TEST BANK C.

Compelled to bring to the common funds of the

PARNERSHIP & CORPORATION partnership any profits accruing to him from his
FR: DIAZ transactions.
PARTNERSHIP D. Denied his share in the profits of the partnership.
1. All present properties are contributed
A. Universal partnership[ 11. If a partner in a partnership is insolvent, the first order of
B. General partnership preference in the distribution of his assets are:
C. Limited partnership A. Partnership creditors
D. None of the above B. Partners contribution to the partnership
C. Separate creditors of the debtor
2. Composed of capitalist and industrial partners D. Pro-rata between the separate creditors of the debtor
A. Universal partnership and the partnership creditor
B. General partnership
C. Limited partnership 12. A, B and C are partners in a partnership. C contributed his
D. None of the above industry. After payments of the partnership’s obligations,
only P6,000 cash remains. No other assets. In the absence
3. Partners shall enjoy practically all the profits: of termsto the contrary, the share of C in the remaining
A. Universal partnership[ assets is:
B. General partnership A. Equal to share of A
C. Limited partnership B. Equal to the share of B
D. None of the above C. P2,000
D. Nothing
4. They have no voice in the management of partnership
affairs: 13. X, Y and Z are equal partners of Xyz Partnership. A owes
A. Managing partners the XYZ Partnership for p9,000. Z, a partner collected from
B. Silent partners A, P3,000 before X andY received anything. Z issued a
C. Both A and B receipt on the P3,000 as his share of what A owes. When X
D. None of the above and Y collected from A, A was
insolvent.
5. They have priority if the partnership is insolvent: A. Partner Z shall share partners X and Y with the
A. Separate creditors P3,000
B. Partnership creditors B. Z cannot be required to share X and Y with the P3,000
C. Both A and B C. X and Y should first exhaust all remedies to collect
D. None of the above from A.
D. X and Y can automatically deduct from the capital
6. May contribute money, property or industry to the common contributions of Z in the partnership their respective
fund: share in the P3,000
A. Both general and limited partners
B. Limited partner 14. A and B are partners in a real estate partnership . The
C. General partners partnership owns a piece of land which C desired to buy. C
D. Capitalist partners 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
7. One who takes charge of the winding up to partnership partnership and afterwards sold the land to C with a
affairs upon dissolution: big profit.
A. Silent partner A. The partnership is dissolved when A became the sole
B. General partner owner
C. Ostensible partner B. The sale of the land to C is void because it was without
D. Liquidating partner the knowledge of B.
C. A is not liable to B for the latter’s share in the profits
8. A, B and C are partners. A contributed his services only; B, D. A is liable to B for the latter’s share in the profits
P20,000; and C, P10,000.The partnership was liquidated.
After payment of the partnership’s obligation, only P9,000 15. A, B and C are partners in ABC Partnership. D represented
worth himself as a partner in ABC Partnership to E, who, on the
of assets remained. The share of A will equal to: belief of such representation, extended P50,000 credit to
A. P3,000 ABC Partnership. Assuming only B and C consented to such
B. Equal of share of B representation, who will be held liable to E?
C. Equal of share of C A. E extended the credit to ABC Partnership, so a
partnership liability exists, thus, all the partners, A, B
9. A and B entered into a universal partnership of all present and C are liable
property. The common property of the partnership shall be: B. B, C and D are partners by estoppels and thus, are
A. All the properties which belonged to each of the liable prorate to E
partners at the time of the constitution of the C. Partners A, B and C who benefited from the credit
partnership. extended by E are liable.
B. All the properties which belonged to each of the D. D who made the representation is liable to E
partners after the constitution of the partnership.
C. All the properties which belonged to each of the 16. A and B are partners in a real estate business. A and B were
partners at the time of the constitution of the approached by X who offered to buy a parcel of land
partnership as well as the profits which they may owned by the partnership. Thereafter, b sold to A, B’s share
acquire therewith. in the partnership. Then, A sold the land to X at a big
D. All the properties which belonged to each of the profit.
partners at the time of the constitution of the A. A is liable to B for B’s share in the profits
partnership as well as the profits which they may B. The partnership is dissolved when A became the sole
acquire thereafter. owner
C. A is not liable to B for the latter’s share in the profits
10. A capitalist partner engaged for his own account in an D. The sale of the land to X is void.
operation which is of the kind of business in which the
partnership is engaged. Said partner can be 17. One of the following incidents may be a cause for
A. Compelled to sell his interest in the partnership to the involuntary dissolution of a partnership.
other capitalist partners. Which is?
B. Compelled to dissolve or discontinue the operation of A. Termination of the term of the partnership
his business B. Insolvency of any partner
C. Express will of any partner
D. Expulsion of any partner
 25. The partnership is insolvent. These are preferred as regards
18. A and B are equal partners in AB Partnership. Y presented to the partnership property.
himself as a partner in AB Partnership to Z, who relying on A. Partnership creditors
such representation, extended P50,000 credit to AB B. Partners separate creditors
Partnership. Of the two (2) partners only B knew and C. Partners with respect to their capital
consented to the representation of Y. D. Partners with respect to their profits
Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable. 27. Bears the loss of property contributed to the partnership
B. Since the credit was extended to AB Partnership, a A. Capitalist partner
partnership liability was created, so the two (2) B. Limited partner
partners and Y are liable. C. None of the above
C. Partners A and B who benefited from the credit D. Partners contributing usufructory rights
extended to the partnership AB Partnership shall be
liable to Z. 28. When cash or property worth P3,000 or more is contributed
D. B and Y are partners by estoppel and, thus, are as capital. The Articles of Co-Partnership shall be in a
liable to Z. public instrument and be registered with the Securities and
Exchange commission. If the said requirements are not
19. The following persons are disqualified to form a universal complied with:
partnership. Who are the exception? A. It will render the partnership void.
A. Brother and sister B. It will not affect the liability of the partnership and
B. Husband and wife the partners to third parties.
C. Those guilty of adultery and concubinage C. It will not give a legal personality to the partnership.
D. Those guilty of the same criminal offense, if the D. It will give the partnership a de-facto existence.
partnership is entered into a consideration of the same.
29. A, B and C are equal partners in Santos Brothers
20. A is the capitalist partner and B the industrial partner. A is Partnership. The partnership is indebted to PC for
engaged personally in the same kind of business the P150,000. Partner A is indebted to SC for P20,000 PC
partnership is engaged in. attached and took all the assets of the partnership
A. If there are losses, the partnership will bear the losses amounting to P90,000. B and C are solvent while A is
B. If there are profits, the profits will be shares by A and insolvent and all what he owns is a land valued at P15,000.
the partnership A. SC has the priority to the land of A as a separate
C. If there are profits, A will give the profits to the creditor.
partnership B. PC has priority to the land of A to cover A’s share of
D. A will be excluded from the partnership and pay the P60,000 remaining liability of the partnership
damages. C. B and C have priority to the land of A if they paid PC
21. A is the managing partner of ABC Partnership. X owes A the 60,000 remaining liability of the partnership.
