Partnership Quizzes

Quiz 1

1. Corporations and partnerships (organized for business) are also merchants from the time
they are registered with the Securities and Exchange Commission.
2. One of the qualifications of being a merchant is to be at least 21 years old.
3. One of the qualifications of being a merchant is to habitually involve themselves in
Commerce.
4. In partnership two or more persons bind themselves to contribute money, property, or
industry to a common fund with intention of dividing the profits among themselves.
5. Registration with the Securities and Exchange Commission (SEC) is necessary where the
capital of the partnership is P3, 000.00 or more.
6. Registration with the SEC is not necessary for a partnership to acquire juridical personality.
7. From Joint account in concept an arrangement whereby merchants may interest
themselves in the transaction of other merchants.
8. This is commonly called an accidental partnership; and there is no indication to the public
that there is an existing arrangement because only the ostensible partner is conducting the
business.
9. A joint account has juridical personality while a partnership has a personality separate and
distinct from the partners.
10. As to business name Commercial name is common to all participants that can be adopted
in joint accounts.
11. A joint account has no juridical personality while a partnership has a personality separate
and distinct from the partners.
12. As to management, the general partners are all managers in the partnership.
13. A joint account in a bank cannot be considered as a simple type of business organization.
14. A Business Trust is a type of business organization.
15. A sole proprietorship does not possess a juridical personality and has no legal personality
to file or defend an action in court.
16. A Business Name is any name that is different from the true name of an individual which is
used or signed in connection with her/his business.
17. A proprietor is required to register his business name other than his true name with the
Bureau of Trade Regulation and Consumer Protection of the Department of Trade and
Industry.
18. Even without registration with DTI, a sole proprietor can exhibit his business name in a
tarpaulin for public view.
19. Juridical persons need not register the names that are registered with the Securities and
Exchange Commission when they use a different name for selling their products.
20. "Sex Merchandise store" as a business name maybe allowed in the Philippines.
21. Since a business person can make delicious hamburgers very similar to or even better than
McDonalds, he can put up s sign in his store: Affordable McDonalds burgers.
22. DOLE manpower agency" can be allowed as a business name.
23. There must not be separate registration of a business name for a branch or satellite office.
24. Private individuals or single proprietors are not considered merchants under the Code of
Commerce.
25-27. What are some prohibited names for registration of business name?

25. _____________________________
26. _____________________________
27. _____________________________

Quiz 2

ANSWER BRIEFLY

1-3. Basic Requisites of Contract of Partnership

1. ______________________________
2. ______________________________
3. ______________________________

4-8. Essential Features of Contract of Partnership

4. ______________________________
5. ______________________________
6. ______________________________
7. ______________________________
8. ______________________________

9-11. Other characteristics of Partnership

9. ______________- Has specific or specified time

10. ______________- Each partner must have contribution
11. Separate and ______________ from the partners.

12-21. Classification of Partnership

As to liability: 12. ___________________ 13. __________________

As to Object: 14. ___________________ 15. __________________

Kinds of Universal Partnership 16. ___________________ 17. __________________

As to representation to Others 18. ___________________ 19. __________________

As to Duration 20. ___________________ 21. __________________

22-24. Kinds of Partners (As per kind and extent of contribution)

22. _____________________
23. _____________________
24. _____________________
25-27. How is partnership created

