Partnership Corporation

• Which of the following is the best advantage of a partnership vs. A corporation?

  Ease of
• A partnership with the purpose of buying and selling lanterns on the streets?

  Trading partnership
• The partner who assumes full co-ownership or a partnership including unlimited liability?

  General Partner
• When the partnership cannot pay its debts with the business assets, the partners?

  Must use their personal assets to meet the debts
• Ways of enforcing payment of unpaid subscription, except?

  Denying the delinquent stock, the right to vote and voted upon
• How are anticipated administrative expenses expenses reported on a statement of financial affairs?

  As a liability with priority
• Dividends in the form of non cash assets are measured at?

  Either the carrying amount or the fair value of the assets distributed
• The statement of Realization and liquidation differs from the statement of affairs because?

  The statement of Realization and Affairs reports actual liquidation results rather than estimated realizable values
• Any loss incurred from the sale of treasury shares shall be charged to?

  Share premium from treasury shares and then retained earnings
• Based on the same facts, would mr. X have preemptive rights to the 50,000 preferred shares?

  Yes, because all stockholders have pre-emptive rights to all issues or dispositions of share of any class in proportion of shareholding.
• I Redeemable shares may be taken up or purchased by the corporation even in the absence of surplus profits.

  Il Treasury shares may be reissued for a reasonable price even below par value

  Both are true
• in three of the following instances, shares with or without voting rights can be voted, except?

  Election of directors or trustees
• Pre-emptive right?

  This is the equitable right of the stockholders to subscribe to all issues of shares in proportion to their shareholdings to maintain their equity participation in the corporation:
• When the preferred shares are issued by a corporation with a fixed interest on the face thereof, the effect is?

  The stockholder is a plain investor who may benefit or suffer with financial success or failure of the corporation
• Treasury shares?

  does not have voting rights
• How much at least shall be subscribed by the incorporators at the time of the incorporation?

  P250,000.00
• How much at least shall be subscribed by the incorporators at the time of the incorporation?

  P250,000
• Hannah and Blanca, having capital balances of P140,000 P75,000 respectively, decided to admit jet into their partnership. Jet is to invest a sufficient amount to have a 25% interest in the partnership. If Hannah and Blanca share profit in a proportion of 3:1, respectively, and Blanca's capital balance after Jet's investment is P84,250, how much was invested by Jet?

  121,000
• Jack and Beans, who share profits and losses in the ratio 3:7, decided to liquidate their Talk Partnership. The partner's capital balances are P300,000 and P190,000, respectively.

  If on final settlement of partner's claims Beans received P99,000, how much did Jack receive?

  P261,000
• I In a cash priority program for use in installment liquidation, the partner with the highest loss absorption balance is the most vulnerable partner.

  II The amount of cash to be distributed to partners in installment liquidation can be determined by preparing a cash priority program.?

  Only statement 1 is true
• Statement 1: A partnership is an organization where two or more persons bind themselves to contribute money, property, or industry into a common fund with the intention of dividing the profits among themselves.

  Statement 2: Regardless if it is oral or in writing, as long as the contract is valid, the Partnership is also valid.

  True, True
• Statement 1: A limited partner can contribute either money, property or industry to the partnership.

  Statement 2: Only the name of the general partners can be part of the partnership name.

  Flase, True
• Statement 1: Partnership is always taxable like corporation.

  Statement 2: Both partnership and corporation has unlimited liability and limited life.

  False, False
• Statement 1: If the contribution is in the form of immovable property, the contract should be in writing.

  Statement 2: The partnership should be registered with SEC if the total capital is 3000 or more, otherwise the partnership will be invalid.

  False, False
• Statement 1: All Limited Partners are Capitalist Partner but not all capitalist partner are general partner

  Statement 2: All industrial partners are general partners but not all general partners are capitalist partner

  True, True
• What is the minimum partner requirement to start a partnership firm?

  2
• Agreement in which form is required in a partnership firm?

  A or B
• What is the liability of partners in a partnership firm?

  Unlimited
• Partnership Firm Agreement is known as?

  Partnership Deed
• How will the profits be divided among partners in the absence of a partnership deed?

  Equal
• Which among the following is not a characteristic of a partnership firm?

  Limited Liability
• What is a limited liability partnership?

  Partnership in which some or all partners can exhibit elements of partnerships and corporations.
• What is a General Partnership?


  Form of partnership under common law.
• Which among the following are the features of a partnership firm?

  They are sharing profits and losses in the fixed ratio.

  Business is carried by all or any of them acting tor all as an agent.

  *All of the above.

  Two or more persons are carrying common business under an agreement.
• In which sort of partnership does one accomplice has limitless risk and another accomplice have a restricted obligation?

   Limited Liability Partnership
• What is an Active Partner?


  An invested person who is involved in the daily operations of the partnership.
• What is a Nominal Partner?


  A person who holds himself out as a partner or permits a partner to hold him out.
• A person who gives an impression to others that he/she is a partner of the firm.

  Estoppel
• In a partnership firm, every partner is bound to fulfil his/her ___ in the

  business?

  Duties
• In a Partnership Firm forming a partnership deed is

  not necessary