INTEGRATED REVIEW 4:​​ RFBT

#7 |​​ ​Partnership

1. It is a contract of two or more persons who bind themselves to contribute money,

property, or industry to a common fund, with the intention of dividing the profits among
themselves. It may also be formed by two or more persons for the exercise of a common
profession.
A. Contract of Agency
B. Contract of Partnership
C. Contract of Co-Ownership
D. Contract of Sale
(CPAR Reviewer, 2018)

2. When an unlawful partnership is dissolved by a judicial decree, to whom shall the

partnership profits go?
A. To the innocent partner
B. To the guilty partner
C. To all the partner pro-rata
D. To the state
(CPAR Reviewer, 2018)

3. Which of the following statements concerning associations and societies, whose articles
are kept secret among the embers, and wherein any one of the members may contract in
his own name with third persons is correct?
A. They shall have separate judicial personality
B. They shall be treated as a corporation
C. They shall be treated as a partnership
D. They shall be governed by the rules on co-ownership
(CPAR Reviewer, 2018)

4. The following statements concerning partnership are correct, except

A. Partnership is a juridical entity which has a personality separate and distinct from
that of each of the partners
B. There must be intent to form partnership
C. There is a fiduciary relation among partners
D. All partnership contracts are consensual
(CPAR Reviewer, 2018)

5. It is a principle which means that a partner has a right to choose those whom he wants to
be associated with the partnership.
A. Delectus personae
B. Delectus militus
 C. Dilitus trustus
D. Deletos fructus
(CPAR Reviewer 2018)

6. The following are advantages of a partnership as a form of organization. Which is not?

A. It is easy and inexpensive to organize as it is formed by a simple contract between
two or more persons
B. The unlimited liability of the partners makes it reliable from the point of view of
the creditor
C. There is constant likelihood of dissension and disagreement when each of the
partners has the same authority in the management concern
D. The combined personal credit of the partners offers better opportunity for
obtaining additional capital
(Soriano, 2016)

7. 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 the 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
SEC
B. Yes, because public instrument is necessary only in case of contributions 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
(Soriano, 2016)

8. Partners A, B and C contributed: P-P1M; B-P2M; C service. After exhausting the

partnership assets, the creditors still have a claim for P.3M. For how much are the
partners liable to the creditors for the partnership liability?
A. Only A and B are liable equally to the creditors being capitalists
B. Only A and B are liable 1/3 and 2/3, respectively
C. All of A, B and C are liable pro rata to the creditors
D. C is not liable being an industrial partner who is exempt from losses
(Soriano, 2016)
9. All present properties are contributed
A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
(RFBT Test Bank)

10. Composed of capitalist and industrial partners

A. Universal partnership
B. General partnership
C. Limited partnership
D. None of the above
(RFBT Test Bank)

11. Bears the loss of property contributed to the partnership

A. Capitalist partner
B. Limited partner
C. Partners contributing usufructuary rights
D. None of the above

12. A partnership is not dissolved on the death of a

A. General partner
B. Industrial partner
C. Limited partner
D. General limited partner

13. Partner who does not participate in the management though he shares in the profits or
losses
A. Nominal
B. Ostensible
C. Silent
D. Liquidating

14. Partner who is both a secret and silent partner

A. Limited
B. Nominal
C. Dormant
D. Ostensible
15. 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

16. Josephine, Ellen, Wilma, Edith and Lydia are partners in Jewel Company, ltd. Josephine,
Ellen, Wilma are general partners, Edith is a general-limited partner, while Lydia is a
limited partner. Based on the foregoing information, which of the following statements is
false?
A. Josephine, Ellen and Wilma may be held liable with their separate property after
exhaustion of partnership assets
B. Edith may participate in the management of the partnership
C. Edith may not be held liable with her separate property for partnership debts after
exhaustion of partnership assets
D. Lydia may not be held liable with her separate property for partnership debts after
exhaustion of partnership assets
(Soriano, 2016)