25. _____________________
26. _____________________
27. _____________________

28-30. Examples of Persons who cannot give consent to a contract of partnership

28. _____________________
29. _____________________
30. _____________________

Quiz 3

1. Partnership begins from the moment of the execution of the contract, unless it is otherwise
stipulated.
2. When a partnership for a fixed term or particular undertaking is continued after the
termination of such term or particular undertaking without any express agreement, the
rights and duties of the partners remain the same as they were at such termination, so far
as is consistent with a partnership at will.
3. Every partner is a debtor of t the partnership for whatever he may have promised to
contribute thereto.
4. When the capital or a part thereof which a partner is bound to contribute consists of goods,
their appraisal must be made in the manner prescribed in the contract of partnership, and
in the absence of stipulation, it shall be made by the partners, and according to current
prices.
5. For any amount a partner may have taken from the partnership coffers, his liability shall
begin from the time he converted the amount to his own use.
6. An industrial partner cannot engage in business for himself, even when the partnership
expressly permits him to do so.
7. The partners may contribute unequal shares to the capital of the partnership.
8. When an industrial partner engages in business for himself without express permission
from the partnership, the capitalist partners may avail themselves of the benefits which he
may have obtained in violation of this provision, with a right to damages
9. If there is no agreement to the contrary, in case of an imminent loss of the business of the
partnership, any partner who refuses to contribute an additional share to the capital,
including the industrial partner, to save the venture, shall he obliged to sell his interest to
the other partners
10. If a partner authorized to manage collects a demandable sum which was owed to him in his
own name, from a person who owed the partnership another sum also demandable, the
sum thus collected for the account of the partnership credit shall be fully applied to the
partnership.
11. Every partner is responsible to the partnership for damages suffered by it through his fault,
and he cannot compensate them with the profits and benefits which he may have earned
for the partnership by his industry.
12. If the things contributed are fungible, or cannot be kept without deteriorating, or if they were
contributed to be sold, the risk shall be borne by the partnership In the absence of
 stipulation, the risk of the things brought and appraised in the inventory, shall also be borne
by the partnership, and in such case the claim shall be limited to the value at which they
were appraised.
13. The partnership shall also answer to each partner for the obligations he may have
contracted in good faith in the interest of the partnership business, and for risks in
consequence of its management.
14. As for the profits, the industrial partner shall receive such share as may be just and
equitable under the circumstances. If besides his services he has contributed capital, he
shall also receive a share in the profits in proportion to his capital. The industrial partner
shall be equally liable for the losses.
15. A stipulation which excludes one or more partners from any share in the profits or losses is
voidable.
16. Partners can stipulate that their partnership shall begin from the moment the cash
contributions of partners have actually been transmitted to the partnership.
17. A continuation of the business by the partners or such of them as habitually acted therein
during the term, without any settlement or liquidation of the partnership affairs, is prima
facie evidence of a continuation of the partnership.
18. A partner is also bound for warranty in case of eviction with regard to specific and
determinate things which he may have contributed to the partnership, in the same cases
and in the same manner as the vendor is bound with respect to the vendee.
19. A partner shall also be liable for the fruits of the things he promised to deliver from the time
they should have been delivered, provided there is demand.
20. A partner who has undertaken to contribute a sum of money and fails to do so becomes a
creditor for the interest and damages from the time he should have complied with his
obligation.
21. Pale For any amount a partner may have taken from the partnership coffers, his liability
shall begin from the time he converted the amount to his own use.
22. An industrial partner cannot engage in business for himself, unless the partnership
expressly permits him to do so.
23. When an industrial partner engages in business for himself without express permission
from the partnership, the capitalist partners may exclude him from the firm with a right to
damages.
24. Unless there is a stipulation to the contrary, the partners shall contribute in equal shares to
the capital of the partnership.
25. If there is no agreement to the contrary, in case of an imminent loss of the business of the
partnership, any partner who refuses to contribute an additional share to the capital, except
an industrial partner, to save the venture, shall he obliged to sell his interest to the other
partners.
26. If a partner authorized to manage collects a demandable sum which was owed to him in his
own name, from a person who owed the partnership another sum also demandable, the
sum thus collected shall be applied to the two credits in proportion to their amounts, even
though he may have given a receipt for his own credit only.
27. A partner who has received, in whole or in part, his share of a partnership credit, when the
other partners have not collected theirs, shall be obliged, if the debtor should thereafter
become insolvent, to bring to the partnership capital what he received even though he may
have given receipt for his share only.
28. The risk of indeterminate things, which are not fungible, contributed to the partnership so
that only their use and fruits may be for the common benefit, shall be borne by the partner
who owns them.
29. The partnership shall be responsible to every partner for the amounts he may have
disbursed on behalf of the partnership and for the corresponding interest, from the time the
expense are made.
30. The losses and profits shall be distributed in conformity with the agreement. If only the
share of each partner in the profits has been agreed upon, the share of each in the losses
shall be in the same proportion. In the absence of stipulation, the share of each partner,
except the industrial partner, in the profits and losses shall be in equal shares.
31. A partnership begins from the moment of the execution of the contract, unless it is
otherwise stipulated.
32. When a partnership for a fixed term or particular undertaking is continued after the
termination of such term or particular undertaking without any express agreement, the
rights and duties of the partners remain the same as they were at such termination, so far
as is consistent with a partnership at will.
33. A continuation of the business by the partners or such of them as habitually acted therein
during the term, without any settlement or liquidation of the partnership affairs, is prima
facie evidence of a continuation of the partnership.
34. Every partner is a debtor of the partnership for whatever he may have promised to
contribute thereto.
35. Every partner shall also be bound for warranty in case of eviction with regard to specific
and determinate things which he may have contributed to the partnership, in the same
cases and in the same manner as the vendor is bound with respect to the vendee.
36. A partner who has undertaken to contribute a sum of money and fails to do so becomes a
debtor for the interest and damages from the time he should have complied with his
obligation.
37. An industrial partner cannot engage in business for himself, unless the partnership
expressly permits him to do so.
38. Unless there is a stipulation to the contrary, the partners shall contribute equal shares to
the capital of the partnership.
39. If there is no agreement to the contrary, in case of an imminent loss of the business of the
partnership, any partner who refuses to contribute an additional share to the capital,
including an industrial partner, to save the venture, shall be obliged to sell his interest to
other partners.
40. If a partner authorized to manage collects a demandable sum which was owed to him in his
own name, from a person who owed the partnership another sum also demandable, the
sum thus collected shall be applied to the two credits in proportion to their amounts.
41. The risk of specific and determinate things, which are not fungible, contributed to the
partnership so that only their use and fruits may be for the common benefit, shall be borne
by the partnership.
42. If the things contributed are fungible, or cannot be kept without deteriorating, or if they were
contributed to be sold, the risk shall be borne by the partner who owns them.
43. The losses and profits shall be distributed in conformity with the amount of efforts exerted
by each partner.
44. The industrial partner shall be liable for the losses.
45. The designation of losses and profits can be entrusted to one of the partners.