personally and ABC Partnership P20,000 each. A collected D. PC and AC shall have priority to the land o A in
and receive fromX, P10,000 and he issued a receipt proportion to their claim of P60,000 and P20,000
wherein it is stated that the amount is applied against his respectively
personal credit.
A. The amount received will be applied in favor the 30. A partnership is not dissolved upon the death of a:
partnership credit A. General partner
B. The amount will be applied in proportion to both B. Industrial partner
credits C. Limited partner
C. The amount received will be applied in the credit of A D. General limited partner
D. All the partners will decide as to whose favor it will
apply 31. A and B are equal partners in AB Partnership C contacted
22. Three (3) of the following are similarities between a XYZ and Co. and represented himself as partner in AB
partnership and a corporation.Which is not? Partnership. XYZ and Co. contacted A who confirmed that
A. The individuals composing both have little voice in C is in fact a partner of AB Partnership XYZ and Co.
the conduct of the business extended credit to C for AB Partnership in the
B. Both have juridical personality separate and distinct amount of P60,000. Who is liable to XYZ and Co.?
from that of the individuals composing them. A. A and C are partners by estoppels and are liable to
C. Like a partnership, a corporation can act only through XYZ and Co.
agents B. XYZ and Co. extended the credit to C for AB
D. Both are organizations composed of an aggregate of Partnership, so a partnership liability exists, so both
individuals partners, A and B together with C are liable.
C. The AB Partnership benefited, so it is liable
23. A, B and C are general partners in ABC Partnership. A, the D. Only C who made the representation is liable
managing partner engaged personally in a business that is
the same as the business of the partnership without the 32. A, B and C are partners in a trucking and freight business.
consent of B and C. B and C without the knowledge of A approached X and
A. If there are profits, A will give the profits to the offered to sell to X all the trucks of the partnership at a
partnership price very much higher than their book value. Then B and
B. If there are losses, the partnership will bear the losses C bought-out A from the partnership and thereafterX
C. If there are profits, they will be shared by partner A bought all the trucks with a big profit of B and C.
and the ABC Partnership A. The sale of the trucks to X is void because it is without
D. The profits or losses will be shared equally by A and the knowledge and consent of A.
the ABC Partnership B. B and C are not liable to A whatsoever
C. B and C are liable to A for his share in the profits
24. Three (3) of the following are rights of a general partner in the sale.
and also of a limited partner in a limited partnership. Which D. When A was bought-out of the partnership, the
is not? partnership was dissolved so A has no more share in
A. To inspect and copy at reasonable hours the books of the profits in the sale.
the partnership and have them kept at the principal
place of business 33. When the capital (of a partnership) is P3,000 or more, it
B. To demand true and full information of all matters must be in a public instrument and must be recorded with
affecting the partnership and a formal account of the Securities and Exchange Commission (Article 1772).
partnership affairs A, B and C agreed to form a partnership and each
C. To have dissolution and winding up by decree of court contributed P10,000 as capital of the partnership.
D. None of the above 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 41. W, X, Y and Z formed a partnership. W, X and Y are
may compel the execution of a public instrument general partners and contributed P50,000 each while Z, an
D. The partnership is void industrial partner contributed his services only. All the
partners signed an agreement stipulating that the liability of
34. A, as a partner contributed P30,000; B as partner, P15,000; W is limited to its contribution After all the assets of the
and C as industrial partner, his services in the partnership. partnership were exhausted there remains an unpaid
After payment of all liabilities and expenses, only P18,000 liability of P40,000.
remainas partnership assets. Thecreditors of the partnership can compel:
A. A, P12,000; B, P6,000; C, None A. X and Y to pay the P40,000
B. A, P6,000; B, P6,000; C, P6,000 B. X, Y and Z to pay the P40,000
C. A, P9,000; B, P9,000; C, None C. W, X, Y and Z to pay P10,000 each and W and Z
D. A, P8,000; B, P4,000; C, P6,000 can demand reimbursement from X and Y.
D. X and Y to pay P40,000
35. This is the order of preference in the liquidation of a
partnership: 42. A partner in a partnership who is not really a partner, not
A. 1.Outside creditors being a party to the partnership agreement, but is made
2.Partners with respect to their capital liable as a partner for the protection of innocent third
3.Partners with respect to their profit persons is known as
4.Partners aside from capital and profit A. Secret partner
B. Dormant partner
B. 1. Partners with respect to their capital C. Nominal partner or partner by estoppel
2.Partners with respect to their profit D. Answer not given
3.Partners aside from capital and profit
4. Outside creditors 43. A and B are capitalist partners, with C as industrial partner.
A and B contributed P15,000 each to the capital of the
C. 1. Outside creditors partnership. A contractual liability of P40,000 was
2. Partners aside from capital and profit incurred by the partnership in favor of X. The capital assets
3. Partners with respect to their capital of P30,000 shall first be exhausted thereby leaving an
4.Partners with respect to their profit unsatisfied liability of P10,000. X can recover the amount
from:
D. 1. Partners aside from capital and profit A. A and B only
2. Outside creditors B. A, B and C
3.Partners with respect to their capital C. A, B and C and C can recover for reimbursement
4.Partners with respect to their profit from A and B
D. Answer not given
36. Three (3) of the following are rights of a partners. Which
one is not? 44. A, B and C are partners engaged in a retail business. Their
A. Right to associate another person to his share contribution is P20,000 each. D is admitted as a new
B. Right to admit another partner partner with a contribution of P8,000. At the time of his
C. Right to inspect and copy partnership book admission, the partnership has an outstanding obligation to
D. Right to ask dissolution of the firm at the proper E in the amount of P80,000. In this case:
time A. D is not liable to E for this obligation
B. D is liable to E for this obligation so that
37 The following are similarities between partnership and a amounting to P68,000 will be exhausted leaving a
corporation. Which is the exception? balance of P12,000. Only A, B and C shall be liable
A. Both have juridical personalities separate and distinct jointly or pro-rata, out of their separate property.
from that of the individuals composing them. C. D is liable to E for this obligation so that after the
B. Like a partnership, a corporation can act only through assets of the partnership will be exhausted, leaving a
agents balance of P12,000, all the partners shall be liable
C. Both are organization of an aggregate of individuals jointly or pro-rata, out of their separate property.
D. The individuals composing both have little voice in D. Answer not given.
the conduct of the business.
45. A, B and C are general partners in ABC Partnership. D is a
38. In the partnership of A, B and C, A was appointed in the debtor to the partnership in the amount of P15,000. A
Articles of Co-Partnership as managing partner. As such received from Debtor D the sum of P5,000 and issued a
manager in good faith: receipt identifying the amount as his share. Then D became
A. His power is revocable even without consent insolvent, B and C cannot collect the P10,000.
B. His power can be revocable at any time even without A. A cannot be compelled to share the P5,000 with B and
just cause provided C
C. He may execute all acts of administration despite B. B and C can charge the capital of A with their share of
the opposition of B and C the P5,000
D. He can be removed for valid cause even without the C. A can be compelled to share B and C the P5,000
vote of the partners owning the controlling interest D. B and C automatically sue D to collect the P10,000

