1.

All present d)
properties are None of the above
contributed 3. Partners shall
a) Universal enjoy practically all
partnership the profits:
b) General a) Universal
partnership partnership
c) b) General
Limited partnership partnership
d) c)
None of the above Limited partnership
2. Composed of d)
capitalist and None of the above
industrial partners 4. They have no
a) Universal voice in the
partnership management of
b) partnership affairs:
General partnership a) Managing
c) partners
Limited partnership b)
Silent partners a) Both general and
c) Both A and B limited partners
d) None of the b) Limited partner
above c)
5. They have General partners
priority if the d) Capitalist partners
partnership is 7. One who takes
insolvent: charge of the
a) Separate creditors winding up to
b) partnership affairs
Partnership creditors upon dissolution:
c) Both A and B a)
d) None of the Silent partner
above b) General partner
6. c) Ostensiblepartner
May contribute d)
money, property or Liquidating partner
industry to the 8.
common A, B and C are
fund: partners. A
contributed his A and B entered into
services a universal
only; B, P20,000; partnership of all
and C, P10,000.The present property.
partnership was The common
liquidated. After property of the
payment of the partnership
partnership’s shall be:
obligation, a)
only P9,000 All the properties
worth of assets which belonged to
remained. The share each of the
of A partners
will equal to: at the time of the
a) P3,000 constitution of the
b) partnership.
Equal of share of B b)
c) All the properties
Equal of share of C which belonged to
9. each of the
partners partners at the
after the constitution time of the
of the partnership. constitution of the
c) partnership as well
All the properties as
which belonged to the profits which
each of the they may
partners at the acquire thereafter.
time of the 10. A capitalist
constitution of the partner engaged for
partnership as well his own account in
as the profits which an operation which
they may is of the kind of
acquire therewith. business in which
d) the partnership is
All the properties engaged. Said
which belonged to partner can be
each of the a) Compelled to sell
his interest in the
partnership to
the other capitalist 11. If a partner in a
partners. partnership is
b) insolvent, the first
Compelled to order of preference
dissolve or in the distribution of
discontinue the his assets are:
operation of a) Partnership
his creditors
business b) Partners
c) contribution to the
Compelled to bring partnership
to the common c)
funds of the Separate creditors of
partnership any the debtor
profits accruing to d) Pro-rata between
him from his the separate
transactions. creditors of the
d) Denied his share debtor and the
in the profits of the partnership creditor
partnership. 12.
A, B and C are b) Equal to the share
partners in a of B
partnership. C c) P2,000
contributed his d) Nothing
industry. After 13.
payments of the X, Y and Z are equal
partnership’s partners of XYZ
obligations, only Partnership. A
P6,000 cash owes the XYZ
remains. No other Partnership for
assets. In p9,000. Z, a
the absence of partner
terms collected from
to the contrary, the A, P3,000 before
share of C in X and Y received
the remaining assets anything. Z issued a
is: receipt on the
a) Equal to share of P3,000 as his share
A of what A owes.
When X and Y
 2. Composed of capitalist and industrial partners
collected from A, a) Universal partnership
b) General partnership
A c) Limited partnership
d) None of the above

was insolvent. 3. Partners shall enjoy practically all the profits:

a) a) Universal partnership
b) General partnership
c) Limited partnership
Partner Z shall share d) None of the above

partners X and Y 4. They have no voice in the management of

partnership affairs:

with the a) Managing partners

b) Silent partners

P3,000 c) Both A and B

d) None of the above

b) 5. They have priority if the partnership is insolvent:

a) Separate creditors
Z cannot be required b) Partnership creditors
c) Both A and B

to share X and Y d) None of the above

with the P3,000 6. May contribute money, property or industry to the

common fund:

c) a) Both general and limited partners

b) Limited partner
c) General partners
X and Y should d) Capitalist partners

fir 7. One who takes charge of the winding up to

partnership affairs upon dissolution:

