Multiple Choice Questions: Partnership

Answer Item Questions

B 1 The following are essential requisites of a contract of
partnership, except:
A. There must be a valid contract
B. There must be a contribution of money only to the
common fund
C. The partnership must be organized for gain or
profit
D. The partnership should have a lawful object or
purpose, established for the common benefit or
interest of the partners
A 2 The following describes a partnership, except:
A. It is created by contract and law.
B. It has legal or juridical personality.
C. It is created for the purpose of profit.
D. It may appear in any form, except in cases where
real property is contributed in which case a public
instrument is required.
B 3 The effects of an unlawful partnership are the following,
except
A. The contract is void from the very beginning.
B. The contract is voidable from the very beginning.
C. The profits shall be confiscated in favor of the
government.
D. The instrument or tools and proceeds of the crime
shall be forfeited in favor of the government.
C 4 If real properties or real rights in real properties are
contributed without regard of the value,
A. A private document is needed.
B. The contract may be oral or in writing.
C. A document prepared by the notary public in the
presence of the parties is needed.
D. No form is required.
D 5 The following instances do not necessarily establish a
partnership, except:
 A. A joint purchase of land by two.
B. An agreement to share the profits and losses on the
sale of land.
C. A common ownership of property
D. A contribution of money, property, or industry to
a common fund for the purpose of doing business to
gain profit.
B 6 Failure to comply with the requirements of execution in
a public instrument for a contract of partnership having
a capital of P3,000 or more
A) Makes the contract void
B) Makes the contract still valid
C) Affects the liability of the partnership to third
persons
D) Affects the liability of the partners/members to
third persons
D 7 A partnership can begin in the following situations
except
A) Its registration in the SEC is not essential to
give it juridical personality.
B) The birth and life of the partnership is predicated
on the mutual desire and consent of the parties.
C) The consent of the members is enough to create a
partnership.
D) It cannot be commenced at a later date nor can it
be based on a happening of some future contingency.
B 8 The contract-validating inventory requirement
A) Applies to personal rights
B) Requires an inventory of the contributed property
duly signed by the parties to be attached to the public
instrument
C) Is intended to protect the rights of partners
D) Is intended for legalities which cannot be subject
to inscription in the Registry Property that may or
may not prejudice third persons.
A 9 The following are true, except:
A) A partnership with a fixed term cannot be
terminated prior to the expiration of the term.
 B) One of the partners may dictate a dissolution at
will but he must act in good faith.
C) The expiration of term fixed or completion of the
undertaking will automatically dissolve a partnership
with a fixed term.
D) A partnership with a fixed term exists through the
agreement of partners (expressly or impliedly) for its
term.
C 10 Which is not true with regards to associations?
A) Any of the members may contract in his own name
with third persons.
B) It shall be governed by the provisions relating to
co-ownership.
C) It can sue due to its legal personality.
D) Fees are usually collected from members to maintain
the organization.
D 11 The following are obligations of a partner with respect
to a contribution of property, except to:
A) Answer for eviction in case the partnership is
deprived of the determinate property contributed.
B) Preserve the property with diligence of a good
father of a family pending delivery.
C) Answer to the partnership for the fruits of the
property the contribution of which he delayed.
D) Indemnify the partners for any damage caused them
by the retention of the property.

B 12 Which analogy is incorrect?

A) Particular partnership : generic things
B) Universal partnership : present property
C) De jure partnership : compliance with some legal
requirements
D) General partnership : no fixed term
C 13 Appraisal of goods or property contributed is made by
the following, except:
A) Stipulation
 B) Experts chosen by the partners according to current
prices, if no stipulation
C) In accordance to current prices from which
preceding changes are accounted for
D) In accordance to current prices from which
subsequent changes are accounted for
A 14 A universal partnership may refer to
A) All properties actually belonging to partners
B) All successional rights belonging to partners
C) All future property to be donated to a partner
D) All legacies of a partner
C 15 Which is not true about the obligations of a partner with
respect to the contribution of money?