39. In the ABC Partnership, A and B contributed P20,000 each 46. M and O are partners of M & O Partnership. M is the
and C , his services. After payingall the creditors of the managing partner. N owes M P10,000 and M & O
partnership, only P18,000 in cash remains. In the absence partnership P30,000. The obligations of N are both due. M
of terms to the contrary, the share of C is equal to: collected from N the debt of N to M in the amount of
A. P6,000 P10,000 and issued a receipt in the name of M. To which
B. The share of A obligation will the P10,000 be applied?
C. The share of B A. The whole of the P10,000 be applied to debt of N to M
D. Nothing B. The P10,000 be applied to debt of N to M and to the
partnership
40. X and Y established a partnership by contributing, each at C. P5,000 each of debt of N to M and to the partnership
P50,000. Z, a third party allowed his name to be included in D. P2,500 to debt of N to M and P7,500 debt of N to
the firm name of the partnership. The partnership was the partnership
insolvent and after exhausting all the remaining asset, there
was left a liability to third persons the amount of P30,000. 47. A, B and C are partners in D-3 Partnership. On April
The creditors can compel: 29,2010, partner C died. Not knowing that C died, on May
A. Z to pay P30,000 remaining liability 1, 2010, A contracted a liability to D who also do not know
B. X, Y and Z to pay P10,000 each the death of C. The partnership debt is in the amount of
C. X or Y to pay P30,000 remaining liability P30,000, he can collect
D. X and Y to pay P15,000 each A. P30,000 from A
 B. P15,000 from A and P15,000 from B sometime was subsequently lost, the partnership is not
C. P10,000 from estate of C; P10,000 from A ; P10,000 dissolved.
from B
D. P20,000 from A and P10,000 from B A. True; False
B. True; True
48. This the order of preference in the liquidation of a general C. False; False
partnership: D. False; True
A. Outside creditors; Partner as creditors; Partners
capital; Partners profit 55. May contribute money, property or industry to the common
B. Partner as creditors; Outside creditors; Partners fund:
capital; Partners profit A. General partner
C. Partners capital; Outside creditors; Partner as B. Industrial partner
creditors; Partners profit C. Limited partner
D. Outside creditors; Partner capital; Partners profit; D. Managing partner
Partners as creditors
56. A limited partner who takes active part in the management
49. R, S and T are partners. T is the industrial partner who in of the firm becomes:
addition to his services, he also contributed capital to the A. A managing partner
partnership. There is no stipulation as to sharing of profits B. Liable as a general partner
and losses. The partnership realized profits of P21,000. The C. A general partner
share of T in the profits: D. A general partner and a limited partner at the same
A. R and will determine T’s share I, in the profits time
B. T’s share is P7,000
C. Pro-rata to his contributed capital 57. Which of the following statements is not correct?
D. Nothing, because he is an industrial partner A. A general partner in a limited partnership
manages the business of the partnership but cannot
50. W, X, Y and Z are partners. They contributed capital as perform acts of ownership without the consent of
follows: W, P50,000; X, P30,000; Y, P20,000 and Z, is an the limited partners
industrial partner, his services. The partnership’s obligation B. Valid contributions of a limited partner are money and
to outsiders exceed the total net assets by P18,000. Who property but not services.
and by how much will the partners be liable for the C. Additional limited partners may be admitted into the
payment of the P18,000? limited partnership with the consent of all the partners.
W X Y D. A person who is both a general partner and a limited
Z partner is deemed a limited partner only with respect
A. P9,000 P5,400 P3,600 to the return of his contribution.
0
B. P4,500 P4,500 P4,500 58. A is the managing partner of A and Company. X is
P4,500 indebted to A for P20,000 and to the partnership for
C. P6,000 P6,000 P6,000 P60,000. When both debts mature, X pays A P20,000 and
P6,000 the latter issues a receipt for his personal credit. The
D. P4,500 P2,700 P1,800 payment for P20,000 shall be applied:
P9,000 A. ¼ in favor of A and ¾ in favor of the partnership
B. To the whole debt owing to A
51. Which of the following is a characteristic of partnership as C. ½ in favor of A and ½ in favor of the partnership
a contract? D. To the debt owing to the partnership
A. Formal
B. Innominate 59. Which of the following is an essential element of
C. Gratuitous partnership?
D. Preparatory A. There must be a contribution of money, property, or
industry to a common fund.
52. One who takes active part in the business, but is not known B. It must an association for profit with the intention to
to be a partner by outside parties is: divide the profits among themselves.
A. Silent partner C. There must be a valid and voluntary agreement.
B. Dormant partner D. All of the above.
C. Nominal partner
D. Secret partner 60. A and B are partners. On June 15, 2009 when the total
obligation of the partnership totaled P80,000. C was
53. Can the partners stipulate that the newly admitted partner admitted as new partner. At the time C’s admission, the
shall not be held liable for the obligations of the partnership partnership creditorswere M for P50,000 and N for
arising before his admission? Which of the following P30,000. After June 15, the partnership borrowed
statement isnot correct? fromOP20,000 and P40,000 from P. On December 15,
A. No, because the newly admitted partner should be 2009, the partnership became insolventleaving an
deemed to have assumed all the debts of the obligation totaling P140,000 and partnership assets
partnership upon his voluntary participation in the amounting to P30,000. The creditors are going after the
partnership. separate properties of the partners to satisfy their
B. No, because newly admitted partner is liable with remainingclaims. How are the creditors’ claims satisfied?
respect to his capital contribution which forms part of
the partnership Answer 1 - M and N can go after the separate properties of
C. No, because the third person are always protected by A and B but C’s separatesproperties are not answerable to
law. their claims.
D. No, because the subject of the stipulation is that the
liability of the new partner should not be satisfied Answer 2 – O and P can go after the separate properties of
out of the partnership property. A, B and C.

