Partnership Flashcards
Which of the following cannot be the composition of partners in XYZ Partnership (each choice is an independent scenario)?
a. X & Y (general partners), and Z (limited partner) each contributed P50,000 cash
b. X (limited partner) contributed P60,000 cash, while Y and Z (general partners) each contributed their services
c. X and Z (general partners) contributed a total of P100,000 cash while Y (limited partner) contributed services
d. Y and Z (general partners) contributed services and P50,000 cash respectively, while X (limited partner) contributed P50,000 cash.
c.
Limited partner cannot contribute services
J & K orally agreed to form a partnership 2 years from today, each one to contribute P20,000. Two years later, K did not want to proceed from the agreement. Can J enforce the agreement?
a. Yes, since this agreement was voluntarily made
b. No, because the agreement was made orally
c. Yes, but since it is to be enforced after 1 year from making thereof, it should be in writing to be enforceable.
d. None of the choices.
b.
Emma, Fred, and Janine are Partners in EFJ Partnership. Erica represented herself as a partner to Enzo who, believing that she was a partner, granted a loan of P250,000 to EFJ.
If only Emma and Janine consented to such represented, who shall be liable to Enzo?
a. All partners
b. Erica, Emma, Janine
c. All partners and Erica
d. Only Erica
b.
Erica, Emma, and Janine here are regarded as partners by estoppel and are liable pro-rata to Enzo.
Which of the following can be a cause for involuntary dissolution of a partnership?
a. Expulsion of any partner
b. Termination of the term of the partnership
c. Insolvency of any partner
d. Express will of any partner
c.
W and X, both of which are CPAs, are a married couple. One day, the two decided to form a partnership where their activities involve practicing their professions as CPAs. Is this allowed?
Yes. A couple can form a general PROFESSIONAL partnership.
W and X, both of which are CPAs, are a married couple. One day, the two decided to form a partnership where their activities involve selling merchandise. Is this allowed?
No. A married couple can’t form a general partnership.
Which of the following are not disqualified to form a universal partnership?
a. L and B, guilty of adultery and concubinage
b. K and M, siblings
c. Q and R, husband and wife, respectively
d. None of the choices
b.
E, F, and G are partners in EFG Partnership, a limited partnership. E and F are limited partners, while G is the general partner. If, on 2023, E and G got married, will the partnership be dissolved?
No.
The following partnerships are deemed unlawful. Which is the exception?
a. One that is formed to create cartel for monopolies
b. One formed for smuggling of illegal drugs
c. One formed for purpose of buying public lands
d. One formed to furnish apartment houses to be used as venue for illegal gambling
a.
ABC Partnership, which comprises of 3 capitalist partners and 1 industrial partner, suffered business losses for 2023. It is indebted to N for the amount of P200,000.
If the partnership has total assets amounting to P150,000, how can N recover the remaining P50,000?
a. From partnership: P150,000; From 3 capitalist partners, P50,000
b. From partnership: P150,000; Balance of P50,000 can be collected from any partner solidarily
c. From partnership: P150,000; Remaining P50,000 to be recorded as N’s loss
d. From partnership: P150,000; Balance of P50,000, from the 3 capitalist partners and 1 industrial partner jointly
d.
A contract whereby 2 or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves, or in order to exercise a profession.
Partnership
This characteristic of a partnership means that it is entered into between two or more persons.
a. Unilateral
b. Polynomial
c. Multilateral
d. Either option a or c
c.
A contract of partnership is ________________, meaning that after it has been entered into, it can carry out other contracts which are essential.
a. Preparatory
b. Remuneratory
c. Principal
d. None of the choices
a.
A, B, and C share in the usage property of the latter, and do not share profits among themselves from the said property. Does A, B, and C constitute a partnership?
No. There is no partnership when it involves co-ownership or co-possession of itself.
LKJ Partnership is a professional partnership rendering engineering services. M, an employee, received wages from the partnership. Is M considered a partner?
No. The general presumption that receipt by a person of a share of partnership profits is deemed a partner in the partnership does not apply here.