A) A partner must contribute on the date due.
B) A partner must indemnify the partnership for the
damages.
C) A partner must adjust his interest with respect to
the amount he may have taken.
D) A partner must pay the agreed or legal interest if
he fails to pay on time.
D 16 An industrial partner
A) Becomes the creditor of the partnership for his
work/services.
B) Can be subjected to an action for specific
performance.
C) Can be exempted from liability by mere toleration
of the partnership
D) Cannot engage in the same business or any business
at all to prevent conflict of interest.
D 17 Contribution of partners to the partnership capital
A) Must be unequal
B) Is presumed to be unequal with the absence of any
stipulation.
C) Has to be stipulated in any partnership contract.
D) Is presumed to be unequal with the absence of any
stipulation.
B 18 The following are true regarding future property with
regards to properties owned by partners, except:
A) Contracts regarding successional rights cannot be
made.
B) Generic things are not necessarily precluded as an
object of the partnership.
C) Generally, future property cannot be donated.
D) Certainty of the thing contributed to the
partnership is demanded.
B 19 The following are true about universal partnership of
profits, except:
A) Only the use and fruits of the properties of the
partners becomes common property of all the partners
and the partnership.
B) Properties subsequently acquired by inheritance,
legacy, or donation can be included in the
stipulation, together with their fruits.
C) All profits acquired through the industry or work
of the partners become common property.
D) If stipulated, profits from other property of the
partners may be common.
A 20 Persons who cannot enter into a universal partnership
are the following, except:
A) Persons living together in the same domicile by
amity.
B) Persons living together as husband and wife without
a valid marriage.
C) Persons found guilty of the same criminal offense,
in consideration thereof.
D) Legally married spouses.
C 21 A capitalist partner is not bound to contribute more than
what he agreed to contribute, unless there is imminent
loss of the business. The following are the requisites
for the application of the rule, except:
A) Imminent loss of the business
B) Majority of the capitalist partners are of the
opinion that an additional contribution to the common
fund would save the business.
C) The partner deliberately agrees.
 D) There is no agreement.
C 22 The requisites of the obligation of a managing partner
who collects debt are as follows, except:
A) There are at least two debts.
B) Such debts must be one from the partner and the
other to the partnership.
C) At least one debt is demandable.
D) The partner who collects is authorized to manage
and actually manages the partnership.
A 23 When a partner receives his share of a partnership
credit, in whole or in part, then
A) He is obliged to bring to the partnership capital
what he received.
B) He is only obligated to bring to the partnership
capital what he received if there are at least two
credits.
C) He shall keep what he had received when he is a
managing partner.
D) He shall be obligated to bring to the partnership
capital what he received if and only if the other
partners have not collected theirs.
D 24 The statement which is most probably not true regarding
a partner’s obligation and/or responsibility is:
A) A partner is responsible to secure benefits for the
partnership. Hence, all profits earned shall pertain
as a matter of law or right to the partnership.
B) A partner is a debtor of the partnership for his
industry and he shall be liable for the injury
suffered by it caused by his fault. Hence, there
cannot be any compensation.
C) When unusual profits may have been realized by the
partnership through the extraordinary efforts of the
partner, the courts may mitigate the liability for
damages.
D) No court can equitably lessen the responsibility of
the guilty partner unless it is otherwise stipulated
in the partnership books with regards to its legal
person.
A 25 Which pair is true regarding the risk of loss?
 A) Risk of specific thing not fungible : partner who
owns it
B) Things contributed to be sold : partners
C) Fungible things: partners
D) Things brought and appraised in the inventory :
partners
B 26 The following are obligations of the partnership to the
partners, except:
A) To refund the amount disbursed by the partner in
behalf of the partnership.
B) Included in the refund is the interest from the
time of demand.
C) To answer for the obligations contracted by the
partner in good faith in the interest of the
partnership business.
D) To answer for the risks in consequence of its
management.
A 27 If there is no agreement as to the share in the losses
and profits, then each partner shall have a share in the
same proportion to what he may have contributed, but the
following are exceptions to this statement other than
one.
