RFBT 4- PARTNERSHIP

Post-test
1. One of the following is not a characteristic of a contract of partnership
A. Real, in that the partners must deliver their contributions in order for the partnership contract to be perfected.
B. Principal, because it can stand by itself.
C. Preparatory, because it is a means by which other contracts will be entered into.
D. Onerous, because the parties contribute money, property or industry to the common fund.
2. The minimum capital in money or property except when immovable property or real rights
thereto are contributed, that will require the contract of partnership to be in public instrument and be registered with SEC.
A. P 5,000 B. P10,000 C. P 3,000 D. P30,000
3. X and Y entered into a universal partnership of all present property. At the time of their
agreement. X had a four-door apartment which he inherited from his father 3 years earlier. Y,
on the other hand, had a fishpond which he acquired by dacion en pago from Z. During the
first year of the partnership, rentals collected on the four-door apartment amounted to
P480,000; while fish harvested from the fishpond were sold for P300,000. During the same
period. B received by way of donation a vacant lot from an uncle. The partners had an
stipulation that future property shall belong to the partnership. Which of the following does
not belong to the common fund of the partnership?
A. Fish pond B. Rental of P480,000 C. Apartment D. Vacant lot
4. D and E entered into a universal partnership of profits. At the time of execution of the
Articles of partnership, D had a two-door apartment which he inherited from his father 3
years earlier. E on the other hand, had fleet of taxis which he purchased two years before. In the first year of the partnership,
D earned P500,000 as radio talent while E won P1,000,000 in the lotto.

During the same period, rentals of P120,000 were collected from the apartment, while fare
revenues of P200,000 were realized from the operation of the fleet of taxis. Which of the
following belongs to the partnership?
A. Two-door apartment C. Lotto winnings of P1,000,000
B. Salary of P500,000 D. Fleet of taxis
5. A partnership formed for the exercised of a profession which is duly registered is an example
of
A. Universal partnership of profits
B. Universal partnership of all present property
C. Particular partnership
D. Partnership by estoppel
6. A, B and C are partners in ABC Enterprises. Not having established yet their credit standing,
the three partners requested D, a well known businessman, to help them negotiate a loan
from E, a money lender. With the consent of A, B and C, D represented himself as a partner
of ABC Enterprises. Thereafter, E granted a loan of P150,000 to ABC enterprises. What kind
of partner is D?
A. Managing partner C. Liquidating partner
B. Ostensible partner D. Partner by estoppel
7. Using the preceding number, assuming ABC Enterprises was unable to pay the loan on due
date at which time the assets of the partnership amounted to P120,000. From whom may E
collect the payment?
A. D only for the whole amount of P120,000.
B. A, B and C who are liable jointly for P50,000 each.
C. ABC Enterprises for its assets of P120,000; hereafter, A, B and C from their separate assets at P10,000 each.
D. ABC Enterprises for its assets of P120,000 thereafter, A, B, C and D from their separate assets at P7,500 each.
8. A partner can engage in business for himself without the consent of his co-partners if he is
A. A capitalist partner whether or not the business he will engage in is of the same kind as or different from the partnership
business.
B. An industrial partner whether or not the business he will engage in is of the same kind as or different from the
partnership business.
C. A capitalist partner and the business he will engage in is of a kind different from the partnership business.
D. An industrial partner and the business he will engage in is of a kind different from the partnership business.
9. The partnership will bear the risk of loss of three of the following things, except
A. Things contributed to be sold.
B. Fungible things or those that cannot be kept without deteriorating.
C. Non-fungible things contributed so that only their use and fruits will be for the common benefit.
D. Things brought and appraised in the inventory.
10. A partner’s interest in the partnership is his share of the profits and surplus which he may
assign to a third person. Which of the following statements concerning such right is correct?
A. The conveyance of a partner’s interest will cause the dissolution of the partnership.
B. The assignee becomes a partner.
C. The assignee has the right to interfere in the management of the partnership business.
D. The assignee has the right to receive the profits which the assigning partner would otherwise be entitled thereto.
11. Partnership as distinguished from corporation
A. Acquires juridical personality upon approval by the SEC and the issuance of certificate.

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 B. Has limited liability.
C. Created by operation of law.
D. No power of succession.