46-50. List down 5 obligations of partners among themselves.

46. ______________________________
47. ______________________________
48. ______________________________
49. ______________________________
50. ______________________________

Quiz 4 (Online)

A. Briefly answer/enumerate the answers in the questions below.

1-3. What are the principal property rights of a partner?

1. ______________________________
2. ______________________________
3. ______________________________

4-8. What are the Related property rights of a partner?

4. ______________________________
5. ______________________________
6. ______________________________
7. ______________________________
8. ______________________________

9-10. What comprises the partner's interest in the partnership?

9. ______________________________
10. ______________________________

11 – 13. What are the rights withheld from the Assignee in case of assignment of a partner’s
whole interest in the partnership? Answer: The rights to -
11. ____________________________
12. ____________________________
13. ____________________________

B. WRITE TRUE OR FALSE

14. A conveyance by a partner of his whole interest in the partnership does not itself dissolve
the partnership, or, as against the other partners in the absence of agreement.
15. A partner may contribute to the partnership only the use or enjoyment or property,
reserving the ownership thereof.
16. A partner's right in specific partnership property is not subject to legal support.
17. Ordinarily, a partner has equal right to possess any specific partnership property, including
intangible thing, for partnership purposes.
18. A partner's right in specific partnership property is not assignable except in connection with
the assignment of rights of all the partners in the same property.
19. A partner is a co-owner with his partners of specific partnership property.
20. Any partner may enter into a separate obligation to perform a partnership contract.
21. Persons who are not really members of the partnership, but included their names, shall be
subject to the liability of the partner.

Quiz 5 (Online)

A. Briefly answer/enumerate the answers in the questions below.

1 – 6. Except when authorized by other partners or others have abandoned the business, one
or more but less than all partners have no authority to do certain acts. Name six 6 (out of 7) of
these acts.

1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
5. ______________________________
6. ______________________________

7 – 10. The real property of the partnership may be registered or owned in the name of:

7. ______________________________
8. ______________________________
9. ______________________________
10. ______________________________

11-13. What are the three (3) groups of acts of partners in Article 1818 as to the liability of
partnership for acts of partners?

