BUSINESS LAW QUIZ ON PARTNERSHIP

BUSINESS LAW QUIZ ON PARTNERSHIP 1. Which of the following is not correct? a. A- cash (Ltd); B-cash (Gen,); C-service (Gen) b. A –property (Ltd.); B –cash (Gen); C –service (Gen) c. A –service (Ltd.); B –cash (Gen); ...

BUSINESS LAW QUIZ ON PARTNERSHIP 1. Which of the following is not correct? a. A- cash (Ltd); B-cash (Gen,); C-service (Gen) b. A –property (Ltd.); B –cash (Gen); C –service (Gen) c. A –service (Ltd.); B –cash (Gen); C –service (Gen) d. A – cash (Ltd.); B –cash (Gen); C –service (Gen) 2. A and B orally agreed to form partnership two years from today, each one to contribute 10,000.00 A arrival of the said. If one refuses to go ahead with the agreement, can the other one enforce the agreement? a. yes since the agreement is to be enforced after one year from the making thereof, the same should be in writing to be enforceable b. yes because the prior agreement was voluntarily made c. yes because the contract of partnership is not governed by the Statue of Frauds d. no because the agreement was merely oral 3. If partner is insolvent, the first order of preference in the distribution of his assets is a. partnership creditors b. partnership’s contribution to the partnership c.separate creditors of the debtor d.pro-rata between the separate creditors 4. The following, except one, are common characteristics of partnership and corporation which is the exception? a. the individuals composing both organizations have little voice in the conduct of the business b. both can acts through agents c.both are business organizations compose of a number of individuals d.both are juridical personalities separate and distinct from that of the members composing it 5. Which of the following is not a requisite prescribed by law in order that the partnership may be held to a third party for the acts of one of the partners a.the contracts bind the partnership by acquiescence for obligations he may have contracted in good faith b. the partner must have the authority to bind the partnership c. the contract must be in the name in partnership of for its own account d .the partner must act on behalf of the partnership 6. X, Y and Z are partners in Ace & Co. W represented himself as a partner in the said partnership to A, who, on the faith of such representation, granted P1M loan to the partnership. Assuming only X and Y consented to such representation, who shall be liable to A? a. since the partnership benefited from the credit extended by A, all partners X, Y and Z are liable b. only X, Y, and W are partners by estoppel A and are liable pro rata c.since the loan was extended to the partnership; all the partners and W are liable d.only W who made the representation shall be liable 7.A,B and C are general partners in merchandising firm .Having contributed equal amounts to the capital, they also agreed on equal distribution of whatever profit is realized per fiscal period, After two years of operation however , C conveys her whole interest in the partnership to D, without the knowledge of A and B. Is the partnership dissolved? a.the partnership is not dissolved because the conveyance of a partner’s interest in the partnership does not of itself dissolve the partnership b. the partnership is not dissolved because the assignment made by C for his whole interest was without knowledge and consent of A and B c.the partnership was dissolved because the assignee D automatically becomes a new partner and strictly speaking there is a new entity d.it is dissolved because A has ceased to be a partner because of the assignment for his whole interest to D.8. Based on the preceding facts: a. D can participate in the management of the partnership b. D cannot inspect the books nor copy them for any information on the partnership affairs as a partner can. c. C has ceased to have the rights to use the partnership property d.C cannot take part in the control of the business anymore 9. Still based on the same facts: a. If A and B want to dissolve the partnership, C as a partner need not consent thereto because he had assigned his interest to D. b. D may himself ask the court for its dissolution being the assignee of C’s interest in the partnership c. A, B and D may dissolve the partnership even without the consent of D. d .A, B and C cannot dissolve the partnership without the consent of D. 10. Spouses A and B formed a limited partnership to engage in real estate business and A contributed P1M only Is the partnership between the spouses valid? a. the partnership is not valid because spouses cannot enter into a limited partnership b.the partnership is valid because spouses can enter into a partnership, limited or general, universal or particular c.the partnership is not valid because the spouses cannot enter into any kind of partnership for business except conjugal partnership d.the partnership is valid because spouses are prohibited to enter into a universal partnership only 11. A corporation cannot enter into a partnership contract with a natural person but with a juridical person it can. A general partner is always the capitalist in a limited partnership a. both statements are false c. both are true b. first is true, second is false d. first is false, second is true 12.W,X,Y and Z organized a general partnership with W and X as industrial partners and Y and Z as capitalist partners contributed P.5M and Z contributed P.2M to the common fund.By a unanimous vote of the partners , W and X were appointed managing partners , without specification of their duties and powers. A applied as secretary and B applied as accountant of the partnership. The hiring of A was decided upon by W and X but was opposed by Y and Z. Whose decision shall prevail? a. the decision of w and x shall prevail because the hiring is an act of management and as managers they can do so. b. that of x and y because in case of tie in the decision of managing partners, that of the controlling interest shall prevail. c.the decision of y and z because they have controlling interest d.the decision of w and x because it is an act of ownership 13. In the same problem as fore mentioned, suppose the hiring of B was decided upon by W and Z, but was opposed by X and Y, whose decision shall prevail? a. the decision of w and z because w is the managing partner and the hiring is an act of administration b. the decision of x and y because in the case of tie in the decision of managing partners, that of the controlling interest shall prevail c.that of w and z because z is also a capitalist partner d.none of the decision because of the statements of equal rights 14. If a partner is insolvent, the first in the order of preference is: a. partnership creditors b. partners contribution to the partnership c.separate creditors of the partner d.pro rata between the separate creditors and the partnership creditors 15. A, B and C are partners in a partnership. A and B contributed P10, 000.00 each while C contributed his service. After payment of the partnership liabilities to creditors, only 6,000.00 remain. In the absence of stipulation to the contrary the share of C shall be: a. equal to the share of a c. 2,000.00 b. equal to the share of b d. nothing 16. X,Y and Z are partners who contributed equally to the capital of the partnership. A owes the partnership P9, 000.00. Z collected from A 3,000.00 before X and Y could receive anything from A, who later became insolvent and therefore they could not collect their shares a. Partner z shall share the 3,000.00 with his co-partners x and y b. z cannot required to share what he already received from a c. z and y should first exhaust all remedies to collect from a d. x and y can automatically deduct from capital contribution of z in the partnership their respective shares in the 3,000.00