34. A is the managing partner of ABC Company. X owes A personally and ABC and company P20,000 each.

A collected and received from X P10,000 and he issued a receipt wherein I is stated the amount is
applied against his personal credit

A. The amount received will be applied in favour of the partnership credit.

B. The amount received will be applied in proportion to both credits.
C. The amount received will be applied in the credit of A.
D. All the partners will decide as to whose favour it will apply.

35. Three of the following are similarities between a partnership and a corporation. Which is not?
A. The individual composing both have little voice in the conduct of the business.
B. Both have juridical personality separate and distinct from that of the individuals composing
them.
C. Like a partnership a corporation can act only through agents.
D. Both are organizations composed of an aggregate of individuals.

36. A B and C are general partners in ABC partnership. A the managing partner engaged personally in a
business that is the same as business that is the same as the business of the partnership without the
consent of B and C.
A. If there are profits, A will give the profits to the partnership.
B. If there are losses, the partnership will bear the losses.
C. If there are profits, they will be shared by partner A and ABC Partnership.
D. The profits or losses will be shared equally by A and the Partnership.

37. Three of the following are rights of a general partner and also of a limited partner in a limited
partnership. Which is not?
A. To inspect and copy at reasonable hours the books of the partnership and have them kept at the
principal place of business.
B. To demand true and full information of all matters affecting the partnership and a formal account
of the partnership affairs.
C. To have dissolution and winding up by decree of court.

38. The partnership is insolvent. They are preferred as regards to the partnership property.
A. Partnership creditors.
B. Partner’s separate creditors
C. Partners with respect to their capital
D. Partners with respect to their profits

39. A, B and C are partners in ANC Company. D introduced himself as a partner in ABC Company to X, who
on the belief of such introduction, extended a P40,000 credit to ABC Company. These facts are known to
A who did not oppose. Who shall be held liable to X?
A. Since X extended the credit t ABC Company so a partnership liability exists. Thus, all the partners
A, B, C and D are liable.
B. Only A who knows the transaction and D are partners by estoppel and thus, are liable pro-rate to
E.
C. D who presented himself as partner in ABC Company is liable.
D. A, B and C who benefited in the P40,000 credit shall be liable to X.
40. bears the loss of property contributed to the partnership.
A. Capitalist partner
B. Limited partner
C. Partners contributing usufructury rights
D. None of the above

41. When cash or property worth P3,000 or more is contributed as capital, the Articles of Co-Partnership
shall be in a public instrument and registered with the Securities and Exchange Commission. If the said
requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners thereof to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de facto existence.

42. B-1, B-2 and B-3 are equal partners in 3-Brothers Partnership. The partnership is indebted to PC for
P150,000. Partner B-1 is indebted to SC for P20,000. PC attached and took all the assets of the partnership
amounting to P90,000. B-2 and B-3 are solvent while B-1 is insolvent and all what he owns is a land valued
at P15,000.
A. SC has priority to the land of B-1 as a separate creditor.
B. PC has priority to the land of B-1 to cover B-1s share of the P60,000 remaining liability of the
partnership.
C. B-2 and B-3 have priority to the land of B-1 if they paid PC the P60,000 remaining liability of the –
partnership.
D. PC and SC shall both have priority to the land of B-1 in proportion to their claims of P60,000 and
P20,000, respectively.

43. A partnership is not dissolved on the death of a:

A. General partner
B. Industrial partner
C. Limited partner
D. General limited partner

44. A and B are equal partners in A and B company. C contracted with XYZ and Co. contacted A who
confirmed that C is in fact a partner of A and B Company. XYZ and Co. extended credit to C for A and B
Company in the amount of P60,000.00. Who are liable to XYZ and Co?
A. A and C are partners by estoppel and are liable to XYZ and Co.
B. YZ and Co. extended the credit to C for A and B Company so a partnership liability exists, so both
partners, A and B together with C are liable.
C. The partnership A and B Company benefited, so it is liable.
D. Only C who made the representation is liable.