A) The industrial partner shall be entitled to a share
in the losses as may be just and equitable with regards
to other partners.
B) The industrial partner shall also receive a share
in the profits in proportion to his capital if he had
contributed such aside from his services.
C) The industrial partner shall not be liable for the
losses.
D) The industrial partner, under the circumstances,
shall be qualified to share in the profits as may be
just and equitable.
C 28 What is the effect if the partner has entrusted to a
third person the designation of the share of each partner
in the profits and losses?
A) Such designation has no validity.
B) The designation is void whether or not it is
manifestly inequitable.
 C) The designation cannot be impugned when the partner
has begun its execution.
D) The designation is not binding even if the
partnership fails to impugn it within a period of
three months.
B 29 Stipulations excluding a partner from any share in
profits or losses has the following effect, except:
A) It is generally void but the partnership will
subsist.
B) It is generally invalid to stipulate that an
industrial partner is excluded from losses.
C) Parties can stipulate unequal shares.
D) A person excluded from any share in the profits or
losses is not intended by the parties to become a
partner.
B 30 The following are true about the appointment of a partner
as a manager, except:
A) A partner appointed as a manager in the articles of
partnership may have such appointment revoked only if
there is just and lawful cause or through the consent
of all partners including the appointee.
B) A partner appointed as a manager in the articles of
partnership shall not execute such acts of
administration when there is opposition of the other
partners.
C) A partner designated as a manager after the
constitution of the partnership may have such
appointment revoked at any time for any cause.
D) Revocation of the appointed manager after the
constitution of the partnership must be voted upon by
the majority of the partners having the controlling
interest.
D 31 Camila Sardines have two managing partners, Daniela and
Romina. There is no specification of their respective
duties nor is there a stipulation that one may not act
without the consent of the other. Which of the following
is false regarding this partnership?
A) Daniela and Romina may separately execute all acts
of administration.
B) In case any of the managing partners oppose to the
acts of the other, the decision of the majority of
partners shall prevail.
 C) In case any of the managing partners oppose to the
acts of the other, and the decision of the partners
have tied, the matter shall be decided by the partners
having the controlling interest.
D) In case any of the managing partners oppose to the
acts of the other, the decision of the partner with
the controlling interest shall prevail.
A 32 The partners may stipulate in their Articles of
Partnership that no managing partner may act without the
consent of all the other managing partners. The following
statements are true regarding this matter, except:
A. A managing partner who acts without the consent of
the others during an imminent danger of grave or
irreparable injury to the partnership shall be
liable to the consequences of his actions may it be
for the partnership’s benefit or not.
B. The unanimous consent of all managing partners is
necessary for the validity of their acts.
C. The absence or disability of the partners may not
be interposed as an excuse or justification to
dispense with the requirement of having the consent
of all.
D. The concurrence of all partners shall be necessary
for any act to be valid.
C 33 When the manner of management has not been agreed upon,
the following rules shall be observed, except:
A. Unanimous consent is necessary for any important
alteration to be made on an immovable property.
B. An important alteration in immovable property is
not contemplated. It must constitute an act of
strict dominion.
C. All partners shall be considered agents of the
partnership and all of them must agree upon all
contracts entered into for such acts to be binding.
D. If any partner’s refusal of consent is manifestly
prejudicial to the partnership’s interest, the
court’s intervention may be sought.
B 34 Which is true about a subpartnership?
A. A subpartner has the same rights and functions as
a main partner.
B. A subpartnership does not affect the composition,
existence, and operations of the firm.
 C. A subpartner is considered a member of the firm.
D. A subpartner may acquire the rights of the partners
and becomes indebted for the partnership’s debts.
D 35 The following are general rules regarding partnership’s
books, except:
A. The partnership books shall be kept in the place
agreed upon by the partners.
B. The partnership books shall be kept at the
principal place of business of the partnership in
the absence of agreement.
C. Every partner shall have at a reasonable hour
access to and may inspect and copy any of the
partnership books.
