Partnership Dissolution Quiz: Extrajudicial Dissolution and Consent

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Questions and Answers

In the event of a partnership dissolution, which party can recover the amount from A and B?

X only

C only

A, B, and C (correct)

A and B only

What is the correct statement about the interest of a partner in a partnership?

It is not a personal property

It can be assigned

It is neither a personal property nor can be assigned

It is a personal property, but cannot be assigned (correct)

What is the term for the administration of the assets of the partnership for the purpose of terminating the business and discharging the obligations of the partnership?

Dissolution

Termination

Winding-up (correct)

Liquidation

What is a requirement for Y and Z to dissolve the partnership?

The consent of X and W Signup and view all the answers

What is the consequence of a stipulation that excludes one or more partners from any share in the profits or losses?

It is voidable Signup and view all the answers

What is conclusive evidence that a person is a partner in a business?

Receipt of a share of the profits Signup and view all the answers

Which of the following is not a right of a partner in a partnership?

Right to exclude other partners from decision-making Signup and view all the answers

Who is responsible for the contractual liability of P40,000 incurred by the partnership?

A, B, and C Signup and view all the answers

What is true about a corporation in a partnership?

A corporation can become a partner, just like an individual Signup and view all the answers

What is a partner by estoppel also known as?

Quasi-partner Signup and view all the answers

What is the responsibility of a capitalist partner?

Bearing the loss of property contributed to the partnership Signup and view all the answers

What happens when a partner assigns their interest in a partnership?

The assignee becomes a partner with the consent of the remaining partners Signup and view all the answers

What is the right of an assignee in a partnership?

None of the above Signup and view all the answers

Which statement is true about limited partnerships?

General partners are bound by the obligations of the partnership Signup and view all the answers

What is required to form a limited partnership?

Both signing and filing a certificate of limited partnership Signup and view all the answers

How are losses distributed in a partnership if there is no agreement?

Proportionately according to the amount of contribution Signup and view all the answers

What is a cause of extrajudicial dissolution of a partnership?

All of the above Signup and view all the answers

What is the right of a partner in a partnership?

To require any information or account Signup and view all the answers

Study Notes

Partnership Basics

A and B, capitalist partners, contribute P15,000 each to the partnership capital.
C is an industrial partner.
The partnership incurs a contractual liability of P40,000 in favor of X.

Partner's Rights and Liabilities

A partner's interest in a partnership is their personal property.
A partner's interest in a partnership cannot be assigned.

Partnership Termination

Dissolution of a partnership refers to the process of terminating the business and discharging obligations.
Winding-up is another term for dissolution.

Partner's Rights and Obligations

Partners must render true and full information of all things affecting the partnership to any partner or legal representative.
A stipulation that excludes one or more partners from sharing profits or losses is voidable.

Partner Types

A partner by estoppel is also known as a quasi-partner.
A dormant partner is a partner who does not take an active part in the business and is not publicly known as a partner.

Capital Contributions

A capitalist partner contributes capital to the partnership.

Assignment of Partner's Interest

An assignee of a partner's interest in a partnership has no right to interfere in the management or require any information or account.

Limited Partnerships

In a limited partnership, general partners are not bound by the partnership's obligations.
Limited partners are not involved in the management of the partnership.

Partnership Requirements

Partners forming a limited partnership must sign and swear to a certificate of limited partnership and file it with the Securities and Exchange Commission (SEC).

Loss Distribution

Losses in a partnership are distributed according to agreement, or if no agreement, according to profit sharing proportions, or if no agreement, proportionately according to the amount of contribution.

Causes of Extrapjudicial Dissolution

Causes of extrajudicial dissolution of a partnership include, among others, in contravention of the agreement between the partners.

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Description

Test your understanding of partnership dissolution and the role of consent in the process. Who needs to give consent and under what circumstances? Find out in this quiz.

Partnership Dissolution and Consent