MODULE 20(ACTIVITY 3)

Name: MYLENE NELLAS HERAGA Class number: BLOCK 4

Section: BSA 1-COC-A Schedule: W/S 8 am-12pm Date: OCT. 23,2021

Activity 3: Skill-building Activities

Directions: Try this exercise and see how well do you understand the concepts about
manufacturing. In the spaces provided, write T if the statement below is true otherwise F
if it is false.

T 1) A partnership is a legal entity separate and distinct from its owner.

T 2) Partnership is a contract which has force of law between the contracting parties.
F 3) All partnership are subject to tax at the rate of 30% of taxable income.
F 4) Partnership is created by operation of law.
F 5) There can be a partnership without agreement.
T 6) The essence of partnership is that each partner must share profits and losses of
the business.
F 7) There is unlimited life in partnership.
F 8) Partnership is easier to form than sole proprietorship because it can be created by
mere agreement of partners.
T 9) Corporation has a greater capability to raise large amount of capital than
partnership.
F 10) In a partnership, each of the partners including limited partner is liable to the
extent of his personal assets.
T 11) Partner by estoppel is one who is actually not a partner but who represents
himself as one.
F 12) Non-cash investment should always be valued at fair market value.
T 13) When the partnership capital is P3,000 or more, the public instrument must be
recorded with the Securities and Exchange Commission.
T 14) The agreed valuation of partners with respect to their investment should use with
priority in partnership formation.
F 15) The partner’s capital is debited for additional investment and credited for his
share in profit.