Question 1 of 50

Points: 1 / Obligation of Third Persons

One or more but less than all partners have no authority to perform the following acts.
EXCEPT
A. Do any act which would make it impossible to carry on the ordinary business of the
partnerships.
B. Convey partnership property in the ordinary course of partnership business.
C. Submit a partnership claim or liability to arbitration.
D. Renounce a claim of the partnership.
Question 2 of 50
Points: 1 / Property Rights
Question 3 of 50
Points: 1 / Property Rights
It represents the aggregate of individual contributions made by the partners as fixed by agreement –
A. Accounts receivable
B. Partnership property
C. Surplus profit
D. Compensation by way of income
E. Partnership capital
Question 4 of 50
Points: 1 / Obligations to Third Persons
Gregorio and Gregoria are partners in buying and selling second hand cellphones. By the partners’
agreement, Gregorio was authorized to buy second hand cellphones on cash basis. One day Gregorio
bought on credit several second-hand cellphones from Bonifacio, a client. Bonifacio did not know of
Gregorio’s lack of authority. Gregorio’s purchase was made on behalf and in the name of partnership. Is
the partnership bound?
A. No, because Gregorio was not really authorized to buy on credit.
B. Yes, because although Gregorio was not really authorized, the purchase is usual to the business
and Bonifacio did not know of Gregorio’s lack of authority.
C. No, because acquisition of second hand cellphones requires the consent of all partners.
D. Yes, because all transactions made by any partner with third persons are valid provided the
latter acted in good faith.
E. None of those stated.
Question 5 of 50
Points: 1 / Obligations to Third Persons
Amelia, Carmichael, and Ermengarde are partners at ACE Partnership. While Amelia was performing her
duties as a partner in the conduct of the business, she negligently caused damage to Lottie, a third
person. Who shall be liable to Lottie and in what capacity?
A. Only Amelia shall be liable for she is the negligent party.
B. None of the above.
C. Only the partnership shall be liable since it is a juridical entity with separate and distinct
personality from the partnership.
D. Amelia, Carmichael, Ermengarde, and ACE Partnership are liable solidarity to Lottie.
E. Amelia, Carmichael, and Ermengarde are liable solidarily to Lottie.

Question 7 of 50
Points: 1 / Obligations to Third Persons
Pening, Paning and Pining are partners, and each contributed $100,000 while Pedro contributed his
industry. The contractual liability of the partnership amounted to $180,000. The remaining assets of the
partnership amounted to only $60,000. Supposed the creditor Pablo, got the P60,000, how can he
recover deficiency of $120,000
A. Pablo can recover P120,000 from Pening, Paning and Pining based on their capital contributions.
B. None of those stated.
C. Pablo can recover P120,000 from any of the partners
D. Pablo can recover P40,000 each from the capitalist partners.
E. Pablo can recover P30,000 each from the four partners.

Question 8 of 50
Points: 1 / Property Rights
If a charging order is applied for by a judgment creditor, the court may direct the sale or foreclosure of
the interest of the debtor-partner. In case of a foreclosure, which is TRUE?
A. The redemption price of the interest charged is based on the actual value of the interest
charged of the debtor partner.
B. None of the above.
C. Before the sale or foreclosure, the interest charged may be redeemed using partnership
property with the consent of all of the partners.
D. Before the sale or foreclosure, the interest charged may be redeemed only by the separate
property of any partner.
E. The charging order and the subsequent sale or foreclosure cannot prejudice the rights of
partnership creditors.
Question 9 of 50
Points: 1 / Obligations to Third Persons
Robbie, Clowee and Barry formed a partnership engaged in the business of operating a cockpit
(sabungan). An immovable property titled in the partnership name was sold by Barry in the name of the
partnership to an innocent purchaser for value, Barry. Which of the following statements is None of
those stated.
A. A. The buyer shall have full title to the property which the partnership cannot recover.
B. The buyer shall have equitable title in the property.
C. The partnership is void for operating in illegal business.
D. The immovable property can be confiscated by the government.
E. The buyer shall have full title to the property, but the partnership may recover the property.