17. Which of the following statements concerning the name of a partnership is false?
A. The partnership name may include the name of only one of the partners
B. The partnership name may include the names of two or more but not all of the
partners
C. The partnership name may include the names of all the partners
D. The partnership cannot adopt a name which does not include the name of at least
one of the partners
(Soriano, 2016)

18. Querubin, Roces and Solis are partners in a law firm. Querubin was appointed as judge of
the regional trial court. Such appointment
A. Suspends the participation of Querubin in the management of the firm without
causing the dissolution of the partnership
B. Prohibits the inclusion of the name of Querubin in the firm name without
dissolving the partnership
C. Results in dissolution of the partnership
D. Merely requires the disclosure of Querubin’s appointment to the court without
dissolving partnership
(Soriano, 2016)
19. Braganza, Ortiz, and Nevado want to form a partnership with Braganza contributing
500,000; Ortiz, office equipment; and Nevado, his services. If the three were to form a
limited partnership, who among them will be the limited partner/s?
A. Either Braganza or Ortiz or both of them
B. Either Ortiz or Nevado or both of them
C. Either Braganza or Nevado or both of them
D. All the three must be limited partner
(Soriano, 2016)

20. Refer to the preceding number, assume that the three decide to form a general
partnership. As a result, which of the following is incorrect
A. Any of the three may be appointed as manager
B. All of them may be appointed as managers
C. Only Nevado may be appointed as manager because he only contributes his
services
D. Any two of them may be appointed as managers
(Soriano, 2016)

21. One/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 partner.
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.
E. None of the above
(Suarez, 2015)

22. May be required additional contribution in case of imminent loss:

A. Capitalist partner
B. Limited partner
C. Industrial partner
D. None of the above
(Suarez, 2015)

23. Sometimes termed dormant partner:

A. Limited partner
B. Capitalist partner
C. Secret partner
 D. None of the above
(Suarez, 2015)

24. 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
E. None of the above
(Suarez, 2015)

25. When the manner of management has not been agreed upon, who shall manage the affairs
of the partnership?
A. Capitalist partners
B. Industrial partners
C. Capitalist-industrialist partners
D. All of the partners
E. None of the above
(Suarez, 2015)

26. Daong and Depante have been partners for more than 5 years in the purified water
business. At the start of the sixth year, Daoang assigned his interest in the partnership to
Trinidad, but Depante objected on the ground that he did not want Trinidad to be his
partner.
A. Trinidad automatically became a partner of Depante when Daoang conveyed his
interest to him.
B. Daoang and Depante continue to be partners despite Daoang’s conveyance of his
interest to Trinidad.
C. The partnership between Daoang and Depante was automatically dissolved when
Daoang conveyed his interest to Trinidad.
D. The conveyance by Daoang of his interest in the partnership to Trinidad entitled
the latter to inspect the books, and participate in the management of the
partnership.
(Soriano, 2016)

27. Paragon enterprises, a partnership engaged in the garments manufacturing business, is

composed of partners Pacis, Ramas and Gonzales. During the year, Paragon bought a
computerized embroidering machine amounting to P300,000.00 from Tadena with the
 following stipulation: DP of P50,000; balance to be paid in amount equal to 20% of the
monthly net profits of Paragon until the full amount is paid.
A. Tadena is an actual partner of Pacis, Ramas and Gonzales during the time that he
receives a share of the profits of Paragon as payment of the purchase price of the
machine.
B. Tadena is only a partner by estoppel of Pacis, Ramas and Gonzales during the
time that he receives a share of the profits of Paragon as payment of the purchase
price of the machine.
C. Tadena is not a partner of Pacis Ramas and Gonzales whether before or after he
has received the full payment of the purchase price of the machine from Paragon.
D. Tadena is only a nominal partner of Pacis Ramas and Gonzales during the time
that he receives a share of the profits of Paragon as payment of the purchase price
of the machine.
(Soriano, 2016)

