Exercise 1: True or false

1. Work or services that may either be personal manual efforts or intellectual may also
be contributed to a partnership.
 True
2. Ownership is easily transferred in a partnership
 False
3. A partnership cannot be established for religious purposes.
 True
4. A partnership must always have at least two owners.
 True
5. A proprietorship has limited life whereas a partnership may have unlimited life.
 False
6. Not all of the partners in general partnership are personally liable for all debts
incurred by the partnership.
 False
7. A dormant partner is one who does not take active part in the partnership business
and is not known as a partner.
 True
8. Accounting for partnership comes closer to accounting for a sole proprietorship
than to accounting for a corporation.
 True
9. The manner in which profits are to be shared should be specified in the articles of
partnership.
 False
10. A partnership should always be constituted in writing.
 True
11. Mutual agency means that each has the right to bind the partnership to contracts.
 True
12. As long as the action is within the scope of the partnership, any partner can bind the
partnership.
 True
13. As long as the action is within the scope of the partnership, any partner can bind the
partnership.
 True
14. When the capital is P3,000 or more, the public instrument must be recorded with
the Securities and Exchange Commission.
 True
15. Two or more persons may form a partnership for the exercise of a profession.
 True
16. There can never be a partnership without contribution of money, property or
industry to a common fund.
 True
17. All partners in a general partnership are personally liable for all debts incurred by
the partnership.
  True
18. A limited partnership normally has one or more general partners whose liability is
unlimited.
 True
19. Under the partnership form of business, large amounts of capital can be raised
easily.
 False
20. Liabilities related to assets invested in a partnership be a new partner cannot be
transferred to the partnership.
 False