12. Essential elements or feature of a partnership, except

A. Must have a lawful object or purpose
B. There must be a contribution of money, property or industry to a common fund
C. With intention to divide and contribute whatever profits they make to other people.
D. Must be established for the common benefit or interest of the partners.
13. A, B and C are partners each contributing P10,000. The firm’s indebtedness amounts to
P90,000. It was stipulated that A would be exempted from liability. Assuming that the capital
of P30,000 is still in the firm, which of the following is not correct?
A. The creditors may get the P30,000 and still collect each P20,000 from A, B and C.
B. A can recover P10,000 each from B and C should he (A) be required to pay the creditors.
C. A cannot recover his original capital of P10,000.
D. The creditors can recover P45,000 each from B and C.
14. A newly admitted general partner is liable to creditors existing at the time of his admission
and his liability is
A. Up to his capital contribution only if there is stipulation.
B. Up to his separate property even there is no stipulation.
C. Up to his capital contribution even if there is stipulation.
D. Up to his separate property only if there is stipulation.
15. Using the preceding number, but the obligations were contracted after his admission, which of the following is correct?
A. He is liable to the creditors before and after his admission up to his separate property.
B. He is liable to the creditors before and after his admission only up to his capital contribution.
C. He is liable to the creditors before and after his admission up to his capital contribution and to the creditors after
his admission up to his separate property.
D. He is not liable to creditors existing before his admission.
16. A and B are partners engaged in the real estate business. A learned that C was interested in buying a certain parcel of land
owned by the partnership, even for a higher price. Without informing B of C’s offer A was able to convince B to sell to him
(A) his (B’s) share in the partnership. Then A sold the land at a big profit. Which of the following is correct?
A. A is liable to B for the latter’s share in the profit.
B. C is liable to B for the latter’s share in the profit.
C. A new partnership is formed between A and C.
D. The sale of the land to C is void since it was without the knowledge of B.
17. A and B are partners in a real estate business. A and B were approached by X who offered to buy a parcel of land owned by
the partnership. Thereafter B sold to A, B’s share in the partnership. Then A sold the land to X at a big profit. Which is
correct?
A. The sale of the land to X is void
B. A is liable to B for B’s share in the profits.
C. B may rescind the contract between A and X
D. A is not liable to B for any share in the profits.
18. The following persons are disqualified to form a universal partnership, except
A. Husband and wife
B. Brother and sister
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense; if the partnership is entered into in consideration of the same.
19. A, B and C are capitalist partners while D is an industrial partner. A, the managing partner engaged personally in a business
that is the same as the business of the partnership without the consent of the other partners. As a result,
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shared by A and the partnership.
C. If there are profits, A will give the profits to the partnership.
D. A will be excluded from the partnership and will pay damages.
20. A, a managing partner is B’s creditor to the amount of P1,000 already demandable. B also owes the partnership P1,000, also
demandable. A collects P1,000 from B. One is not correct.
A. If A gives a receipt for the partnership it is the partnership’s credit that has been collected.
B. If A gives a receipt for his own credit, it is A’s credit that has been collected.
C. If A gives a receipt for his own credit, P500 will be given to him, P500 to the partnership.
D. B may decide that he is paying only A’s credit if the personal credit of A is more onerous to B.
21. The remedy of capitalist partners against an industrial partner who engaged in a business for himself without the expressed
permission from the partnership is:
A. To compel him to sell his interest to the said capitalist partners.
B. To exclude him from sharing in the profits of the partnership.
C. To remove him as manager if he is appointed as manger of the partnership.
D. To expel him from the partnership and claim for damages.
22. A partnership which comprises all the profits that the partners may acquire by their work or industry during the existence of
the partnership is called:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will