28. Magic Company is a partnership composed of Martha, Agnes, Glenda, Irenece and
Candice with Marha as manager who is authorized to collect the credits of the
partnership. Theresa owes Martha P4,000.00 which is due on December 10. She also
owes Magic Company P6,000.00 which is due on December 20. On December 15,
Theresa tendered payment in the amount of P4,000.00 to Martha in payment of her debt
to the latter. Martha issued her own receipt acknowledging the payment.
A. The payment will be applied proportionately to the credits of Magic and Martha
in the amount of P1,600 and P2,400, respectively.
B. The payment will be applied in its entirety to Martha’s credit.
C. The payment will be applied in its entirety to Magic’s credit.
D. The payment will be applied equally to the two debts of Theresa.
(Soriano, 2016)

29. Aseron, the managing partner of Ace Company, was driving the delivery truck of the firm
when he rammed it into an electric post resulting in damages to the vehicle amounting to
P50,000. To make up for accident, Aseron worked long hours for the firm and was able
to increase its sales from P5,000,000 to P15,000,000.
A. Aseron will no longer be liable for damages to Ace because he was able to
generate unusual revenues for the firm through his extraordinary efforts.
B. Aseron will still be liable to the firm for damages but the amount will be equitably
reduced since he was able to generate unusual profits for the firm through his
extraordinary efforts.
 C. Aseron’s obligation to the firm for damages will be extinguished by compensation
since Ace is also liable to him for the extraordinary efforts he exerted to increase
its sales.
D. Aseron and Ace will share equally in the damages of P50,000.
(Soriano, 2016)

30. Donna, Emma, Alma and Rona are partners in DEAR Company with Donna as manager.
Tricia owes Dear Company P5,500 and Donna, in Donna’s personal capacity, P4,500.
Tricia’s debt to Donna is secured by a pledge of her diamond ring. Both debts are already
due. Tricia pays P4,500 to Donna and tells her that the same is in payment of her debt to
Donna. Donna, thus, issues her personal receipt.
A. The payment of P4,500 will be applied proportionately to 2 credits: to the
partnership at P2,475 and to Donna at P2,025 because Donna should not place her
interest before that of Dear Company.
B. The payment of P4,500 will be applied entirely to Donna.
C. The payment will be applied in partial payment of partnership credit.
D. Tricia, Donna and Dear company will have to agree as to which credit payment to
be applied.
(Soriano, 2016)
31. to 35. CHUA

36. Statement 1:An artificial person like a corporation may be a partner in a partnership
Statement 2: A limited partner may contribute money and/or property to a partnership
but not services
A. Only 1 is true
B. Only 2 is true
C. Both are true
D. Both are false

37. Statement 1:A partnership has a personality separate and distinct from each of the
partners.
Statement 2: A partnership begins from the moment of the execution of the contract.
unless a different date is stipulated.
A. Only 1 is true
B. Only 2 is true
C. Both are true
D. Both are false

38. Statement 1: Spouses can validly enter into a ​particular​​ partnership with each other
 Statement 2: The profits and losses of the partnership shall be divided equally among the
partners if they have no profit and loss sharing agreement.
A. Only 1 is true
B. Only 2 is true
C. Both are true
D. Both are false

39. Statement 1:A stipulation exempting a capitalist partner from losses is valid.
Statement 2: When a partner has been appointed manager in the articles of partnership, he
may be removed ​without just cause by the vote of the partner owning the controlling
interest.
A. Only 1 is true
B. Only 2 is true
C. Both are true
D. Both are false

40. Statement 1:A limited partner may assign his interest to another person
Statement 2:As a rule, a limited partner shall be liable as a general partner if he allows the
use of his surname to be included in the partnership name.
A. Only 1 is true
B. Only 2 is true
C. Both are true
D. Both are false

41. 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
(Diaz, 2014)

42. 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
(Diaz, 2014)

43. 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
(Diaz, 2014)

44. 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
(Diaz, 2014)

45. 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
(Diaz, 2014)

46. 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

47. 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

48. 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

49. 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

50. 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. P20,000 from A and P10,000 from B

