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) Ostensiblepartner
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
b) The amount will be applied in proportion to both
credits
c) The amount received will be applied in the credit of A
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 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
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
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 the partnership.
d) PC and AC shall have priority to the land of A in
proportion to their claim of P60,000 and P20,000
respectively
30. A partnership is not dissolved upon the death of a:
a) General partner
b) Industrial partner
c) Limited partner
d) General limited partner
31. A and B are equal partners in AB Partnership C contacted
XYZ
and
Co.
and
represented
himself as partner in AB Partnership. XYZ and Co. contacted
A
who
confirmed
that
C
is
in
fact a partner of AB Partnership XYZ and Co. extended credit
to C for AB Partnership in the amount of P60,000. Who is
liable to XYZ and Co.?
a) A and C are partners by estoppels and are liable to XYZ
and Co.
b) XYZ and Co. extended the credit to C for AB Partnership,
so a partnership liability exists, so both partners, A and B
together with C are liable.
c) The AB Partnership benefited, so it is liable
d) Only C who made the representation is liable
32. A, B and C are partners in a trucking and freight business.
B and C without the knowledge of A approached X and
offered to sell to X all the trucks of the partnership at a price
very much higher than their book value. Then B and C boughtout A from the partnership and thereafter X bought all the
trucks with a big profit of B and C.
a) The sale of the trucks to X is void because it is without the
knowledge and consent of A.
b) B and C are not liable to A whatsoever
c) B and C are liable to A for his share in the profits in the
sale.
d) When A was bought-out of the partnership, the
partnership was dissolved so A has no more share in the
profits in the sale.
33. When the capital (of a partnership) is P3,000 or more, it
must be in a public instrument and must be recorded with the
Securities and Exchange Commission (Article 1772). A, B and
C agreed to form a partnership and each contributed
P10,000 as capital of the partnership. There was no
compliance in the provisions of Article 1772.
a) The partnership was not established
b) The partnership did not have juridical personality
c) The partnership was established and any partner may
compel the execution of a public
instrument
d) The partnership is void
34. A, as a partner contributed P30,000; B as partner,
P15,000; and C as industrial partner, his services in the
partnership. After payment of all liabilities and expenses, only
P18,000 remain as partnership assets.
a) A, P12,000; B, P6,000; C, None
b) A, P6,000; B, P6,000; C, P6,000
c) A, P9,000; B, P9,000; C, None
d) A, P8,000; B, P4,000; C, P6,000
35. This is the order of preference in the liquidation of a
partnership:
a) 1.Outside creditors.
2.Partners with respect to their capital
3.Partners with respect to their profit
4.Partners aside from capital and profit
b) 1. Partners with respect to their capital
2.Partners with respect to their profit
3.Partners aside from capital and profit
4. Outside creditors
c) 1. Outside creditors
2. Partners aside from capital and profit
3.
Partners with respect to their capital
4.Partners with respect to their profit
d) 1. Partners aside from capital and profit
2. Outside creditors
3.Partners with respect to their capital
4.Partners with respect to their profit
36. Three (3) of the following are rights of a partners. Which
one is not?
a) Right to associate another person to his share
b) Right to admit another partner
c) Right to inspect and copy partnership book
d) Right to ask dissolution of the firm at the proper time
37. The following are similarities between partnership and a
corporation. Which is the exception?
a) Both have juridical personalities separate and distinct
from that of the individuals composing them.
b) Like a partnership, a corporation can act only through
agents
c) Both are organization of an aggregate of individuals
d) The individuals composing both have little voice in the
conduct of the business.
38. In the partnership of A, B and C, A was appointed in the
Articles of Co-Partnership as managing partner. As such
manager in good faith:
a) His power is revocable even without consent
b) His power can be revocable at any time even without just
cause provided
c) He may execute all acts of administration despite the
opposition of B and C
d) He can be removed for valid cause even without the vote
of the partners owning the controlling interest
39. In the ABC Partnership, A and B contributed P20,000 each
and C , his services. After paying all the creditors of the
partnership, only P18,000 in cash remains. In the absence of
terms to the contrary, the share of C is equal to:
a) P6,000
b) The share of A
c) The share of B
d) Nothing
40. X and Y established a partnership by contributing, each
at P50,000. Z, a third party allowed his name to be included
in the firm name of the partnership. The partnership was
insolvent and after exhausting all the remaining asset, there
was left a liability to third persons the amount of P30,000.
The creditors can compel:
a) Z to pay P30,000 remaining liability
b) X, Y and Z to pay P10,000 each
c) X or Y to pay P30,000 remaining liability
d) X and Y to pay P15,000 each
41. W, X, Y and Z formed a partnership. W, X and Y are
general partners and contributed P50,000 each while Z, an
industrial partner contributed his services only. All the partners
signed an agreement stipulating that the liability of W is
limited to its contribution After all the assets of the partnership
were exhausted there remains an unpaid liability of P40,000.