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23. A partnership whereby the partners contribute to a common fund all the property actually belonging to them at the time of the
constitution of the partnership, with the intention of dividing the same among themselves, as well as the profits which they
may acquire therewith is:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will
24. A partnership without a definite period of existence and which can be dissolved at any time by any of the partners is called:
A. Universal partnership of all present property
B. Universal partnership of profits
C. Particular partnership
D. Partnership at will
25. A, B and C, capitalist partners, each contributed P10,000 and D, the industrial partner contributed his services. Suppose X, is
the creditor of the firm amounting to P90,000. After getting the P30,000 capital assets of the partnership, which is correct?
A. X can recover P20,000 each from A, B and C only.
B. X can recover P60,000 from either A, B and C only.
C. X can recover P15,000 each from A, B, C and D.
D. X can recover P15,000 each from A, B and C but D is exempt because he is an industrial partner.
26. A, B and C are partners. D is admitted as a new partner. Will D be liable for partnership obligations contracted prior to his
admission to the partnership?
A. No, only for those contracted after his admission.
B. Yes, and his liability would extend to his own individual property.
C. Yes, but his liability will extend only to his share in the partnership property and not to his own individual
property.
D. Yes, as if he had been an original partner.
27. A partner who has all the rights, powers and subject to all restrictions of a general partner but whose liability is, among
themselves, limited to his capital contribution is:
A. General partner C. Limited partner
B. General-limited partner D. Dormant partne
28. Bears the risk of things contributed to the partnership:
A. General partner
B. Limited partner
C. Partner contributing usufructuary rights over fungible things
D. Partner contributing usufructuary rights over non-fungible things
29. A, B and C, capitalist partners, each contributed P10,000. After exhausting the assets of the
firm, the firm’s indebtedness amounts to P90,000. It was stipulated that A would be exempted
from liability. Which is correct?
A. A may recover his original capital of P10,000.
B. The creditors may collect P30,000 each from A, B and C.
C. A can recover P20,000 each from B and C should he be required to pay the creditors.
D. The creditors can recover P45,000 each from B and C.
30. Instances when a partnership is unlawful, except
A. A partnership formed to furnish apartment houses which would be used or prostitution
B. A partnership formed for the purpose of acquiring parcels of land
C. A partnership formed for gambling purposes.
D. A partnership formed to create illegal monopolies or combinations in restraint of trade.
31. A and B orally agreed to form a partnership two years from today, each one to contribute P1,000. If at the arrival of the
period, one refuses to go ahead with the agreement, can the other enforce the agreement?
A. Yes, because the partnership contract is not governed by the Statute of Frauds
B. Yes, because the prior agreement was voluntarily made.
C. No, because the agreement was merely oral and executor
D. No, since the agreement is to be enforced after one year from the making thereof, the same should be in a public
instrument to be enforceable.
32. A and B are equal partners in AB Partnership by contributing P50,000 each on June 1, 2010. On July 1, 2010, the partnership
contracted an obligation to pay Z the amount of P180,000 on August 31, 2010. On August 10, 2010, C was admitted as a new
partner. C contributed P50,000. How will the obligation be paid?
A. A P60,000; B P60,000; C P60,000
B. A P90,000; B P90,000; C None
C. A P180,000 or B P180,000 and C P50,000
D. A P65,000; B P65,000; C P50,000
33. A, B and C are equal partners in ABC Partnership. On April 29, 2010, C died. Not knowing that C is dead, on May 2, 2010,
A contracted a liability to D who also did not know about the death of C. The liability is P90,000. After D exhausted the net
assets of the partnership in the amount of P60,000, he can collect
A. P30,000 from A or P30,000 from B.
B. P15,000 from A and P15,000 from B.
C. P10,000 from the estate of C, P10,000 from A and P10,000 from B.
D. P30,000 from the estate of C or P30,000 from B or P30,000 from C.
34. A, B and C are partners. Their contributions are as follows: A, P60,000; B, P40,000 and C, services. The partners agreed to
divide profits and losses in the following proportions: A, 35%; B, 25% and C 40%. If there is a loss of P10,000, how should
the said loss be shared by the partners?
A. A P6,000; B P4,000; C nothing C. A P3,000; B P2,000; C P5,000

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 B. A P3,500; B P3,500; C P3,000 D. A P3,500; B P2,500; C P4,000
35. Using the preceding number, but the partners did not agree on how to divide profits and losses. If there is a loss of P10,000,
how should the said loss be shared by the partners?
A. A P6,000; B P4,000; C nothing C. A P3,000; B P2,000; C P5,000
B. A P3,500; B P3,500; C P3,000 D. A P3,500; B P2,500; C P4,000