54. I. The arrival of the term of a partnership with a fixed term A. Both answers are wrong
or period shall not dissolve the partnership if the partners B. Answer 2 is wrong but answer 1 is correct
continue with the business of the partnership but such C. Both answers are correct
partnership may be terminated anytime dependent on the D. Answer 2 is correct but answer 1 is wrong
will of the continuing partners.
II. The general rule is that the loss of the specific thing 61. A and B are capitalist partners with C as industrial partner.
contributed to the partnership when only the use of the A and B contributed P20,000 each to the capital of the
thing is contributed by the partner and such thing after its partnership. A contractual liability of P50,000 was incurred
transfer to the partnership which used the same or by the partnership in favor of X. The assets of the
 partnership had been exhausted still leaving an unpaid II. A partner is liable to the partnership for whatever
liability of P10,000. X can recover the amount from: property he agrees to contribute without necessity of
A. A, B and C and C can recover by way of demand.
reimbursement from A and B unless stipulated
otherwise. A. True; True
B. A and B only B. True; False
C. C only C. False; False
D. A, B and C and C has no right for reimbursement from D. False; True
A and B unless expressly stipulated.
70. I. If the capital contribution of the partners amount to
62. Which of the following liabilities of the partnership shall P3,000 or more the contract of partnership must be in
rank first in the order of payment? public a public document, otherwise the contract is void.
A. Those owing to creditors other than partners II. A contract of partnership is void, whenever immovable
B. Those owing to partners in respect to profits property is contributed thereto if an inventory of said
C. Those owing to partners in respect to capital property is not made, signed by the parties and attached to
D. Those owing to partners other than for capital and the public document.
profits
A. True; True
63. I. The contribution of a limited partner may be cash, B. True; False
property or service. C. False; False
II. A limited partner who takes part in the management of D. False; True
the business of the partnership isnot a general partner but
he shall be liable as a general partner. 71. I. Dissolution does not terminate the partnership.
II. Insanity of a general partner in a limited partnership
A. True; True dissolves the partnership.
B. True; False
C. False; False A. True; True
D. False; True B. True; False
C. False; False
64. I. A person may be a general and a limited partner in the D. False; True
same partnership at the same time.
II. A person admitted as a partner into an existing 72. I. A general partner in a limited partnership has all the
partnership is not liable for partnership rights, powers and liabilities as though the partnership is
obligations existing before his admission. not limited.
II. A general partner is personally liable for partnership
A. True; True obligations while a limited partner is not liable for
B. True; False partnership liabilities.
C. False; False
D. False; True A. True; True
B. True; False
65. I. A partner cannot assign his interest in the partnership to C. False; False
a third person without theconsent of the other partners. D. False; True
II. A partner’s interest in the partnership is his personal
property. 73. I. A limited partner is simply a contributor to the
partnership.
A. True; True II. A limited partner has a right to the return of his
B. True; False contribution upon the dissolution of the partnership.
C. False; False
D. False; True A. True; True
B. True; False
66. I. The creditor of each partner shall be preferred to those of C. False; False
the partnership as regards partner’s separate property. D. False; True
II. An industrial partner is exempted from losses but not
from partnership liabilities TEST BANK
A. True; True LAW ON PARTNERSHIP& CORPORATION
B. True; False fr: cpar
C. False; False
D. False; True PARTNERSHIP
1. One of the following is not a characteristic of a contract of
67. I. An industrial partner with the consent of the other partnership
partners can engage in any business for his own account. A. Real, in that the partners must deliver their
II. An industrial partner is not a general partner. contributions in order for the partnership contract
to be perfected.
A. True; True B. Principal, because it can stand by itself.
B. True; False C. Preparatory, because it is a means by which other
C. False; False contracts will be entered into.
D. False; True D. Onerous, because the parties contribute money,
property or industry to the common fund.
68. I. A general partner not a managing partner can engage in
a business different from thebusiness of the partnership for 2. One of the following is not a requisite of partnership.
his own account without the consent of the other partners. Which is it?
II. A general partnership can be formed orally. A. There must be a valid contract.
B. There must be a mutual contribution of money,
A. True; True property or industry to a common fund.
B. True; False C. It is established for the common benefit of the partners
C. False; False which is to obtain profits and divide the same among
D. False; True themselves.
D. The articles are kept secret among the members.
69. I. All the partners in a general partnership are considered
managing partners if thee is no stipulation as to who shall 3. The minimum capital in money or property except when
act as managing partner. immovable property or real rights thereto are contributed,
that will require the contract of partnership to be in public
instrument and be registered with SEC.
 A. P 5,000 10. A partner can engage in business for himself without the
B. P10,000 consent of his co-partners if he is
C. P 3,000 A. A capitalist partner whether or not the business he will
D. P30,000 engage in is of the same kind as or different from the
partnership business.
4. X and Y entered into a universal partnership of all present B. An industrial partner whether or not the business he
property. At the time of their agreement. X had a four-door will engage in is of the same kind as or different from
apartment which he inherited from his father 3 years the partnership business.
earlier. Y, on the other hand, had a fishpond which he C. A capitalist partner and the business he will engage
acquired by dacionenpago from Z. During the first year of in is of a kind different from the partnership
the partnership, rentals collected on the four-door business.
apartment amounted to P480,000; while fish harvested D. An industrial partner and the business he will engage
from the fishpond were sold for P300,000. During the same in is of a kind different from the partnership business.
period. B received by way of donation a vacant lot from an
uncle. The partners had an stipulation that future property 11. The partnership will bear the risk of loss of three of the
shall belong to the partnership. Which of the following following things, except
does not belong to the common fund of the partnership? A. Things contributed to be sold.
A. Fish pond B. Fungible things or those that cannot be kept without
B. Rental of P480,000 deteriorating.
C. Apartment C. Non-fungible things contributed so that only their
D. Vacant lot use and fruits will be for the common benefit.
D. Things brought and appraised in the inventory.
5. D and E entered into a universal partnership of profits. At
the time of execution of the articles of partnership, D had a 12. A partner’s interest in the partnership is his share of the
two-door apartment which he inherited from his father 3 profits and surplus which he may assign to a third person.
years earlier. E on the other hand, had fleet of taxis which Which of the following statements concerning such right is
he purchased two years before. In the first year correct?
of the partnership, D earned P500,000 as radio talent while A. The conveyance of a partner’s interest will cause the
E won P1,000,000 in the lotto. During the same period, dissolution of the partnership.
rentals of P120,000 were collected from the apartment, B. The assignee becomes a partner.
while fare revenues of P200,000 were realized from the C. The assignee has the right to interfere in the
operation of the fleet of taxis. Which of the management of the partnership business.
following belongs to the partnership? D. The assignee has the right to receive the profits
A. Two-door apartment which the assigning partner would otherwise be
B. Lotto winnings of P1,000,000 entitled thereto.
C. Salary of P500,000
D. Fleet of taxis 13. Partnership as distinguished from corporation
A. Acquires juridical personality upon approval by the
6. A partnership formed for the exercised of a profession SEC and the issuance of certificate.
which is duly registered is an example of B. Has limited liability.
A. Universal partnership of profits C. Created by operation of law.
B. Universal partnership of all present property D. No power of succession.
C. Particular partnership
D. Partnership by estoppel 14. Essential elements or feature of a partnership, except
A. Must have a lawful object or purpose
7. A, B and C are partners in ABC Enterprises. Not having B. There must be a contribution of money, property or
established yet their credit standing, the three partners industry to a common fund
requested D, a well known businessman, to help them C. With intention to divide and contribute whatever
negotiate a loan from E, a money lender. With the consent profits they make to other people.
of A, B and C, D represented himself as a partner of ABC D. Must be established for the common benefit or interest
Enterprises. Thereafter, E granted a loan of P150,000 to of the partners.
ABC enterprises. What kind of partner is D?
A. Managing partner 15. Partner who contributes money and/ or property, except
B. Liquidating partner A. General
C. Ostensible partner B. Capitalist
D. Partner by estoppel C. Industrial
D. Managing
8. Using the preceding number, assuming ABC Enterprises
was unable to pay the loan on due date at which time the 16. Partner who contributes industry or labor
assets of the partnership amounted to P120,000. From A. General
whom may E collect the payment? B. Capitalist
A. D only for the whole amount of P120,000. C. Industrial
B. A, B and C who are liable jointly for P50,000 each. D. Managing
C. ABC Enterprises for its assets of P120,000; hereafter,
A, B and C from their separate assets at P10,000 each. 17. Partner who contributes both capital and industry
D. ABC Enterprises for its assets of P120,000 A. General
thereafter, A, B, C and D from their separate assets B. Limited
at P7,500 each. C. Managing
D. Capitalist-industrial
9. Which of the following losses will not cause the
dissolution of a partnership? 18. Partner who is liable beyond the extent of his contribution
A. Loss before delivery of a specific thing which a A. General
partner had promised to contribute to the partnership. B. Limited
B. Loss of a specific thing after its delivery to and C. Industrial
acquisition of its ownership by the partnership D. Silent
from the partner who contributed the same.
C. Loss after delivery of a specific thing where the 19. Partner who is liable only to the extent of his contribution
partner contributed only its use and enjoyment where A. Limited
such partner reserved the ownership thereof. B. General
D. Loss before delivery of a specific thing where the C. Industrial
partner promised to contribute only its use and D. Managing
enjoyment, reserving the ownership thereof.
20. Partner who manages actively the firm’s affairs D. Up to his separate property only if there is
A. Silent stipulation.
B. Liquidating
C. Managing 31. Using the preceding number, but the obligations were
D. Dormant contracted after his admission, which of the following is
correct?
21. Partner who does not participate in the management though A. He is liable to the creditors before and after his
he shares in the profits or losses. admission up to his separate property.
A. Liquidating B. He is liable to the creditors before and after his
B. Nominal admission only up to his capital contribution.
C. Ostensible C. He is liable to the creditors before and after his
D. Silent admission up to his capital contribution and to the
creditors after his admission up to his separate
22. Partner who winds up the affairs of the firm after it has property..
been dissolved D. He is not liable to creditors existing before his
A. Liquidating admission.
B. Managing
C. Industrial 32. A and B are partners engaged in the real estate business. A
D. Capitalist learned that C was interested in buying a certain parcel of
land owned by the partnership, even for a higher price.
23. Partner whose connection with the firm is known to the Without informing B of C’s offer A was able to convince B
public to sell to him (A) his (B’s) share in the partnership. Then A
A. Ostensible sold the land at a big profit. Which of the following is
B. Secret correct?
C. Silent A. A is liable to B for the latter’s share in the profit.
D. Nominal B. C is liable to B for the latter’s share in the profit.
C. A new partnership is formed between A and C.
24. Partner whose connection with the firm is concealed or D. The sale of the land to C is void since it was without
kept secret the knowledge of B.
A. Ostensible
B. Secret 33. A and B are partners in a real estate business. A and B were
C. Silent approached by X who offered to buy a parcel of land
D. Nominal owned by the partnership. Thereafter B sold to A, B’s share
in the partnership. Then Asold the land to X at a big profit.
25. Partner who is both a secret and silent partner Which is correct?
A. Nominal A. The sale of the land to X is void
B. Ostensible B. A is liable to B for B’s share in the profits.
C. Limited C. B may rescind the contract between A and X
D. Dormant D. A is not liable to B for any share in the profits.