Question 10 of 50
Points: 1 / Property Rights
Destiny and Bailey have been business partners for several years. Thereafter, Bailey assigned his interest
in the partnership to Hank. Destiny objected because she does not want to be business partners with
Hank. Based on the following, which statement is TRUE?
A. The conveyance of Bailey's interest to Hank entitled the latter to participate in the management
of the partnership.
B. None of the above.
C. Bailey and Destiny continue to be partners despite Bailey's conveyance of his Interest to Hank.
D. The partnership between Bailey and Destiny was automatically dissolved when Bailey conveyed
his interest to Hank.
E. Hank automatically became the partner of Destiny when Bailey conveyed his interest to him.
Question 11 of 50
Points: 1 / Obligations to Third Persons
Pedro, Pablo and Pepito are partners in a partnership. Paloma represented herself as a partner to
Pamela, who, on the faith of such representation, granted P300,000 loan. Assuming only Pedro and
Pablo consented to such representation, who shall be liable to Pamela?
A. Only Paloma who made the representation shall be liable to Pamela.
B. None of the above.
C. Since the loan was extended to the partnership, all the partners and Paloma are liable.
D. Only Pedro, Pablo and Paloma are partners by estoppel and are liable pro-rata to Pamela
E. Since the partnership benefited from the credit extended by Pamela, all partners are liable.
Question 12 of 50
Points: 1 / Obligations to Third Persons
Robbie, Clowee, Joey, Barry, and Salty are partners in RCJ and Company a partnership engaged in the
buying and selling of rice. Robble is the manager while Clowee was authorized by the partnership to buy
a hand tractor (pog-pog) for the business. Which of the following contracts does not bind the
partnership?
A. Robbie selling rice for the partnership.
B. Barry buying a hand tractor from Elise who has knowledge of his lack of authority.
C. Clowee buying a hand tractor from Rocky
D. Clowee buying rice for the partnership from Toby who has no knowledge of her lack of authority
E. None of the above
Question 13 of 50
Points: 1 / Obligations to Third Persons
Pamela, Penelope and Patricia are equal partners in Triple P Partnership. On February 2, 2017, Pamela
died. Not knowing that Pamela is dead, on March 2, 2017, Penelope entered into a new transaction with
Pepe, a previous client, who also did not know about the death of Pamela. The liability amounts to
P90,000. After Pepe exhausted the net assets of the partnership in the amount of P60,000, how much
can he collect and from which partners?
A. P10,000 from the estate of Pamela, P10,000 from Penelope and P10,000 from Patricia
B. P20,000 from Penelope and P 10,000 from Patricia.
C. P30,000 from Penelope.
D. P15,000 from Penelope and P15,000 from Patricia.
E. None of the above.

Question 14 of 50
Points: 1 / Obligations to Third Persons
Becky, Lottie, and Ermengarde are partners at Becks and Co. While in the performance of partnership
duties, Becky caused damages to Lavinia amounting to P9,000. The partnership also has contractual
liability to Gertrude amounting to P6,000, Assuming that there are no remaining assets in the
partnership, against whom can the creditors proceed and for how much?
A. Lavinia can proceed against Becky or Lottie or Ermengarde for the entire amount of P9,000 while
Gertrude can proceed against Becky or Lottie or Ermengarde for the entire amount of P6,000.
B. Lavinia can proceed against Becky or Lottie or Ermengarde for the entire amount of P9,000 while
Gertrude can proceed against Becky, Lottie, and Ermengarde for P2,000 each.
C. Lavinia can proceed against Becky, Lottie, and Ermengarde for P3,000 each while Gertrude can
proceed against Becky or Lottie or Ermengarde for the entire amount of P6,000.
D. Lavinia can proceed against Becky, Lottie, and Ermengarde for P3,000 each while Gertrude can
proceed against Becky, Lottie, and Ermengarde for P2,000 each.
Question 15 of 50
Points: 1 / Obligations to Third Persons
In the following cases, the partnership is solidarily liable with all the partners, EXCEPT:
A. Where the partnership receives money or property of a third person and such money or
property is misapplied by a partner.
B. B. None of the above.
C. For loss or injury caused to a third person by the reason of a wrongful act or omission of a
partner acting in the ordinary scope of business
D. Where a partner acting within the scope of his authority receives money or property of a third
person and misapplies it.
E. For loss or injury caused to a third person with the use of partnership property for personal
purposes
Question 16 of 50
Points: 1 / Obligations to Third Persons
Its value changes from day to day with changes in the market value of the partnership assets and
includes not only the original capital contributions of the partners, but all property subsequently
acquired on account of the partnership -
A. Unrestricted retained earnings.
B. Dividends.
C. Partnership capital.
D. Surplus profit
E. Partnership property