The creditors of the partnership can compel:
a) X and Y to pay the P40,000
b) X, Y and Z to pay the P40,000
c) W, X, Y and Z to pay P10,000 each and W and Z can
demand reimbursement from X and Y.
d) X and Y to pay P40,000
42. 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) Answer not given
43. A and B are capitalist partners, with C as industrial
partner. A and B contributed P15,000 each to the capital of
the partnership. A contractual liability of P40,000 was
incurred by the partnership in favor of X. The capital assets of
P30,000 shall first be exhausted thereby leaving an
unsatisfied liability of P10,000. X can recover the amount
from:
a) A and B only
b) A, B and C
c) A, B and C and C can recover for reimbursement from
A and B
d) Answer not given
44. A, B and C are partners engaged in a retail business. Their
contribution is P20,000 each. D is admitted as a new partner
with a contribution of P8,000. At the time of his admission, the
partnership has an outstanding obligation to E in the amount
of P80,000. In this case:
a) D is not liable to E for this obligation
b) D is liable to E for this obligation so that amounting to
P68,000 will be exhausted leaving a balance of
P12,000. Only A, B and C shall be liable jointly or prorata, out of their separate property.
c) D is liable to E for this obligation so that after the assets
of the partnership will be exhausted, leaving a balance
of P12,000, all the partners shall be liable jointly or prorata, out of their separate property.
d) Answer not given.
45. A, B and C are general partners in ABC Partnership. D is
a debtor to the partnership in the amount of P15,000. A
received from Debtor D the sum of P5,000 and issued a
receipt identifying the amount as his share. Then D became
insolvent, B and C cannot collect the P10,000.
a) A cannot be compelled to share the P5,000 with B and C
b) B and C can charge the capital of A with their share of
the P5,000
c) A can be compelled to share B and C the P5,000
d) B and C automatically sue D to collect the P10,000
46. M and O are partners of M & O Partnership. M is the
managing partner. N owes M P10,000 and M & O
partnership P30,000. The obligations of N are both due. M
collected from N the debt of N to M in the amount of P10,000
and issued a receipt in the name of M. To which obligation will
the P10,000 be applied?
a) The whole of the P10,000 be applied to debt of N to M
b) The P10,000 be applied to debt of N to M and to the
partnership
c) P5,000 each of debt of N to M and to the partnership
d) P2,500 to debt of N to M and P7,500 debt of N to the
partnership
47. A, B and C are partners in D-3 Partnership. On April
29,2010, partner C died. Not knowing that C died, on May
1, 2010, A contracted a liability to D who also do not know
the death of C. The partnership debt is in the amount of
P30,000, he can collect
a) P30,000 from A
b) P15,000 from A and P15,000 from B
c) P10,000 from estate of C; P10,000 from A ; P10,000
from B
d) D. P20,000 from A and P10,000 from B
48. This the order of preference in the liquidation of a general
partnership:
a) Outside creditors; Partner as creditors; Partners capital;
Partners profit
b) Partner as creditors; Outside creditors; Partners capital;
Partners profit
c) Partnerscapital;Outsidecreditors;Partnerascreditors;Part
nersprofit
d) Outside creditors; Partner capital; Partners profit;
Partners as creditors
49. R, S and T are partners. T is the industrial partner who in
addition to his services, he also contributed capital to the
partnership. There is no stipulation as to sharing of profits and
losses. The partnership realized profits of P21,000. The share
of T in the profits:
a) R and will determine T’s share I, in the profits
b) T’s share is P7,000
c) Pro-rata to his contributed capital
d) Nothing, because he is an industrial partner
50. W, X, Y and Z are partners. They contributed capital as
follows: W, P50,000; X, P30,000; Y, P20,000 and Z, is an
industrial partner, his services. The partnership’s obligation to
outsiders exceed the total net assets by P18,000. Who and
by how much will the partners be liable for the payment of
the P18,000?
51. Which of the following is a characteristic of partnership as
a contract?
a) Formal
b) Innominate
c) Gratuitous
d) Preparatory
52. One who takes active part in the business, but is not known
to be a partner by outside parties is:
a) Silent partner
b) Dormant partner
c) Nominal partner
d) Secret partner
53. Can the partners stipulate that the newly admitted partner
shall not be held liable for the obligations of the partnership
arising before his admission? Which of the following statement
is not correct?
a) No, because the newly admitted partner should be
deemed to have assumed all the debts of the partnership
upon his voluntary participation in the partnership.
b) No, because newly admitted partner is liable with respect
to his capital contribution which forms part of the
partnership
c) No, because the third person are always protected by
law.
d) No, because the subject of the stipulation is that the
liability of the new partner should not be satisfied out
of the partnership property.
54.
I. The arrival of the term of a partnership with a fixed term or
period shall not dissolve the partnership if the partners
continue with the business of the partnership but such
partnership may be terminated anytime dependent on the will
of the continuing partners.
II. The general rule is that the loss of the specific thing
contributed to the partnership when only the use of the thing
is contributed by the partner and such thing after its transfer
to the partnership which used the same or sometime was
subsequently lost, the partnership is not dissolved.
Ans: True;True
55. May contribute money, property or industry to the common
fund:
a) General partner
b) Industrial partner
c) Limited partner
d) Managing partner
56. A limited partner who takes active part in the
management of the firm becomes:
a) A managing partner
b) Liable as a general partner
c) A general partner
d) A general partner and a limited partner at the same time
57. Which of the following statements is not correct?
a) A general partner in a limited partnership manages the
business of the partnership but cannot perform acts of
ownership without the consent of the limited partners
b) Valid contributions of a limited partner are money and
property but not services.
c) Additional limited partners may be admitted into the
limited partnership with the consent of all the partners.
d) A person who is both a general partner and a limited
partner is deemed a limited partner only with respect to
the return of his contribution.
