Partnership Formation(Theories)

Question 1

Kind of partners as to the nature of contribution

Answer 1

Capitalist
Industrial
Capitalist-industrial

Question 2

One who contributes money or property into the partnership

Answer 2

Capitalist partner

Question 3

One who contributes only his industry or services to the partnership

Answer 3

Industrial partner

Question 4

One who contributes money or property as well as his services to the partnership

Answer 4

Capitalist-industrial partner

Question 5

Kind to of partners as to liabilities to third person

Answer 5

General

Limited

Question 6

Whose liability to partnership creditors extends to his personal separate property

Answer 6

General partner

Question 7

Whose liability to third person is limited his capital contribution

Answer 7

Limited partner

Question 8

Kind of partners as to partners’ interest or obligation to the business

Answer 8

Managing
Secret
Silent
Dormant
Ostensible

Question 9

One who manages the affairs of the business

Answer 9

Managing partner

Question 10

One who is not known by third parties to be a partner in the business but takes active part in the business

Answer 10

Secret partner

Question 11

One who does not take active part in the business but is known by third parties to be a partner in the business

Answer 11

Silent partner

Question 12

One who does not take active part in the business and is not known by third parties to be a partner

Answer 12

Dormant partner

Question 13

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

Answer 13

Ostensible partner

Question 14

Is one in which no time or period is specified for its existence and is not formed for a particular undertaking or venture

Answer 14

Partnership at will

Question 15

This may be terminated anytime by mutual agreement of the partners or by the will of any one partner alone

Answer 15

Partnership at will

Question 16

Is one in which the term for which the partnership will exist is fixed or agreed upon

Answer 16

Partnership with a fixed term

Question 17

Applies to a partnership that is formed for a particular objective or undertaking

Answer 17

Partnership with a fixed term

Question 18

Organized to undertake business transactions such as merchandising or manufacturing transactions

Answer 18

Commercial or trading partnership

Question 19

Formed for the practice of a profession, such as auditing firm(for CPAs), law firm(for lawyers), medical clinic (for medical practitioners), and similar professions.

Answer 19

Professional partnership

Question 20

Each partner is assumed to be am agent for all partnership activities with the power to bind all other partners by his actions on behalf of the partnership

Answer 20

Mutual agency

Question 21

Written contract of a partnership

Answer 21

Articles of Co-partnership

Question 22

A partnership in which all partners are general partners

Answer 22

General partnership

Question 23

A partnership that is composed of one or more general partners and one or more limited partners

Answer 23

Limited partnership

Question 24

A partnership agreement is perfected by mere consent, that is, upon express or implied agreement of two or more person.

Answer 24

Voluntary agreement

Question 25

A partner whose liability for partners dents is limited to his capital contribution to the partnership is called a

Answer 25

Limited partner

Question 26

A partner whose connection with the partnership is open and public, so that his nam is included in the firm name of the partnership, is called

Answer 26

Ostensible partner

Question 27

A Partner who has no voice or participation in the management of the affairs of the partnership is called

Answer 27

Silent partner

Question 28

One who takes charge of the winding up of partnership affairs upon dissolution is called

Answer 28

Liquidation partner

Question 29

A partnership contract is perfected by mere consent, which makes it

Answer 29

Consensual

Question 30

Partnership contract has a special designation in law, which makes it

Answer 30

Nominate

Question 31

Agreement of the partners embodied in a public instrument is called

Answer 31

Articles of co-partneship