Chapter 1

Question 1

Defined as a contract whereby two or more persons bind themselves to contribute money, property or industry to a common fund with the intention of dividing the profits among themselves (Article 1767 of the Partnership Law).

Answer 1

Partnership

Question 2

Owners of partnership

Answer 2

Partners

Question 3

A written agreement which will govern the formation, operation and dissolution of the partnership

Answer 3

Articles of Co-Partnership

Question 4

Articles of Co-Partnership is required by what government agency?

Answer 4

SEC (Securities and Exchange Commission)

Question 5

simplest form of business organization

Answer 5

Sole Proprietorship

Question 6

Sole proprietorship is formed and owned by only one person called ____

Answer 6

Proprietor

Question 7

an artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence

Answer 7

Corporation

Question 8

A corporation with a single stockholder

Answer 8

One person corporation (OPC)

Question 9

In the partnership, there are two or more partners and each of them may act as an agent of the partnership for the operation of its business.

Answer 9

Mutual Agency

Question 10

Any person of legal age can be a partner of a partnership.
He is willing to be associated in the partnership. No one can be forced against his will to become a partner in a partnership.

Answer 10

Voluntary association

Question 11

Their agreement whether oral or in writing becomes a contract that binds them. It is preferred that the contract must be in writing to be enforceable.

Answer 11

Based on Contract

Question 12

They are exempted from income tax. It is a partnership formed by professionals engaging in the same profession or line of service.

Answer 12

General Professional Partnerships

Question 13

one which the main activity is buying and selling of goods or manufacturing of goods.

Answer 13

Trading Partnership

Question 14

one which is organized for a specific purpose or project or for rendering services.

Answer 14

Non Trading Partnership

Question 15

a partnership wherein all of the partners are general partners. They are all personally liable for the debts of the partnership.

Answer 15

General Partnership

Question 16

a partnership formed by one or more general partners with one or more limited partners.

Answer 16

Limited Partnership

Question 17

one which has for its object determinate things, their use or fruits, or a specific undertaking, or exercise of a profession or vocation.

Answer 17

Particular Partnership

Question 18

one which has no time specified and may be terminated at anytime by the will of either one or all of the partners or by mutual agreement of the partners.

Answer 18

Partnership at will

Question 19

one which the term or period of existence of the partnership is specified.

Answer 19

Partnership with a fixed term

Question 20

one which is in reality existing among the partners as
well as to the third parties.

Answer 20

Ordinary Partnership

Question 21

one which is in reality not a partnership but considered as a partnership only in relation to those who by their conduct or omission are precluded to deny or disapprove its existence.

Answer 21

Partnership by Estoppel

Question 22

one which has not complied with all the legal
requirements for its existence.

Answer 22

De Facto Partnership

Question 23

one which has complied with all the legal requirements

Answer 23

De Jure Partnership

Question 24

one wherein the existence of certain partners is not made
known to the public by any of the partners.

Answer 24

Secret Partnership

Question 25

one whose existence is made known to the public by the partners of the firm

Answer 25

Open Partnership

Question 26

perfected by mere consent, that is, upon the express or implied agreement of two or more persons

Answer 26

Consensual

Question 27

it has a special name or designation in our law

Answer 27

Nominate

Question 28

it is entered into by two or more persons and the rights and obligations arising there from are always reciprocal

Answer 28

Bilateral

Question 29

each of the parties aspires to procure for himself a benefit through the giving of something

Answer 29

Onerous

Question 30

the undertaking of each of the partner is considered as the equivalent of that of the others.

Answer 30

Commutative

Question 31

does not depend for its existence or validity upon some other contract. It can stand alone.

Answer 31

Principal

Question 32

it is entered into as a means to an end.

Answer 32

Preparatory

Question 33

It is the one who assumes unlimited liability. He is liable for the debts of the partnership up to the extent of his personal assets.

Answer 33

General partner

Question 34

is the one whose liability for the debts of the partnership is only up to the extent of his interest in the partnership. His liability is limited.

Answer 34

Limited partner

Question 35

the one whose contributions to the partnership are in the form of money or property.

Answer 35

Capitalist partner

Question 36

the one whose contribution to the partnership is his labor, industry, skill, talent or professional services.

Answer 36

Industrial partner

Question 37

is designated to manage the affairs or business operations of the partnership.

Answer 37

Managing partner

Question 38

has financial interest in the firm but does not take active part in the business although he may be known to the public as a partner.

Answer 38

Silent partner

Question 39

takes active part in the partnership and known to the public as a partner in the partnership whether or not he has an actual interest in the firm

Answer 39

Ostensible partner

Question 40

not really a partner having no financial interest in the partnership nor a party to the agreement of the partnership, but represented as being in fact a partner and make liable as a partner.

Answer 40

Nominal partner

Question 41

has financial interest in the firm and takes active part in the business but he is not known to the public as a partner.

Answer 41

Secret partner

Question 42

Does not take active part in the management and is not known to the public as a partner

Answer 42

Dormant Partner

Question 43

In charge of the winding up of the partnership affairs in case of dissolution

Answer 43

Liquidating partner