58. A is the managing partner of A and Company. X is
indebted to A for P20,000 and to the partnership for
P60,000. When both debts mature, X pays A P20,000 and
the latter issues a receipt for his personal credit. The payment
for P20,000 shall be applied:
a) 1⁄4 in favor of A and 3⁄4 in favor of the partnership
b) To the whole debt owing to A
c) 1⁄2 in favor of A and 1⁄2 in favor of the partnership
d) To the debt owing to the partnership
59. Which of the following is an essential element of
partnership?
a) There must be a contribution of money, property, or
industry to a common fund.
b) It must an association for profit with the intention to divide
the profits among themselves.
c) There must be a valid and voluntary agreement.
d) All of the above.
60. A and B are partners. On June 15, 2009 when the total
obligation of the partnership totaled P80,000. C was
admitted as new partner. At the time C’s admission, the
partnership creditors were M for P50,000 and N for P30,000.
After June 15, the partnership borrowed from O P20,000 and
P40,000 from P. On December 15, 2009, the partnership
became insolvent leaving an obligation totaling P140,000
and partnership assets amounting to P30,000. The creditors
are going after the separate properties of the partners to
satisfy their remaining claims. How are the creditors’ claims
satisfied?
Answer 1 - M and N can go after the separate properties of
A and B but C’s separates properties are not answerable to
their claims.
Answer 2 – O and P can go after the separate properties of
A, B and C.
Answer: Answer 2 is correct but answer 1 is wrong
61. A and B are capitalist partners with C as industrial partner.
A and B contributed P20,000 each to the capital of the
partnership. A contractual liability of P50,000 was incurred
by the partnership in favor of X. The assets of the partnership
had been exhausted still leaving an unpaid liability of
P10,000. X can recover the amount from:
a) A, B and C and C can recover by way of reimbursement
from A and B unless stipulated otherwise.
b) A and B only
c) C only
d) A, B and C and C has no right for reimbursement from A
and B unless expressly stipulated.
62. Which of the following liabilities of the partnership shall
rank first in the order of payment?
a) Those owing to creditors other than partners
b) Those owing to partners in respect to profits
c) Those owing to partners in respect to capital
d) Those owing to partners other than for capital and profits
63.
I. The contribution of a limited partner may be cash, property
or service
II. A limited partner who takes part in the management of the
business of the partnership is not a general partner but he shall
be liable as a general partner.
Answer: False; True
64.
I. A person may be a general and a limited partner in the
same partnership at the same time.
II. A person admitted as a partner into an existing partnership
is not liable for partnership
Answer: True; False
65.
I. A partner cannot assign his interest in the partnership to a
third person without the consent of the other partners.
II. A partner’s interest in the partnership is his personal
property.
Answer: False; True
66.
I. The creditor of each partner shall be preferred to those of
the partnership as regards the partner’s separate property.
II. An industrial partner is exempted from losses but not from
partnership liabilities
A. True; True
67.
I. An industrial partner with the consent of the other partners
can engage in any business for his own account.
II. An industrial partner is not a general partner.
Answer: True;False
68.
I. A general partner not a managing partner can engage in a
business different from the business of the partnership for his
own account without the consent of the other partners.
II. A general partnership can be formed orally.
Answer: True; True
69.
I. All the partners in a general partnership are considered
managing partners if there is no stipulation as to who shall act
as managing partner.
II. A partner is liable to the partnership for whatever property
he agrees to contribute without necessity of demand.
Answer: True; True
70.
I. If the capital contribution of the partners amount to P3,000
or more the contract of partnership must be in public a public
document, otherwise the contract is void.
II. A contract of partnership is void, whenever immovable
property is contributed thereto if an inventory of said
property is not made, signed by the parties and attached to
the public document.
Answer: False; True
71.
I. Dissolution does not terminate the partnership.
II. Insanity of a general partner in a limited partnership
dissolves the partnership.
Answer: True; True
72.
I. A general partner in a limited partnership has all the rights,
powers and liabilities as though the partnership is not limited.
II. A general partner is personally liable for partnership
obligations while a limited partner is not liable for partnership
liabilities.
Answer: True; False
73.
I. A limited partner is simply a contributor to the partnership.
II. A limited partner has a right to the return of his contribution
upon the dissolution of the
partnership.
Answer: True; True
PARTNERSHIP
(from CPAR)
1. One of the following is not a characteristic of a contract 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.
2. One of the following is not a requisite 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.
3. 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 public
instrument
and
be
registered
with
SEC.
A. P 5,000
B. P10,000
C. P 3,000
D. P30,000
4. X and Y entered into a universal partnership of all present
property. At the time of their agreement. X had a four-door
apartment which he inherited from his father 3 years earlier.
