PRELIMINARY EXAMINATION

1. I. A corporation cannot become a member of a partnership in the absence of express

II. A spouse can enter into a universal partnership with the other moreover, a spouse can enter into a
limited partnership with the other spouse.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

2. I. A capitalist partner must contribute additional capital to save the partnership in case there is
imminent loss of the business.

II. If a capitalist partner fails to contribute in case of imminent loss, the partnership will be dissolved.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

3. X and Y are partners in XY partnership where X is the managing partner. Z owes X P40,000 and XY
partnership P60,000. Z paid X P10,000.

a. X should only collect P4,000 and apply the P6,000 to the debt of Z to the partnership.

b. X should collect the entire P10,000 so that Z is no longer indebted to Z

C. X should apply the entire P10,000 to the debt of Z to XY partnership so that the balance would be
P50,000.

d. X should apply it equally so that P5,000 would be deducted to the debt of Z to X and another P5,000
would be deducted to the debt of Z to XY partnership.

4. X and Y entered into a partnership to engage in the operation of a car wash shop (XY Guapo car wash).
X is the capitalist partner while Y is the industrial partner. Adjoining the car wash shop, X opened a
carinderia (X busog Here), while on the other side, Y opened a convenience store (Y 24/7 sari sari store).

a. X cannot engage in a carinderia business but Y may engage in a convenience store.'

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 b. X may engage in a carinderia business but Y cannot engage in a convenience store.

c. X may engage in a carinderia business and Y may engage in a convenience store.

d. X and Y are prohibited from having separate business, they must form a partnership again for the
carinderia business and the convenience store.

5. Dissolution may be:

a. Judicial

b. Extrajudicial

a. Only I is correct

b. Only II is correct

c. Both of a and b are correct

d. None of a and b are correct

6. An insolvent partner is liable in the following order:

a. Those owing to separate creditors.

b. Those owing to partnership creditors.

c. Those owing to partners by way of contribution. G

a. I, II, III

b. I, III, II

c. III, II, I

d. II, I, III

7. A partnership is one formed by two or more persons having as members one or more general partners
and one or more and limited partners.

a. General

b. Limited

c. Universal

d. Particular

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 8. Is a person admitted to all the rights of a limited partner who has died or has assigned his interest in
partnership.

a. Substituted general partner

b. Substituted limited partner

c. Substituted capitalist partner

d. Substituted industrial partner

9. I. A partnership is a preparatory contract.

II. A partnership has no juridical personality.

a. Both are true

b. Both are false

c. Only I is true

d. Only II is true

10. The following are the effects if the purpose of the partnership is unlawful, except:

a. The partnership is voidable.

b. The profits of the partnership shall be confiscated in favor of the government.

c. The instrument and proceeds shall be forfeited in favor of the government.

d. Answer not given.

11. I. A partnership begins from the moment of the execution of the contract, unless it is otherwise
stipulated.

II. As a rule, a partnership is unlimited as to its duration.

а. Both are true

b. Both are false

c. Only I is true

d. Only II is true

12. Which of the following is prohibited from entering into a universal partnership?

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 a. Husband and wife

b. Those guilty of adultery or concubinage

c. Those guilty of the same criminal offense, if the partnership was entered in consideration of the same

d. All of the above

13. I. Articles of universal partnership, entered into without specification of its nature, only constitute
universal partnership of profits.

II. In a limited partnership, the limited partners as such shall be bound by the obligations of the
partnership.

a. Both are true

b. Both are false

C. Only I is true

d. Only II is true

14. The following are the causes of extrajudicial dissolution of a partnership, except:

a. By the termination of the definite term or particular undertaking specified in the agreement.

b. by the express will of any partner, who must act in good faith, when no definite term or particular
undertaking is specified.

c. A partner has been declared insane in any judicial proceeding.

d. By the express will of all the partners who have not assigned their interests or suffered them to be
charged for their separate debts, either before or after the termination of any specified term or
particular undertaking.

15. Which of the following is not correct? In a limited partnership composed of A, B and C, the
contribution may be as follows:

a. A-services (limited partner); B-cash (general partner); C-services (general partner).

b. A-cash (limited partner); B-cash (general partner); C-services (general partner).

c. A-property (limited partner); B-services (general partner); C-services (general partner).

d. A-cash (limited partner); B-property (general partner): C-services (general partner).

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 16. A and B are capitalist partners with C as industrial partner. A and B contributed P13,500 each to the
capital of the partnership. A contractual liability of P49,950 was incurred by the partnership in favor of X.
The assets of the partnership have been exhausted still leaving an unpaid liability of P8,825. What are
the rights and the obligation of the partners, if any?

a. A, B and C are liable to X, and C after giving his share may ask reimbursement from A and B, unless
otherwise stipulated.

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.

17. X Y and Z are partners. X is an industrial partner. During the first year operation (2019), the firm
realized a profit of P60,000. During the second year (2020), the firm sustained a loss of P30,000. So, the
net profit for the two years of operation was only P30,000. In the articles of partnership, it was agreed
that X the industrial partner would get 1/3 of the profit but would not share in the losses. How much will
X, the industrial partner, get?

a. X will get only P20,000 which is 1/3 of the profit of the 1st year operation.

b. X will get only P20,000 in the first year and none in the second year.

c. X will get only P10,000 which is 1/3 of the net profit.

d. X will share in the loss in the second year.

18. A. B and C, capitalist partners, each contributed P30, 000, P20, 000 and P10,000, respectively and D,
the industrial partner, contributed his services. Suppose X, a customer, is the creditor of the firm to the
amount of P180, 000. How can X recover the P180, 000?

a. X can recover from the firm P60, 000. X can still recover the balance of P120, 000 from the capitalist
partners only.

b. X can recover from the firm P60, 000. X can recover the balance of P120, 000 from any of the partner’s
solidarily.

c. X can recover from the firm P60, 000 and consider the balance of P120, 000 as loss.

d. X can recover from the firm P60, 000. X can still recover the balance of

P120,000 from the four partners jointly.

19. X, Y and Z are equal partner to XYZ Partnership. A owes 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.

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 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 contribution of Z in the partnership their respective
share in the P3,000.

20. 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 informed him in of his desire to buy the land and A did not tell B about
it. A bought B out of the partnership and afterwards sold the land to C with a big profit.

a. A is liable to B for the latter's share in the profits.

b. The partnership is dissolved when A became the sole owner.

c. The sale of the land to C is void because it was without the knowledge

d. A is not-liable to B for the latter's share in the profits.

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