51. to 55. FELICIANO

56. Wilma, Olga and Wynona agreed to form a limited partnership with Wilma and Olga as
general partners contributing P50,000 each, and Wynona as limited partner contributing
P100,000. The partnership which is to engage in the trading of garments was named
“WOW Garments Co.,Limited” as indicated in the certificate signed and sworn to by the
partners before a notary public. However, the certificate was not filed with the Securities
 and Exchange Commission. In the meantime, the partners already began operating the
business and transacting with third persons.
A. The partnership entered into by the Wilma, Olga and Wynona is void
B. The partnership will be considered a general partnership. Accordingly, all partners
will be liable with their separate property after exhaustion of partnership assets
C. The partnership will be considered a limited partnership as indicated in its name.
Only Wilma and Olga will be liable with their separate property after the
exhaustion of partnership assets.
D. Wilma, Olga and Wynona will be considered separately as sole proprietors with
each one having a capital equivalent to their respective contributions.
(Soriano, 2016)

57. CROWN Enterprises is composed of partners Chuck who contributed P50,000; Rainer,
P20,000; Oscar, P40,000; Waldorf, P10,000; and Nelson, P5,000. No one was appointed
as manager. Two proposed contracts were voted upon by the partners during a meeting
which took place as follows:
Contract 1- Voting for approval of the contract were Chuck and Rainer; voting for
rejection were Oscar, Waldorf and Nelson.
Contract 2- Voting for approval were Chuck and Rainier voting for rejection were Oscar
and Waldorf; Nelson abstained.

Which of the foregoing contracts are considered approved ?

A. Both contracts
B. Neither of two contracts
C. Contract 1 only
D. Contract 2 only
(Soriano, 2016)

58. MACK’s Restaurant is a partnership composed of Manalo, Alferez, Cancio and Kilayco,
with Manalo as the manager whose contribution is 80% of the firm’s capital. Manalo
made Ongpauco his associate by assigning one-half of his share in the firm to the latter.
Did Ongpauco become a partner in the firm ?
A. Yes, because Manalo is the manager
B. No, because the other partners must give their consent in order that Ongpauco
may be admitted to the partnership
C. Yes, because the assignment by Manalo of his share in the firm did not affect his
ownership of the controlling interest
D. No, because the assignment by Manalo of his share in the firm diminished his
interest in the partnership
 (Soriano, 2016)

59. A partner is a co-owner with his partners of specific partnership property. Such
co-ownership:
A. Allows a partner to assign his right in such property
B. Allows a partners to use such property for partnership purposes
C. Entitles the spouse, children and other relatives of the partner to claim support
from such property
D. Gives the private creditors of a partner to attach his rights in such property
(Soriano, 2016)

60. CLEAN Laundry Services Company is a partnership composed of Carpio, Legaspi,

Encinas, Alzate and Noval. Without the knowledge of the other partners, Carpio used a
coat brought to the shop by a customer for dry-cleaning in a party he attended. The coat
was accidentally stained with food sauce during the said party. Who will be liable to the
customer for damage?
A. Carpio only since he used the coat without the knowledge of the other partners
B. CLEAN Laundry Services Company and Carpio solidarily
C. CLEAN Laundry Services Company and all the partners jointly
D. CLEAN Laundry Services Company and all the partners solidarily
(Soriano, 2016)

61. Management of a partnership is usually conferred upon the:

A. Manager
B. President
C. Partners
D. None of the above
(Suarez, 2015)

62. Which of the following is not an element of a partnership?

A. There must be a valid contract.
B. There must be a mutual contribution of money, property or industry to a common
fund.
C. There must be an intent to engage in lawful business, trade or profession.
D. None of the above.
(Suarez, 2015)
63. A partnership is dissolved on the death of a:
A. General partner
B. Industrial partner
C. General-limited partner
D. Limited partner
E. A, B or C
(Suarez, 2015)

64. Bears the risk of things contributed to the partnership:

A. Contributing partner
B. Limited partner
C. Partner contributing usufructuary rights
D. All of the above
(Suarez, 2015)