Y, on the other hand, had a fishpond which he acquired by
dacion en pago from Z. During the first year of the
partnership, rentals collected on the four-door apartment
amounted to P480,000; while fish harvested from the fishpond
were sold for P300,000. During the same period. B received
by way of donation a vacant lot from an uncle. The partners
had an stipulation that future property shall belong to the
partnership. Which of the following does not belong to the
common fund of the partnership?
Fish pond
Rental of P480,000
Apartment
Vacant lot
5. D and E entered into a universal partnership of profits. At
the time of execution of the articles of partnership, D had a
two-door apartment which he inherited from his father 3 years
earlier. E on the other hand, had fleet of taxis which he
purchased two years before. In the first year of the
partnership, D earned P500,000 as radio talent while E won
P1,000,000 in the lotto. During the same period, rentals of
P120,000 were collected from the apartment, while fare
revenues of P200,000 were realized from the operation of
the fleet of taxis. Which of the following belongs to the
partnership?
Two-door apartment
Lotto winnings of P1,000,000
Salary of P500,000
Fleet of taxis
6. A partnership formed for the exercised of a profession
which is duly registered is an example of
Universal partnership of profits
Universal partnership of all present property
Particular partnership
Partnership by estoppel
7. A, B and C are partners in ABC Enterprises. Not having
established yet their credit standing, the three partners
requested D, a well known businessman, to help them
negotiate a loan from E, a money lender. With the consent of
A, B and C, D represented himself as a partner
of ABC Enterprises. Thereafter, E granted a loan of P150,000
to ABC enterprises. What kind of partner is D?
Managing partner
Liquidating partner
Ostensiblepartner
Partner by estoppel
8. Using the preceding number, assuming ABC Enterprises was
unable to pay the loan on due date at which time the assets
of the partnership amounted to P120,000. From whom may E
collect the payment?
D only for the whole amount of P120,000.
A, B and C who are liable jointly for P50,000 each.
ABC Enterprises for its assets of P120,000; hereafter, A, B and
C from their separate assets at
P10,000 each.
ABC Enterprises for its assets of P120,000 thereafter, A, B,
C and D from their separate assets at P7,500 each.
9. Which of the following losses will not cause the dissolution
of
a
partnership?
A. Loss before delivery of a specific thing which a partner had
promised to contribute to the
partnership.
Loss of a specific thing after its delivery to and acquisition
of its ownership by the partnership from the partner who
contributed the same.
Loss after delivery of a specific thing where the partner
contributed only its use and enjoyment where such partner
reserved the ownership thereof.
Loss before delivery of a specific thing where the partner
promised to contribute only its use and enjoyment, reserving
the ownership thereof.
10. A partner can engage in business for himself without the
consent of his co-partners if he is
A capitalist partner whether or not the business he will engage
in is of the same kind as or
different from the partnership business.
An industrial partner whether or not the business he will
engage in is of the same kind as or
different from the partnership business.
A capitalist partner and the business he will engage in is of
a kind different from the partnership business.
An industrial partner and the business he will engage in is of
a kind different from the partnership business.
11. The partnership will bear the risk of loss of three of the
following things, except
Things contributed to be sold.
Fungible things or those that cannot be kept without
deteriorating.
Non-fungible things contributed so that only their use and
fruits will be for the common
benefit.
Things brought and appraised in the inventory.
12. 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?
The conveyance of a partner’s interest will cause the
dissolution of the partnership.
The assignee becomes a partner.
The assignee has the right to interfere in the management of
the partnership business.
The assignee has the right to receive the profits which the
assigning partner would
otherwise be entitled thereto.
13. Partnership as distinguished from corporation
Acquires juridical personality upon approval by the SEC and
the issuance of certificate.
Has limited liability.
Created by operation of law.
No power of succession.
14. Essential elements or feature of a partnership, except
Must have a lawful object or purpose
There must be a contribution of money, property or industry to
a common fund
With intention to divide and contribute whatever profits
they make to other people.
Must be established for the common benefit or interest of the
partners.
15. Partner who contributes money and/ or property, except
A. General
B. Capitalist
C. Industrial
D. Managing
16. Partner who contributes industry or labor A. General
B. Capitalist
C. Industrial
D. Managing
17. Partner who contributes both capital and industry
A. General
B. Limited
C. Managing
D. Capitalist-industrial
18. Partner who is liable beyond the extent of his contribution
A. General
B. Limited
C. Industrial
D. Silent
19. Partner who is liable only to the extent of his contribution
A. Limited
B. General
C. Industrial
D. Managing
20. Partner who manages actively the firm’s affairs
A. Silent
B. Liquidating
C. Managing
D. Dormant
21. Partner who does not participate in the management
though he shares in the profits or losses. A. Liquidating
B. Nominal
C. Ostensible
D. Silent
22. Partner who winds up the affairs of the firm after it has
been dissolved
A. Liquidating
B. Managing
C. Industrial
D. Capitalist
23. Partner whose connection with the firm is known to the
public
A. Ostensible
B. Secret
C. Silent
D. Nominal
24. Partner whose connection with the firm is concealed or kept
secret
A. Ostensible
B. Secret
C. Silent
D. Nominal
25. Partner who is both a secret and silent partner
A. Nominal
B. Ostensible
C. Limited
D. Dormant
26. Partner who is not really a partner but who may become
liable as such insofar as third persons are concerned
A. Nominal
B. Ostensible
C. Silent
D. Secret
27. May contribute money, property or industry to the common
fund
a) Limited partner
b) General partner
c) Both limited and general partners
d) Dormant partner
28. May be required to make additional contribution in case
of imminent loss:
a) Capitalist partner
b) Limited partner
c) Industrial partner
d) Choices A, B and C
29. A, B and C are partners each contributing P10,000. The
firm’s indebtedness amounts to P90,000. It was stipulated that
A would be exempted from liability. Assuming that the capital
of P30,000 is still in the firm, which of the following is not
correct?
