ASSIGNMENT/QUIZ PART 4-6

301. A, B, C and D are general partners of ABCD Partnership with contribution of P6M,
P2M, P1M and service respectively. Due to Covid-19 Pandemic, ABCD Partnership
decided to liquidate its business. At the time of liquidation, ABCD Partnership
reported total assets at P50M with total liabilities to creditors amounting to P40M.
How much will be received by Partner D at the time of liquidation?
a) P1M
b) P2M
c) P6M
d) P2.5M
302. Using the same data in preceding number except that the total liabilities to
creditors of the ABCD partnership are reported at P49.1M, how much will be
received by partner A at the time of liquidation?
a) P100,000
b) P200,000
c) P600,000
d) P300,000
303. Which of the following may be validly assigned by a partner despite the absence
of approval by all the partners?
a) Partner’s capital interest in the partnership
b) Partner’s right as a co-owner of partnership’s assets
c) Partner’s interest in specific partnership property
d) None of the above
304. It is the change in the relation of the partners caused by any partner ceasing to
be associated in the carrying on of the business.
a) Partnership Formation
b) Partnership Dissolution
c) Partnership Operation
d) Partnership Liquidation
305. Which of the following is an automatic ground for dissolution of general
partnership?
a) When any event makes it unlawful for the business of the partnership to be
carried on or for the members to carry it on in partnership.
b) A partner becomes in any way incapable of performing his part in the
partnership contract.
c) A partner has been guilty of such conduct as tend to affect prejudicially the
carrying on of the business.
 d) The business of the partnership can be carried only at a loss.
306. If not time is specified for the return of capital contribution of a limited partner,
what is the grace period granted by law to the limited partnership to return such
contribution?
a) One (1) month
b) Two (2) months
c) Three (3) months
d) Six (6) months
307. What is the prescriptive period available to an injured party to question a
manifestly unjust distribution of partnership profit (loss) designated by a third
person selected by the partners?
a) Within one (1) month from his knowledge but before he executes it
b) Within two (2) months from his knowledge but before he executes it
c) Within three (3) months from his knowledge but before he executes it
d) Within six (6) months from his knowledge but before he executes it
308. What is the minimum composition of limited partnership?
a) At least one general partner and at least one nominal partner
b) At least one capitalist partner and at least one industrial partner
c) At least one ostensible partner and at least one dormant partner
d) At least one general partner and at least one limited partner
309. Which of the following is not an essential requisite in order for an admission of a
partner to be used as evidence against the partnership?
a) The admission or representation must concern partnership affairs.
b) The admission must be made judicially or in court proceedings
c) The admission must be made within the scope of the authority of the partner
making the admission.
d) The admission must be made during the existence of the partnership
310. Which of the following contributions of partners will not be subject to the risk of
loss on the part of the partnership?
a) Fungible things or those that cannot be kept without deteriorating.
b) Things contributed by a partner in universal partnership of profits.
c) Things contributed to be sold.
d) Things brought and appraised in the inventory unless there is a stipulation to
the contrary but the liability of the partnership is limited only to the value of
the things at which they were appraised.
311. In case an unlawful partnership is dissolved by judicial decree, to whom shall the
profits of the partnership go?
a) Innocent partner
 b) Injured partner
c) Guilty partner
d) State
312. Which of the following shall not form part of common fund in universal
partnership of all present property?
a) Property belonging to the partners at the time of the constitution or
perfection of the partnership.
b) Profits that may be acquired from the present property.
c) Property acquired by each partner after the formation of partnership by
inheritance, legacy or donation if stipulated.
d) Profits and fruits from property acquired by each partner, even those from
property acquired by inheritance, legacy or donation after the formation of
the partnership if stipulated.
313. Which of the following shall not form part of common fund in universal
partnership of profits?
a) Profits obtained by the partners by their work or industry during the
existence of the partnership.
b) Profits and fruits by the partners by chance or lucrative title during the
existence of the partnership
c) The usufruct or use of the property belonging to each partner at the time of
the constitution of the partnership..
d) The profits and fruits, if stipulated, of the property acquired by each partner
after the constitution of the partnership.
