SEAT NO.

______
BLAW 2
MIDTERMS (SET B)

NAME: STUDENT NO.:

Encircle the best answer. Erasures are not allowed.

1. A partnership is a:
a. Entity distinct and apart from its members
b. Legal relation
c. Organization
d. All of the above
2. The primary purpose of partnership is:
a. Make money
b. Association of partners
c. Create business
d. Obtain profits
3. In determining whether a partnership exists, these rules shall apply except:
a. Persons who are not partners as to each other are not partners as to third persons
b. Parties may call themselves partners, but their contract may be adjudged something different.
c. Co-ownership or co-possession does not of itself establish a partnership, whether such-co- owners or co-possessors do or do not
share any profits made by the use of the property
d. The sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or
common right or interest in any property from which the returns are derived;
4. Partnership is created for pecuniary profit, as compared to this organization which requires no contribution but may collect fees
a. Agency
b. Association
c. Corporation
d. Conjugal partnership
5. The purpose of partnership is to obtain profits, while in this organization the purpose is to regulate property relations during marriage
a. Agency
b. Association
c. Corporation
d. Conjugal partnership
6. What is the effect of not recording of the contract of partnership in the Securities and Exchange Commission?
a. No license to engage in business and trade will be issued
b. No taxes will be imposed
c. No liability to third person
d. All of the above
7. A kind of Partnership consisting of general partners who are liable pro rata and subsidiarily liable with their separate property for
partnership debts.
a. Universal Partnership
b. Particular Partnership
c. General Partnership
d. Limited Partnership
8. A kind of partnership which actually exist among the partners and also as to third person
a. Ostensible Partnership
b. Ordinary Partnership
c. Secret Partnership
d. Open Partnership
9. A partner who takes charge of the winding up of partnership affairs upon dissolution
a. Managing Partner
b. Liquidating Partner
c. Partner by Estoppel
d. Dominant Partner
10. A Partner who, not being a member of the partnership, contracts with a partner with reference to the latters share in the partnership
a. Continuing Partner
b. Surviving Partner
c. Partner by Estoppel
d. Sub-partner
11. One of the elements of partnership is Commutative which means:
a. Benefit by giving something
b. Undertaking of each partner is considered as equivalent of the others
c. Special name or designation
d. Does not depend on its existence on other contracts
12. The following are Individuals without legal capacity, except:
a. Married woman
b. Insane or Demented
c. Deaf Mutes who do not know how to read and write
d. Incompetents under guardianship
13. The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but no such
inference shall be drawn if such profits were
a. Received in payment as a debt by installments or otherwise
b. As wages of an employee or rent to a landlord
c. Payment to a widow or representative of a deceased partner
d. All of the above
14. In partnership, the management belongs to every partner while in this organization administration belongs to spouses only
a. Agency
b. Association
c. Corporation
d. Conjugal partnership
15. Which of the following is not an effect of unlawful partnership
a. The contract is void ab initio and the partnership never existed in the eyes of the law
b. Profits shall be confiscated in favor of the government
c. The instruments or tools and proceeds of the crime shall be forfeited in favor of the government
d. The partners will be put to jail
16. Whenever immovable property is contributed, what must be attached to the public instrument in order to make the partnership valid?
a. Notary
b. Contract
c. License
d. Inventory
17. A kind of Partnership which has for its object determinate things, their use or fruits or specific undertaking, or the exercise of a profession
or vocation
a. Universal Partnership
b. Particular Partnership
c. General Partnership
d. Limited Partnership
18. A kind of partnership whose existence is avowed or made known to the public by the members of the firm
a. Ostensible Partnership
b. Ordinary Partnership
c. Secret Partnership
d. Open Partnership
19. A partner who is not really a partner, not being a party to a partnership agreement but is liable as partner for the protection of innocent
third parties
a. Continuing Partner
b. Surviving Partner
c. Partner by Estoppel
d. Sub-partner
20. A partner who does not take active part in the business and is not known or held out as a partner
a. Managing Partner
b. Ostensible Partner
c. Industrial Partner
d. Dormant Partner
21. By the contract of partnership, two or more persons bind themselves to contribute money, property or industry to a common fund with the
intention of:
a. Working together for business purpose
b. Starting a business between partners
c. Dividing the profits and losses among themselves
d. Employing partners for skills
22. One of the elements of partnership is Onerous which means:
