Multiple Choice. a.

X
1. A partnership can be dissolved extrajudicially, except: b. Y
a. Death of a partner c. Z
b. Insolvency of any partner or of the partnership d. X and Y
c. Partnership business can only be carried on at a loss.
d. Partnership business has become unlawful. 9. After operating some time as a limited partnership, ABCDE,
Ltd., composed of A, B, and C, as general partners, who
2. The following are authorized to wind up, except: contributed P30,000.00 each, and D and E, as limited partners,
a. The partners designated by the agreement. who contributed P20,000.00 each, has a total assets of
b. All the partners who have not wrongfully dissolved the P150,000.00 and P100,000.00 liabilities to third person. How
partnership. should the accounts be settled after dissolution?
c. The legal representative of the last surviving partner.
d. The legal representative of an insolvent partner. a. A - P10,000.00; B - P10,000.00; C - P10,000.00; D -
P10,000.00; E - P10,000.00.
3. A is a partner in a law firm. Later on, A is appointed Judge of b. A- P3,333.33; B- P3,333.33; C- P3,333.33; D- P20,000.00; E -
the Regional Trial Court in Bacolod City. Under the law, a Judge P20,000.00.
is prohibited from engaging in the practice of law. What will c. A - P0; B- P0; C-P0; D- P20,000.00; E - P20,000.00.
happen to the partnership? d. A - P0; B- P0; C-P0; D- P25,000.00; E - P25,000.00.
a. The partnership will be dissolved because the term of the
agreement has expired. True or False.
b. The partnership will be dissolved because it will be unlawful
for the partnership to continue its business. 10. Dissolution of the partnership discharges the existing liability
c. The partnership will continue to exist provided that A will of any partner.
request that he be granted a limited practice of profession
from the Supreme Court. 11. The purchaser of a partner’s interest may apply for dissolution
d. The partnership will continue to exist because it is the choice in court after the termination of the specific term or particular
of A not to withdraw from the partnership. undertaking.
4. Where a partnership contract is rescinded on the ground of 12. If the specific thing to be contributed by a partner is lost
fraud or misrepresentation of one of parties thereto, the party before delivery, the partnership is dissolved.
entitled to rescind is entitled to, except:
a. Right of lien or right of retention. 13. The loss of a specific thing before or after delivery where only
b. Right of first refusal. the use or enjoyment is contributed will not dissolve the
c. Right of subrogation. partnership.
d. Right of indemnification.
14. To validly cite insanity as a ground for dissolution, the partner
5. A decree by the court is necessary to dissolve a general must have been previously declared insane in a judicial
partnership based on three of the following grounds. Which one proceedings.
will not require such decree but will cause the automatic
dissolution of the partnership? 15. A partner who has not caused the dissolution wrongfully has
the right to continue the business in the same name during the
a. The business of the partnership can only be carried on at a agreed term of the partnership, by themselves or jointly with
loss. others.
b. A partner is incapable of performing his part.
c. A partner has been guilty of such conduct as tends to affect 16. The contributions of a limited partner may be in cash,
prejudicially the carrying on of the business. property or industry.
d. A partner is civilly interdicted.
17. Without the written consent of all the limited partners, a
6. What is the order of payment of liabilities of a dissolved general partner have no authority to admit a person as a general
general partnership using the code number representing each partner.
liability?
I. Those owing to partners other than for capital or for profits. 18. A limited partner may petition in court for dissolution of
II. Those owing to creditors other than partners. partnership when his demand for the return of his contribution is
III. Those owing to partners in respect of profits. denied although he has a right to such return.
IV. Those owing to partners in respect of capital.
Identification.
a. I, II, III, IV.
b. II, I, IV, III. 19. Refers to the process of settling the business or affairs of the
c. II, I, III, IV. partnership after dissolution. Winding Up
d. I, II, IV, III.
20. The point when all partnership affairs are wound up.
7. What is the order of payment of liabilities of a dissolved limited
partnership using the code number representing each liability? Termination
I. Those owing to general partners other than for capital or
profits.
II. Those owing to creditors including limited partners, except
those to limited partners on account of their contributions
and general partners.
III. Those owing to limited partners by way of their share in the
profits and other compensation by way of income.
IV. Those owing to limited partners in respect to the capital of
their contributions.
V. Those owing to general partners in respect of capital.
VI. Those owing to general partners in respect of profits.

a. I, II, III, IV, V, VI.

8. In a limited partnership composed of X, Y, Z, the contributions