D. Every partner shall have for his own account the
right to access the partnership books on the
reasonable hour accorded to his will.
C 36 The following are true regarding the partners’ duty to
render information, except:
A. Mutual trust and confidence requires that there be
no concealment among partners.
B. Good faith not only requires that there be no false
statement. It also requires that there be no
concealment among partners.
C. There is still duty to render information even
though such already appears in the partnership
books.
D. Partners shall render on demand true and full
information of all things affecting the
partnership to any partner or legal representative
of a deceased partner or of a partner under legal
disability.
B 37 A universal partnership may refer to all present property
or all profits. The following refer to a universal
partnership of all profits except for one which refers
to the other kind. Which among the following refer to a
universal partnership of all present property?
A. It comprises all that the partners may acquire by
their industry or work during the existence of the
partnership.
B. The partners contribute all the property which
belongs to them to a common fund, with the intention
 of dividing the same among themselves, as well as
the profits they may acquire therewith.
C. Only the usufruct over the property of the partners
passes to the partnership.
D. Articles of universal partnership, entered into
without specification of its nature, only
constitute a universal partnership of all profits.
D 38 The universal partnership of profits
A. Is by which property contributed includes all those
belonging to the partners at the time of the
constitution of the partnership.
B. Presumes that property acquired by partners
subsequently by inheritance, legacy or donation
cannot be included in a stipulation for its common
enjoyment.
C. Presupposes that partners must contribute all
property belonging to them to a common fund.
D. Imposes less obligation because their real and
personal properties are retained by them in naked
ownership.
B 39 A particular partnership has the following
characteristics, except
A. Object must be determinate
B. No specific undertaking required
C. Persons related by affinity may enter such
partnership
D. Exercise of a profession or vocation
A 40 A partnership has a judicial personality separate and
distinct from that of each of the partners. Which
statement does not support the aforementioned?
A. Partners are individually liable for the debts of
the partnership.
B. Immovable property to be acquired must be in the
name of the partnership.
C. Immovable property acquired in the name of the
partnership must also be in the partnership name if
conveyed.
D. The partnership is held responsible for liability
incurred.
C 41 The following are true regarding a partner, except:
A. Every partner must account to the partnership for
any benefit.
B. Every partner must hold as trustee for the
partnership any profits derived by him in any
transaction connected with the formation, conduct,
or liquidation of the partnership or from any use
by him of its property.
C. Each partner is considered in law to be the
disclosed agent of the others.
D. Each partner must always act for the common benefit
in all transactions affecting the partnership
affairs.
B 42 Which is not true about a capitalist partner?
A. He cannot engage in the same or similar business to
which the partnership is engaged.
B. Though he did not acquire knowledge of the business
secrets of the partnership, it is unfair for him to
engage in another but similar kind of business.
C. If he violates such prohibition, he shall bear the
losses alone.
D. If he violates such prohibition, he must bring to
the common fund any profits he derived from his
transactions.
D 43 What kind of action is an action for accounting?
A. Accion subrogatoria
B. Accion Pauliana
C. Action of Account
D. Action in Personam
A. 44 The following are principal rights of a partner with
regards to his property rights. Which is only a related
right?
A. Rights of access and inspection of partnership
books
B. Rights in specific partnership property
C. Interest in the partnership
D. Rights to participate in the management
D 45 Specific partnership property is not subject to the
following by a partner alone except for one. Which must
not be included?
A. Attachment
B. Execution
C. Injunction
D. Depreciation
D 46 Assets of the partnership after partnership debts and
liabilities are paid and settled and the rights of the
partners among themselves adjusted are known as:
A. Revenue
B. Goodwill
C. Profit
D. Surplus
B 47 Rights of an assignee include the following, except:
A. To receive in accordance with his contract the
profits accruing to the assigning partner
B. To require information or formal account from the
managing or supervising partner
C. To avail himself of the usual remedies provided by
law in the event of fraud in the management
D. To receive the assignor’s interest in case of
dissolution.
B. 48 It means the extinguishment of the charge or attachment
on the partner’s interest in the profits.