314. Which of the following is a cause of dissolution of general partnership with
violation of rights of the partners or third persons?
a) By the arrival of the definite term or period of the partnership.
b) By the attainment of the particular undertaking or purpose specified in the
agreement.
c) By the express will of all the partners who have assigned their interests or
suffered them to be charged for their separate debts, either before or after
the termination of any specified term or undertaking.
d) By the expulsion of any partner bona fide or in good faith from the business
in accordance with such power conferred by the agreement of the parties.
315. A, B and C are partners in ABC General Partnership with A appointed as
managing partner. On June 30, 2020, B died with the knowledge of A and C. On July
1, 2020, A borrowed P3M cash in behalf of the partnership from BDO. How much
may the BDO collect from the separate assets of partner A, estate of partner B and
partner C, respectively, assuming the partnership assets are fully exhausted?
 a) P1M and P1M and P1M
b) P3M and P0 and P0
c) P3M or P3M or P3M
d) P1.5M and P0 and P1.5M
316. Using the same data from preceding number, how much will be ultimately
shouldered by partner A, estate of partner B and partner C after reimbursement
among the partners as regards to the claim of BDO?
a) P1M and P1M and P1M
b) P3M and P0 and P0
c) P3M or P3M or P3M
d) P1.5M and P0 and P1.5M
317. A, B and C are partners in ABC General Partnership with A appointed as
managing partner. On June 30, 2020, B died without the knowledge of A and C. On
July 1, 2020,A borrowed P3M cash in behalf of the partnership from BDO. How
much may the BDO collect from the separate assets of partner A, estate of partner B
and partner C, respectively, assuming the partnership assets are fully exhausted?
a) P1M and P1M and P1M
b) P3M and P0 and P0
c) P3M or P3M or P3M
d) P1.5M and P0 and P1.5M
318. Using the same data from preceding number, how much will be ultimately
shouldered by partner A, estate of partner B and partner C after reimbursement
among the partners as regards to the claim of BDO?
a) P1M and P1M and P1M
b) P3M and P0 and P0
c) P3M or P3M or P3M
d) P1.5M and P0 and P1.5M
319. What assets shall be used first for the satisfaction of the claims of creditors of
partnership?
a) Exclusive property of a partner
b) Property of the partnership
c) Separate assets of the partnership
d) Conjugal property of a partner
320. Which of the following claims shall be settled first when the separate assets of a
partner are insufficient to cover all his indebtedness?
a) Those owing to partnership creditors.
b) Those owing to partners by way of capital contribution.
c) Those owing to separate creditors of the partner.
 d) Those owing to partners by way of profit share
321. Who among the following creditors may attach the partner’s right to a specific
property of the partnership?
a) Claimants for legal support
b) Creditors of partnership
c) Separate creditors of partners
d) All of the above
322. He is a person admitted to all the rights of a limited partner who has died or has
assigned his interest in a partnership.
a) Assignee of limited partner
b) Substituted limited partner
c) Newly admitted partner
d) Quasi-partner
323. Which of the following statements is true as regards to the right of industrial
partner to engage in another business?
a) An industrial partner is only prohibited to engage in a business of the same
kind but not to business of different kind.
b) An industrial partner cannot engage in any business for himself, unless the
partnership expressly permits him to do so.
c) An industrial partner may engage in business of different kind for himself,
unless the partnership expressly prohibits him to do so.
d) An industrial partner may engage in a business of the same kind for himself,
unless the partnership expressly prohibits him to do so.
324. Which of the following statements is true as regards to the right of capitalist
partner to engage in another business?
a) The capitalist partner cannot engage in any kind of business without
permission of the other partners.
b) The capitalist partner can only engage in a business of different kind if there
is stipulation allowing him to do so.
c) The capitalist partner can engage in a business of the same kind even without
stipulation allowing him to do so.
d) The capitalist partner can engage in a business of different kind even without
stipulation allowing him to do so and in a business of the same kind if there is
a stipulation allowing him to do so.