a) The creditors may get the P30,000 and still collect each
P20,000 from A, B and C.
b) A can recover P10,000 each from B and C should he (A)
be required to pay the creditors.
c) A cannot recover his original capital of P10,000.
d) The creditors can recover P45,000 each from B and C.
30. A newly admitted general partner is liable to creditors
existing at the time of his admission and his liability is
a) Up to his capital contribution only if there is stipulation.
b) Up to his separate property even there is no stipulation.
c) Up to his capital contribution even if there is stipulation.
d) Up to his separate property only if there is stipulation.
31. Using the preceding number, but the obligations were
contracted after his admission, which of
the following is correct?
a) He is liable to the creditors before and after his admission
up to his separate property.
b) He is liable to the creditors before and after his admission
only up to his capital contribution.
c)
He is liable to the creditors before and after his
admission up to his capital contribution and to the
creditors after his admission up to his separate
property..
d) He is not liable to creditors existing before his admission.
32. A and B are partners engaged in the real estate business.
A learned that C was interested in buying a certain parcel of
land owned by the partnership, even for a higher price.
Without informing B of C’s offer A was able to convince B to
sell to him (A) his (B’s) share in the partnership. Then A sold the
land at a big profit. Which of the following is correct?
a) A is liable to B for the latter’s share in the profit.
b) C is liable to B for the latter’s share in the profit.
c) A new partnership is formed between A and C.
d) The sale of the land to C is void since it was without the
knowledge of B.
33. 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.
Which is correct?
a) The sale of the land to X is void
b) A is liable to B for B’s share in the profits.
c) B may rescind the contract between A and X
d) A is not liable to B for any share in the profits.
34. The following persons are disqualified to form a universal
partnership, except
A. Husband and wife
B. Brother and sister
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense; if the partnership
is entered into in consideration of the same.
35. A, B and C are capitalist partners while D is an industrial
partner. A, the managing partner engaged personally in a
business that is the same as the business of the partnership
without the consent of the other partners. As a result,
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 will pay
damages.
36. A, a managing partner is B’s creditor to the amount of
P1,000 already demandable. B also owes the partnership
P1,000, also demandable. A collects P1,000 from B. One is
not correct.
a) If A gives a receipt for the partnership it is the
partnership’s credit that has been collected.
b) If A gives a receipt for his own credit, it is A’s credit
that has been collected.
c) If A gives a receipt for his own credit, P500 will be given
to him, P500 to the partnership.
d) B may decide that he is paying only A’s credit if the
personal credit of A is more onerous to B.
37. The remedy of capitalist partners against an industrial
partner who engaged in a business for himself without the
expressed permission from the partnership is:
a) To compel him to sell his interest to the said capitalist
partners.
b) To exclude him from sharing in the profits of the
partnership.
c) To remove him as manager if he is appointed as manger
of the partnership.
d) To expel him from the partnership and claim for
damages.
38. A partnership which comprises all the profits that the
partners may acquire by their work or industry during the
existence of the partnership is called:
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) Partnership at will
39. 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 there with is:
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) Partnership at will
40. A partnership without a definite period of existence and
which can be dissolved at any time by any of the partners is
called:
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) Partnership at will
41. A, B and C, capitalist partners, each contributed P10,000
and D, the industrial partner contributed his services. Suppose
X, is the creditor of the firm amounting to P90,000. After
getting the P30,000 capital assets of the partnership, which is
correct?
a) X can recover P20,000 each from A, B and C only.
b) X can recover P60,000 from either A, B and C only.
c) X can recover P15,000 each from A, B, C and D.
d) X can recover P15,000 each from A, B and C but D is
exempt because he is an industrial partner.
42. A, B and C are partners. D is admitted as a new partner.
Will D be liable for partnership obligations contracted prior
to his admission to the partnership?
a) No, only for those contracted after his admission.
b) Yes, and his liability would extend to his own individual
property.
c) Yes, but his liability will extend only to his share in the
partnership property and not to his own individual
property.
d) Yes, as if he had been an original partner.
43. A partner who has all the rights, powers and subject to all
restrictions of a general partner but whose liability is, among
themselves, limited to his capital contribution is:
a) General partner
b) Limited partner
c) General-limited partner
d) Dormant partner
44. Bears the risk of things contributed to the partnership:
a) General partner
b) Limited partner
c) Partner contributing usufructuary rights over fungible
things
d) Partner contributing usufructuary rights over nonfungible things
45. A, B and C, capitalist partners, each contributed P10,000.
After exhausting the assets of the firm, the firm’s indebtedness
amounts to P90,000. It was stipulated that A would be
exempted from liability. Which is correct?
a) A may recover his original capital of P10,000.
b) The creditors may collect P30,000 each from A, B and
C.
c) A can recover P20,000 each from B and C should he be
required to pay the creditors.
d) The creditors can recover P45,000 each from B and C.