A. Remission
B. Redemption
C. Condonation
D. Restitution
A 49 Which is not true about a firm name?
A. It must include the name of at least one of the
partners.
B. It must not be misleading.
C. It must be distinguished from other partnerships.
D. Use of the name of a deceased partner is allowed
as long as it is indicated that said partner is
already deceased.
C 50 May one partner make all the partners liable for the
obligation of the partnership?
A. No, he is the only one that should answer to such
obligation in any circumstance.
B. Yes, he may, provided that he acted personally for
the benefit of his interest.
C. Yes, he may, by entering into a contract in the
name and for the account of the partnership.
D. No, he cannot bind the partnership and the partners
since he is not considered an agent of the firm
when he acts principally for it.
D 51 Except as among the partners, any stipulation against
the liability laid down for the contractual obligations
of the partnership is considered:
 A. Rescissible
B. Unenforceable
C. Voidable
D. Void
A 52 Except when authorized by the other partners or unless
they have abandoned the business, one or more but not
all the partners have no authority to the following
except one. Which is not?
A. Enter into a contract of sale for the venture’s
benefit
B. Confess a judgment
C. Submit a partnership claim or liability
D. Assign the partnership property in trust for
creditors
B 53 Real property may be registered or owned in the name of
the following, except:
A. The partnership
B. Creditors of the respective partners
C. One or more or all the partners
D. Third person in trust for the partnership
A 54 May the admission made by a partner after the dissolution
be received against the other partners?
A. Yes, provided that the admission has something to
do with the winding up of the partnership affairs.
B. Yes, provided that the admission has something to
do with the acts of the partner after the
dissolution.
C. No since the partnership is already dissolved, thus
all affairs concerning the partnership have ended.
D. No since the life of the partnership has already
ended, judicially or extrajudicially.
B 55 The following are instances where knowledge of a partner
is considered knowledge of the partnership, except:
A. Knowledge of a partner acting on a particular
matter then present to his mind
B. Knowledge of a partner acting on a particular
matter acquired while a staff
C. Knowledge of any other partner who could and should
have communicated it to the acting partner
D. Each given instance is considered knowledge of the
partnership.
D 56 Blythe, Francine, Kyle, and Seth formed Gold Eggs, a
partnership business within the poultry industry. One
day, Blythe was delivering five trays of fresh eggs to
KimXi Resto using the partnership’s truck. She is under
 the influence of alcohol at that time and thus unable to
see the road clearly, causing a severe mishap at the
resto’s entrance. What remedy can the people involved
take in such situation?
A. KimXi Resto can file a case only against the
individual partner (Blythe) who caused the mishap.
B. The other partners cannot be held responsible in
the liability of their co-partner as it is the said
co-partner who has acted negligent, not all of
them.
C. Francine, one of the partners, may pay for the
liability of Blythe, the guilty partner, and have
the interest of Blythe in the partnership as
recovery whether or not such detail is under the
articles of partnership.
D. KimXi Resto can file a case against the partnership
and whatever damages will be awarded to it will be
paid by the partners and the partnership. The other
partners can recover from Blythe the amount they
have paid for her negligence.
17 57 Julia, Bea, and Gerald formed Partido Tatsulok, a
partnership within the e-commerce industry. Gerald
received from Joshua, a customer of their business,
P15,000 in payment of his online orders to be delivered
by the end of the month. Gerald however used the payment
to take Julia (who has no knowledge of such
misapplication of money by Gerald) on a date. What is
the most probable remedy for the case?
A. Partido Tatsulok, as a partnership, cannot be held
liable for the misappropriation of the payment by
Gerald, thus, only Gerald can be liable for such
misapplication.
B. Julia, with or without her knowledge, can be held
liable for such misapplication because she went on
a date with Gerald using the money.
C. Partido Tatsulok is liable to Joshua for the amount
of his orders. Julia and Bea can recover from Gerald
what he has misappropriated.
D. Bea who was not involved in any of the transactions
can never be held liable for the actions of her co-
partners.