11. ______________________________
12. ______________________________
13. ______________________________

14-16. What are the three (3) cases when notice to a partner are considered as knowledge or
notice on the part of partnership?
14. ______________________________
15. ______________________________
16. ______________________________

17-23 Art. 1818 - One or more but less than all the partners have no authority to:
17. ______________________________
18. ______________________________
19. ______________________________
20. ______________________________
21. ______________________________
22. ______________________________
23. ______________________________

24-25. What are the two requisites in order that the partnership will not be liable for the act of a
partner?
24. ______________________________
25. ______________________________

B. TRUE OR FALSE

26. A firm name is necessary to distinguish the partnership which has a distinct and separate
juridical personality.
27. A partnership cannot continue to use in its firm name the names of deceased partners,
unless the firm indicates in all its communications that said partner is deceased.
28. Persons who, not being partners, include their names in the firm name do not acquire the
rights of a partner, but subject to liability of a partner insofar as 3rd persons without notice
are concerned.
29. Admissions by a party as testified to by a 3rd person are not admissible in evidence against
him in litigation.
30. As a general rule, the particular partner who undertakes to bind his co-partners by a
contract without authority is not personally liable on such contract.
31. An admission or representation made by any partner concerning partnership affairs within
the scope of his authority in accordance with law is evidence against the partnership.
32. As a general rule, notice to any partner of any matter relating to partnership affairs, and the
knowledge of the partner acting in the particular matter, acquired while a partner or then
present to his mind, and the knowledge of any other partner who reasonably could and
should have communicated it to the acting partner, operate as notice to or knowledge of
the partnership.
33. The creditors of the partner shall be preferred to that of the partnership as regards the
partnership property.
34. Where, by any wrongful act or omission of any partner acting with the authority of his co-
partners, loss or injury is caused to any person, not being a partner in the partnership, the
partner who acted or committed it is liable not the partnership.
35. All partners are liable jointly with the partnership for everything chargeable to the
partnership.
36. The partner is bound to make good the loss where the partnership in the course of its
business receives money or property of a third person and said money or property was
misapplied by any partner while it is in the custody of the partnership.
37. When a person, by words or by conduct, represents himself as a partner in an existing
partnership, he is liable to such persons to whom he made such representation who
believed on such representation as though he was actual partnership member when
partnership liability results.
38. A person admitted as a partner into an existing partnership is liable for all the obligations of
the partnership arising before his admission as though he had been a partner when such
obligations were incurred, to be satisfied only out of partnership property, unless there is a
stipulation to the contrary.
39. As a general rule, notice to any partner of any matter relating to partnership affairs, and the
knowledge of the partner acting in the particular matter, acquired while a partner or then
present to his mind, and the knowledge of any other partner who reasonably could and
should have communicated it to the acting partner, operate as notice to or knowledge of
the partnership.
40. The creditors of the partner shall be preferred to that of the partnership as regards the
partnership property.
41. Where, by any wrongful act or omission of any partner acting with the authority of his co-
partners, loss or injury is caused to any person, not being a partner in the partnership, the
partner who acted or committed it is liable not the partnership.
42. All partners are liable jointly with the partnership for everything chargeable to the
partnership.
43. Partners are principals to the other partners and agents for them and the partnership.
44. All partners shall be liable “pro rata” with all their property after the partnership assets are
exhausted for unpaid partnership debts. “Pro rata” shall be understood to mean
proportionately based on the amount of their contribution.
45. The personal liability of partners for unpaid partnership debts is subsidiary or secondary in
nature.
46. Third parsons are bound, in entering into contract with one of the partners, to ascertain
whether or not the partner with whom the transaction is made has the consent of the other
partners.
47. The apparent scope of the partner’s authority is the whole scope of the partnership
customary business.
48. After dissolution, admission made by a partners will bind the partnership only if necessary
to wind up partnership affairs.

Quiz 6 (Online)