46. Instances when a partnership is unlawful, except
a) A partnership formed to furnish apartment houses which
would be used or prostitution
b) A partnership formed for the purpose of acquiring
parcels of land
c) A partnership formed for gambling purposes.
d) A partnership formed to create illegal monopolies or
combinations in restraint of trade.
47. A and B orally agreed to form a partnership two years
from today, each one to contribute P1,000. If at the arrival of
the period, one refuses to go ahead with the agreement, can
the other enforce the agreement?
a) Yes, because the partnership contract is not governed by
the Statute of Frauds
b) Yes, because the prior agreement was voluntarily made.
c) No, because the agreement was merely oral and
executor
d) No, since the agreement is to be enforced after one year
from the making thereof, the same should be in a public
instrument to be enforceable.
48. Where at least one partner is a general partner and the
rest are limited partners
A. General partnership
B. Partnership by estoppels
C. Partnership de facto
D. Limited partnership
49. Where all the partners are general partners
A. General partnership
B. Partnership by estoppels
C. Partnership de facto
D. Limited partnership
50. A and B are equal partners in AB Partnership by
contributing P50,000 each on June 1, 2010. On July 1, 2010,
the partnership contracted an obligation to pay Z the amount
of P180,000 on August 31, 2010. On August 10, 2010, C was
admitted as a new partner. C contributed P50,000. How will
the obligation be paid?
a) A P60,000; B P60,000; C P60,000
b) A P90,000; B P90,000; C None
c) A P180,000 or B P180,000 and C P50,000
d) A P65,000; B P65,000; C P50,000
51. A, B and C are equal partners in ABC Partnership. On
April 29, 2010, C died. Not knowing that C is dead, on May
2, 2010, A contracted a liability to D who also did not know
about the death of C. The liability is P90,000. After D
exhausted the net assets of the partnership in the amount of
P60,000, he can collect
a) P30,000 from A or P30,000 from B.
b) P15,000 from A and P15,000 from B.
c) P10,000 from the estate of C, P10,000 from A and
P10,000 from B.
d) P30,000 from the estate of C or P30,000 from B or
P30,000 from C.
52. A, B and C are partners. Their contributions are as follows:
A, P60,000; B, P40,000 and C, services. The partners agreed
to divide profits and losses in the following proportions: A,
35%; B, 25% and C 40%. If there is a loss of P10,000, how
should the said loss be shared by the partners?
a) A P6,000; B P4,000; C nothing
b) A P3,000; B P2,000; C P5,000
c) A P3,500; B P3,500; C P3,000
d) A P3,500; B P2,500; C P4,000
53. Using the preceding number, but the partners did not
agree on how to divide profits and losses. If there is a loss of
P10,000, how should the said loss be shared by the partners?
a) A P6,000; B P4,000; C nothing
b) A P3,000; B P2,000; C P5,000
c) A P3,500; B P3,500; C P3,000
d) A P3,500; B P2,500; C P4,000
54. When the manner of management has not been agreed
upon, who shall mange the affairs of the partnership?
A. Capitalist partners
B. Industrial partners
C. Capitalist-industrialist partners
D. All of the partners
55. A, B and C are partners in a partnership business. A
contributed P10,000, B contributed P5,000 and C his services
only. After payment of partnership debts, what remains of the
partnership assets is P6,000 only. In the absence of stipulation
to the contrary, the share of C will equal to:
a) That of A
b) P2,000
c) That of B
d) Nothing
56. A, B and C are partners in ABC Co. D owes the partnership
P4,500. A, a partner, received from D a share of P1,500
ahead of partners B and C, giving D a receipt for his share
only. When B and C were collecting from D, the latter was
already insolvent. Which of the following is correct?
a) Partner A can be required to share the P1,500 with B
and C.
b) A cannot be required to share the P1,500 with B and C.
c) B and C should automatically exhaust first all remedies to
collect from D.
d) B and C can automatically deduct from the capital
contribution of A in the partnership, their respective share
in the P1,500.
57. A partnership suffered losses in the first year of its
operation. A, a capitalist partner, cannot contribute an
additional share to the capital because of insolvency. Can A
be obliged to sell his interest to the other partners on the
ground of such refusal?
a) Yes, A’ refusal to contribute additional share reflects his
lack of interest in the continuance of
b) the partnership.
c) No, because there is actually no imminent loss of the
business.
d) Yes, provided that A is paid the value of his interest.
e) No, because his refusal is justifiable.
58. Which of the following is considered prima facie evidence
of the existence of a partnership?
a) Where payment of interest on a loan depends on the
profit of the business.
b) The receipt by a person of a share in the profits.
c) The sharing of gross returns of a business.
d) Where the parties are established as co-owners of a
property.
