Question 1

 This is a type of partnership wherein the partners contribute all the property which actually belongs to
them, to a common fund.
Response: Universal partnership of all present property
Feedback:
CORRECT! The following becomes the common property of all partners:
1. Property which belonged to each of them at the time of the constitution of the
partnership; and
2. Profits which they may acquire from the property contributed.
Score: 1 out of 1 Yes

Question 2
 Which of the following is NOT allowed to enter into a contract of partnership?
Response: A corporation
Feedback: CORRECT! A corporation cannot enter into a contract of partnership, but can opt for a joint
venture instead.
Score: 1 out of 1 Yes

Question 3
 These refer to those given preference in the distribution of dividends, and corporate assets in case of
liquidation.
Response: Preferred shares
Feedback: CORRECT! Preferred shares of stock may be issued only with a stated par value.
Score: 1 out of 1 Yes

Question 4
 These are stocks issued for less than their par or issued value or in any other form other than cash
valued in excess of its fair value.
Response: Watered stocks
Feedback: CORRECT! “Water” in the stock represents the difference between the fair market value at
the time of the issuance of the stock and the par or issued value of the said stock. Both par and no par
stocks can thus be watered stocks.
Score: 1 out of 1 Yes

Question 5
 It is a corporation which has a capital stock divided into shares and are authorized to distribute to the
holders of such shares dividends or allotments or the surplus profits based on the shares held.
Response: Stock corporation
Feedback: CORRECT! one of the most common type of corporation, being that almost all known
brands – Coca Cola, Nestle, etc. - are owned by stock corporations.
Score: 1 out of 1 Yes

Question 6
 These are stocks deposited with a third person to be delivered to a stockholder or his assignee after
complying with certain conditions, usually payment of full subscription price.
Response: Redeemable shares
Feedback: INCORRECT. These are shares which may be purchased by the corporation from the
holders of such shares upon the expiration of a fixed period, regardless of the existence of unrestricted
retained earnings in the books of the corporation, and upon such other terms and conditions stated in
the articles of incorporation and the certificate of stock representing the shares, subject to rules and
regulations issued by the Commission.
Score: 0 out of 1 No

Question 7
 These refer to those who compose the corporation, whether stockholders or shareholders in a stock
corporation or as members in a non-stock corporation.
Response: Corporators
Feedback: CORRECT! Hence the term, it includes incorporators and stockholders or members who
become as such after incorporation of the corporation.
Score: 1 out of 1 Yes

Question 8
 This refers to a partner who DOES NOT take an active part in the business, although he may be known
to be a partner.
Response: Silent partner
Feedback: CORRECT! Silent partners are also known as limited partners, since their liability is typically
limited to the amount invested in the partnership.
Score: 1 out of 1 Yes

Question 9
 This refers to the termination of a partnership’s existence effected outside the course of regular judicial
proceedings.
Response: Extrajudicial dissolution
Feedback: CORRECT! Some causes of extrajudicial dissolution may be the following: loss of specific
thing promised by partner before its delivery, death of any partner, insolvency of a partner/partnership,
civil interdiction of any partner, decree of court under Article 1831, and others.
Score: 1 out of 1 Yes
Question 10
 It is a corporation established for business or profit.
Response: Civil corporation
Feedback: CORRECT! one of the most common types of corporation, being that almost all known
brands like Coca Cola and Nestle, which mainly exist for profit.
Score: 1 out of 1