A 58 Whether guilty or innocent with regards to the liability
of the partnership, the other partners shall be
A. Solidarily liable
B. Jointly liable
C. Personally liable without regard of partnership
interest
 D. Liable pro rata only
C 59 It is a bar which precludes a person from denying or
asserting anything contrary to that which has been
established as the truth by his own deed or
representation, either express or implied
A. Waiver
B. Force Majeure
C. Estoppel
D. Restitution
C 60 The following are true about a person admitted as a
partner in an existing partnership, except:
A. He becomes liable for the debts contracted by the
existing partnership before he entered.
B. His liability is limited only to his share in the
partnership property, unless otherwise stated.
C. His liability is limited up to the extent of his
personal properties with respect to becoming an
agent of the partnership.
D. For obligations contracted and existing at the time
that he is already admitted as a partner, he shall
become liable with regards to partnership property
and his separate property.
B 61 Who will be preferred when the partnership property is
to be disposed?
A. Creditors of the partners
B. Creditors of the partnership
C. Partners
D. Representatives of deceased partners
A 62 It is the point of time the partners cease to carry on
the business together.
A. Dissolution
B. Winding Up
C. Liquidation
D. Termination
C 63 On dissolution the partnership is not terminated, but
continues until the winding up of partnership affairs is
completed. The following instances support this
statement, except:
A. All transactions of the partnership should only
pertain to liquidation or winding up which will
happen over a period of time.
B. The partnership will sell its non-cash assets.
C. The partnership will take on new obligations and
will enter new contracts incongruent with its
termination.
 D. The partnership will pay its creditors and
thereafter distribute the remainder to the
partners.
B 64 Dissolution is caused by
A. Remission of any partner
B. Civil interdiction of any partner
C. Condonation of any partner
D. Prescription of amounts due
D 65 On application by or for a partner the court shall decree
a dissolution whenever
A. A partner is declared as one with a sound mind
B. A partner becomes in any other way in full
capability to perform his duties
C. The business of the partnership can be carried on
in gaining profits
D. A partner willfully or persistently commits a
breach of the partnership agreement
D 66 As a rule, when a partnership is dissolved, any of the
partners
A. Cannot collect debts due to the partnership
B. Cannot continue on existing obligations
C. Cannot pay debts of the partnership
D. Cannot bind the partnership
C 67 Camila, Vito, Emma, and Elias established The Killer
Bride Partnership which offers costumes for different
events but more known for their Halloween costumes.
However, Camila died and only Vito knows about it. Still,
Vito entered into a contract with Tatiana. Which is most
probably true in the given situation?
A. If the cause of dissolution is the death of Camila,
Vito knowing such fact makes him as the only person
liable to Tatiana. This is because the partnership
is already dissolved.
B. If the cause of dissolution is the death of Camila,
and though Vito is the only one who knew about it,
the other partners are still solidarily liable with
Vito with regards to the obligation he has
contracted with Tatiana from which no recovery can
be reimbursed to them by Vito.
C. If the cause of dissolution is the death of Camila,
and though Vito is the only one who knew about it,
the other partners are still solidarily liable with
Vito with regards to the obligation he has
contracted with Tatiana from which they can recover
from Vito afterwards.
 D. No such action is necessary for the case as Vito
contracted with Tatiana solely, meaning it is only
between the two of them.
A 68 There are exceptions with regards to the binding effect
of the acts of the partners to the partnership on
dissolution. Such exception include an instance where
A. The partner has become insolvent.
B. The partner has authority to wind up the
partnership affairs.
C. The partner is of sound mind.
D. The partnership is continued because of being in
line with the law.
D 69 In order for the liability of a partner to be discharged,
the following persons must agree, except:
A. The partner
B. The other partners
C. The creditors
D. The debtors
B 70 Who is responsible to wind up the partnership?
A. The legal representative/s of the managing partner,
whether or not such partner is already deceased and
with no regard to other surviving partners.
B. The partner/s who have not wrongfully dissolved the
partnership.