65. Has a priority over partnership assets:

A. Debtors
B. Creditors
C. Partners
D. All of the above
(Suarez, 2015)

66. 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 partnership
C. Insolvency of a general partner
D. Insanity of a general partner
(Soriano, 2016)

67. 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
(Soriano, 2016)
68. 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
(Soriano, 2016)

69. A contract where two or more persons bind themselves to contribute money, property or
industry to a common fund with the intention of dividing the profits among themselves.
A. Voluntary association
B. Corporation
C. Partnership
D. Sole proprietorship
(Soriano, 2016)

70. Which of the following will not cause the automatic dissolution of a general partnership?
A. Death of a capitalist partner
B. Insolvency of a capitalist partner
C. Insanity of an industrial partner
D. Civil interdiction of an industrial partner
(Soriano, 2016)

71. A and B are co-owners of a parcel of land from where they share the profits equally as
co-heirs in inheritance. Is there a partnership?
A. There is a prima facie presumption of 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 prima facie presumption of partnership they being co-owners and
co-possessors
(CPAR Special Handouts, 2018)

72. A and B are partners in AB partnership. While A was performing his duties as a partner
in the course of business, he negligently caused damage to X, a third person. Who shall
be liable to X and up to what extent?
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
(CPAR Special Handouts, 2018)

73. A and B entered into a universal partnership of all present property. No stipulation was
made regarding future property. After the perfection of the contract, A inherited a parcel
of land and B acquired a car as remuneration for services rendered. The properties
acquired after the perfection of the contract belong to whom?
Land Car
A. A Partnership
B. Partnership B
C. Partnership Partnership
D. A B
(CPAR Special Handouts, 2018)

74. On April 1, 2018, A and B entered into a contract of partnership for the purpose of selling
cows’ milk, with the former as capitalist partner and the latter as industrial partner. It was
agreed that A shall contribute 1,000 cows to the common fund on May 2, 2018. Upon the
arrival of the designated date, A failed to deliver the contribution he promised. As a result
A. B should make a demand upon A for the delivery of his contribution and its fruits
to render A in default
B. The contract of partnership becomes void because A failed to give his
contribution to the common fund
C. B can compel A to deliver his contribution and its fruits without the necessity of
demand
D. The contract of partnership was never perfected because there was no delivery of
contributions by the partners
(CPAR Special Handouts, 2018)

75. In case a managing partner collects a demandable debt from his debtor who also owes the
partnership a demandable debt, which of the following is not correct if payment is not
enough to cover the two debts?
A. The sum collected shall be applied to the partnership credit
B. The sum shall be applied to the two credits in proportion to their amounts
C. The debtor has the right to have the payment applied to his debt to the partner if it
should be onerous to him
D. The partner cannot apply the payment to his own credit
(CPAR Special Handouts, 2018)
76. to 80. ORTEGA
81. to 85. PAGUNSAN

86. Three of the following will cause the automatic dissolution of a general partnership.
Which one will not?
A. When any event makes it unlawful for the business of the partnership to be carried
on or for the members to carry it on in partnership
B. expulsion of any partner from the business bona fide in accordance with such a
power conferred by the agreement between the partners.
C. A partner becomes in any way incapable of performing his part of the partnership
contract.
D. The insolvency of a partner or of the partnership.
(Soriano, 2016)

87. When is the partnership not bound by the act/s of a partner after dissolution in the
following cases?
A. Acts necessary to wind up partnership affairs.
B. Acts to complete transactions begun before dissolution.
C. New transactions where the third person is a previous creditor and there was a
publication of the dissolution in a newspaper of general circulation in the place or
places where the business had been carried on but such third person has not read
it.
D. New transactions where the third person is a new creditor and there was
publication of the dissolution in a newspaper of general circulation In the place or
places where the business had been carried on but such creditor has not read it.
(Soriano, 2016)