325. A, B and C are partners in TEN General Partnership. A and B are capitalist
partners while C is an industrial partner. After exhaustion of partnership assets,
partnership liabilities amounting to P30,000 remained unpaid. Assuming all partners
are personally solvent, from whom may the unpaid partnership creditors collect?
 a) C only
b) A, B and C
c) A and B only
d) None of the partners
326. A, B and C are partners in AB Ltd. Partnership. A and B are general partners while
C is a limited partner. After exhaustion of partnership assets, partnership liabilities
amounting to P30,000 remained unpaid. Assuming all partners are personally
solvent, from whom may the unpaid partnership creditors collect?
a) C only
b) A, B and C
c) A and B only
d) None of the partners
327. A, B, C, D, E, F and G are partners in ABC Ltd. Partnership. A, B and F are general
capitalist partners while E is an industrial partner. The Articles of Co-Partnership
provides that F is exempted from liability of the partnership to third persons. C, D
and G are limited partners but D is appointed as managing partner. Assuming all
partners are personally solvent, from whom may the unpaid partnership creditors
collect?
a) A and B only
b) A, B, E and F only
c) d) A, B and F only
d) A, B, C, D, E and F
328. What is the effect if a partner associates or assigns/conveys his share or interest
in the partnership to another person?
a) The associate or assignee becomes a partner of the partnership even without
the consent of the other partners.
b) The associate or assignee becomes a partner of the partnership if the
assigning partner is a managing partner even without the consent of the
other partners.
c) The partnership is dissolved by the assignment of the said interest to third
persons.
d) The associate or assignee does not become a partner but shall be entitled
only to the share of the assigning partner in the partnership profits and net
assets at the date of liquidation.
329. If no one is appointed as managing partner, who shall be considered as the
administrator of the partnership?
a) The limited partner
b) The partner with the largest capital contribution
 c) The industrial partner
d) All the partners
330. In case more than one partner is appointed as managing partners, how shall act
of management be settled in case of objection by any of the managing partners?
a) The decision of majority of the managing partners shall prevail.
b) The decision of the controlling partners shall prevail.
c) The decision of the controlling managing partners shall prevail.
d) The decision of the oldest partner shall prevail.
331. Who among the following is not allowed to become a partner in a commercial
partnership?
a) Corporation
b) Natural person
c) Both a and b
d) Neither a nor b
332. Who among the following is allowed to become a partner in a general
professional partnership?
a) Corporation
b) Natural person
c) Both a and b
d) Neither a nor b
333. Where shall the Articles of Limited Co-Partnership in order for the limited
partnership to be considered a de jure limited partnership as to partnership
creditors?
a) Department of Trade and Industry (DTI)
b) Securities and Exchange Commission (SEC)
c) Cooperative Development Authority (CDA)
d) Insurance Commission (IC)
334. What is the proper classification of general professional partnership?
a) Universal partnership of all present property
b) Universal partnership of profit
c) Particular partnership
d) Partnership by estoppel
335. Who among the following is allowed to participate in management of
partnership?
a) Assignee of general partner’s interest
b) Assignee of limited partner’s interest
c) Nominal partner
d) None of the above
336. He refers to a partner who contributed not only money and property but also
service or industry.
a) Capitalist partner
b) Industrial partner
c) Capitalist industrial partner
d) Nominal partner
337. Who among the following shall be preferred to liquidate a partnership?
a) The guilty partner who caused the dissolution of partnership.
b) The partners who have not wrongfully dissolved the partnership.
c) The legal representative of the last surviving partner, not insolvent
d) The liquidating partner agreed upon by the partners.