Question 20 of 50
Points: 1 / Obligations to Third Persons
Dirk, Devin, and Dwight formed a general partnership. Dirk and Devin contributed $60,000 and P40,000
respectively while Dwight is an industrial partner. The partners agreed that Dwight is exempted from
liability to third persons. Upon dissolution, the partnership has a liability to Seth in the amount of
P30,000. Which of the following is TRUE?
A. The P30,000 is considered a loss of the partnership, and Dwight as an industrial partner is
exempted up to P10,000 only.
B. Dwight is not liable because it was agreed that the industrial partner is exempted from liability
to third persons.
C. Each partner is liable for P10,000 to Seth.
D. None of the above.
E. Dirk and Devin are liable for P15,000 each.

Question 21 of 50
Points: 1 / Property Rights
Which of the following is FALSE?
A. Partners have equal right to possess specific partnership property.
B. Specific partnership property can be subject to attachment for partnership debts.
C. A partner's right in specific partnership property is not subject to legal support.
D. A partner's right in specific partnership property may not be attached by his personal creditors.
E. A partner's right in specific partnership property is assignable with the consent of all partners.
Question 22 of 50
Points: 1 / Obligations to Third Persons
FRESH Laundry Cleaning Company is a partnership composed of Fluke, Rudder, Ellen, Squirt, and Hank.
Unknown to other partners, Ellen used a coat brought to the shop by a customer in a party she
attended. The coat was accidentally stained with sauce during the said party. Who shall be liable to the
customer for damages?
A. FRESH Laundry Cleaning Company and all the partners solidarily.
B. FRESH Laundry Cleaning Company and Ellen jointly.
C. FRESH Laundry Cleaning Company and all the partners jointly.
D. FRESH Laundry Cleaning Company and Ellen solidarily.
E. None of those stated.
Question 23 of 50
Points: 1 / Dissolution and Winding Up
If a partner decides to withdraw from the partnership without justifiable cause and before
the specified expiration of its term, what shall be the effect?
A. The partnership is not dissolved, and the remaining partners may hold the partner liable for
damages on account of breach of contract.
B. None of the above.
C. The partnership is dissolved, and the remaining partners may hold the partner liable for
damages on account of breach of contract.
D. D. The partnership is not dissolved, and the remaining partners may continue business until the
specified term expires.
E. The partnership is dissolved, and the remaining partners cannot hold the partner liable for
damages on account of breach of contract.
Question 24 of 50
Points: 1 / Obligations to Third Persons
Pepsi, Pamela, and Paloma formed a partnership engaged in the sale of electric motorcycles. Paloma is
the managing partner. The following transactions were entered into by the following partners on behalf
of the partnership without authority
i. The sale of an electric motorcycle by Pepsi to Sandra who was not aware of the lack of authority.
Sandra has already paid for the electric motorcycle.
ii. The purchase of a delivery truck by Pamela from Samantha who is aware of the lack of authority of
Pamela
Based on the foregoing, which transaction binds the partnership?
A. Transaction it only
B. Both transactions are not binding.
C. Both transactions are binding
D. Transaction i only.
E. None of those stated
Question 26 of 50
Points: 1 / Dissolution and Winding Up
Evaluate the following:
i. The deceased partner's executor would automatically become a partner.
ii. The deceased partner's estate would be free from any partnership liabilities.
iii. The partnership would be dissolved automatically.
Unless otherwise provided in a general partnership agreement, which of the following statements is
correct when a partner dies?
A. Only i.
B. Only ii.
C. All of the above.
D. None of the above
E. Only iii

Question 27 of 50
Points: 1 / Dissolution and Winding Up
The following are extra judicial grounds for dissolution, EXCEPT
A. Civil interdiction
B. Unlawfulness of the business
C. Insolvency
D. Death
E. Persistent breach of the partnership contract
Question 29 of 50
Points: 1 / Obligations to Third Persons
Robble Fabio and Sons Company is a partnership composed of Barry, Salty, and Toby, all sons of Robble.
When his sons were forming the partnership, Robbie insisted that they include his name in the firm to
give them an advantage since he is well known in the business community. The following statements
were then presented to you for evaluation
i. Robble Fabio shall have all the rights of a general partner
ii. Robbie Fabio shall have all the liabilities of a general partner
Which applies?
A. Both statements are false.
B. None of the above
C. Both statements are true.
D. I is true while ll is false.
E. I is false while it is true