BAM 241 Business Laws and Regulations

Quiz No. 1
PHINMA Araullo University
1. One of the following is not a requisite of a contract of partnership. Which is it?
a. There must be a valid contract.
b. There must be a mutual contribution of money, property or industry to a common fund.
c. It is established for the common benefit of the partners which is to obtain profits and divide the
same among themselves.
d. The articles are kept secret among the members.
2. Which of the following is false about the rules to determine whether a partnership exists?
a. Persons who are not partners as to each other are not partners as to third persons.
b. Co-ownership or co-possession does not of itself establish a partnership, whether such co-owners
or co-possessors do or do not share any profits made by the use of the property.
c. The sharing of gross returns does not of itself establish a partnership, whether or not the persons
sharing them have a joint or common right or interest in any property from which the returns are
derived.
d. The receipt by a person of a share of the profits of a business is not prima facie evidence that he is
a partner in the business.
3. Which of the following statements is/are true?
Statement 1: A partnership must have a lawful object or purpose, and must be established for the
common benefit or interest of the partners
Statement 2: When an unlawful partnership is dissolved by a judicial decree, the profits shall not be
confiscated in favor of the State.
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
4. Which of the following statements is/are true?
Statement 1: Where an immovable property is contributed in a partnership a private instrument shall
be necessary
Statement 2: An inventory is still required aside from real property, personal property is contributed.
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
5. A and B agreed to form a partnership where A promised to contribute his only parcel of land while B
undertook to contribute P100,000. Which is true?
a. Their contract must be executed in a private instrument.
b. Their contract must be executed in a public instrument.
c. It can be made orally.
d. It can be made thru writing, either in a private or public instrument.
6. A and B, both CPAs, entered into a contract of partnership to engage in accounting, audit, and tax
consultancy
a. Universal partnership of Profits.
b. Universal partnership of all present property.
c. Particular partnership.
d. Partnership by estoppel.
7. X and Y entered into a universal partnership of all present property. At the time of their agreement, X
had a two-story apartment which he inherited from his father 2 years earlier. Y, on the other hand, had
a rice field which he acquired by dacion en pago from Z. During the first year of the partnership,
rentals collected on the two-story apartment amounted to P180,000.00; while rice harvested from the
rice field were sold for P300,000.00. During the same period, Y received by way of donation a vacant
lot from uncle. The partners had a stipulation that the future property shall belong to the partnership.
Which of the following does not belong to the common fund of the partnership?
a. Rice-Field.
b. Rental of P180,000.00.
 c. Two-story Apartment.
d. Vacant land.
8. Which among the following is a valid contract of partnership?
a. A universal partnership of all present property between husband and wife.
b. A universal partnership of profits between a man and a woman living together as husband and
wife without the benefit of marriage.
c. A particular partnership between husband and wife.
d. A universal partnership of profits between a private individual and a public officer.
9. A, B, and C are partners in ABC Company with contributions of P40,000.00, P40,000.00, and
P10,000.00, respectively. Their agreement shows that they will share in the profits in the ratio of
16.67%, 33.33%, and 50%. During the year, the partnership sustained a loss of P9,000.00. How shall
this loss be divided among the partners?
a. Equally at P3,000.00 each.
b. A, P900.00; B, P3,600.00; and C, P4,500.00.
c. A, 1,500.00; B, P3,000.00; and C, P4,500.00.
d. The partners must establish first a loss sharing agreement before the loss may be divided because
they failed to have an agreement on the division of loss.
10. Which of the following statements is/are true?
Statement 1: The designation of the share of the partners in the profits and losses entrusted to a third
person is invalid.
Statement 2: The designation of the share of the partners in the profits and losses entrusted to one of
the partners is not valid.
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
11. Which among the following is a valid stipulation?
a. A stipulation excluding a capitalist partner from profits.
b. A stipulation exempting a capitalist partner from losses.
c. A stipulation exempting an industrial partner from losses.
d. A stipulation excluding an industrial partner from profit.
12. Which of the following statements is/are true?
Statement 1: A partner appointed as manager in the articles of partnership can be removed for a
lawful cause by the vote of the partners owning the controlling interest.
Statement 2: A partner appointed as manager after the constitution of the partnership may be removed
even without just cause by the vote of the partners owning the controlling interest.
a. Both statements are true.
b. Both statements are false.
c. Only statement I is true.
d. Only statement II is true.
13. When no one among the partners was appointed as manager? Which is FALSE?
a. A. Each partner will be considered as agent of the partnership.
b. Anyone may make an important alteration in the immovable property of the partnership without
the consent of the others provided it is useful to the partnership.
c. In case the act of one partner is opposed by the other, the decision of the majority of the partners
will prevail.
d. In case of tie in the voting, the tie shall be resolved by the vote of the partner owning the
controlling interest.
14. Which of the following statements is/are true?
Statement 1: A stipulation which excludes one or more partners from any share in the profits and
losses is voidable.
Statement 2: The partner who has been appointed manager in the articles of partnership may execute
all acts of ownership.
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
15. Which of the following statements is/are true?
 Statement 1: A stipulation which excludes one or more partners from any share in the profits and
losses is voidable.
Statement 2: The partner who has been appointed manager in the articles of partnership may execute
all acts of ownership.
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
16. Which of the following is a characteristic of partnership as a contract?
a. Formal.
b. Innominate.
c. Gratuitous.
d. Preparatory.
17. A, B and C are partners in ABC Enterprises. Not having established yet their credit standing, the
three partners requested D, a well-known businessman, to help them negotiate a loan from E, a
money lender. With the consent of A, B and C, D represented himself as a partner of ABC
Enterprises. Thereafter, E granted a loan of P150,000 to ABC enterprises. What kind of partner is D?
a. Managing partner.
b. Liquidating partner.
c. Ostensible partner.
d. Partner by estoppel.
18. Using the preceding number, assuming ABC Enterprises was unable to pay the loan on due date at
which time the assets of the partnership amounted to P120,000. From whom may E collect the
payment?
a. D only for the whole amount of P120,000.
b. A, B and C who are liable jointly for P50,000 each.
c. ABC Enterprises for its assets of P120,000; hereafter, A, B and C from their separate assets at
P10,000 each.
d. ABC Enterprises for its assets of P120,000 thereafter, A,B, C and D from their separate assets at
P7,500 each.
19. A partner who has all the rights, powers and subject to all restrictions of a general partner but
whose liability is among themselves, limited to his capital contribution is:
a. General partner.
b. Limited partner.
c. General-limited partner.
d. Dormant partner.
20. When the manner of management has not been agreed upon, who shall mange the affairs of the
partnership?
a. Capitalist partners.
b. Industrial partners.
c. Capitalist-industrialist partners.
d. All of the partners.