338. What document is necessary for the perfection of contract of partnership?
a) Articles of co-partnership
b) Certificate of registration
c) By-laws
d) None of the above
339. An assignee of a partner’s interest does not become an automatic partner
without the consent of all partners is an application of what concept?
a) Res perit domino
b) Delectus personae
c) Genum nun quam peruit
d) Negotiorum gestio
340. A, a minor and B, an insane entered into a written contract of partnership for the
operation of a computer shop during the lucid interval of the latter. What is the
status of contract of partnership?
a) Void
b) Unenforceable
c) Voidable
d) Rescissible
341. Which of the following statements is incorrect about a limited partnership?
a) A person may be a general partner and a limited partner in the same
partnership at the same time, provided that this fact shall be stated in the
certificate of limited co-partnership.
b) A limited partner may also loan money to and transact other business with
the partnership, and, unless he is also a general partner, receive on account
of resulting claims against the partnership, with general creditors, a pro rata
share of the assets.
 c) A limited partner who has made a loan to the partnership may validly receive
or hold as collateral security any partnership property for his claim to the
partnership
d) A limited partner may not receive from a general partner or the partnership
any payment, conveyance, or release from liability if at the time the assets of
the partnership are not sufficient to discharge partnership liabilities to
persons not claiming as general or limited partners.
342. Which of the following is a characteristic of contract of partnership?
a) Innominate contract
b) Preparatory contract
c) Accessory contract
d) Real contract
343. It is a partnership which is established by the lapsing of time.
a) De jure partnership
b) De facto partnership
c) Partnership by prescription
d) Nominal partnership
344. He refers to a partner who does not participate in the management of the
business and not known to the public as a partner.
a) Secret partner
b) Silent partner
c) Ostensible partner
d) Dormant partner
345. Who among the following is properly classified as a partner?
a) Assignee of a general partner
b) Substituted limited partner
c) Nominal partner
d) Quasi-partner
346. 346. How shall the partnership loss be divided among the partners?
a) It shall be divided equally.
b) It shall be divided based on capital contribution ratio.
c) It shall be divided based on valid partnership profit distribution ratio.
d) It shall be divided based on valid partnership loss distribution ratio.
347. If silent, in which of the following is an industrial partner exempted?
a) Liabilities of partnership to creditors
b) Net loss of the partnership
c) Both a and b
d) Neither a nor b
348. What is the required vote for submission of partnership’s claim or liability to
arbitration?
a) At least majority vote of all managing partners
b) At least majority vote of all partners
c) At least majority vote of controlling partners
d) Unanimous vote by all partners
349. What is/are the remedies of the injured capitalist partner if the industrial partner
engages in business for himself without the express permission of the partnership?
a) Exclude the industrial partner from the partnership with a right to damages
b) Avail themselves of the benefits obtained from the business he engaged in
with a right to damages
c) Either a or b
d) Neither a nor b
350. When is a right to formal accounting not available to a partner?
a) If the partner is wrongfully excluded from the partnership business or
possession of its property by his co-partners.
b) If the capitalist partner engages in a business which is of different kind to the
venture of the partnership without permission of the partnership
c) If the right for formal accounting is provided under the terms of articles of co-
partnership.
d) If the other partner derived profits without the consent of other partners
from any transaction connected with the formation, conduct, or liquidation
of the partnership or from any use by him of its property.
351. Which of the following is not considered an obligation of the partnership to the
partners?
a) The partnership shall be responsible to every partner for the amounts he may
have disbursed on behalf of the partnership and for the corresponding
interest, from the time the expense are made.
b) The partnership shall answer to each partner for the obligations he may have
contracted in good faith in the interest of the partnership business.
c) The partnership shall be liable for the legal support of the partners to their
family members.
d) The partnership shall answer to each partner the risks as a consequence of its
management.
352. What is the effect if a third person misrepresented that he is a partner in an
existing partnership in public?
 a) The nominal partner is liable pro-rata and subsidiarily like a general partner
to persons giving credit to the partnership whether the representation has or
has not been communicated to the latter.
b) The nominal partner is liable pro-rata only like a limited partner to persons
giving credit to the partnership whether the representation has or has not
been communicated to the latter.
c) The nominal partner is liable pro-rata and subsidiarily like a general partner
to persons givingcredit to the partnership when the misrepresentation has
been communicated to the latter.
d) The nominal partner is liable pro-rata like a limited partner to persons giving
credit to the partnership when the misrepresentation has been
communicated to the latter.