45. A, B, C are partners in a trucking and freight business, B and C without the knowledge of A approached
X and offered to sell to X all the trucks of the partnership at a price very much higher than their book
value. The B and C bought-out A from the partnership and thereafter X bought all the trucks with a big
profit of B and C.
A. The sale of the trucks to X void because it is without the knowledge and consent of A.
B. B and C are not liable to A whatsoever.
 C. When A was bought-out of the partnership, the partnership was dissolved so A has no more share
in the profit in the sale.
D. No choice.

46. When the capital of a partnership is P3,000.00 or more, it must be in a public instrument and must be
recorded with the Securities and Exchange Commission (Art. 1772). A, B, and C agreed to form a
partnership and each contributed P10,000.00 as capital of the partnership. There was no compliance in
the provisions of Art. 1772.
A. The partnership was not established.
B. The partnership did not have juridical personality.
C. The partnership was established and any partner may compel execution of a public instrument.
D. the partnership is void.

47. A as partner contributed P30,000.00; B as partner, P15,000.00; and C as Industrial partner, his services
in the partnership. After payment of all liabilities and expenses, only P18,000.00 remain as partnership
assets. The distribution of the P18,000.00 cash shall be:
A. A, P12,000.00; B, 6,000.00; C, None
B. A, P6,000.00; B, P6,000.00; C, P6,000.00
C. A, P9,000.00; B, 9,000.00; C, None
D. A, P8,000.00; B, 4,000.00; C, P6,000.00

48. This is the order of the preference in the liquidation of a partnership:

A. 1. Outside Creditors
2. Partners with respect to their capital.
3. Partners with respect to their profit.
4. Partners aside from capital and profit.
B. 1. Partners with respect to their capital
2. Partners with respect to the profit.
3. Partners aside from their capital and profit.
4. Outside creditors.
C. 1. Outside creditors
2. Partners aside from capital and profit
3. Partners with respect to their capital.
4. Partners with respect to their profit.
D. 1. Partners aside from their capital and profit.
2. Outside creditor
3. Partners with respect to their capital.
4. Partners with respect to their profit.

49. Three (3) of the following are rights of a partner. Which one (1) is not?
A. Right to associate another person to his share.
B. Right to admit another partner
C. Right to inspect and copy partnership book
D. Right to ask dissolution of the firm at the proper time

50. The following are similarities between a partnership and a corporation:

A. Both have juridical personalities separate and distinct from that of the individuals composing
them.
 B. Like a partnership a corporation can act only through agents.
C. Both are organizations composed of an aggregate of individuals.
D. The individuals composing both have little voice in the conduct of the business.

51. In the partnership of A, B and C. A was appointed in the Article of Co-partnership as managing partner.
As such manager and acting in good faith:
A. His power is revocable even without his consent.
B. His power can be revocable at any time even without just cause provided that it is approved by
the partners owning the controlling interest.
C. He may execute all acts of administrations despite the opposition of B and C.
D. he can be removed for valid cause even without the vote of the partners owning the controlling
interest.

52. In the ABC partnership A and B contributed P20,000.00 each and C his services. After paying all creditor
of the partnership, only P18,000.00 in cash remains. In the absence of terms of the contrary, the share of C
is equal to.
A. P6,000.00
B. The share of A.
C. The share of B.
D. Nothing

53. X and Y established a partnership by contributing each at P50,000.00. Z a third party allowed his name
to be included in the firm name of the partnership. The partnership was insolvent and after exhausting all
the remaining assets, there was left a liability to third persons he amount of P30,000.00. The creditors can
compel:

A. Z to pay the P30,000.00 remaining liability.

B. X, Y and Z to pay P10,000.00 each.
C. X or Y to pay P30,000.00 remaining liability.
D. X and Y to pay P15,000.00 each.

