of the foregoing statements:
A. Statement I and III are true.
B. Only Statement I is true.
C. Only Statement III is true.
D. Only Statement II is true.

3. In determining such partnership, these rules shall apply:

I. Sharing of gross returns does not itself establish a partnership, whether or not the persons
sharing them have a solidary right.
II. Co-ownership or co-possession does not itself establish a partnership.
III. Persons who are not partners as to each other are not partners as to third persons.
In your evaluation of the foregoing statements:
A. Only Statement I is true.
B. Statement I and III are true.
C. Only Statement II is true.
D. Only Statement III is true.

4. 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. Except?
I. As the consideration for the sale of as goodwill of a business or other property by instalments.
II. As an annuity to a widow or partner of the deceased partner.
III. As wages of an employee or rent to a landlord.
In your evaluation of the foregoing statements:
A. Only Statement I is true.
B. Only Statement II is true.
C. Statement I and III are true.
D. Statement I, II and III are true.

5. Who can demand true and full information?

I. Any partner.
II. Legal representative of any deceased partner.
 III. Legal representative of any partner under legal disability.
In your evaluation of the foregoing statements:
A. I only
B. II only
C. III and I only
D. All of the above

6. Any partner shall have the right to a formal account as to partnership affairs:
I. If he is wrongfully excluded from the partnership business or possession of its property by his
co-partners.
II. If the right exists under the terms of any agreement.
III. Whenever other circumstances render is just and reasonable.
In your evaluation of the foregoing statements:
A. I only
B. II only
C. III and I only
D. All of the above

7. The change in the relation of the partners caused by any ceasing to be associated in carrying on the
business is known as:
II. Termination of the partnership.
II. Winding up of partnership affairs.
III. Liquidation of the partnership business.
IV. Dissolution of the partnership.
In your evaluation of the foregoing statements:
A. I only
B. II and III only
C. IV Only
D. All of the above

8. Similarities between a partnership and corporation. Except?

I. Both are taxable.
II. Both can only be organized where there is law authorizing is organizations.
III. Both are organizations composed of an aggregate individual.
IV. Both can only act through its agents.
In your evaluation of the foregoing statements:
A. I and II only
B. II and IV only
C. III and I only
D. All of the above

9. Who/which of the following may not be a partner in a partnership?

A. Natural Person
B. Partnership
C. Corporation
D. None of the above
10. 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.

11. A group of men pursuing a lerned art as a common calling in the spirit of public service:
A. Service
B. Profession
C. Business
D. Partnership

12. 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.

13. Below are the kinds of partners as to management except:

A. Managing Partners
B. Ostensible Partners
C. Silent Partners
D. None of the Above

14. 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.

15. A partnership entered into as a means to an end.

A. Preparatory
B. Commutative
C. Principal
D. Consensual

16. Where an immovable property or real rights are contributed to a partnership, the partnership
contract must be in a public instrument to which shall be attached an inventory of the immovable
property contributed and signed by the parties. Failure to comply with the said requirements:
A. makes the partnership void
B. makes the partnership unenforceable
C. makes the partnership voidable
D. does not affect the acquisition by the partnership of a juridical personality
17. As a general rule, Capitalist partners are not bound to contribute additional capital.
A. True
B. False
C. Maybe
D. Maybe not

18. A document prepared by a notary public in the presence of the parties who sign it before witnesses.
A. Private instrument
B. Commercial Instrument
C. Notary Instrument
D. Public Instrument

19. If the capital of the partnership is P3, 000.00 or more, in money or property, the partnership must
be in public instrument which must be recorded in the office of the Securities and Exchange
Commission. Failure to comply with such requirements:
A. makes the partnership void
B. makes the partnership voidable
C. makes the partnership rescissible
D. does not affect the acquisition by the partnership of a juridical personality

20. Means that partners’ separate property may be held liable only after the partnership creditors’
exhausted the assets of the partnership.
A. Pro-data
B. Pro-rata
C. Subsidiary
D. Subsequent

21. Which of the following partnership agreement is required to be in a public instrument and an
inventory of the property contributed must be made, signed by the parties and attached to the
public instruments?
A. A general partnership where the capital amounts to P80, 000.00 consisting of P30, 000.00
cash and P50, 000.00 worth of computers.
B. A general partnership where the capital amounts to P150, 000.00 consisting of cash of
P100, 000.00 and a vacant lot worth P50, 000.00
C. A general partnership where the capital amounts to P1, 000, 000.00 in cash.
D. A general partnership where the capital amounts to P500, 000.00 in cash.