26. Partner who is not really a partner but who may become 34. The following persons are disqualified to form a universal
liable as such insofar as third partnership, except
persons are concerned A. Husband and wife
A. Nominal B. Brother and sister
B. Ostensible C. Those guilty of adultery and concubinage
C. Silent D. Those guilty of the same criminal offense; if the
D. Secret partnership is entered into in consideration of the
27. May contribute money, property or industry to the common same.
fund
A. Limited partner 35. A, B and C are capitalist partners while D is an industrial
B. General partner partner. A, the managing partner engaged personally in a
C. Both limited and general partners business that is the same as the business of the partnership
D. Dormant partner without the consent of the other partners. As a result,
A. If there are losses, the partnership will bear the losses
28. May be required to make additional contribution in case of B. If there are profits, the profits will be shared by A and
imminent loss: the partnership.
A. Capitalist partner C. Ifthere are profits, A will give the profits to the
B. Limited partner partnership.
C. Industrial partner D. A will be excluded from the partnership and will pay
D. Choices A, B and C damages.

29. A, B and C are partners each contributing P10,000. The 36. A, a managing partner is B’s creditor to the amount of
firm’s indebtedness amounts to P90,000. It was stipulated P1,000 already demandable. B also owes the partnership
that A would be exempted from liability. Assuming that the P1,000, also demandable. A collects P1,000 from B. One is
capital of P30,000 is still in the firm, which of the not correct.
following is not correct? A. If A gives a receipt for the partnership it is the
A. The creditors may get the P30,000 and still collect partnership’s credit that has been collected.
each P20,000 from A, B and C. B. If A gives a receipt for his own credit, it is A’s
B. A can recover P10,000 each from B and C should he credit that has been collected.
(A) be required to pay the creditors. C. If A gives a receipt for his own credit, P500 will be
C. A cannot recover his original capital of P10,000. given to him, P500 to the partnership.
D. The creditors can recover P45,000 each from B and D. B may decide that he is paying only A’s credit if the
C. personal credit of A is more onerous to B.