1. After dissolution, a partner can bind the partnership. By any act appropriate for winding up
partnership affairs or completing transactions unfinished at dissolution.
2. The law allows newspaper notification regarding the dissolution of partnership is allowed as
giving proper notice.
3. The dissolution of the partnership does not of itself discharge the existing liability of any
partner.
4. The individual creditors of the deceased partners are to be preferred over partnership
creditors with respect to the separate property of the said deceased.
5. The right to an account of his interest shall accrue to any partner, or his legal
representative as against the winding up partners or the surviving partners or the person or
partnership continuing the business, at the end date of winding up, in the absence of any
agreement to the contrary.
6. When partnership property and the individual properties of the partners are in possession
of a court for distribution, partnership creditors shall have priority on partnership property
and separate creditors on individual property, saving the rights of lien or secured creditors.
7. In settling accounts, except if agreed otherwise, the assets of the partnership include the
partnership property and contributions of the partners necessary to pay all liabilities, but
excluding goodwill.
8. The top priority in application or payment out of partnership assets is the share of the
profits, if any, due to each partner.
9. The individual property of a deceased partner shall be liable for his share of the
contributions necessary to pay partnership debts incurred while he was a partner.
10. Where a partnership contract is rescinded on the ground of the fraud or misrepresentation,
the injured partner is entitled to a lien on, or right of retention of, the surplus of the
partnership property after satisfying the partnership liabilities to third persons for any sum
of money paid by him for or advances contributed by him.
11. When any partner retires or dies, and the business is without settlement of accounts, he or
his legal representative as against the partnership the value of his interest ascertained at
the date of dissolution.
12. When a partner is expelled and the remaining partners continue the business either alone
or with others without liquidation of partnership affairs, creditors of the dissolved
partnership are also creditors of the person or partnership continuing the business.
13. The guilty partner (who contravened the partnership agreement) is entitled to his share of
the appraised value of the business less the damages due to innocent partners.
14. The partner who wrongfully caused the dissolution, shall not be released from existing and
future liabilities of the partnership, if the business is continued.
15. A mailed letter to a former dealer to inform of a partner’s retirement from the partnership is
sufficient notice to relieve the retiring partner from subsequent liability, even when the mail
was not received.
16. The partnership is bound by any act of a partner after dissolution where the partner has
become insolvent.
17. Notice of Dissolution to partnership creditors through advertisement to local newspaper is
not sufficient notice. Actual notification is necessary.

Quiz7

1. A limited partnership is one formed by two or more persons, having as members one or
more general partners and one or more limited partners.
2. Two or more persons desiring to form a limited partnership shall; among other
requirements. sign and swear to a certificate, which shall state the name of the partnership,
with the word "Limited.”
3. The contributions of a limited partner may be cash or property, but not services.
4. The surname of a limited partner shall not appear in the partnership name unless it is also
the surname of a general partner, or before creation of limited partnership, the business
has a name in which his surname appeared.
5. General rule: A limited partner whose surname appears in a partnership name is liable as a
general partner to partnership creditors who extend credit to the partnership without actual
knowledge that he is not a general partner.
6. A limited partner shall become liable as a general partner when he exercise of his rights
and powers as a limited partner.
7. After the formation of a limited partnership, additional limited partners may not be admitted
into the partnership.
8. A general partner shall have all the rights and powers and be subject to all the restrictions
and liabilities of a partner in a partnership without limited partners.
9. Without the written consent or ratification of the specific act by all the limited partners, a
general partner or all of the general partners have no authority to Confess a judgment
against the partnership.
10. General rule: A general partner may possess partnership property, or assign their rights in
specific partnership property, for other than a partnership purpose.
11. A person may be a general partner and a limited partner in the same partnership at the
same time, provided that this fact shall be stated in their certificate.
12. A person who is a general and at the same time a limited partner, shall have all the rights
and powers and be subject to all the restrictions of a general partner without exception.
13. A limited partner may loan money to and transact other business with the partnership, and
receive on account of resulting claims against the partnership, with general creditors, a pro
rata shares of the asset.
14. Where there are several limited partners, the members may not that one or more of the
limited partners shall have a priority over other limited partners as to the return of their
contributions, as to their compensation by way of income, or as to any other matter.
15. General rule: A limited partner may not receive from the partnership the share of the profits
or the compensation by way of income stipulated for in the certificate

16-20. (5 out of 12) Difference between General Partnership and Limited Partnership.