353. Which of the following will nullify the contract of partnership?
a) Nonregistration of articles of limited co-partnership to Securities and
Exchange Commission (SEC)
b) Nonregistration of articles of co-partnership to Securities and Exchange
Commission when the capital contribution is at least P3,000 in cash or
personal property
c) Inclusion of name of a limited partner in the Limited Partnership’s name
d) None of the above
354. What is the proper classification of a limited partner?
a) Industrial partner
b) Capitalist partner
c) Managing partner
d) Nominal partner
355. Which designation of partnership profit or loss is valid?
a) Unilateral designation of profit or loss by a controlling partner without the
consent of all partners
b) Unilateral designation of profit or loss majority partners without the consent
of all partners
c) Unilateral designation of profit or loss majority of managing partners without
the consent of all partners
d) None of the above
356. In the absence of provision in the Articles of Co-Partnership, who has the legal
authority to remove a managing partner appointed after the execution of articles of
co-partnership for acting in bad faith?
a) Majority of the partners
b) Majority of the managing partners
 c) Partner owning controlling interest
d) Managing partner
357. Which of the following statements about the obligations of a partner is
incorrect?
a) Every partner shall render on demand true and full information of all things
affecting the partnership to any partner or the legal representative of any
deceased partner or of any partner under legal disability.
b) Every partner must account to the partnership for any benefit, and hold as
trustee for it any profits derived by him without the consent of the other
partners from any transaction connected with the formation, conduct, or
liquidation of the partnership or from any use by him of its property.
c) To bring to the partnership capital his share of a partnership credit which he
has received in whole or in part even he may have given his receipt if the
other partners have not collected their shares and the debtor becomes
insolvent after the partner has received the payment.
d) To pay to the partnership for damages suffered by it through his fault and
compensate them with the profits and benefits which he may have earned
for the partnership by his industry.
358. What degree of diligence shall be observed by a managing partner in the
administration of the partnership?
a) Diligence of a father of good family
b) Extraordinary diligence
c) Diligence of a reasonably prudent person
d) Utmost diligence of a very cautious person
359. What is the minimum capital contribution required by law in the organization of
a partnership?
a) At least P3,000
b) At least P5,000
c) At least P50,000
d) None of the above
360. Who may legally and ethically form a general professional partnership?
a) CPAs and Doctors for practice of medical profession
b) CPAs and Lawyers for practice of legal profession
c) CPAs and CPA-Lawyers for practice of accountancy profession
d) Engineers and Nurses for practice of engineering profession
361. Which of the following right is available to a partnership?
a) Right of succession
b) Right to declare dividends
 c) Right to acquire and reissue treasury shares
d) None of the above
362. It is a contract of two or more persons who bind themselves to contribute
money, property, or industry to a common fund, with the intention of dividing the
profits among themselves. It may also be formed by two or more persons for the
exercise of a common profession.
a) Contract of sales
b) Contract of partnership
c) Contract of mortgage
d) Contract of pledge
363. Which of the following is not a general characteristic of contract of partnership?
a) Consensual contract
b) Preparatory contract
c) Gratuitous contract
d) Nominate contract
364. This principle means that a partner has a right to choose those whom he wants
to be associated with the partnership because it is based on trust and confidence.
a) Delectus Personae
b) Pactum Commissorium
c) Res Perit Domino
d) Genum Nunquam Peruit
365. Which of the following statements about formality of contract of partnership is
incorrect?
a) As a general rule, contract of partnership may be in any form because it is
perfected by mere consent.
b) If real property is contributed to the partnership, the contract of partnership
must be notarized and an inventory of the said real property must be
attached to the notarized contract of partnership for the contract to be valid.
c) If the contributed capital to the partnership is at least P3,000 in money or
personal property, the contract of partnership must be notarized and
registered with SEC in order for the contract of partnership to be valid.
d) If the partnership is a limited partnership, a certificate of limited co-
partnership must be signed under oath by the partners and must be recorded
with the SEC, otherwise the partnership will be considered as a general
partnership as to creditors but will remain to be limited partnership to the
partners themselves.