59. A and B are partners, with A as the managing partner. D
is indebted to A in the amount of P10,000 and to the
partnership in the amount of P5,000. Both debts are due and
demandable. D paid AP3,000. A issued to D a receipt in his
own name. How should the amount of P3,000 be applied?
a) The P3,000 should be applied to the indebtedness of D
to A.
b) The P3,000 should be applied to the indebtedness of D
to the partnership.
c) P2,000 should be applied to the indebtedness of D to the
partnership and P1,000 to the indebtedness of D to A.
d) P1,000 should be applied to the indebtedness of D to
the partnership and P2,000 to the indebtedness of D to
A.
60. Using the preceding no. but A issued to D a receipt in the
name of the partnership. How should the payment of P3,000
be applied?
a) The P3,000 should be applied to the indebtedness of D
to A.
b) The P3,000 should be applied to the indebtedness of D
to the partnership.
c) P2,000 should be applied to the indebtedness of D to the
partnership and P1,000 to the indebtedness of D to A.
d) P1,000 should be applied to the indebtedness of D to the
partnership and P2,000 to the indebtedness of D to A.
61. A, B, C and D are partners. Their contributions are as
follows: A, P50,000; B, P30,000; C, P20,000; D, services. The
partnership incurred obligations to third persons which the firm
was unable to pay. After exhausting the assets of the
partnership, there still is unpaid balance of P10,000 to E. Who
are liable to E for the payment of the unpaid balance of
P10,000 and how much should each pay to E?
a) A P5,000; B P3,000; C P2,000; D nothing
b) A P2,500; B P2,500; C P2,500; D P2,500
c) A P4,000; B P3,000; C P2,000; D P1,000
d) A P4,000; B P4,000; C P2,000; D nothing
62. One or more but less than all the partners have no
authority to perform the following acts, except:
a) Do any act which would make it impossible to carry on
the ordinary business of the partnership.
b) Submit a partnership claim or liability to arbitration.
c) Renounce a claim of the partnership.
d) Convey partnership property in the ordinary course of
partnership business.
63. A, B and C are equal partners in ABC Partnership. The
partnership is indebted to D for P150,000. Partner A is
indebted to E for P20,000. D attached and took all the assets
of the
partnership amounting to P90,000. B and C are solvent while
A is insolvent and that he owns is a land valued at P15,000.
Which is correct?
a) E has priority to the land of A as a separate creditor
b) D 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 D the
P60,000 remaining liability of the partnership.
d) D and E shall both have priority to the land of A in
proportion to their claims of P60,000 and P20,000,
respectively.
64. A, B and C are partners. A is an industrial partner. During
the first year of operation, the firm realized a profit of
P60,000. During the second year, the firm sustained a loss of
P30,000. So, the net profit for the two years of operation was
only P30,000. In the Articles of Partnership, it was agreed that
A, the industrial partner would get 1/3 of the profit but would
not share in the losses. How much will A, the industrial partner
will get?
a) A will get only P20,000 which is 1/3 of the profit of the
1st year of operation.
b) A will get only P10,000 which is 1/3 of the net profit.
c) A will get only P20,000 in the first year and none in the
second year.
d) A will share in the loss in the second year.
65. Three (3) of the following are rights of a partner. Which
one (1) is not?
a) Right to associate another person to his share.
b) Right to admit another partner.
c) Right to inspect and copy partnership books
d) Right to ask dissolution of the firm at the proper time.
66.
I. Partnership with a capital of three thousand pesos or more,
in money or property, shall appear in a public instrument, and
recorded at SEC. Failure shall not affect the liability of a
partnership and members thereof to third person.
II. When immovable property is contributed, an inventory of
said property is needed, signed by the parties and attached
to the public instrument, otherwise the contract of partnership
is
void.
Answer: True; True
67.
I. Co-ownership or co-possession does not in itself establish a
partnership, except when such co- owners or co-possessors
share in the profits made by the use of the property.
II. The sharing of gross returns does not of itself establish a
partnership, except when the persons sharing them have a
joint or common right or interest in any property from which
the returns are derived.
Answer: False;False
68.
I. The receipt by a person of a share of the profits of a business
is conclusive evidence that he is a partner in the business.
II. A partnership of all present property is where the partners
contribute all property which actually belong to them to a
common fund, with the intention of dividing the same among
themselves, as well as all the profits which they may acquire
therewith.
Answer: False; True(?)
69.
I. In a universal partnership of all present property, the
property which belong to each of the partners at the time of
constitution of the partnership becomes a common fund of all
partners and all profits which they may acquire through
inheritance, legacy, or donation cannot be included in such
stipulation, except the fruits thereof.
II. The universal partnership of profits comprises all that the
partners may acquire by industry or work during the existence
of the partnership. Movable or immovable property which
each may possess at the time of the celebration of the contract
shall continue to pertain exclusively to each, only the usufruct
passing to the partnership.
Answer: True; True
70.
I. A partnership must have a lawful object or purpose, and
must be established for the common benefit or interest of the
partners.
II. When an unlawful partnership is dissolved by a judicial
decree, the profits and partners’ contributions shall be
confiscated in favor of the State.
Answer: True; False
71.
I. A partnership may be constituted in any form, except where
immovable property or real rights are contributed thereto, in
which case a written instrument shall be necessary.
II. Every contract of partnership having a capital of three
thousand pesos or more in money or property shall appear in
a public instrument which must be recorded in the office of the
SEC, otherwise the partnership is void.