4. They have no a) Silent partner

b) General partner

voice in the c) Ostensible partner

d) Liquidating partner

management of 8. A, B and C are partners. A contributed his services

1. All present properties are contributed
a) Universal partnership
b) General partnership
c) Limited partnership
d) None of the above
only; B, P20,000; and C, P10,000.The partnership was
liquidated. After payment of the partnership’s
obligation, only P9,000 worth of assets remained. The
share of A will equal to:
a) P3,000
b) Equal of share of B
c) Equal of share of C
9. A and B entered into a universal partnership of all
present property. The common property of the
partnership shall be:
a) All the properties which belonged to each of the
partners at the time of the constitution of the
partnership.
b) All the properties which belonged to each of the
partners after the constitution of the partnership.
c) All the properties which belonged to each of the
partners at the time of the constitution of the
partnership as well as the profits which they may
acquire therewith.
d) All the properties which belonged to each of the
partners at the time of the constitution of the
partnership as well as the profits which they may
acquire thereafter.
10. A capitalist partner engaged for his own account in
an operation which is of the kind of business in which
the partnership is engaged. Said partner can be
a) Compelled to sell his interest in the partnership to
the other capitalist partners.
b) Compelled to dissolve or discontinue the operation of
his business
c) Compelled to bring to the common funds of the
partnership any profits accruing to him from his
transactions.
d) Denied his share in the profits of the partnership.
11. If a partner in 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 of the debtor
d) Pro-rata between the separate creditors of the
debtor and the partnership creditor
12. A, B and C are partners in a partnership. C
contributed his industry. After payments of the
partnership’s obligations, only P6,000 cash remains. No
other assets. In the absence of terms to the contrary,
the share of C in the remaining assets is:
a) Equal to share of A
b) Equal to the share of B
c) P2,000
d) Nothing
13. X, Y and Z are equal partners of XYZ Partnership. A
owes the XYZ Partnership for p9,000. Z, a partner
collected from A, P3,000 before X and Y received
anything. Z issued a receipt on the P3,000 as his share
of what A owes. When X and Y collected from A, A
was insolvent.
a) Partner Z shall share partners X and Y with the
P3,000
b) Z cannot be required to share X and Y with the P3,000
c) X and Y should first exhaust all remedies to collect
from A.
d) X and Y can automatically deduct from the capital
contributions of Z in the partnership their respective
share in the P3,000
14. A and B are partners in a real estate partnership .
The partnership owns a piece of land which C desired
to buy. C contacted A and inform him of his desire to
buy the land and A did not tell to B about it. A bought B
out of the partnership and afterwards sold the land to C
with a big profit.
a) The partnership is dissolved when A became the sole
owner
b) The sale of the land to C is void because it was
without the knowledge of B.
c) A is not liable to B for the latter’s share in the profits
d) A is liable to B for the latter’s share in the profits.
15. A, B and C are partners in ABC Partnership. D
represented himself as a partner in ABC Partnership to
E, who, on the belief of such representation, extended
P50,000 credit to ABC Partnership. Assuming only B
and C consented to such representation, who will be
held liable to E?
a) E extended the credit to ABC Partnership, so a
partnership liability exists, thus, all the partners, A, B
and C are liable
b) B, C and D are partners by estoppels and thus,
are liable prorate to E
c) Partners A, B and C who benefited from the credit
extended by E are liable.
d) D who made the representation is liable to E