88. Which of the following statements concerning the name of a partnership is false?
A. The partnership name may include the name of only one of the partners.
B. The partnership name may include the names of two or more, but not all of the
partners.
C. The partnership name may include, the names of all the partners.
D. The partnership cannot adopt a name which does not include the name of at least
one of the partners.
(Soriano, 2016)
89. MARK Company, is a partnership engaged in the trading business, with Marquez,
Alconcer, Ramos, and Kanapi as partners. Marquez, Alconcer and Ramos are capitalist
partners, contributing P100,000.00, P60,000.00, and P40,000.00, respectively. Kanapi is
an industrial partners. The partners have a stipulation that Marquez shall not b liable for
partnership liabilities. After three years on continued losses, the partnership incurred
liabilities o P200,000.00 at which time its assets had dwindled t( P 140,000.00. After
partnership assets have been exhausted, partnership creditors may go after the separate
assets of:
A. all the partners.
B. Marquez, Alconcer and Ramos, but not those of Kanapi.
C. Alconcer, Ramos and Kaftapi, but not those of Marquez.
D. Alconcer and Ramos only.
(Soriano, 2016)

90. Enterprises, a partnership engaged in the business of renting out video films, is owned by
Patricia, Alice, Tina, Olga, and Kaye, with Kaye as the manager. Diana owes PATOK
Enterprises P6,000.00 and Olga, P4,000.00. Both debts are unsecured and are already
due. Diana pays Olga P4,000.00 for which Olga issues her own receipt.
A. The payment should be applied to Olga's credit only.
B. The payment should be applied to PATOK's credit only.
C. The payment should be divided proportionately between PATOK and Olga, at
P2,400.00 and P1,600.00, respectively.
D. The payment should be divided equally between PATOK and Olga at P2,000.00
each.
(Soriano, 2016)
91. to 95. SUPENA

96. Which of the following statement is correct concerning the similarities between a limited
partnership and corporation?
A. Each is created under the statute and must file a copy of its certificate with the
SEC
B. All corporate stockholders and all partners in a limited partnership have a limited
liability
C. Both are allowed statutorily to have perpetual existence
D. Both are allowed to have judicial existence by the consent of all members
(PRTC 1st Pre-boards, 2018)
97. A general professional partnership must
A. Pay corporate income tax
B. Have to or more partners
C. Have a written articles of partnership
D. Provide for appointment of liability for partnership debts
(PRTC 1st Pre-boards, 2018)

98. Which of the following cannot be contributed into a common fund?

A. Promissory note
B. Goodwill
C. License to construct and operate cockpit
D. Political credit
(PRTC 1st Pre-boards, 2018)

99. When does a partnership begin its legal personality?

A. Upon filing of the article of partnership before the SEC
B. Upon execution of the public instrument
C. Upon execution of the contract
D. Upon the delivery of the contributed property
(PRTC 1st Pre-boards, 2018)

100. Which of the following is correct?

A. Every partner is a debtor of the partnership for whatever he may have promised to
contribute thereto
B. A partner who has undertaken to contribute a sum of money and fails to do so
becomes a debtor only for the interest from the time he should have complied
with his obligation
C. A partner who has received, in whole or in part, his share of the partnership
credit, when the other partners have not collected theirs, shall be obliged, if the
debtor should thereafter become insolvent, to bring to the partnership capital what
he received even though he may have given receipt for his share only
D. Every partner is responsible to the partnership for damages suffered by it though
his fault, and he cannot compensate them with the profits and the benefits which
he may have earned for the partnership by his industry
(PRTC 1st Pre-boards, 2018)

101. A partner in a limited partnership cannot contribute

A. Cash
B. Property
 C. Services
D. Partly cash and partly property
E. None of the above
(Suarez, 2015)

102. One who takes charge of the winding up of partnership affairs upon dissolution
A. Silent partner
B. Liquidating partner
C. Ostensible partner
D. None of the above
(Suarez, 2015)

103. Which of the following contracts of partnership may not appear in a public
instrument?
A. Limited partnership
B. Partnership where immovables are contributed
C. Partnership having a capital of P3,000 or more
D. None of the above
(Suarez, 2015)

