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TitleQuiz in Partnership
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___20. A, B and C are partners contributing services, P20,000 and P40,000 respectively. The distribution of P80,000 profit
shall be

a. A – P20,000 B – P20,000 C – P40,000
b. A – P5,000 B – P25,000 C – P50,000
c. A – P32,000 B – P16,000 C – P32,000
d. A – P26,667 B – P26,667 – P26,667

___21. Using the preceding number, if the P80,000 represents net assets, the distribution shall be
a. A – P20,000 B – P20,000 C – P40,000
b. A – P5,000 B – P25,000 C – P50,000
c. A – P32,000 B – P16,000 C – P32,000
d. A – P26,667 B – P26,667 C – P26,667

___22. A, B and C are partners contributing services, P40,000 and P80,000, respectively. The distribution of P60,000 loss
shall be

a. A – P15,000 B – P15,000 C – P30,000
b. A – P20,000 B – P20,000 C – P20,000
c. A – P0 B – P20,000 C – P40,000
d. A – P0 B – P30,000 C – P30,000

___23. A limited partnership has A, as general partner, B as limited partner, and C as capitalist-industrial partner
contributing P50,000; P50,000 and P50,000 and services respectively. The partnership failed and after disposing all its
assets to pay partnership debts only P30,000 remains. The distribution shall be

a. A – P10,000 B – P10,000 C – P10,000
b. A – P15,000 B – P15,000 C – P0
c. A – P15,000 B – P0 C – P15,000
d. A – P0 B – P30,000 C – P0

___24. A and B are co-owners of a parcel of land from which they derive profits in equal sharing being co-heirs in
inheritance. Is there a partnership?

a. There is a partnership because of the equal sharing of profits.
b. There is no partnership because co-ownership by itself does not establish a partnership despite the sharing of
profits.
c. There is no partnership since in partnership division of profits is not always necessary among partners.
d. There is partnership they being co-owners and co-possessors.

___25. A and B are partners in Ace partnership. While A was performing his duties as a partner in the conduct of the
business, he negligently caused damage to X, a third person. Who shall be liable to X and in what capacity?

a. Only the partnership shall be liable it being a juridical person separate and distinct from the partners.
b. Only A shall be liable for he is the only one at fault.
c. Both A and B shall be liable solidarily to X.
d. A, B and the Partnership are all liable solidarily to X.

___26. Which of the following is not a prohibition on a limited partner?
a. Surname of a limited partner may not appear in the partnership name
b. Limited partner may not take part in the control of the business
c. Limited partner may not contribute service
d. Limited partner may not constitute his assignee as substituted limited partner

___27. A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits and
losses. Is the agreement valid as among the partners only and not against third persons?

a. Yes because among the partners it is valid to exempt one from sharing in the profits and losses
b. Yes valid as long as third persons are not prejudiced
c. Not valid stipulation exempting a partner from sharing profit and losses
d. Not valid as against third persons or partnership creditors

___28. I. A newly admitted partner shall be liable for the pre-existing obligations of the partnership at the time of his
admission in favor of partnership creditors up to the extent of his capital contribution.

II. An industrial partner shall not share in the losses and his share in the profits shall be just and equitable under
the circumstances.

a. False, True b. True, True c. True, False d. False, False
___29. Three of the following dissolves a partnership, except

a. Partnership business has become unlawful c. Expulsion of a partner
b. Death, Civil interdiction or insolvency of a partner d. Partnership business can only be carried at a loss

DLSL CPA Board Operation – Business Law
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___30. I. A partner who is liable to the partnership for damages due to his fault may claim compensation if through his
extraordinary efforts in other activities of the partnership unusual profits have been realized.

II. A partner shall become debtor of the partnership if he fails to deliver his promised contribution and shall be in
delay from the time of a demand from the partnership.

a. False, False b. True, True c. False, True d. True, False
___31. A contributed P1M, B contributed P1M, and C contributed services. They agreed to divide the profits and losses
equally. In case of loss of P.3M, for how much, if any, is C liable?

a. Nothing because an industrial partner is exempt from losses
b. P.1M but with reimbursement from A and B equally
c. A and B alone shall shoulder the loss at C’s option
d. P.1M

___32. Supposed in the preceding case, there was not agreement as to profit-loss sharing, what will be the share of C in
the profit?

a. Equal to the share of A and B c. P1M
b. Just and equitable under the circumstances d. Court to fix the price

___33. Based on the preceding number, what shall be his share in the loss?
a. Equal to the shares of A and B c. P1M
b. Just and Equitable under the circumstances d. None

___34. The receipt by a person of share of the profits of a business is prima facie evidence that he is a partner in the
business and it is given:

a. As payment of a debt by installment or otherwise
b. As wages or rent
c. As an annuity to a widow or representative of a deceased partner
d. As his interest in the partnership

___35. There is partnership except
a. Two or more parties consent to a contract, oral or written
b. They give money, property or industry to a common fund
c. There is division of profits and losses among themselves
d. There is no fiduciary relationship

___36. If a partner is insolvent, the first order of preference in the distribution of his assets is
a. Partner’s creditors
b. Partner’s contribution to the partnership
c. Separate creditors of the debtor
d. Pro-rata between the separate creditors and partnership creditors

___37. A partnership which must be in public instrument to be valid is
a. Contribution of immovables or real rights therein regardless of the value thereof
b. Contribution is P3,000 or more of personal property
c. General partnership
d. Particular partnership

___38. Three of the following are property rights of a partner, except
a. Right in specific partnership asset
b. Right to participate in the management
c. Right to demand formal accounting of partnership affairs
d. Interest of the partner in the partnership

___39. One of the following is a cause for involuntary dissolution of the partnership
a. Termination of the definite term of partnership
b. Insolvency of a partner
c. Express will of a partner in a partnership at will
d. Expulsion of a partner for a cause stated in the articles of partnership

___40. The following are disqualified to form a universal partnership, except
a. Brother and sister
b. Husband and wife
c. Those guilty of adultery or concubinage
d. Those guilty of the same offense, of the partnership is entered into in consideration of the same.

___41. What best describes the nature of partnership contract?
a. Consensual contract b. Real contract c. Innominate contract d. Accessory contract

___42. A partnership that has for its object determinate thing, their use or fruits or specific undertaking, or the exercise of
a profession or vocation.

DLSL CPA Board Operation – Business Law
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