30. A newly admitted general partner is liable to creditors 37. The remedy of capitalist partners against an industrial
existing at the time of his admissionand his liability is partner who engaged in a business for himself without the
A. Up to his capital contribution only if there is expressed permission from the partnership is:
stipulation. A. To compel him to sell his interest to the said capitalist
B. Up to his separate property even there is no partners.
stipulation. B. To exclude him from sharing in the profits of the
C. Up to his capital contribution even if there is partnership.
stipulation. C. To remove him as manager if he is appointed as
manger of the partnership.
 D. To expel him from the partnership and claim for C. A partnership formed for gambling purposes.
damages. D. A partnership formed to create illegal monopolies or
combinations in restraint of trade.
38. Apartnership which comprises all the profits that the
partners may acquire by their work or industry during the 47. A and B orally agreed to form a partnership two years from
existence of the partnership is called: today, each one to contribute P1,000. If at the arrival of the
A. Universal partnership of all present property period, one refuses to go ahead with the agreement, can the
B. Universal partnership of profits other enforce the agreement?
C. Particular partnership A. Yes, because the partnership contract is not governed
D. Partnership at will by the Statute of Frauds
B. Yes, because the prior agreement was voluntarily
39. A partnership whereby the partners contribute toa common made.
fund all the property actually belonging to them at the time C. No, because the agreement was merely oral and
of the constitution of the partnership, with the intention of executor
dividing the same among themselves, as well as the profits D. No, since the agreement is to be enforced after one
which they may acquire therewith is: year from the making thereof, the same should be in a
A. Universal partnership of all present property public instrument to be enforceable.
B. Universal partnership of profits
C. Particular partnership 48. Where at least one partner is a general partner and the rest
D. Partnership at will are limited partners
A. General partnership
40. A partnership without a definite period of existence and B. Partnership by estoppels
which can be dissolved at any time by any of the partners is C. Partnership de facto
called: D. Limited partnership
A. Universal partnership of all present property
B. Universal partnership of profits 49. Where all the partners are general partners
C. Particular partnership A. General partnership
D. Partnership at will B. Partnership by estoppels
C. Partnership de facto
41. A, B and C, capitalist partners, each contributed P10,000 D. Limited partnership
and D, the industrial partner contributed his services.
Suppose X, is the creditor of the firm amounting to 50. A and B are equal partners in AB Partnership by
P90,000. After getting the P30,000 capital assets of the contributing P50,000 each on June 1, 2010. On July 1,
partnership, which is correct? 2010, the partnership contracted an obligation to pay Z the
A. X can recover P20,000 each from A, B and C only. amount of P180,000 on August 31, 2010. On August 10,
B. X can recover P60,000 from either A, B and C only. 2010, C was admitted as a new partner. C contributed
C. X can recover P15,000 each from A, B, C and D. P50,000. How will the obligation be paid?
D. X can recover P15,000 each from A, B and C but D is A. A P60,000; B P60,000; C P60,000
exempt because he is an industrial partner. B. A P90,000; B P90,000; C None
C. A P180,000 or B P180,000 and C P50,000
42. A, B and C are partners. D is admitted as a new partner. D. A P65,000; B P65,000; C P50,000
Will D be liable for partnership obligations contracted prior
to his admission to the partnership? 51. A, B and C are equal partners in ABC Partnership. On
A. No, only for those contracted after his admission. April 29, 2010, C died. Not knowing that C is dead, on
B. Yes, and his liability would extend to his own May 2, 2010, A contracted a liability to D who also did not
individual property. know about the death of C. The liability is P90,000. After
C. Yes, but his liability will extend only to his share in D exhausted the net assets of the partnership in the amount
the partnership property and not to his own of P60,000, he can collect
individual property. A. P30,000 from A or P30,000 from B.
D. Yes, as if he had been an original partner. B. P15,000 from A and P15,000 from B.
C. P10,000 from the estate of C, P10,000 from A and
43. A partner who has all the rights, powers and subject to all P10,000 from B.
restrictions of a general partner but whose liability is, D. P30,000 from the estate of C or P30,000 from B or
among themselves, limited to his capital contribution is: P30,000 from C.
A. General partner
B. Limited partner 52. A, B and C are partners. Their contributions are as follows:
C. General-limited partner A, P60,000; B, P40,000 and C, services. The partners
D. Dormant partner agreed to divide profits and losses in the following
proportions: A, 35%; B, 25% and C 40%. If there is a loss
44. Bears the risk of things contributed to the partnership: of P10,000, how should the said loss be shared by the
A. General partner partners?
B. Limited partner A. A P6,000; B P4,000; C nothing
C. Partner contributing usufructuary rights over fungible B. A P3,000; B P2,000; C P5,000
things C. A P3,500; B P3,500; C P3,000
D. Partner contributing usufructuary rights over non- D. A P3,500; B P2,500; C P4,000
fungible things
53. Using the preceding number, but the partners did not agree
45. A, B and C, capitalist partners, each contributed P10,000. on how to divide profits and losses. If there is a loss of
After exhausting the assets of the firm, the firm’s P10,000, how should the said loss be shared by the
indebtedness amounts to P90,000. It was stipulated that A partners?
would be exempted from liability. Which is correct? A. A P6,000; B P4,000; C nothing
A. A may recover his original capital of P10,000. B. A P3,000; B P2,000; C P5,000
B. The creditors may collect P30,000 each from A, B C. A P3,500; B P3,500; C P3,000
and C. D. A P3,500; B P2,500; C P4,000
C. A can recover P20,000 each from B and C should he
be required to pay the creditors. 54. When the manner of management has not been agreed
D. The creditors can recover P45,000 each from B and C. upon, who shall mange the affairs of thepartnership?
A. Capitalist partners
46. Instances when a partnership is unlawful, except B. Industrial partners
A. A partnership formed to furnish apartment houses C. Capitalist-industrialist partners
which would be used or prostitution D. All of the partners
B. A partnership formed for the purpose of acquiring
parcels of land
55. A, B and C are partners in a partnership business. A E. Who are liable to E for the payment of the unpaid
contributed P10,000, B contributed P5,000 and C his balance of P10,000 and how much should each pay to E?
services only. After payment of partnership debts, what A. A P5,000; B P3,000; C P2,000; D nothing
remains of the partnership assets is P6,000 only. In the B. A P2,500; B P2,500; C P2,500; D P2,500
absence of stipulation to the contrary, the share of C will C. A P4,000; B P3,000; C P2,000; D P1,000
equal to: D. A P4,000; B P4,000; C P2,000; D nothing
A. That of A
B. P2,000 62. One or more but less than all the partners have no authority
C. That of B to perform the following acts, except:
D. Nothing A. Do any act which would make it impossible to carry
on the ordinary business of the partnership.
56. A, B and C are partners in ABC Co. D owes the partnership B. Submit a partnership claim or liability to arbitration.
P4,500. A, a partner, received from D a share of P1,500 C. Renounce a claim of the partnership.
ahead of partners B and C, giving D a receipt for his share D. Convey partnership property in the ordinary
only. When B and C were collecting from D, the latter was course of partnership business.
already insolvent. Which of the following is correct?
A. Partner A can be required to share the P1,500 with 63. A, B and C are equal partners in ABC Partnership. The
B and C. partnership is indebted to D for P150,000. Partner A is
B. A cannot be required to share the P1,500 with B and indebted to E for P20,000. D attached and took all the
C. assets of the partnership amounting to P90,000. B and C are
C. B and C should automatically exhaust first all solvent while A is insolvent and that he owns is a land
remedies to collect from D. valued at P15,000. Which is correct?
D. B and C can automatically deduct from the capital A. E has priority to the land of A as a separate
contribution of A in the partnership, their respective creditor
share in the P1,500. B. D has priority to the land of A to cover A’s share of
57. A partnership suffered losses in the first year of its the P60,000 remaining liability of the partnership.
operation. A, a capitalist partner, cannot contribute an C. B and C have priority to the land of A if they paid D
additional share to the capital because of insolvency. Can A the P60,000 remaining liability of the partnership.
be obliged to sell his interest to the other partners on the D. D and E shall both have priority to the land of A in
ground of such refusal? proportion to their claims of P60,000 and P20,000,
A. Yes, A’ refusal to contribute additional share reflects respectively.
his lack of interest in the continuance of the
partnership. 64. A, B and C are partners. A is an industrial partner. During
B. No, because there is actually no imminent loss of the the first year of operation, the firm
business. realized a profit of P60,000. During the second year, the
C. Yes, provided that A is paid the value of his interest. firm sustained a loss of P30,000. So, the net profit for the
D. No, because his refusal is justifiable. two years of operation was only P30,000. In the Articles of
Partnership, it was agreed that A, the industrial partner
58. Which of the following is considered prima facie evidence would get 1/3 of the profit but would not share in the
of the existence of a partnership? losses. How much will A, the industrial partner will get?
