31.

a. Only X is true b. Only Y is true c. Both are true d. Both are false

32. A person who is not a partner of the partnership, but is made liable as a partner for the the protection of innocent third persons is called:a. secret partner b. dormant partner c. partner by estoppels d. silent partner

33. A - A managing partner appointed after the establishment of the partnership may be interest. B - A, B, and C are the managing partners and it has been stipulated that one cannot act without the consent of the others. B may make a decision for the partnership alone by himself if there is a justifiable reason.

a. Both are true b. Both are false c. Only A is true d. Only B is true34. One of the following may be a cause for the involuntary dissolution of a partnership.

a. Termination of the term of the partnership c. Express will of any partnerb. Insolvency of any partner d. Expulsion of any partner

35. M – The loss of the specific thing contributed by a partner to the partnership dissolves the partnership.N – The loss of the specific thing will not dissolve the partnership, when only the use thereof is contributed by a partner to the partnership.

a. M is false, N is true c. both are trueb. M is true, N is false d. both are false

36. Three of the following are similarities between a partnership and a corporation. Which is not?a. The individuals composing both have little voice in the conduct of businessb. Both have juridical personality separate and distinct from the individuals composing themc. Both can only act through their agentsd. Both are organizations composed of aggregate of individuals

37. Three of the following are the rights of a general and limited partners in a limited partnership which is not?a. To inspect and copy at reasonable hours the partnership books and recordsb. To demand true and full information of all matters affecting the partnershipc. To have dissolution and winding up by decree of courtd. None of the above

38. When cash or property worth P3,000.00 or more is contributed as capital, the articles of partnership must be in a public instrument and should be registered with the securities and Exchange Commission. If the said requirements are not complied with:

a. it will render the partnership voidb. it will not affect the liability of the partnership and the partners to third partiesc. It will not give legal personality to the partnershipd. It will give the partnership a de-facto existence.

39. The partnership is not dissolved upon the death of a:a. general partner b. limited partner c. industrial partner d. general-limited partner

40. In ABC partnership, A and B contributed P20,000.00 each and C his service. After paying all the creditors of the partnership only P18,000 remains. In the absence of terms to the contrary, the share of C is equal to:

a. P6,000.00 b. the share of A c. the share of B d. nothing41. W, X, Y and Z formed a partnership. W, X and Y are general partners, who contributed P5,000.00 each, while Z, an industrial partner, his services only. All the partners signed an agreement stipulating that the liability of W is limited to his contribution. After all the assets of the partnership have been exhausted, there remains an unpaid liability of P40,000.00. The creditors of the partnership can compel: a. X and Y 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 b. X, Y and Z to pay the P40,000.00 d. X and Y to pay P40,000.0042. A, B and C, are partners in D-3 Company. On April 29, 2013, C died. On May 2, 2013, A, without the knowledge of C’s death a liability to D, who also do not know of the death of C. The partnership debt to D is in the amount of P30,000.00. D can collect:

a. P30,000.00 from Ab. P15,000.00 each from A and Bc. P10,000.00 each from A and B and P10,000.00 from the estate of Cd. P20,000.00 from A and P10,000.00 from B

43. A partner, who takes active part in the business, but is not known as a partner to third person is called:a. silent partner b. dormant partner c. secret partner d. nominal partner

44. 1st statement – The arrival of the term of the partnership with a fixed term shall not dissolve the partnership if the partners continue its business, b ut such partnership may be terminated anytime dependent on the will of the continuing partners.2nd statement – The loss of the specific thing, the use of which is contributed to the partnership dissolves the partnership.a. Only the 1st statement is false c. Both are falseb. Only the 2nd statement is false d. Both are true45. A limited partner who takes active part in the management of partnership becomes:

a. a managing partner c. liable as a general partnerb. a general partner d. a general-limited partner

46. When a universal partnership is constituted but its nature is not specified, it is only considered:a. a universal partnership of all present propertyb. a universal partnership of all present property & profitsc. a universal partnership of all profit d. a limited partnership

47. Anton, Ben and Cris are partners in a business engaged in real estate and land development. Anton, without the knowledge of Ben and Cris, offered to sell to Dan all the remaining unsold lots at a price very much higher than the prevailing market price. Then Anton bought out Ben and Cris from the partnership and thereafter sold all the lots at a very big profit.

1st conclusion: When Anton bought out Ben and Cris from the partnership, the partnership was dissolved so Ben and Cris have no more share in the profit of the sale2nd conclusion: The sale of the lots between Anton and Dan is void because it was without the knowledge and consent of Ben and Cris.a. Only the 1st conclusion is correct c. Both are correctb. Only the 2nd conclusion is correct d. Both are incorrect

48. The following are instances when a partnership is unlawful. Which is the exception?

a. A partnership formed for smuggling of contrabandb. A partnership formed for the purpose of buying public landsc. A partnership formed to create a cartel for monopoliesd. A partnership formed to furnish apartment houses to be used for illegal gambling

49. XYZ partnership composed of three capitalist partners and one industrial partner suffered business losses. Its remaining assets amounted to P100,000.00 The partnership is indebted to its supplier, Mr. Cruz, In the amount of P160,000.00. How can Mr. Cruz recover the P60,000.00?

a. He can recover P100,000.00 from the partnership and P60,000.00 from the three capitalist partnerb. He can recover P100,000.00 from the partnership and P60,000.00 from any of the partners solidarilyc. He can recover P100,000.00 from the partnership and P60,000.00 from the four partners jointlyd. He can recover P100,000.00 from the partnership and suffer as his loss the balance of P60,000.00

50. 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- cash (limited partner); B- cash (general partner); C- services (general partner)b. A- property (limited partner); B- services (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- property (general partner); C- services (general partner