36. When the manner of management has not been agreed upon, who shall manage the affairs of the
partnership?
A. Capitalist partners C. Industrial partners
B. Capitalist-industrialist partners D. All of the partners
37. A, B and C are partners in a partnership business. A contributed P10,000, B contributed P5,000 and C his services only. After
payment of partnership debts, what remains of the partnership assets is P6,000 only. In the absence of stipulation to the
contrary, the share of C will equal to:
A. That of A B. P2,000 C. That of B D. Nothing
38. A, B and C are partners in ABC Co. D owes the partnership P4,500. A, a partner, received from D a share of P1,500 ahead
of partners B and C, giving D a receipt for his share only. When B and C were collecting from D, the latter was already
insolvent. Which of the following is correct?
A. Partner A can be required to share the P1,500 with B and C.
B. A cannot be required to share the P1,500 with B and C.
C. B and C should automatically exhaust first all remedies to collect from D.
D. B and C can automatically deduct from the capital contribution of A in the partnership, their respective share in the
P1,500.
39. Which of the following is considered prima facie evidence of the existence of a partnership?
A. Where payment of interest on a loan depends on the profit of the business.
B. The receipt by a person of a share in the profits.
C. The sharing of gross returns of a business.
D. Where the parties are established as co-owners of a property.
40. A and B are partners, with A as the managing partner. D is indebted to A in the amount of P10,000 and to the partnership in
the amount of P5,000. Both debts are due and demandable. D paid AP3,000. A issued to D a receipt in his own name. How
should the amount of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of D to A.
B. The P3,000 should be applied to the indebtedness of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of D to A.
D. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of D to A.
41. One or more but less than all the partners have no authority to perform the following acts, except:
A. Do any act which would make it impossible to carry on the ordinary business of the partnership.
B. Submit a partnership claim or liability to arbitration.
C. Renounce a claim of the partnership.
D. Convey partnership property in the ordinary course of partnership business
42. A, B and C are equal partners in ABC Partnership. The partnership is indebted to D for P150,000. Partner A is indebted to E
for P20,000. D attached and took all the assets of the partnership amounting to P90,000. B and C are solvent while A is
insolvent and that he owns is a land valued at P15,000. Which is correct?
A. E has priority to the land of A as a separate creditor
B. D has priority to the land of A to cover A’s share of the P60,000 remaining liability of the partnership.
C. B and C have priority to the land of A if they paid D the P60,000 remaining liability of the partnership.
D. D and E shall both have priority to the land of A in proportion to their claims of P60,000 and P20,000, respectively.
43. A, B and C are partners. A is an industrial partner. During the first year of operation, the firm realized a profit of P60,000.
During the second year, the firm sustained a loss of P30,000. So, the net profit for the two years of operation was only
P30,000. In the Articles of Partnership, it was agreed that A, the industrial partner would get 1/3 of the profit but would not
share in the losses. How much will A, the industrial partner will get?
A. A will get only P20,000 which is 1/3 of the profit of the 1st year of operation.
B. A will get only P10,000 which is 1/3 of the net profit.
C. A will get only P20,000 in the first year and none in the second year.
D. A will share in the loss in the second year.
44. 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 books
D. Right to ask dissolution of the firm at the proper time.
45. I. Partnership with a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, and
recorded at SEC. Failure shall not affect the liability of a partnership and members thereof to third person.
II. When immovable property is contributed, an inventory of said property is needed, signed by the parties and attached to the
public instrument, otherwise the contract of partnership is void.
A. True; True B. False; False C. True; False D. False; True
46. I. Co-ownership or co-possession does not in itself establish a partnership, except when
such co-owners or co-possessors share in the profits made by the use of the property.
II. The sharing of gross returns does not of itself establish a partnership, except when the
persons sharing them have a joint or common right or interest in any property from which the
returns are derived.
A. True; True B. False; False C. True; False D. False; True
47. I. In a universal partnership of all present property, the property which belong to each of

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 the partners at the time of constitution of the partnership becomes a common fund of all
partners and all profits which they may acquire through inheritance, legacy, or donation
cannot be included in such stipulation, except the fruits thereof.
II. The universal partnership of profits comprises all that the partners may acquire by
industry or work during the existence of the partnership. Movable or immovable property which
each may possess at the time of the celebration of the contract shall continue to pertain exclusively to each, only the usufruct
passing to the partnership.
A. True; True B. False; False C. True; False D. False; True
48. I. A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the
partners.
II. When an unlawful partnership is dissolved by a judicial decree, the profits and partners’
contributions shall be confiscated in favor of the State.
A. True; True B. False; False C. True; False D. False; True
49. I. A partnership may be constituted in any form, except where immovable property or real rights are contributed thereto, in
which case a written instrument shall be necessary.
II. Every contract of partnership having a capital of three thousand pesos or more in money
or property shall appear in a public instrument which must be recorded in the office of the
SEC, otherwise the partnership is void.
A. True; True B. False; False C. True; False D. False; True
50. I. A contract of partnership is void, whenever immovable property is contributed thereto, if
an inventory of said property is not made, signed by the parties and attached to the public
instrument.
II. A universal partnership of profits is that in which the partners contribute all the
property which actually belongs to them to a common fund with the intention of dividing the
same among themselves, as well as the profits which they may acquired therewith.
A. True; True B. False; False C. True; False D. False; True

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