A. Where payment of interest on a loan depends on the A. A will get only P20,000 which is 1/3 of the profit of
profit of the business. the 1st year of operation.
B. The receipt by a person of a share in the profits. B. A will get only P10,000 which is 1/3 of the net
C. The sharing of gross returns of a business. profit.
D. Where the parties are established as co-owners of a C. A will get only P20,000 in the first year and none in
property. the second year.
D. A will share in the loss in the second year.
59. A and B are partners, with A as the managing partner. D is
indebted to A in the amount of P10,000 and to the 65. Three (3) of the following are rights of a partner. Which
partnership in the amount of P5,000. Both debts are due one (1) is not?
and demandable. D paid AP3,000. A issued to D a receipt A. Right to associate another person to his share.
in his own name. How should the amount of P3,000 be B. Right to admit another partner.
applied? C. Right to inspect and copy partnership books
A. The P3,000 should be applied to the indebtedness of D D. Right to ask dissolution of the firm at the proper time.
to A.
B. The P3,000 should be applied to the indebtedness of D 66. I. Partnership with a capital of three thousand pesos or
to the partnership. more, in money or property, shall appear
C. P2,000 should be applied to the indebtedness of D to in a public instrument, and recorded at SEC. Failure shall
the partnership and P1,000 to the indebtedness of D to not affect the liability of a
A. partnership andmembers thereof to third person.
D. P1,000 should be applied to the indebtedness of D II. When immovable property is contributed, an inventory
to the partnership and P2,000 to the indebtedness of said property is needed, signed by
of D to A. the parties and attached to the public instrument, otherwise
the contract of partnership is
60. Using the preceding no. but A issued to D a receipt in the void.
name of the partnership. How should the payment of A. True; True
P3,000 be applied? B. False; False
A. The P3,000 should be applied to the indebtedness of D C. True; False
to A. D. False; True
B. The P3,000 should be applied to the indebtedness
of D to the partnership. 67. I. Co-ownership or co-possession does not in itself
C. P2,000 should be applied to the indebtedness of D to establish a partnership, except when such co-owners or co-
the partnership and P1,000 to the indebtedness of D to possessors share in the profits made by the use of the
A. property.
D. P1,000 should be applied to the indebtedness of D to II. The sharing of gross returns does not of itself establish a
the partnership and P2,000 to the indebtedness of D to partnership, except when the personssharing them have a
A. joint or common right or interest in any property from
which the returns arederived.
61. A, B, C and D are partners. Their contributions are as A. True; True
follows: A, P50,000; B, P30,000; C, P20,000; D, services. B. False; False
The partnership incurred obligations to third persons which C. True; False
the firm was unable to pay. After exhausting the assets of D. False; True
the partnership, there still is unpaid balance of P10,000 to
68. I. The receipt by a person of a share of the profits of a 74. I. A universal partnership of profits comprises all movable
business is conclusive evidence that he ispartner in the or immovable property which each of the partners may
business. possess at the time of the celebration of the contract and all
II. A partnership of all present property is where the that the partners may acquire by their industry or work
partners contribute all property whichactually belong to during the existence of the partnership.
them to a common fund, with the intention of dividing the
same among themselves, aswell as all the profits which II. Future property by inheritance, legacy or donation,
they may acquire therewith. including the fruits thereof cannot be included in the
A. True; True stipulation regarding the universal partnership of all present
B. False; False property.
C. True; False A. True; True
D. False; True(?) B. False; False
C. True; False
69. I. In a universal partnership of all present property, the D. False; True
property which belong to each of thepartners at the time of
constitution of the partnership becomes a common fund of 75. I. A and B are partners in a universal partnership of profits.
all partnersandall profits which they may acquire through Subsequently, A won first prize in the sweepstakes. The
inheritance, legacy, or donation cannot beincluded in such prize money will belong to the partnership.
stipulation, except the fruits thereof. II. A and B are partners in a universal partnership of
II. The universal partnership of profits comprises all that profits. Later A purchased a parcel of land.
the partners may acquire by industry or work during the The fruits of said land belong to the partnership.
existence of the partnership. Movable or immovable A. True; True
property which each may possess at the time of the B. False; False
celebration of the contract shall continue to pertain C. True; False
exclusively to each, only the usufruct passing to the D. False; True
partnership.
A. True; True 76. I. Persons who are prohibited from giving each other any
B. False; False donation or advantage cannot enter intouniversal or
C. True; False particular partnership.
D. False; True II. A partnership begins from the moment of the execution
of the contract, unless it is otherwisestipulated.
70. I. A partnership must have a lawful object or purpose, and A. True; True
must be established for the common B. False; False
benefit or interest of the partners. C. True; False
II. When an unlawful partnership is dissolved by a judicial D. False; True
decree, the profits and partners’ contributions shall be
confiscated in favor of the State. 77. I. If property has been promised by a partner as contribution to
A. True; True the partnership, the fruits Arisingfrom the time the property
B. False; False should have been delivered should also be given provided
C. True; False prior demand was made.
D. False; True II. A partner who has undertaken to contribute a sum of money
and fails to do so becomes a debtor for the interest and
71. I. A partnership may be constituted in any form, except damages from the time he should have complied with his
where immovable property or real rightsare contributed obligation, without the need of any demand.
thereto, in which case a written instrument shall be A. True; True
necessary. B. False; False
II. Every contract of partnership having a capital of three C. True; False
thousand pesos or more in money or property shall appear D. False; True
in a public instrument which must be recorded in the office
of the SEC, otherwise the partnership is void. 78. I. The partners shall contribute equal shares to the capital
A. True; True of the partnership.
B. False; False II. If there is no agreement to the contrary, in case of an
C. True; False imminent loss of the business of the partnership, any
D. False; True partner who refuses to contribute additional share to the
capital, to save the venture, shall be obliged to sell his
72. I. A contract of partnership is void, whenever immovable interest to the other partners.
property is contributed thereto, if an inventory of said A. True; True
property is not made, signed by the parties and attached to B. False; False
the public instrument. C. True; False
II. A universal partnership of profits is that in which the D. False; True
partners contribute all the property which actually belongs
to them to a common fund with the intention of dividing 79. I. If a partner collects a demandable sum, which was owed
the same amongthemselves, as well as the profits which to him in his own name, from a Personwho owed the
they may acquired therewith. partnership another sum also demandable, the sum thus
A. True; True collected shall be applied to the two credits in proportion to
B. False; False their amounts, even though he may have given a receipt for
C. True; False his own credit only, but should he have given it for the
D. False; True account of the partnership credit, the amount shall be fully
applied to the latter.
73. I.In a universal partnership of profits, the property which II. The risk of specific and determinate things contributed
belong to each of the partners at the time of the constitution to the partnership so that only their use and fruits may be
of the partnership becomes the common property of all the for the common benefit, shall be borne by the partner who
partners, as well as all the profits which they may acquire owns them.
therewith. A. True; True
II. A universal partnership of all present property comprises B. False; False
only all that the partners may acquire by their industry or C. True; False
work during the existence of the partnership. D. False; True
A. True; True
B. False; False 80. I. In the absence of stipulation, the share of each partner in
C. True; False the profits and losses shall be equal
D. False; True to each other.
II. A stipulation which excludes one or more partners from
any share in the profits or losses is void, as a general rule.
 A. True; True 87. I. Every partner may associate another person with him in
B. False; False his share, but the associate shall not be admitted in the
C. True; False partnership without the consent of all the other partners,
D. False; True even if the partner havingan associate should be a manager.
II. Articles of universal partnership, entered into without
81. I. The partner who has been appointed manager may specification of its nature, only constitute universal
execute all acts of administration despite he opposition of partnership of profits.
his partners, unless he should act in bad faith and his power A. True; True
is irrevocablewithout just or lawful cause. B. False; False
II.When the manner of management has not been agreed C. True; False
upon, none of the partners may, without the consent of the D. False; True
others, make any important alterations in the property of
the partnership, even if it may be useful to the partnership.
A. True; True
B. False; False
C. True; False
D. False; True