54. W, X, Y and Z formed a partnership. W, X and Y are general partners and contributed P50,000.00 each
while Z an industrial partner contributed his services only. All the partners signed an agreement stipulating
that the liabiliy of W is limited to his contribution. After all the assets of the partnership were exhausted
there remain an unpaid liability of P40,000.00. The creditors of the partnership can compel:

A. X and Y to pay the P40,000.00.

B. X, Y, and Z to pay the P40,000.00.
C. W, X, Y and Z to pay P10,000.00 each and W and Z can demand reimbursement from. X and Y.
D. X and Y to pay the P40,000.00.

55. Partner who does not participate in the management though he shares in the profit or losses:
A. Nominal
B. Ostensible
C. Silent
D. Liquidating

56. Which of the following liabilities of the partnership shall First in the order of payment?
A. Those owing to partners in respect to capital.
B. Those owing to creditors other than partners.
C. Those owing to partners other than capital anf profits.
D. Those owing to partners in respect to profits.

57. Alan, Ben and Cris are partners with capital contribution of P15,000. P10,000 and P5,000 respectively.
Suppose on dissolution, the assets of their partnership amounts to only P46,000 and it owes Dan the
amount of P50,000. Cris owes Ely on his personal account of P6,000. The partners have no separate
personal property except Cris whose separate property amounts to P7,000. Which is correct?
A. Dan and Ely shall divide Cris separate property equally.
B. Dan and Ely shall divide Cris separate property pro-rata.
C. Dan shall be preferred as regard Cris separate property.
D. Ely shall be preferred as regards Chris separate property.

58. X, Y and Z a capitalist partners, each contributed P10,000 and A the industrial partner contributed his
industry. The partnership is indebted to B in the amount of P90,000. The remaining assets of the
partnership amounted to only P30,000. Suppose B got the P30,000, how can be recover the deficiency of
his credit?
A. B can recover P15,000 each from X, Y, Z and A.
B. B can recover P60,000 from either X, Y and Z.
C. B can recover P15,000 each from X, Y and Z, but A is exempt because he is an industrial partner.
D. B can recover P20,000 each from X, Y and Z only.

59. The change in the relation of the partners caused by any partner ceasing to be associated in the
carrying on of the business is:
A. Winding up
B. Dissolution
C. Liquidation
D. Termination

60. 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-property (limited partner); B-services (general partner); C-services (general partner)
B. A-cash (limited partner); B-property (general partner); C-services (general partner)
C. A-services (limited partner); B-cash (general partner); C-services (general partner)
D. A-cash (limited partner); B-cash (general partner); C-services (general partner).

61. Partner who is both a secret and silent partner.

A. Limited
B. Nominal
C. Dormant
D. Ostensible
62. A person who directly represent himself or consents or allows himself to be represented as a partner
in an existing partnership or with one or more persons who are not actually partners is:
A. Partner by estoppel
B. Silent partner
C. Ostensible partner
D. Nominal partner

63. Strictly speaking, the following are all essential elements of a partnership, except.
A. Contract or voluntary agreement.
B. Contribution to a common fund.
C. Intention to divided profits.
D. Mutual agency
E. Lawful object

64. The following are all grounds for a judicial decree of dissolution, except:
A. Where a partner is guilty of such conduct as tends to prejudicially affect the partnership.
B. When the business can only be carried at a loss.
C. By any event which makes it unlawful for the partnership to carry on the business.
D. Where a partner is rendered incapable of performing his part of the agreement.
E. Where a partner is judicially shown to ne insane.

65. In A, B, C and D partnership, only B did not deliver his agreed capital contribution in the form of a
specific house and lot. The remedy against him is:
A. Dissolution or annulment of the partnership contract
B. For A, C and D to get back their contribution
C. For specific performance
D. Remedy not indicated

66. A partner in a partnership who is not really a partner, not being a party to the partnership agreement
but is made liable as a partner for the protection of innocent third persons is known as:
A. Secret partner
B. Dormant partner
C. Nominal partner or partner by estoppel
D. Answer not given