16. A and B are partners in a real estate business. A
and B were approached by X who offered to buy a
parcel of land owned by the partnership. Thereafter, b
sold to A, B’s share in the partnership. Then, A sold the
land to X at a big profit.
a) A is liable to B for B’s share in the profits
b) The partnership is dissolved when A became the sole
owner
c) A is not liable to B for the latter’s share in the profits
d) The sale of the land to X is void.
17. One of the following incidents may be a cause for
involuntary dissolution of a partnership. Which is?
a) Termination of the term of the partnership
b) Insolvency of any partner
c) Express will of any partner
d) Expulsion of any partner
18. A and B are equal partners in AB Partnership. Y
presented himself as a partner in AB Partnership to Z,
who relying on such representation, extended P50,000
credit to AB Partnership. Of the two (2)
partners only B knew and
consented to the representation of Y. Who should be
held liable to Z?
a) Only Y, who presented himself as partner is liable.
b) Since the credit was extended to AB Partnership, a
partnership liability was created, so the two (2)
partners and Y are liable.
c) Partners A and B who benefited from the credit
extended to the partnership AB Partnership shall
be liable to Z.
d) B and Y are partners by estoppel and, thus, are
liable to Z.
19. The following persons are disqualified to form a
universal partnership. Who are the exception?
a) Brother and sister
b) Husband and wife
c) Those guilty of adultery and concubinage
d) Those guilty of the same criminal offense, if the
partnership is entered into a consideration of the
same.
20. A is the capitalist partner and B the industrial
partner. A is engaged personally in the same kind of
business the partnership is engaged in.
a) If there are losses, the partnership will bear the
losses
b) If there are profits, the profits will be shares by A and
the partnership
c) If there are profits, A will give the profits to the
partnership
d) A will be excluded from the partnership and pay
damages.
21. A is the managing partner of ABC Partnership. X
owes A personally and ABC Partnership P20,000 each. A
collected and receive from X, P10,000 and he issued a
receipt wherein it is stated that the amount is applied
against his personal credit.
a) The amount received will be applied in favor the
partnership credit
b) The amount will be applied in proportion to both
credits
c) The amount received will be applied in the credit of
A
d) All the partners will decide as to whose favor it will
apply
22. 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
23. 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
24. 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
25. 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
27. Bears the loss of property contributed to the
partnership
a) Capitalist partner
b) Limited partner
c) None of the above
d) Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is
contributed as capital. The Articles of Co- Partnership
shall be in a public instrument and be registered with
the Securities and Exchange commission. If the said
requirements are not complied with:
a) It will render the partnership void.
b) It will not affect the liability of the partnership and
the partners to third parties.
c) It will not give a legal personality to the partnership.
d) It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers
Partnership. The partnership is indebted to PC for
P150,000. Partner A is indebted to SC for P20,000 PC
attached and took all the assets of the partnership
amounting to P90,000. B and C are solvent while A is
insolvent and all what he owns is a land valued at
P15,000.
a) SC has the priority to the land of A as a
separate creditor.
b) PC has priority to the land of A to cover A’s share
of the
P60,000 remaining liability of the partnership
c) B and C have priority to the land of A if they paid
PC the 60,000 remaining liability of the
partnership.
d) PC and AC shall have priority to the land of A in
proportion to their claim of P60,000 and P20,000
respectively
30. A partnership is not dissolved upon the death of a:
a) General partner
b) Industrial partner
c) Limited partner
d) General limited partner
31. A and B are equal partners in AB Partnership C
contacted XYZ and Co. and represented himself as
partner in AB Partnership. XYZ and Co. contacted A who
confirmed that C is in fact a partner of AB Partnership
XYZ and Co. extended credit to C for AB Partnership in
the amount of P60,000. Who is liable to XYZ and Co.?
a) A and C are partners by estoppels and are liable to
XYZ and Co.
b) XYZ and Co. extended the credit to C for AB
Partnership, so a partnership liability exists, so both
partners, A and B together with C are liable.
