BM1905

QUIZ ON LIMITED PARTNERSHIP

NAME: SECTION: DATE: SCORE:

QUESTIONS:
1. A, B, and C are general partners with D as limited partner. The total assets of the partnership amount
to P200,000. The partnership owes D P50,000 and E, a third party creditor, P250,000. Can D receive
his claim of P50,000? Explain and justify.
Answer:

2. After operating for some time as a limited partnership, X & Co., composed of A, B, and C, as general
partners, who contributed P30,000 each and D and E, as limited partners, who contributed P20,000
each, has a total assets of P150,000 and the following liabilities:
(1) For return of contributions of limited partners (D and E) P40,000
(2) Due to third party credits 50,000
(3) For loan extended by C 25,000
(4) For loan extended by D 35,000
(5) For taxes 15,000
(6) For indemnity to B for damages suffered in consequence of management 5,000
TOTAL P170,000
May E legally demand the return of his contribution, assuming that all the partners have given their
consent and are willing to have the certificate amended as to set forth the withdrawal?
Answer:

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3. In a limited partnership where there are four (4) partners:

a. All partners must be limited partners.
b. It is enough that there is one (1) limited partner; the rest may all be general partners.
c. The number of limited partners must be equal to the number of general partners (2:2).
d. The number of limited partners must be greater than the number of general partners (3:1).
Answer:

4. Which of the following may a limited partner contribute?

a. Money and/or property
b. Money and/or services
c. Property and/or services
d. Services only
Answer:

5. What is the effect if there is NO substantial compliance with the registration of certificate of limited co-
partnership with the SEC?
a. The partnership contract is null and void.
b. The limited partnership exists.
c. The partnership will be considered a general partnership.
d. The partnership will be considered a universal partnership.
Answer:

6. Where there are several limited partners the members may agree that one or more of the limited partners
shall have a priority over other limited partners as to the return of their contributions, as to their
compensation by way of income, or as to any other matter. What is the formality required by law for this
agreement to be binding among the partners?
a. It shall be stated in the certificate of limited co-partnership.
b. The agreement must be notarized.
c. The agreement must be in writing.
d. The agreement must be registered in the Registry of Property.
Answer:

7. When may a limited partner be liable pro-rata and subsidiarily like a general partner to the partnership
creditors?
a. If he allows his name to be included in the partnership name contrary to allowed instances of law
b. If he takes part in the control or management of the business
c. Either A or B
d. Neither A nor B
Answer:

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8. A limited partner shall have the following rights enjoyed by a general partner, EXCEPT:
a. Have the partnership books kept at the principal place of business of the partnership, and at a
reasonable hour to inspect and copy any of them.
b. Have on demand true and full information of all things affecting the partnership, and a formal
account of partnership affairs whenever circumstances render it just and reasonable.
c. Have dissolution and winding up by decree of court.
d. Have the power to participate in the control and management of the partnership business.
Answer:

9. When is the certificate of limited co-partnership required to be canceled?

a. When the partnership is dissolved
b. When all limited partners cease to be such
c. Either A or B
d. Neither A nor B
Answer:

Rubric for grading essay:

CRITERIA PERFORMANCE INDICATORS POINTS
Provided pieces of evidence, supporting details, and
Content 7
factual scenarios
Organization of Expressed the points in clear and logical
3
ideas arrangement of ideas in the paragraph
TOTAL 10

For multiple choice: 8 items x 2 points

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