16. _____________________________
17. _____________________________
18. _____________________________
19. _____________________________
20. _____________________________
 Partnership Quizzes Answer Key

QUIZ 1
14. T
1. T 15. T
2. F, 18 years old 16. T
3. T 17. T
4. T 18. F, cannot exhibit
5. T 19. F,
6. T 20. F
7. T 21. F
8. T 22. F
9. F, no juridical personality 23. F, must be
10. F, no commercial name 24. F, considered
11. T 25. Identical
12. T 26. Generic
13. F, can 27. Deceptive

Quiz 2

1. Consensual 15. Particular Partnership

2. Object must be lawful 16. Universal Partnership of all Present
3. Intention to divide profits among Property
partners 17. Universal Partnership of all Profit
4. There must be a valid contract 18. Ordinary/Regular Partnership
5. The object must be lawful 19. Partnership by Estoppel
6. There must be a mutual contribution of 20. Partnership at fixed period of time
money, property, or industry to a 21. Partnership at will
common fund. 22. Industrial Partner
7. Parties must have a legal capacity to 23. Capitalist Partner
enter a contract 24. Capitalist-Industrial Partner
8. Primary purpose must be to obtain profit 25. Created Orally
and divide among partners. 26. Created in Public Instrument
9. Nominate 27. Registered in SEC
10. Onerous 28. Deaf-mute person who does not know to
11. Distinct read or write
12. General Partnership 29. Unemancipated minor
13. Limited Partnership 30. Insane or Demented person
14. Universal Partnership
Quiz 3

1. True 26. True

2. True 27. True
3. True 28. False, replaceable
4. False 29. True
5. True 30. False, proportion to contribution
6. True 31. True
7. False 32. True
8. False 33. True
9. False 34. True
10. True 35. True
11. True 36. True
12. True 37. True
13. True 38. True
14. False 39. False
15. False 40. True
16. True 41. False, Article 1795
17. True 42. False, Article 1796
18. True 43. False
19. False, no demand 44. False
20. False, debtor 45. False
21. True 46. Contribute sum of money
22. True 47. Property/Deliver Fruits
23. True 48. Warrant
24. True 49. Share it losses and profits
25. True 50. Indemnify to the partners for damage
Quiz 4

1. His rights in specific partnership 8. The right to have the partnership

property. dissolved also under one condition.
2. His interest in the partnership. 9. Surplus
3. His right to participate in the 10. Profit
management. 11. To interfere in the management.
4. The right to reimbursement for 12. To require any information or account.
amounts advanced to the partnership 13. To inspect any of the partnership
and to indemnification for risks in books.
consequence of management. 14. True
5. The right of access and inspection of 15. True
partnership books. 16. True
6. The right to true and full information of 17. False
all things affecting the partnership. 18. True
7. The right to a formal account of 19. True
partnership affairs under certain 20. True
circumstances. 21. True
Quiz 5

1. Assign the partnership property in trust 19. Do any other act which would make it
for creditors or on the assignee’s impossible to carry on the ordinary
promise to pay the debts of the business of a partnership.
partnership. 20. Confess a judgment.
2. Dispose of the goodwill of the business. 21. Enter into a compromise concerning a
3. Do any other act which would make it partnership claim or liability.
impossible to carry on the ordinary 22. Submit a partnership claim or liability to
business of a partnership. arbitration:
4. Confess a judgement. 23. Renounce a claim of the partnership.
5. Enter into a compromise concerning a 24. Partner acting has no authority
partnership claim or liability. 25. Third person knows partner has no
6. Submit a partnership claim or liability to authority.
arbitration. 26. True
7. The partnership. 27. True
8. One or more but not all the partners. 28. True
9. One or more or all the partners, or in a 29. False
third person in trust for the partnership. 30. False
10. All the partner. 31. True
11. Acts for apparently carrying on in the 32. True
usual way the business of the 33. False
partnership. 34. False
12. Acts of strict dominion or ownership. 35. False
13. Acts in contravention of a restriction on 36. False
authority. 37. True
14. Knowledge of the partner acting in 38. False
particular matter acquired. 39. True
15. Knowledge of the partner acting in the 40. False
particular then present to his mind. 41. False
16. Knowledge of any partner who 42. False
reasonably could and should have 43. True
communicated it to the acting partner. 44. False, should be equally or jointly
17. Assign the partnership property in trust 45. True
for creditors or on the assignee's 46. False, not bound
promise to pay the debts of the 47. True
partnership. 48. True
18. Dispose of the good-will of the business.
Quiz 6

1. True
2. True
3. True
4. True
5. False
6. False/True
7. False
8. False
9. True
10. True
11. True
12. True
13. True
14. False
15. False
16. False
17. False

Quiz 7

1. True
2. True
3. True
4. True
5. True
6. False
7. False
8. True
9. True
10. False
11. True
12. False
13. False
14. False
15. False