ACTIVITY CHAPTER 1

Directions: Read and answer each question carefully. Note: Copying answers directly from
your classmates or from any book and sites from the internet will automatically get 0 points.
1. W, X, Y and Z organized a general partnership with W and X as industrial partners and
Y and Z as capitalist partners. Y contributed P.5M and Z contributed P.2M to the
common fund. By a unanimous vote of the partners, W and X were appointed
managing partners, without specification of their duties and powers. A applied as
secretary and B applied as accountant of the partnership. The hiring of A was decided
upon by W and X but was opposed by Y and Z. Whose decision shall prevail?
-The decision must prevail is the W and X because they are the industrial partnership it
means they are involving or offering on one or more expertise to a company instead of
money the Y and Z is a capitalist partnership only they offering money instead. The most
higher position is W and X because they are the managers.

2. W, X, Y and Z organized a general partnership with W and X as industrial partners and

Y and Z as capitalist partners. Y contributed P.5M and Z contributed P.2M to the
common fund. By a unanimous vote of the partners, W and X were appointed
managing partners, without specification of their duties and powers. A applied as
secretary and B applied as accountant of the partnership. Suppose the hiring of B was
decided upon by W and Z, but was opposed by X and Y, whose decision shall prevail?
-The decision must prevail is X and Y's and since Y is the controlling partner.

3. A, B and C are partners in a partnership. A and B contributed P10,000.00 each while C

contributed his service. After payment of the partnership liabilities to creditors, only
P6,000.00 remains. In the absence of stipulation to the contrary, the share of C shall
be:
-None, because C is not contributing any money that’s why there’s no share should give
to C.

4. X, Y and Z are partners who contributed equally to the capital of the partnership. A
owes the partnership P9,000.00. Z collected form A P3,000.00 before X and Y could
receive anything form A, who later became insolvent and therefore they could not
collect their shares.
-Since A give P9,000.00 to Z. The P9,000.00 must divide into 3 persons so that Z must
give or share the 3,000 with X and Y so that Its fairly given.

5. A, B and C are partners in ABC Company. D represented himself as a partner in the

partnership to E who, on the belief of such representation, extended ACTIVITY
[BUSINESS LAW (PRIVATE ORGANIZATIONS)] credit of P50,000.00 to the partnership.
Assuming only B and C consented to such representation, who shall be liable to E?
-The liable to E are B, C and D.