366. If the contributed capital to the partnership is at least P3,000 in money or
personal property, what is the effect if the contract of partnership is not notarized
and/or not registered with Securities and Exchange Commission (SEC)?
a) The partnership will be classified as a limited partnership.
b) The contract of partnership is considered void ab ignition.
c) The partnership will be considered a de jure partnership.
d) The partners will still be liable prorata and subsidiarily to the creditors of the
partnership.
367. Who among the following is not allowed to become a partner in a commercial or
business partnership?
a) Natural person
b) Corporation
c) Both a and b
d) Neither a nor b
368. Which of the following is a prima facie evidence that a person is a partner in a
partnership?
a) Co-ownership when a co-owner share in the profit of a co-owned property
b) Co-possession when a co-possessor share in the profit of a co-possessed
property
c) Sharing or gross return when he is a joint operator of a jointly controlled
property
d) None of the above
369. Which of the following receipts by a person of a share of the profits of a business
is a prima evidence that the recipient is a partner in the partnership business?
a) As a rent to a landlord
b) As a wage of an employee
c) As interest on a loan
d) As a return on investment
370. A, a minor and B, a demented person orally entered into a contract of
partnership at the lucid interval of the former. At the time of oral agreement, A
invested and delivered half of cash contribution amounting to P2,000. The partners
agreed that the complete contribution will happen two (2) years from the date of
oral agreement. The articles of co-partnership was not registered with the Securities
and Exchange Commission. What is the status of the contract of partnership?
a) Perfectly valid contract
b) Voidable contract
c) Unenforceable contract
d) Void contract
371. It is a partnership wherein all the partners contribute all the property which
actually belonged to them to the common fund, with the intention of dividing the
same among themselves, as well as the profits which they acquire therewith.
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) General professional partnership
372. Which of the following will never form part of common fund in a universal
partnership of all present property?
a) Property belonging to the partners at the time of the constitution or
perfection of the partnership.
b) Profits that may be acquired from the present property.
c) Property acquired by each partner after the formation of the partnership if
stipulated.
d) Profits and fruits from property acquired by each partner, even those from
property acquired by inheritance, legacy or donation after the formation of
the partnership if stipulated.
e) Property acquired by each partner by inheritance, legacy or donation after
the formation of the partnership if stipulated.
373. It is a partnership whereby the common fund comprises all that the partners may
acquire by their work or industry during the existence of the partnership.
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) General professional partnership
374. Which of the following will never form part of common fund in a universal
partnership of all profits?
a) Profits obtained by the partners by their work or industry during the
existence of the partnership.
b) The usufruct or use of the property belonging to each partner at the time of
the constitution of the partnership.
c) The profits and fruits from the properties mentioned in letter a and b.
d) The profits and fruits, if stipulated, of the property acquired by each partner
after the constitution of the partnership
e) The profits and fruits arising from chance or lucrative title after formation of
partnership if stipulated
375. Who among the following is allowed to enter into a universal partnership?
a) Husband and wife
 b) Persons who were guilty of adultery or concubinage at the time of formation
c) Persons who were guilty of the same criminal offense
d) Public officer or his wife, descendants or ascendants and another person by
reason of the public officer’s position
e) Brothers and sisters
376. In case Universal Partnership is entered into by the partners without specification
as to its type, what is the disputable presumption of law as to its classification?