C. The nominal partner/s of the partnership
D. The capitalist-industrial partner/s with regard to
contribution to the firm.
A 71 The following are rights of a partner who has not caused
dissolution wrongfully, except:
A. To have the partnership property applied to
discharge the liabilities of the partners.
B. To have the surplus, if any, applied to pay in cash
the net amount owing to the respective partners.
C. To be indemnified for damages caused by the guilty
partner.
D. To continue the business in the same name either by
themselves or jointly with others during the agreed
term of the partnership.
D 72 Which is a right of a partner who is entitled to rescind?
A. Right in personam
B. Right of valuation
C. Right of acquisition
D. Right of lien
D 73 It means that the assets are less than the liabilities.
A. Liquidity
B. Implied Goodwill
C. Incongruency
D. Insolvency
C 74 Upon the dissolution of a commercial partnership, the
succeeding partners or parties have
A. No preference to carry on the business under the
old name
B. No right to carry on the business under the old
name
C. The right to carry on the business under the old
name
D. The power to carry on the business under the old
name
A 75 A right of a partner who retires or dies and the business
is continued without any settlement of accounts is to
have the value of his interest
A. at the date of dissolution ascertained
B. at the date of termination ascertained
C. at the date where all accounts are due with regards
to creditors
D. at the date where it is just and equitable.
C 76 Who has the right to an account of a partner’s interest?
A. The partner who continues the partnership
B. The creditor/s of the partnership
C. The partner himself or his legal representative
D. The winding-up partner/s
B 77 A limited partnership is where
A. One or all are general partners, or one or all are
limited partners
B. Limited partners may ask for the return of their
capital contributions
C. Limited partners are liable up to the extent of
their personal property
D. Partnership debts are paid out from capital
contributions and personal properties of both
general and limited partners
B 78 The certificate of partnership shall state the following,
except:
A. The character of the business
B. The name and place of residence of each member and
the spouse (if any) and/or legal representative of
such member
 C. The location of the principal place of business
D. The amount of cash and a description of and the
agreed value of the other property contributed by
each limited partner
A 79 With regards to contribution, a limited partner is
considered a/an
A. capitalist partner
B. capitalist-industrialist partner
C. industrial partner
D. partner by estoppel
C 80 The surname of a limited partner
A. Shall not appear in the partnership name even if it
is also the surname of a general partner
B. Shall not appear in the partnership name even if it
was already carried under such name knowing that
the limited partner was an admitted partner.
C. Shall not appear in the partnership name and
violation of such will make him liable as a general
partner but only to the partnership creditors who
extend credit to the partnership without actual
knowledge that he is not a general partner.
D. Shall not appear in the partnership name and
violation of such will make him liable as a general
partner thus affecting his personal properties and
making him acquire the rights of a general partner.
B 81 If the certificate with regards to the limited
partnership contains a false statement, the one who
suffers the loss by reliance on such false statement may
hold liable
A. The partners or any party in the certificate with
or without knowledge of such false statement
B. The partners or any party in the certificate with
knowledge of such statement
C. The bona fide partner
D. The partnership as a legal entity
C 82 A limited partner
A. Can take part in the control of the business
B. Who takes part in the control of the business
acquires the rights of a general partner.
C. Who takes part in the control of the business
becomes liable as a general partner
D. Can contribute money, property, or industry to the
business
C 83 Additional limited partners may be admitted after
formation of limited partnership by filing for a/an:
 A. Dissolution
B. Agreement
C. Amendment
D. Obligatory contract
B 84 As a rule, general partners in a limited partnership can
do:
A. Acts of ownership only
B. Acts of administration only
C. Acts of administration and ownership
D. Acts of fiduciary frontiers
D 85 The rights of a limited partner include:
A. Right to have termination by decree of court
B. Right to have supplementary accounts only of
partnership affairs
C. Right to inspect the partnership books only
D. Right to receive share of profits by way of income
D 86 A contributor who erroneously believes that he has become
a limited partner
A. Is still liable as a general partner with or without
taking part in the management
B. Is not liable as a general partner if he takes part
in the management
C. Is still liable as a general partner if he renounces
his interest in the profits of the business
D. Is not liable as a general partner if he has
ascertained such mistake and renounces his interest
in the profits of the business
A 87 He is a partner whose liabilities extend up to his
separate property and his rights are up to the extent of
his contribution.