Answer: False;False
72.
I. A contract of partnership is void, whenever immovable
property is contributed thereto, if an inventory of said
property is not made, signed by the parties and attached to
the public instrument.
II. A universal partnership of profits is that in which the partners
contribute all the property which actually belongs to them to
a common fund with the intention of dividing the same among
themselves, as well as the profits which they may acquired
therewith.
Answer: True; False
73.
I. In a universal partnership of profits, the property which
belong to each of the partners at the time of the constitution
of the partnership becomes the common property of all the
partners, as well as all the profits which they may acquire
therewith.
II. A universal partnership of all present property comprises
only all that the partners may acquire by their industry or work
during the existence of the partnership.
Answer: False;False
74.
I. A universal partnership of profits comprises all movable or
immovable property which each of the partners may possess
at the time of the celebration of the contract and all that the
partners may acquire by their industry or work during the
existence of the partnership.
II. Future property by inheritance, legacy or donation,
including the fruits thereof cannot be included in the stipulation
regarding the universal partnership of all present property.
Answer: False;False
75. I. A and B are partners in a universal partnership of profits.
Subsequently, A won first prize in the sweepstakes. The prize
money will belong to the partnership.
II. A and B are partners in a universal partnership of profits.
Later A purchased a parcel of land. The fruits of said land
belong to the partnership.
Answer: False:False
76. I. Persons who are prohibited from giving each other any
donation or advantage cannot enter into universal or
particular partnership.
II. A partnership begins from the moment of the execution of
the contract, unless it is otherwise stipulated.
Answer: False; True
77. If property has been promised by a partner as
contribution to the partnership, the fruits Arising from the time
the property should have been delivered should also be given
provided prior demand was made.
II. A partner who has undertaken to contribute a sum of money
and fails to do so becomes a debtor for the interest and
damages from the time he should have complied with his
obligation, without the need of any demand.
Answer: False; True
78. I. The partners shall contribute equal shares to the capital
of the partnership.
II. If there is no agreement to the contrary, in case of an
imminent loss of the business of the partnership, any partner
who refuses to contribute additional share to the capital, to
save the venture, shall be obliged to sell his interest to the
other partners.
Answer: False; False
79. I. If a partner collects a demandable sum, which was owed
to him in his own name, from a Person who owed the
partnership another sum also demandable, the sum thus
collected shall be applied to the two credits in proportion to
their amounts, even though he may have given a receipt for
his own credit only, but should he have given it for the account
of the partnership
credit, the amount shall be fully applied to the latter.
II. The risk of specific and determinate things contributed to the
partnership so that only their use
and fruits may be for the common benefit, shall be borne by
the partner who owns them.
Answer: B. False;False
80. I. In the absence of stipulation, the share of each partner
in the profits and losses shall be equal to each other.
II. A stipulation which excludes one or more partners from any
share in the profits or losses is void, as a general rule.
Answer: False; True
81. I. The partner who has been appointed manager may
execute all acts of administration despite the opposition of his
partners, unless he should act in bad faith and his power is
irrevocable without just or lawful cause.
II. When the manner of management has not been agreed
upon, none of the partners may, without the consent of the
others, make any important alterations in the property of the
partnership, even if it may be useful to the partnership.
Answer: False;False
82.I. Every partner may associate another person with him in
his share, provided it is with the consent of all of the other
partners.
II. The capitalist partners cannot engage for their own account
in any operation which is of the kind of business in which the
partnership is engaged, unless there is stipulation to the
Answer: False; True
83. I. Every partnership shall operate under a firm name,
which shall include the name of one or more of the partner.
II. All partners, excluding industrial ones, shall be liable prorata with all their property and after all partnership assets
have been exhausted, for the contracts which may be entered
into in the name of and for the account of the partnership,
under its signature, and by a person authorized to act for the
partnership.
Answer: False;False
84.I. Persons who are not partners as to each other are not
partners as to third persons, except in cases of estoppel.
II. An admission or representation made by any partner
concerning partnership affairs is evidence against the
partnership.
Answer: True; False
85. I. A person admitted as a partner into an existing
partnership is liable for all the obligations of the partnership
arising before his admission as though he had been a partner
when incurred and that such liability will extend to his own
individual property.
II. B has worked for M and Co., as procurer of contracts for
fertilizers to be manufactured by the firm, and as supervisor
of the mixing of the fertilizers. However, he had no voice in
the management of the business except in his task of
supervising the mixing of said fertilizers. For his service, he is
entitled to 35% of the profits in the fertilizer business. He is a
partner in M and Co.
Answer: False;False
86. I. C was a bookkeeper in a partnership named “AB”, with
a yearly salary amounting t 5% of the net profits or each
year. C, however had no vote at all in the management of the
business. He is a partner in AB.
II. Unless there is a stipulation to the contrary, the partners shall
contribute equal shares to the capital of the partnership.
Answer: False; True
87. I. Every partner may associate another person with him in
his share, but the associate shall not be admitted in the
partnership without the consent of all the other partners, even
if the partner having an associate should be a manager.
II. Articles of universal partnership, entered into without
specification of its nature, only constitute universal partnership
of profits.
Answer: True; True