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) General professional partnership
377. Which of the following is properly classified as an onerous contract?
a) Universal partnership of all present property
b) Universal partnership of profits
c) Particular partnership
d) All of the above
378. Which of the following statements pertains to a nominal partnership?
a) It is a partnership is a partnership where all the partners are liable to the
extent of their separate property after the partnership assets have been
exhausted.
b) It is a partnership where there is at least one general partner who is liable up
to the extent of his separate property after the partnership assets have been
exhausted and at least one limited partner who is liable up to the extent of
his investment in the partnership.
c) It is a partnership which in reality is not partnership but is considered as one
with respect to those who, by reason of their conduct or admission, are
precluded from denying its existence.
d) It is a partnership which is established by the lapsing of time.
379. It is a partnership that exists only in fact but not in law.
a) De facto partnership
b) De jure partnership
c) Partnership by estoppel
d) Partnership by prescription
380. It is a type of partnership whereby no term or period or particular undertaking is
established in the articles of co-partnership.
a) Partnership with a fixed term
b) Partnership for a particular undertaking
c) Partnership at will
 d) None of the above
381. Which of the following partnerships is subject to corporate income tax?
a) Commercial or Business Partnership
b) General Professional Partnership
c) Both a and b
d) Neither a nor b
382. He refers to a partner who has all the rights and powers and is subject to all the
restrictions of a general partner, except that, in respect to his contribution, he shall
have the rights against the other members which he would have had if he were not
also a general partner.
a) General partner
b) Limited partner
c) General-Limited partner
d) Nominal partner
383. He refers to a partner one who contributes not only money or property but also
his services to the partnership.
a) Capitalist partner
b) Industrial partner
c) Capitalist-Industrial partner
d) Assignee of a limited partner
384. He refers to a partner in charge of the winding up of the affairs of the partnership
after it is dissolved.
a) Managing partner
b) Liquidating partner
c) Nominal partner
d) Substituted limited partner
385. He refers to a partner who is active in management of partnership business and
known to the public as a partner, such as by allowing his name to be included in the
firm name.
a) Ostensible partner
b) Secret partner
c) Silent partner
d) Dormant partner
386. He refers to one who is no longer a partner of business but has left his capital in
the business as loan. He receives interest on such as long as the loan is not paid off.
a) Nominal partner
b) Quasi-partner
c) Newly-admitted partner
 d) Retiring partner
387. In the absence of date mutually agreed or stipulated by the partners, what is the
date of commencement of juridical personality of the partnership?
a) From the moment of submission of articles of co-partnership to SEC
b) From the moment of execution of articles of co-partnership by the partners
c) From the moment of issuance by SEC of certificate of registration
d) From the moment of receipt by the partner of certificate of registration from
SEC
388. How shall the partnership profit of a partnership be divided?
a) It shall be divided based on any partnership profit agreement.
b) It shall be divided based on any loss agreement.
c) It shall be divided based on a valid partnership profit agreement.
d) It shall be divided equally.
389. In the absence of a valid partnership profit agreement, which of the following
legal rules of the division of partnership profit is incorrect?
a) The industrial partner shall first receive a just and equitable share in the
profits before distribution to capitalist partners.
b) The remaining profits after distribution to industrial partners of his just and
reasonable share in profits shall be distributed to the capitalist partners
based on the following by order of priority: (1) Capital contribution ratio of
capitalist partners and (2) Equally on the presumption that the contribution
of capitalist partners is equal.
c) In case of capitalist-industrial partner, he shall receive a just and equitable
share in the profit for being an industrial partner and then he shall also share
in the remaining profits as a capitalist partner on the basis of (1) capital
contribution ratio of capitalist partners or (2) equally with the capitalist
partners.
d) The profits shall be divided equally among all the partners including industrial
partners.
390. How shall the partnership loss of a partnership be divided?
a) It shall be divided based on any partnership loss agreement.
b) It shall be divided based on any partnership profit agreement.
c) It shall be divided based on a valid partnership loss agreement.
d) It shall be divided equally.