c) The AB Partnership benefited, so it is liable
d) Only C who made the representation is liable
32. A, B and C are partners in a trucking and freight
business. B and C without the knowledge of A
approached X and offered to sell to X all the trucks of
the partnership at a price very much higher than their
book value. Then B and C bought- out A from the
partnership and thereafter X bought all the trucks with
a big profit of B and C.
a) The sale of the trucks to X is void because it is
without the knowledge and consent of A.
b) B and C are not liable to A whatsoever
c) B and C are liable to A for his share in the profits
in the sale.
d) When A was bought-out of the partnership, the
partnership was dissolved so A has no more share in
the profits in the sale.
33. When the capital (of a partnership) is P3,000 or
more, it must be in a public instrument and must be
recorded with the Securities and Exchange Commission
(Article 1772). A, B and C agreed to form a partnership
and each contributed P10,000 as capital of the
partnership. There was no compliance in the provisions
of Article 1772.
a) The partnership was not established
b) The partnership did not have juridical personality
c) The partnership was established and any partner
may compel the execution of a public
instrument
d) The partnership is void
34. A, as a partner contributed P30,000; B as partner,
P15,000; and C as industrial partner, his services in
the partnership. After payment of all liabilities and
expenses, only P18,000 remain as partnership assets.
a) A, P12,000; B, P6,000; C, None
b) A, P6,000; B, P6,000; C, P6,000
c) A, P9,000; B, P9,000; C, None
d) A, P8,000; B, P4,000; C, P6,000
35. 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
36. 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
37. The following are similarities between partnership
and a corporation. Which is the exception?
a) Both have juridical personalities separate and distinct
from that of the individuals composing them.
b) Like a partnership, a corporation can act only
through agents
c) Both are organization of an aggregate of individuals
d) The individuals composing both have little voice in
the conduct of the business.
38. In the partnership of A, B and C, A was appointed in
the Articles of Co-Partnership as managing partner. As
such manager in good faith:
a) His power is revocable even without consent
b) His power can be revocable at any time even without
just cause provided
c) He may execute all acts of administration despite
the opposition of B and C
d) He can be removed for valid cause even without the
vote of the partners owning the controlling interest
39.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
40. X and Y established a partnership by contributing,
each at P50,000. Z, a third party allowed his name to
be included in the firm name of the partnership. The
partnership was insolvent and after exhausting all the
remaining asset, there was left a liability to third
persons the amount of P30,000. The creditors can
compel:
a) Z to pay P30,000 remaining liability
b) X, Y and Z to pay P10,000 each
c) X or Y to pay P30,000 remaining liability
d) X and Y to pay P15,000 each
41. W, X, Y and Z formed a partnership. W, X and Y
are general partners and contributed P50,000 each
while Z, an industrial partner contributed his services
only. All the partners signed an agreement stipulating
that the liability of W is limited to its contribution After
all the assets of the partnership were exhausted there
remains an unpaid liability of P40,000. The creditors of
the partnership can compel:
a) X and Y to pay the P40,000
b) X, Y and Z to pay the P40,000
c) W, X, Y and Z to pay P10,000 each and W and Z
can demand reimbursement from X and Y.
d) X and Y to pay P40,000
42. A 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
43. A and B are capitalist partners, with C as industrial
partner. A and B contributed P15,000 each to the
capital of the partnership. A contractual liability of
P40,000 was incurred by the partnership in favor of X.
The capital assets of P30,000 shall first be exhausted
thereby leaving an unsatisfied liability of P10,000. X
can recover the amount from:
a) A and B only
b) A, B and C
c) A, B and C and C can recover for reimbursement
from A and B
d) Answer not given
44. A, B and C are partners engaged in a retail business.
Their contribution is P20,000 each. D is admitted as a
new partner with a contribution of P8,000. At the time
of his admission, the partnership has an outstanding
obligation to E in the amount of P80,000. In this case:
a) D is not liable to E for this obligation
b) D is liable to E for this obligation so that
amounting to P68,000 will be exhausted leaving
a balance of P12,000. Only A, B and C shall be