22. A contract of partnership having a capital of 3,000 pesos or more shall appear in public instrument
and must be recorded in the?
A. Office of the Securities and Exchangeable Commission
B. Office of the Securities and Interchange Commission
C. Office of the Securities and Exchange Commission
D. Office of the President and Internal Commission

23. One which actually exists among the partners and also as to 3rd persons:
A. Ordinary Partnership
B. Real Partnership
 C. All of the above
D. None of the Above

24. They are not allowed to engage in the same business for himself except upon express consent of the
partnership.
A. Industry Partners
B. Industrial Partners
C. Real Partners
D. Conjugal Partners

25. If the partnership intended to be formed is a limited partnership, a certificate must be signed and
sworn to by the partners, which certificate must be recorded in the office of the Securities and
Exchange Commission. Failure to comply with such requirements:
A. makes the partnership void
B. makes the partnership voidable
C. makes the partnership a general partnership
D. precludes the acquisition by the partnership of a juridical personality

26. A partnership where party aspires to produce for himself a benefit through the giving of something.
A. Particular
B. Consensual
C. Industrial
D. Onerous

27. It comprises all the partners may acquire by their industry or work during the existence of
partnership.
A. Universal partnership of all profits
B. Universal partnership of all present property
C. Particular partnership
D. Universal partner

28. Stated below are not obligations of partners except:

A. To demand for a formal account
B. To engage in any business which is of the kind in which the partnership is engaged
C. To give their promised contribution
D. None of the Above

29. X and Y verbally entered into a partnership with each of them contributing P2000 each and some
personal properties in the amount of P500 each. The partnership contract is?
A. Unenforceable
B. Void because it is below P3000
C. Valid
D. Void because it is not registered in SEC

30. X and Y agreed to form a partnership. Each contributed P15,000 to common fund. But their
partnership is not registered in the Securities and Exchange Commission.
A. Partnership is void
B. Partnership is voidable
 C. Partnership is valid
D. Partnership is valid and unenforceable

31. May contribute money, property or industry to a common fund.

A. Limited partner
B. General partner
C. Both limited and general partner
D. Both limited and industrial partner

32. Where a partnership is not duly organized has been recognise as such its dealings with a certain
person.
A. Ordinary partnership
B. De jure partnership
C. De facto partnership
D. Partnership by estoppel

33. The birth and and life of a partnership at will is predicted on the mutual desire and consent of the
partners.
A. Partnership of a particular undertaking
B. Partnership at will
C. Partnership with a fix term
D. Partnership by law

34. It is those who became members of the partnership after its establishment.
A. Incoming partner
B. Secret partner
C. Partner by estoppels
D. De facto partner

35. Christian and Ruzzy entered into a universal partnership of profits. At the time of the execution of
the articles of partnership, Christian had a two-door apartment which he inherited from his father 3
years earlier. Ruzzy, on the other hand, had a fleet of taxis which he purchased 2 years before. In the
first year of the partnership, Christian earned P500,000.00 as a radio talent, while Ruzzy won
P1,000,000,00 in the lotto. During the same period, rentals of P2,000,000.00 were realized from the
operation of the fleet of taxis. Which of the following belongs to the partnership?
A. Two-door apartment.
B. Lotto winnings of P1,000,000.00
C. Salary of P500,000.00
D. Fleet of taxis
36. Three years ago, Prince and Philip, brothers, inherited a five-floor commercial building and the lot
on which it was constructed, from Dhenver, 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 Prince and Philip 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.
37. Rose and Vera is a partnership engaged in the flower shop business which is operated by friends
Jessica and Carla. The flower shop is located on a lot which Jessica and Carla leased from Jack at 10%
of the yearly gross revenues of the business. Zamira was hired as accountant at a monthly salary of
P10, 000.00 plus 5% of the yearly net profits as bonus. Who are the partners in the business?
A. Jessica and Carla only.
B. Jessica, Carla, and Jack
C. Jessica, Carla, and Zamira.
D. Jessica, Carla, Jack, and Zamira, since all of them receive a share in the net profits.