391. In the absence of a valid partnership loss agreement, which of the following legal
rules of the division of partnership loss is incorrect?
a) The industrial partner shall first receive a just and equitable share in the loss
before distribution to capitalist partners.
 b) The industrial partner shall be exempted from partnership losses.
c) The partnership losses shall be distributed to the capitalist partners only
based on the following by order of priority: (1) Valid partnership profit
agreement among capitalist partners; (2) Capital contribution ratio of
capitalist partners; and (3) Equally on the presumption that the contribution
of capitalist partners is equal.
d) In case of capitalist-industrial partner, for being an industrial partner, he shall
not share in losses but for being capitalist partner he shall share in the losses
on the basis of (1) valid profit ratio agreement among capitalist partners; (2)
capital contribution ratio of capitalist partners; or (3) equally with the
capitalist partners.
392. Which of the following partnership profit/loss stipulation is valid?
a) Stipulation excluding any capitalist partner from share in partnership profit
b) Stipulation excluding any industrial partner from share in partnership profit
c) Stipulation excluding a capitalist partner from share in partnership loss
d) Stipulation excluding an industrial partner from share in partnership loss
393. Which of the following designations of partnership profit or loss is valid?
a) Unilateral designation of partnership profits or losses by a single partner
without the consent or approval by all the partners
b) Designation of partnership profits or losses by a third person unanimously
agreed by all the partners
c) Both a and b
d) Neither a nor b
394. If the designation of partnership profits or losses by a third person chosen by all
the partners is manifestly inequitable, what is the prescriptive period available to
the injured partner to impugn or question such unjust division of partnership profits
or losses?
a) Within 3 months from the knowledge of such designation but it must be
before the said injured partner executes it
b) Within 6 months from the knowledge of such designation but it must be
before the said injured partner executes it
c) Within 12 months from the knowledge of such designation but it must be
before the said injured partner executes it
d) Within 1 month from the knowledge of such designation but it must be
before the said injured partner executes it
395. Which managing partner may be validly removed by the partner owning
controlling interests with or without valid cause (bad faith or good faith)?
a) Managing partner appointed in the articles of co-partnership
 b) Managing partner appointed in a separate document other than the articles
of co-partnership
c) Both a and b
d) Neither a nor b
396. A, B, C and D formed a partnership with A and B contributing P10,000 cash and
P20,000 cash, respectively, while C and D contributing services. C and D are
appointed as managing partners. C and D hired E as chief accountant who was
opposed by A and B. A and C hired F as internal auditor who was opposed by B and
D. Who between E and F is/are validly hired in the ABCD Partnership?
a) E
b) F
c) Both E and F
d) Neither E nor B
397. A, B, C, D and E formed a partnership with capital contribution of [Link]. No
one is appointed as managing partner. A, B and C preferred BDO as its depositary
bank while D and E preferred BPI. Which is the proper depositary bank of ABCDE
Partnership?
a) BDO
b) BPI
c) Both BDO and BPI
d) Neither BDO nor BPI
398. ABC Partnership is engaged in the buy and sell of fruits and vegetables with A
appointed as managing partner. Which of the following acts by a partner is not
binding against ABC Partnership?
a) Sale by Partner B of fruits at a minimal gross profit to a customer who does
not have knowledge of B’s lack of authority.
b) Sale by Partner A of vegetables at break-even to a customer who acted in
good faith.
c) Acquisition by Partner C of a brand new delivery truck at a huge historical
cost which is unanimously approved by all the partners.
d) Acquisition by Partner B of an old delivery truck below its book value without
the knowledge and consent by the other partners.
399. Which of the following acts may be validly done by the managing partner alone?
a) Disposition of the goodwill of the business
b) Confession of judgment
c) Obtaining a regular loan from an accredited lender
d) Submission of a partnership claim or liability to arbitration
e) Entering into a compromise concerning a partnership’s claim or liability
400. Which of the following acts requires unanimous consent by all the partners?
a) Renunciation of a claim of the partnership
b) Availing of volume discount and purchase discount from a major supplier
c) Payment and release of salaries of employees
d) Issuance of check for payment of utilities payable of the business