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1. 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. ANSWER: C 2. The change in the relation of partners caused by any ceasing to be associated in the carrying on the business is known as: a. Termination of the partnership b. Winding up of partnership affairs c. Liquidation of the partnership business d. Dissolution of the partnership ANSWER: D 3. 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 partner c. Insolvency of a general partner d. Insanity of a general partner ANSWER: B 4. A limited partner shall be liable as a general partner in three of the following cases. Which one is the exception?

a. When he is a general-limited partner as stated in the certificate. b. When he takes part in the control of the business. c. When he participates in the management of the business. d. When his surname which appears in the partnership name is also the surname of a general partner. ANSWER: D 5. The partnership will bear the risk of the loss of three of the following things. Which is the exception? a. Things contributed to be sold. b. Fungible things or those that cannot be kept without deteriorating. c. Things contributed so that only their use and fruits will be for the common benefit. d. Things brought and appraised in the inventory. ANSWER: C 6. A partnership formed for the exercise of a profession which is duly registered is an example of: a. Universal partnership of profits b. Universal partnership of all present property c. Particular partnership d. Partnership by estoppel ANSWER: C

7. One of the following is not a requisite of a contract of partnership. Which is it? a. There must be 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. ANSWER: D 8. 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: D 9. Which of the following will not cause the automatic dissolution of a general partnership? a. Death of a partner b. Insolvency of a partner c. When the partnership business becomes unlawful d. Insanity of a partner ANSWER: D

10. In a limited partnership where there are four (4) partners: a. All the partners must be limited partners. b. The number of limited partners must be equal to the number of general partners, 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 all be general partners. ANSWER: D