liable jointly or pro- rata, out of their separate
property.
c) D is liable to E for this obligation so that after the
assets of the partnership will be exhausted, leaving a
balance of P12,000, all the partners shall be liable
jointly or pro- rata, out of their separate property.
d) Answer not given.
45. A, B and C are general partners in ABC Partnership. D
is a debtor to the partnership in the amount of P15,000.
A received from Debtor D the sum of P5,000 and issued
a receipt identifying the amount as his share. Then D
became insolvent, B and C cannot collect the P10,000.
a) A cannot be compelled to share the P5,000 with B
and C
b) B and C can charge the capital of A with their
share of the P5,000
c) A can be compelled to share B and C the P5,000
d) B and C automatically sue D to collect the P10,000
46. M and O are partners of M & O Partnership. M is
the managing partner. N owes M P10,000, and M
partnership P30,000. The obligations of N are both due.
M collected from N the debt of N to M in the amount of
P10,000 and issued a receipt in the name of M. To which
obligation will the P10,000 be applied?
a) The whole of the P10,000 be applied to debt of N
to M
b) The P10,000 be applied to debt of N to M and to
the partnership
c) P5,000 each of debt of N to M and to the
partnership
d) P2,500 to debt of N to M and P7,500 debt of N
to the partnership
47. 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) D. P20,000 from A and P10,000 from B
48. This the order of preference in the liquidation of a
general partnership:
a) Outside creditors; Partner as creditors; Partners
capital;
Partners profit
b) Partner as creditors; Outside creditors; Partners
capital; Partners profit
c)Partners capital; Outside creditors; Partners creditors;
Partners profit
d) Outside creditors; Partner capital; Partners profit;
Partners as creditors
49. 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
50. W, X, Y and Z are partners. They contributed
capital as follows: W, P50,000; X, P30,000; Y, P20,000
and Z, is an industrial partner, his services. The
partnership’s obligation to outsiders exceed the total
net assets by P18,000. Who and by how much will the
partners be liable for the payment of the P18,000?
51. Which of the following is a characteristic of
partnership as a contract?
a) Formal
b) Innominate
c) Gratuitous
d) Preparatory
52. 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
53. Can the partners stipulate that the newly admitted
partner shall not be held liable for the obligations of the
partnership arising before his admission? Which of the
following statement is not correct?
a) No, because the newly admitted partner should be
deemed to have assumed all the debts of the
partnership upon his voluntary participation in the
partnership.
b) No, because newly admitted partner is liable with
respect to his capital contribution which forms part
of the partnership
c) No, because the third person are always
protected by law.
d) No, because the subject of the stipulation is that
the liability of the new partner should not be
satisfied out of the partnership property.
54.
I. The arrival of the term of a partnership with a fixed
term or period shall not dissolve the partnership if the
partners continue with the business of the partnership
but such partnership may be terminated anytime
dependent on the will of the continuing partners.
II. The general rule is that the loss of the specific thing
contributed to the partnership when only the use of the
thing is contributed by the partner and such thing after
its transfer to the partnership which used the same or
sometime was subsequently lost, the partnership is not
dissolved.
Ans: True; True
55. May contribute money, property or industry to the
common fund:
a) General partner
b) Industrial partner
c) Limited partner
d) Managing partner
56. A limited partner who takes active part in the
management of the firm becomes:
a) A managing partner
b) Liable as a general partner
c) A general partner
d) A general partner and a limited partner at the same
time
57. Which of the following statements is not correct?
a) A general partner in a limited partnership manages
the business of the partnership but cannot perform
acts of ownership without the consent of the limited
partners
b) Valid contributions of a limited partner are money
and property but not services.
c) Additional limited partners may be admitted into
the limited partnership with the consent of all the
partners.
d) A person who is both a general partner and a
limited partner is deemed a limited partner only with
respect to the return of his contribution.
58. A is the managing partner of A and Company. X is
indebted to A for P20,000 and to the partnership for
P60,000. When both debts mature, X pays A P20,000