38. Bob and Sam formed a universal partnership of profits. Which of the following properties belong to
the partnership?
A. Coconut plantation inherited by Bob before the formation of the partnership.
B. Salary received by Sam as professor of a college in Manila during the first year of the
partnership.
C. Lotto prize won by Bob during the first year of the partnership.
D. Agricultural lot donated to Sam during the first year of the partnership.

39. It is the transfer of rights or property?

A. Appointment
B. Assignment
C. Signatory
D. All of the Above

40. In a limited partnership where there are 4 partners:

A. All the partners must be limited partners.
B. The number of limited partners must be equal to the general partner, that is, 2:2.
C. The number of limited partners must be greater than the number of general partners, that
is, 3:1.
D. It is enough that there is one limited partner; the rest may be general partners.

41. The latin phrase “delectus personae” means:

A. Choice of people
B. Choice of public
C. Choice of unit
D. None of the above

42. Which of the following partnership contracts is valid?

A. A partnership between a husband and wife for the exercise of a profession.
B. A universal partnership of all present property between a public officer and a private
individual.
C. A universal partnership of profits between a public official and a third person.
D. A universal partnership of all present property between a man and woman living together as
husband and wife without the benefit of marriage.

43. What is "reasonable hour"?

A. Partnership days
B. Business days
C. Partnership Hours
 D. Business Hours

44. Which of the following is a particular partnership?

A. An auditing firm composed of Certified Public Accountants.
B. A partnership formed for the purpose of selling all the lots in a certain subdivision.
C. Both (a) and (b)
D. Neither (a) nor (b)

45. These statements are presented to you:

I. A limited partner may also be a general partner at the same time.
II. An industrial partner may also be a capitalist partner at the same time.
In your evaluation of the foregoing statements:

A. Both statements are true

B. Both statements are false
C. Only statement I is true
D. Only statement II is true

46. The following are legal relations created by a contract of partnership, except:
A. Relations between the partners on one hand and the partnership on the other hand.
B. Relations between the partners on one hand and third persons on the other hand.
C. Relations between the partners and the third person.
D. None of the above

47. What does "charging order" upon a partner's interest in the partnership mean?
A. Remedy available
B. Readily available
C. Unit available
D. None of the Above
48. He shall not be admitted into the partnership without the consent of all the other partners?
A. Sub-partner
B. Official Partner
C. General Partner
D. Particular Partner

49. How many modes of appointment as managers are provided?

A. 3
B. 4
C. 2
D. 7

50. A, B, C, and D entered into a contract of partnership. A contributed P5, 000,000 in cash while B
contributed his only car with a market value of P1, 000,000. C also contributed his only parcel of
land with a market value of P2, 000,000 while D contributed his industry as a managing partner.
They agreed to share in the profit as follows: A=40%, B=10%, C=30% and D=20%. After their first
year of operation, the partnership realized a net profit of P200, 000. How much is the share of every
partner in the profit?
Since there is an agreement, their profit sharing will be as follows:
1. A will receive P80, 000
2. B will receive P10, 000
3. C will receive P70, 000
4. D will receive P40, 000

Based on the given data above, which of the following profit sharing is correct?
A. Only 1 & 3
B. Only 1 & 2
C. Only 1 & 4
D. All #1-4 are correct