82. I. Every partner may associate another person with him in

his share, provided it is with the consent of all of the other
partners.
II.The capitalist partners cannot engage for their own
account in any operation which is of the kind of business in
which the partnership is engaged, unless there is stipulation
to the contrary.
A. True; True
B. False; False
C. True; False
D. False; True

83. I. Every partnership shall operate under a firm name, which

shall include the name of one or moreof the partner.
II. All partners, excluding industrial ones, shall be liable
pro-rata with all their property and after allpartnership
assets have been exhausted, for the contracts which may be
entered into in thename ofand for the account of the
partnership, under its signature, and by a person authorized
to act for the partnership.
A. True; True
B. False; False
C. True; False
D. False; True

84. I. Persons who are not partners as to each other are not
partners as to third persons, except in cases of estoppel.
II. An admission or representation made by any partner
concerning partnership affairs is evidence against the
partnership.
A. True; True
B. False; False
C. True; False
D. False; True

85. I. A person admitted as a partner into an existing

partnership is liable for all the obligations of the
partnership arising before his admission as though he had
been a partner when incurred and that such liability will
extend to his own individual property.

II.B has worked for M and Co., as procurer of contracts for

fertilizers to be manufactured by thefirm, and as supervisor
of the mixing of the fertilizers. However, he had no voice
in the management of the business except in his task of
supervising the mixing of said fertilizers. Forhis service, he
is entitled to 35% of the profits in the fertilizer business. He
is a partner in M and Co.
A. True; True
B. False; False
C. True; False
D. False; True

86. I. C was a bookkeeper in a partnership named “AB”, with a

yearly salary amounting t 5% of the netprofits or each year.
C, however had no vote at all in the management of the
business. Heis a partner in AB.
II.Unless there is a stipulation to the contrary, the partners
shall contribute equal shares to the capital of the
partnership.
A. True; True
B. False; False
C. True; False
D. False; True