INSTRUCTIONS: WRITE YOUR ANSWER BEFORE EACH NUMBER IN CAPITAL LETTER.

MULTIPLE CHOICE
1. S1: A partnership is created by mere agreement of the partners while a corporation is created by
operation of law.
S2: In a partnership, juridical personality commences from the execution of the articles of the
partnership; in a corporation, from the issuance of certificate of incorporation by the Securities
and Exchange Commission.
a. True; True
b. True; False
c. False; False
d. False; True

2. The minimum capital in money or property except when immovable property or real rights thereto
are contributed, that will require the contract of partnership to be in a public instrument and be
registered with the Securities and Exchange Commission(SEC).
a. P5,000.00
b. P3,000.00
c. P3,001.00
d. P10,000.00

3. If the partnership has the minimum capital mentioned in No. 29, but the contract is not in a public
instrument or the same is not recorded with SEC, the partnership:
a. Is voidable
b. Is void
c. Still acquires juridical personality
d. Does not acquire juridical personality

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

a. A universal partnership of all present property between husband and wife
b. A universal partnership of profits between a man and a woman living together as husband and
wife without the benefit of marriage
c. A particular partnership between husband and wife
d. A universal partnership of profits between a private individual and a public officer

5. Armando and Betty 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

6. Normelita and Gracia are partners in NG Partnership. While Normelita was performing her duties
as a partner in the conduct of the business, he negligently caused damage to Eddie, a third
person. Who shall be liable to Eddie and in what capacity?
a. Only the partnership shall be liable it being a juridical person separate and distinct from the
partners
b. Only Normelita shall be liable for she is the only one at fault
c. Both Normelita and Gracia shall be liable solidarily to Eddie
d. Normelita, Gracia and the partnership are all liable solidarily to Eddie

7. A person admitted to all the rights of a limited partner who has died or has assigned his interest in
the partnership is known as
a. An ostensible partner
b. A liquidating partner
c. A substituted limited partner
d. A general-limited partner

8. Which of the following may be a cause for a voluntary dissolution?

a. Death of a general partner
b. Civil interdiction of a partner
c. Insolvency of a partner
d. Expulsion of any partner

9. Oliver and Jasmine agreed to form a partnership. Each contributed cash and personal properties
worth P100,000 to a common fund. But they did not register the partnership with the Securities &
Exchange Commission
a. The partnership is still valid
b. The partnership is void
c. The partnership is voidable
d. The partnership is unenforceable

10. 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:
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 a. Universal partnership of all present property
b. Universal partnership of profits
c. Particular partnership
d. Partnership at will

11. X, Y and Z orally agreed to form a partnership two months from today, each one to contribute
P10,000. If the arrival of the period, one refuses to go ahead with the agreement, can the others
enforce the agreement?
a. Yes, since the agreement is to be enforced after one year from the making thereof, the same
should be in writing to be enforceable
b. No, because the prior agreement was not voluntarily made
c. Yes, because their partnership contract is not governed by the Statue of Frauds
d. No, because the agreement was merely oral

12. X, Y and Z are partners in Able Co. W represented himself as a partner in Able Co. to A, who, on
the faith of such representation, granted P300,000 loan which was used by Able Co. Assuming
only X and Y consented to such representation, who shall be liable to A?
a. Since the partnership benefited from the credit extended by A, all partners X, Y and Z are liable
b. Only X, Y and W are partners by estoppel are liable pro-rata to A
c. Since the loan was extended to the partnership, all the partners and W are liable
d. Only W who made the representation shall be liable to A

13. Which of the following is considered prima facie evidence of the existence of a partnership?
a. Where payment of interest on a loan varies with the profits of the business
b. Where the parties are established as co-owners of a property
c. The receipts by a person of a share of the profits
d. The sharing of gross returns of a business

14. A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in
the profits and losses. Is the agreement valid as among the partners only and not against third
persons?
a. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses
b. Yes, valid as long as third persons are not prejudiced
c. Not valid stipulation exempting a partner from sharing profits and losses
d. Not valid as against third persons or partnership creditors

15. A, B and C entered into an oral contract of partnership each contributing P1M each to the common
fund plus other personal properties of the same amount and failed to register the partnership with
the SEC. Is that partnership valid?
a. No, because every contract of partnership having a capital of three thousand pesos or more in
money or property must be in public instrument and registered with the SEC
b. Yes, because public instrument necessary only in case of contribution of immovable
c. Yes, because a partnership contract can always be oral
d. No, because registration with SEC is essential for a partnership to be valid and acquire juridical
personality

16. A and B 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 ad co-possessors

17. A and B are partners in Ace partnership. While A was performing his duties as a partner in the
conduct of the business, he negligently caused damage to X, a third person. Who shall be liable to
X and in what capacity?
a. Only the partnership shall be liable it being a juridical person separate and distinct from the
partners
b. Only A shall be liable for he is the only one at fault
c. Both A and B shall be liable solidarily to X
d. A, B, and the Partnership are all liable solidarily to X

18. A, B and C wish to go into the business together to bottle mineral water. Each contributed
P50,000, but C wanted to limit his liability to the extent of his contribution, and his name to
appear in the partnership name. Which form of partnership as business organization should they
choose?
a. General partnership
b. Limited partnership
c. No partnership organization is available
d. Limited

19. A, B and C formed a universal partnership of all present property on February 14, 2013. A
contributed P500,000, B a car worth P500,000 and C contributed equipment worth P500,000. The
partners executed an article of co-partnership in private instrument. After operation for 5 months,
A and B got married. Did the marriage dissolve the partnership?
a. Yes, the partnership is dissolved by the marriage, because there is a change in equity among
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 the partners
b. No, the marriage did not dissolve the partnership
c. No, because spouses can enter into a universal partnership
d. Yes, because it becomes unlawful for the business of the partnership to be carried on or for the
members to carry it on in partnership

20. Has a priority over partnership assets:

a. Debtors
b. Creditors
c. Partners
d. All of the above

21. Which of the following is valid?

a. Oral contract of partnership where a partner contributes real property with a value less than
P3,000
b. Oral contract of partnership where the capital if P3,000 or more
c. Written contract of universal partnership of present properties between husband and wife
d. None of them

22. A partner whose connection is concealed and has no voice nor say in the management of the
affaire of the partnership is called:
a. Nominal partner
b. Secret partner
c. Silent partner
d. Dormant partner

23. A partner whose connection with the partnership is open and public, such as by including his name
in the firm name of the partnership is called:
a. Nominal partner
b. Ostensible partner
c. Secret partner
d. Dormant partner

24. A partner who contributes money or property to the capital of the partnership is called:
a. Industrial partner
b. Capitalist partner
c. Capitalist-industrial partner
d. Nominal partner
e. None of the above

25. Three of the following are the effects if immovable property is contributed in a partnership but the
contract did not appear in public instrument. Which is exemption?
a. A partnership has no juridical personality
b. The parties may compel each other to observe the required form
c. The parties may request the return of their capital contribution
d. The contract of partnership is void

26. Define Partnership

27. Characteristic elements of partnership (7)
28. Essential features of partnerships (5)
29. Form of contribution (3)
30. Typical incidents of a partnership (6)
31. Instances of unlawful object (5)
32. Classifications of partnerships
a. As to the extent of its subject matter
b. As to the liability of the partners
c. As to its duration
d. As to the legality of its existence
e. As to representation to others
f. As to publicity
g. As to purpose

33. Kinds of partners

a. Under the Civil Code
b. Other classifications

GOODLUCK!

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