BUSINESS LAW- MIDTERMS QUIZ

1. The winding up process requires the liquidation of all assets of the Partnership.
FALSE
2. In winding up process, the liquidation of all assets of the partnership is mandatory
and its proceeds will be distributed to all partners. FALSE
3. In winding up process, creditors must file a claim before any court after the
liquidation of all assets of the partnership. FALSE
4. Unless agreed upon by the partners, the surviving partners may continue the
partnership after its dissolution. TRUE
5. Creditors of the dissolved partners are no longer the creditors of the continuing
partnership. FALSE
6. Creditors of the dissolved partners are no longer the creditors of the continuing
partnership. FALSE
7. Those owing to partners with respect to capital must be returned first before any
other creditors. FALSE
8. Partners profit in a partnership must be returned after the capital of the partners.
TRUE
9. An insolvent partner in a partnership is no longer liable if the partnership properties
is insufficient. FALSE
10. Limited partners shall not be bound by the obligations of the partnership. TRUE
11. General partners shall not be bound by the obligations of the partnership. FALSE
12. A limited partnership requires full compliance on all the requirements as
stipulated. TRUE
13. The term for which the partnership is to exist is a mandatory requirement for the
registration of a limited partnership. TRUE
14. Limited partnership does not necessarily require registration provided the
partners agreed. FALSE

15. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm) whereby Pedro was assigned as the
Managing Director and contributed his condo unit to be used as the Firm Office.
Bong contributed 100,000.00 while Janneth assigned as the Operations Manager.
Pedro asked Janneth to have the condo unit registers to the Registry of Deeds as
the property now belongs to the Firm but Janneth declines reasoning that the
registration is not necessary. Is Janneth correct? FALSE

16. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm) whereby Pedro was assigned as the
Managing Director and contributed his condo unit to be used as the Firm Office.
Bong contributed a post-dated check amounting to 100,000.00 dated December
25, 2022, while Janneth assigned as the Operations Manager. Is Bong liable for
the unrealized contribution? TRUE
17. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm) whereby Pedro was assigned as the
Managing Director and contributed his condo unit to be used as the Firm
Office. Bong contributed a post-dated check amounting to 100,000.00 dated
December 25, 2022, while Janneth assigned as the Operations Manager. October
15, 2022, Bong demanded return of his contribution. Is he entitled as requested?
FALSE

18. Certificate of Limited Partnership shall be cancelled when an additional limited

partner was added. FALSE
19. Limited partner's consent is necessary in a Limited Partnership when an
additional limited partner was added. TRUE
20. Limited partner's consent is necessary in a Limited Partnership when an
additional general partner was added. TRUE
21. Limited partner's surname is part of the Limited Partner's Name. FALSE
22. When a limited partner in a limited partnership dies, the certificate must be
amended. FALSE
23. When a limited partner in a limited partnership retires, the certificate must be
amended. FALSE
24. Dissolution of a Partnership requires judicial process. FALSE, extra and judicial
25. A limited partner in a Limited Partnership may receive the partnership share by
way of property distribution. FALSE, Income or Compensation not property.
26. The partnership book of accounts is limited to the General Partners in a limited
partnership. FALSE

27. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm Corp.) whereby Pedro was assigned as
the Managing Director and contributed his condo unit to be used as the Firm
Office. Bong contributed a post-dated check amounting to 100,000.00 dated
December 25, 2022, while Janneth assigned as the Operations Manager. October
15, 2022, Bong demanded return of his contribution. Is the partner's name valid?
FALSE, LTP

28. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm Corp.) whereby Pedro was assigned as
the Managing Director and contributed his condo unit to be used as the Firm
Office. Bong contributed a post-dated check amounting to 100,000.00 dated
December 25, 2022, while Janneth assigned as the Operations Manager and a
limited partner. Pedro demanded to include Maria as a Managing Director without
the consent of Bong and Janneth. Is Pedro correct? FALSE
29. Pedro, Bong, and Janneth all Certified Public Account (CPA) agreed to form a
limited partnership (PBF Accounting Firm Corp.) whereby Pedro was assigned as
the Managing Director and contributed his condo unit to be used as the Firm
Office. Bong contributed a post-dated check amounting to 100,000.00 dated
December 25, 2022, while Janneth assigned as the Operations Manager and a
limited partner. Is Janneth liable for the obligations of the limited partnership?
FALSE, there is no limited partnership existing

30. Only general partners are involved in the management of the limited
partnership. TRUE