a. Benefit by giving something
b. Undertaking of each partner is considered as equivalent of the others
c. Special name or designation
d. Does not depend on its existence on other contracts.
23. If the object is unlawful, contract is:
a. Inexistent
b. Contrary to law
c. Contrary to public order
d. Outside the commerce of men
24. Which of the following is not an incident of partnership:
a. There is fiduciary relationship
b. Every partner is an agent of the partnership
c. All partners, regardless of kind are liable for partnership debts
d. Equal rights in management
25. A partnership is created by agreement of parties while this agency the creation must be by operation of law
a. Agency
b. Association
c. Corporation
d. Conjugal partnership
26. A partnership may be constituted in any form, except:
a. When there is monetary contribution
b. When there is capital contribution
c. When there is real property contributed
d. When there is personal property contributed
27. A kind of Partnership which comprises all that the partners may acquire by their industry or work during the existence of the partnership
a. Universal Partnership
b. Universal Partnership of Profits
c. Particular Partnership
d. Universal Partnership of Profits
28. A kind of Partnership one in which no time is specified and is not formed for a particular undertaking or venture and which may be
terminated at anytime by mutual agreement of the partners or by will of any one partner alone or one for a fixed term or particular undertaking
which is continued by the partners after the termination of such term or particular undertaking without express agreement
a. Partnership at will
b. Partnership with a fixed term
c. De Jure Partnership
d. De Facto Partnership
29. A kind of partner who contributes only his industry or personal service
a. Capitalist partner
b. Industrial partner
c. General Partner
d. Limited Partner
30. A partner who remains after a partnership has been dissolved by the death of any of the partner
a. Continuing Partner
b. Surviving Partner
c. Partner by Estoppel
d. Sub-partner
31. A partnership is a:
e. Entity distinct and apart from its members
f. Legal relation
g. Organization
h. All of the above
32. In partnership, the parties must have:
a. Monetary contribution;
b. Special skills
c. Legal capacity to enter into contract;
d. Knowledge of the business
33. A partnership duly formed under the law is a juridical person to which the law grants:
a. A personality separate and distinct
b. Capacity to sue and be sued
c. Acquire and possess property
d. All of the above
34. In partnership, the profits must be derived from the operation of a business or undertaking and not merely from property ownership, while
in co-ownership, the purpose is:
a. Common enjoyment of a thing
b. Implied creation of a contract
c. Application of inheritance
d. All of the above
35. The commencement of juridical personality in partnership is from the execution of the contract, while in this organization the
commencement thereof is from the date of the issuance of the certificate of incorporation from SEC
a. Agency
b. Association
c. Corporation
d. Conjugal partnership
36. This act makes any document public
a. Act of registration
b. Issuance of certificate
c. Notarization of the agreement
d. Signing of the articles of partnership
37. Associations and societies, whose articles are kept secret among the members are considered as:
a. Silent Partnership
b. Corporation
c. Co-ownership
d. Secret Partnership
38. A kind of Partnership which has complied with all the legal requirements for its establishment
a Partnership at will
b Partnership with a fixed term
c De Jure Partnership
d De Facto Partnership
39. A kind of Partner whose liability to third person extends to his separate property
a. Capitalist partner
b. Industrial partner
c. General Partner
d. Limited Partner
40. A Partner who takes active part and is known to the public as a partner in the business, whether or not he has actual interest in the firm
a. Managing Partner
b. Ostensible Partner
c. Industrial Partner
d. Dormant Partner

II. Write TRUE or FALSE for the following statements:

______________1. Two or more person may also form a partnership for the exercise of a profession
______________2. There is no such thing as partnership created by law or operation of law alone
______________3. Not every partner is an agent of the partnership
______________4. Sharing of profits and losses is a strong presumptive evidence of a partnership
______________5. An inventory is not required whenever immovable property is contributed
_______________6. Articles of partnership must not be kept secret among the members otherwise there is no legal personality
______________7. There is a prohibition against a partnership being a partner with another partnership
______________8. Existence of partnership is always presumed
______________9. A judicial decree is not necessary to dissolve an unlawful partnership
______________10. Persons prohibited by law to give donations cannot enter into a universal partnership

Today's Verse
You shall call, and the Lord will answer. -Isaiah 58.9