and the latter issues a receipt for his personal credit.
The payment for P20,000 shall be applied:
a) 1⁄4 in favor of A and 3⁄4 in favor of the
partnership
b) To the whole debt owing to A
c) 1⁄2 in favor of A and 1⁄2 in favor of the partnership
d) To the debt owing to the partnership
59. Which of the following is an essential element of
partnership?
a) There must be a contribution of money, property,
or industry to a common fund.
b) It must an association for profit with the intention to
divide the profits among themselves.
c) There must be a valid and voluntary agreement.
d) All of the above.
60. A and B are partners. On June 15, 2009 when the
total obligation of the partnership totaled P80,000. C
was admitted as new partner. At the time C’s admission,
the partnership creditors were M for P50,000 and N for
P30,000. After June 15, the partnership borrowed from
O P20,000 and P40,000 from P. On December 15, 2009,
the partnership became insolvent leaving an obligation
totaling P140,000 and partnership assets amounting to
P30,000. The creditors are going after the separate
properties of the partners to satisfy their remaining
claims. How are the creditors’ claims satisfied?
Answer 1 - M and N can go after the separate
properties of A and B but C’s separates properties are
not answerable to their claims.
Answer 2 – O and P can go after the separate
properties of A, B and C.
Answer: Answer 2 is correct but answer 1 is wrong
61.A and B are capitalist partners with C as industrial
partner. A and B contributed P20,000 each to the
capital of the partnership. A contractual liability of
P50,000 was incurred by the partnership in favor of X.
The assets of the partnership had been exhausted still
leaving an unpaid liability of P10,000. X can recover
the amount from:
a) A, B and C and C can recover by way of
reimbursement from A and B unless stipulated
otherwise.
b) A and B only
c) C only
d) A, B and C and C has no right for reimbursement
from A and B unless expressly stipulated.
62. Which of the following liabilities of the partnership
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
63.
I. The contribution of a limited partner may be cash,
property or service
II.A limited partner who takes part in the management
of
the business of the partnership is not a general partner
but he
shall be liable as a general partner.
Answer: False; True
64.
I. A person may be a general and a limited partner in
the same partnership at the same time.
II.A person admitted as a partner into an existing
partnership is not liable for partnership
Answer: True; False
65.
I. A partner cannot assign his interest in the partnership
to a third person without the consent of the other
partners.
II. A partner’s interest in the partnership is his personal
property.
Answer: False; True
66.
I. The creditor of each partner shall be preferred to
those of the partnership as regards the partner’s
separate property.
II. An industrial partner is exempted from losses but not
from partnership liabilities
Answer: True; True
67.
I. An industrial partner with the consent of the other
partners can engage in any business for his own
account.
II. An industrial partner is not a general
partner.
Answer: True; False
68.
I. A general partner not a managing partner can engage
in a business different from the business of the
partnership for his own account without the consent of
the other partners.
II. A general partnership can be formed
orally.
Answer: True; True
69.
I. All the partners in a general partnership are
considered managing partners if there is no stipulation
as to who shall act as managing partner.
II.A partner is liable to the partnership for whatever
property he agrees to contribute without necessity of
demand.
Answer: True; True
70.
I. If the capital contribution of the partners amount to
P3,000 or more the contract of partnership must be in
public a public document, otherwise the contract is
void.
II. A contract of partnership is void, whenever
immovable property is contributed thereto if an
inventory of said property is not made, signed by the
parties and attached to the public document.
Answer: False; True

71.
I. Dissolution does not terminate the partnership.
II. Insanity of a general partner in a limited partnership
dissolves the partnership.
Answer: True; True

72.
I. A general partner in a limited partnership has all the
rights, powers and liabilities as though the partnership is
not limited.
II. A general partner is personally liable for partnership
obligations while a limited partner is not liable for
partnership liabilities.
Answer: True; False

73.
I. A limited partner is simply a contributor to the
partnership.
II. A limited partner has a right to the return of his
contribution upon the dissolution of the
partnership.
Answer: True; True