Partnership Formation Exam Questions with Verified Answers Rated A+ (Already Passed)
Partnership - Answers a contract whereby two or more persons bind themselves to contribute money,
property or industry into a common fund with the intention of dividing the profit among themselves
Mutual Agency - Answers any partner may act as an agent of the partnership in conducting its affairs
Limited Life - Answers a partnership may be dissolved at any time by action of the partners or by
operation of law
Unlimited Liability - Answers the personal assets of a general partner may be used to satisfy the claims
of the creditors of the partnership if the partnership assets are not enough to settle the liabilities to
outsiders upon liquidation
Co-ownership of property - Answers properties contributed to the partnership are owned by the
partnership
Co-ownership of profit - Answers a partner has the right to share in partnership profits
Legal entity - Answers a partnership has a legal personality separate and distinct from that of each of the
partners
Service - Answers main activity is the rendering of services
Merchandising - Answers main activity is the purchase or sale of goods
Manufacturing - Answers main activity is the production of goods
General - Answers one consisting of general partners who are liable prorata and sometimes solidarily
with their separate property for partnership liabilities
Limited - Answers one consisting of one or more general partners and one or more limited partners
Universal Partnership of all Present Property - Answers one in which the partners contribute all the
property which actually belong to each of them, at the time of the constitution of the partnership, to a
common fund with the intention of dividing the same among them as well as the profits which they may
acquire therewith. All assets contributed to the partnership and subsequent acquisitions become
common partnership assets.
Universal Partnership of Profits - Answers one which comprises all that the partners may acquire by
their industry or work during the existence of the partnership and the usufruct of movable or
immovable property which each of the partners may possess at the time of the institution of the
contract. The original movable or immovable property contributed do not become common partnership
assets.
Particular Partnership - Answers one which has for its object determinate things, their use or fruits or a
specific undertaking or the exercise of a profession of vocation
Partnership - Answers a contract whereby two or more persons bind themselves to contribute money,
property or industry into a common fund with the intention of dividing the profit among themselves
Mutual Agency - Answers any partner may act as an agent of the partnership in conducting its affairs
Limited Life - Answers a partnership may be dissolved at any time by action of the partners or by
operation of law
Unlimited Liability - Answers the personal assets of a general partner may be used to satisfy the claims
of the creditors of the partnership if the partnership assets are not enough to settle the liabilities to
outsiders upon liquidation
Co-ownership of property - Answers properties contributed to the partnership are owned by the
partnership
Co-ownership of profit - Answers a partner has the right to share in partnership profits
Legal entity - Answers a partnership has a legal personality separate and distinct from that of each of the
partners
Service - Answers main activity is the rendering of services
Merchandising - Answers main activity is the purchase or sale of goods
Manufacturing - Answers main activity is the production of goods
General - Answers one consisting of general partners who are liable prorata and sometimes solidarily
with their separate property for partnership liabilities
Limited - Answers one consisting of one or more general partners and one or more limited partners
Universal Partnership of all Present Property - Answers one in which the partners contribute all the
property which actually belong to each of them, at the time of the constitution of the partnership, to a
common fund with the intention of dividing the same among them as well as the profits which they may
acquire therewith. All assets contributed to the partnership and subsequent acquisitions become
common partnership assets.
Universal Partnership of Profits - Answers one which comprises all that the partners may acquire by
their industry or work during the existence of the partnership and the usufruct of movable or
immovable property which each of the partners may possess at the time of the institution of the
contract. The original movable or immovable property contributed do not become common partnership
assets.
Particular Partnership - Answers one which has for its object determinate things, their use or fruits or a
specific undertaking or the exercise of a profession of vocation