A. General-limited partner
B. General partner
C. Limited partner
D. Industrial partner
B 88 A limited partner is
A. Not allowed to lend money to the partnership
B. Allowed to transact business with the partnership
C. Not allowed to transact business with other firms
D. Allowed to receive partnership property
A 89 Preference to some limited partners over other limited
partners
A. May be given as to the return of their contributions
 B. Shall not be given whether such partners are known
or not
C. Shall not be given as to their compensation by way
of income
D. Shall not be given as to any matter of essence risen
by such partners
D 90 When may a limited partner receive his share of profits
from the partnership?
A. Any given time by which he demands it
B. Any given time since demand does not necessarily
preclude him from having his share in profits
C. In such a time provided that the assets of the
partnership are at par with its liabilities
D. In such a time provided that the partnership assets
exceed its liabilities to third persons after
payment to limited partners.
D 91 When can the contributions of a limited partner be
returned?
A. Any given time
B. After he has given four months’ notice in writing
to all members
C. When prescription of credit terms of the
partnership arrives
D. When the date specified in the certificate for its
return has arrived
A 92 Liability of a limited partner
A. May be waived with the consent of all the other
partners
B. Shall not be waived for any reasons before and after
dissolution
C. May be waived but will afterwards affect the right
of the partnership creditors
D. Shall not be waived as he is liable to the
partnership
B 93 He is a person admitted to all the rights of a limited
partner who has died or has assigned his interest in the
partnership.
A. Assigned limited partner
B. Substituted limited partner
C. Admitted limited partner
D. Incoming limited partner
A 94 As a rule, the retirement, death, insolvency, insanity,
or civil interdiction of this partner dissolves the
partnership.
A. General partner
 B. Limited partner
C. Original partner
D. Nominal Partner
B 95 Who or which shall be liable for all liabilities of a
deceased limited partner?
A. Representative
B. Estate
C. Widow of the deceased partner
D. Surviving partners
D 96 With regards to the liability of a limited partner to
his creditor, the interest may be redeemed with
A. Partnership property
B. Accounts of the partnership
C. Amounts due to the partnership
D. Separate property of any general partner
C 97 Which is given priority over capital?
A. Earnings before taxes
B. Net Credit Sales
C. Profits
D. Income
A 98 The certificate of limited partnership is cancelled
A. When all limited partners cease to be limited
partners.
B. When a person is admitted as a general partner
C. When there is a change in the character of the
business of the partnership
D. When there is a false or erroneous statement in the
certificate.
C 99 Requirements for the cancellation of the certificate of
limited partnership are the following, except:
A. It must be in writing.
B. It must be signed and sworn to by all members.
C. It must be counterchecked by the Office of the
Ombudsman before filing to the SEC.
D. It must be filed for record in the Office of
Securities and Exchange Commission.
C 100 A limited partner who does not take part in the
management of the business of the partnership
A. Is a particular partner to proceedings by or
against a partnership
B. Is not a capital contributor of the partnership
C. Is not a proper party to proceedings by or against
a partnership
 D. Is estopped from engaging to other businesses even
if it is different from the business of the
partnership.
C 101 Tiwa and Lalang formed a limited partnership named
Makakaquota. Which is most probably true about the law
it should follow?
A. If created before any provisions of the Code, it
shall be governed in accordance with the new
provisions of such Code.
B. If formed after the given provisions of the Code,
it shall still be governed in accordance with the
old Code if it is formed just six months after such
provisions were made.
C. If formed before any provisions of the Code, it
shall be governed in accordance with the provisions
of the old law.
D. Such partnership shall be dissolved if it was
formed before the provisions of the Code and by
which new provisions of the Code become available.