ABE International College of Business and Accountancy

Tacloban Campus, Tacloban City

BUSINESS LAWS AND REGULATION/ LAW ON BUSINESS ORGANIZATION

MIDTERM
MF / 2:00 – 3:00 pm

PART 1. Discussions
1. What are the characteristics of a limited partnership?
2. Give the cases when a limited partner is liable as a general partner
3. Give at least four (4) distinctions between a corporation and a partnership

PART 2. Problems. Explain or state briefly the rule or reason for your answers
1. X, a limited partner is a partnership with Y ans Z as general partners, lawfully received the return of his
contribution in the amount of 20,000, the assets of the partnership are insufficient to pay the firm’s
indebtedness to W. State the liability of X if the claim of W rose:
a. Before X received the contribution
b. After X received his contribution
2. The articles of incorporation provide that a particular class of shares shall be deprived of the right to vote.
Nevertheless, may they be still entitled to vote?
3. Two (2) years before the expiration of the corporate term of existence, the corporation applied with the
Securities and Exchange Commission for extension of said term. Under the law, can the extension be
granted?
4. Under Section 10, there must be at least five (5) incorporators in the formation of a corporation. X organized
a corporation, together with A,B,C, and D. All the shares are admittedly owned by X who register four(4)
shares in the name of A, B, C, and D. Is this a violation of the mandatory requirement of minimum number
of incorporators?

Prepared by:

Nikki V. Bucatcat, CPA

Instructor

ABE International College of Business and Accountancy

Tacloban Campus, Tacloban City

BUSINESS LAWS AND REGULATION/ LAW ON BUSINESS ORGANIZATION

MIDTERM
MF / 2:00 – 3:00 pm

PART 1. Discussions
1. What are the characteristics of a limited partnership?
2. Give the cases when a limited partner is liable as a general partner
3. Give at least four (4) distinctions between a corporation and a partnership

PART 2. Problems. Explain or state briefly the rule or reason for your answers
1. X, a limited partner is a partnership with Y ans Z as general partners, lawfully received the return of his
contribution in the amount of 20,000, the assets of the partnership are insufficient to pay the firm’s
indebtedness to W. State the liability of X if the claim of W rose:
c. Before X received the contribution
d. After X received his contribution
2. The articles of incorporation provide that a particular class of shares shall be deprived of the right to vote.
Nevertheless, may they be still entitled to vote?
3. Two (2) years before the expiration of the corporate term of existence, the corporation applied with the
Securities and Exchange Commission for extension of said term. Under the law, can the extension be
granted?
4. Under Section 10, there must be at least five (5) incorporators in the formation of a corporation. X organized
a corporation, together with A,B,C, and D. All the shares are admittedly owned by X who register four(4)
shares in the name of A, B, C, and D. Is this a violation of the mandatory requirement of minimum number
of incorporators?
Prepared by:

Nikki V. Bucatcat, CPA

Instructor