104. Common property in a universal partnership

A. All present property and all property that they may acquire thereof
B. All present property and all profits that they may acquired therewith
C. All future property
D. All present property
(Suarez, 2015)

105. A partner whose liability for partnership debts is limited to his capital contribution is
A. General partner
B. Limited partner
C. General-limited partner
D. Secret partner
(Suarez, 2015)

106. The law on special contracts: partnership can be found in

A. Article 1757, Book 6 of the Civil Code
B. Article 1757, Book 5 of the Civil Code
C. Article 1767, Book 5 of the Civil Code
D. Article 1767, Book 6 of the Civil Code
 (Notes in Business Organization)

107. Which of the following is not a characteristic of a partnership contract?

A. Onerous
B. Real
C. Bilateral
D. Principal
(Notes in Business Organization)

108. This characteristic of a partnership contract refers to mere consent for the perfection
of a contract
A. Real
B. Nominate
C. Consensual
D. Accessory
(Notes in Business Organization)

109. How many elements are there in a contract of partnership?

A. 3; consent, object and cause
B. 4; consent, object, cause and contract
C. 3; consent, object and contract
D. 4; consent, object, cause and delivery
(Notes in Business Organization)

110. Which of the following is not a reason why a partnership should be registered in the
SEC?
A. To monitor, supervise and control profit/activities
B. To provide licensure for business
C. To pay for taxes
D. To withhold professional partnership income for withholding tax
(Notes in Business Organization)

111. One of the following is not a characteristic of 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.
 (Soriano, 2016)

112. 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.
(Soriano, 2016)

113. Which of the following statements is incorrect?

A. Partnership creditors are preferred as to partnership assets.
B. Partnership creditors are preferred as to each partner’s separate assets.
C. A partner’s separate creditors are preferred as to the partner’s separate assets.
D. A partner’s separate creditors may attach a partner’s share in the partnership
assets.
(Soriano, 2016)

114. A decree by the court is necessary to dissolve a general partnership based on three of
the following grounds. Which one will not require such decree but will cause the
automatic dissolution of the partnership?
A. The business of the partnership can only be carried on at a loss.
B. A partner is shown to be of unsound mind.
C. A partner has been guilty of such conduct as trends to affect prejudicially the
carrying on of the business.
D. A partner is civilly interdicted.
(Soriano, 2016)

115. 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.
(Soriano, 2016)

116. Which of the following liabilities 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
(Test Bank RFBT, 2018)

117. May contribute money, property or industry to a common fund.

A. Both general and limited partners
B. Limited partners
C. General partners
D. Capitalist partners
(Test Bank RFBT, 2018)

118. One who takes charge of the winding up of partnership affairs upon dissolution.
A. Silent partner
B. Ostensible partner
C. General partner
D. Liquidating partner
(Test Bank RFBT, 2018)

119. Types of partnership in which the partners enjoy practically all the profits:
A. General partnership
B. Universal partnership
C. Limited partnership
D. De facto partnership
(Test Bank RFBT, 2018)

120. If 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 or the debtors
D. Pro-rata between the separate creditors of the debtor and the partnership creditors
(Test Bank RFBT, 2018)

121. In a limited partnership where there are four partners:

A. All the partners must be limited partners
B. The number if limited partners must be equal to the number of general partner
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
(​Soriano, 2016​)

122. A limited partner shall be liable as general partner in three of the following cases,
except
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 participated in the management of the business
D. When his surname which appears in the partnership name is also the surname of a
general partner
(​Soriano, 2016​)

123. Which of the following omissions will make a partnership formed as a limited
partnership liable as general partnership
I. The certificate is not signed and sworn to by all the partners
II. The certificate is not registered with the SEC
III. The partnership name does not include the word “Limited” or “Ltd.” in the
certificate
A. I and II
B. II and III
C. I and III
D. I, II, and III
(​Soriano, 2016​)

124. 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
(​Soriano, 2016​)

125. 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
(​Soriano, 2016​)