Test Your Understanding of Liability in Partnership Agreements

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Questions and Answers

According to Article 39, which of the following activities is prohibited for the manager?

  • Establishing or closing down branches
  • Making donations
  • Sponsoring third parties
  • All of the above (correct)

According to Article 40, what is the consequence if a partner gets involved in activities similar to that of the company?

  • The company will dissolve
  • The partner will be removed from the company
  • The company may claim compensation from the partner (correct)
  • The partner will be fined

According to Article 41, what is the power of a non-managing partner?

  • To remove the manager
  • To retire from the management
  • To make decisions on behalf of the company
  • To review the progress of the company's business (correct)

According to Article 42, how can the manager be removed if they are a partner appointed under the MOA?

<p>By a decision to be unanimously issued by the other partners (A)</p> Signup and view all the answers

According to Article 43, what is the effect of the manager's retirement on the company?

<p>The manager's retirement will not result in the dissolution of the company (D)</p> Signup and view all the answers

According to Article 44, how can a partner assign their equity stake?

<p>By obtaining the approval of all partners (D)</p> Signup and view all the answers

According to Article 45, what is the liability of a partner who joins the General Partnership based on a new contribution?

<p>They are personally and jointly liable with the remaining partners for all debts (C)</p> Signup and view all the answers

Under what circumstances shall a General Partnership be converted into a Limited Partnership?

<p>When the heir is either minor or prohibited from engaging in business activities (D)</p> Signup and view all the answers

When must the conversion of a General Partnership into a Limited Partnership occur following the death of the Legator?

<p>Within one year following the death of the Legator (C)</p> Signup and view all the answers

What happens if there is only one partner left in the General Partnership after a partner passes away or undergoes interdiction?

<p>The company is granted a time limit of ninety days to adjust its affairs (A)</p> Signup and view all the answers

What options does the surviving partner have during the ninety-day time limit to adjust the company's affairs?

<p>Engaging a new partner or converting the General Partnership into any other legal form (B)</p> Signup and view all the answers

When does a General Partnership become deemed terminated by operation of law?

<p>Within one year following the death of the Legator (A)</p> Signup and view all the answers

What happens if a General Partnership is not converted into any other legal form within the ninety-day time limit?

<p>The company is automatically terminated (A)</p> Signup and view all the answers

What is the time limit granted to a surviving partner to adjust the company's affairs if there is only one partner left in the General Partnership?

<p>90 days (A)</p> Signup and view all the answers

What must a surviving partner do during the ninety-day time limit to adjust the company's affairs?

<p>Engage a new partner or convert the General Partnership into any other legal form (C)</p> Signup and view all the answers

What happens if there is only one partner left in the General Partnership after a partner withdraws or is removed?

<p>The company is granted a time limit of ninety days to adjust its affairs (D)</p> Signup and view all the answers

What is the definition of a General Partnership?

<p>A business venture established by two or more natural or legal persons, personally and jointly liable for the company's debts and obligations. (D)</p> Signup and view all the answers

What information should be included in the Memorandum of Association (MOA) of a General Partnership according to the text?

<p>Partners' names and particulars, company's name, company's headquarters, company's objects, company's capital and method of dividing the same among partners, company's term, management of the company, partners' resolutions and the quorum required for their issuance, method of distributing the profits and losses among the partners, details of commencement and end dates of the fiscal year, termination of the company, and any other provisions agreed upon by the partners. (C)</p> Signup and view all the answers

Who is responsible for managing a General Partnership according to the text?

<p>The partners of the General Partnership and the legal person designated as its representative. (A)</p> Signup and view all the answers

What is the capacity acquired by a partner of a General Partnership according to the text?

<p>The capacity of a trader. (A)</p> Signup and view all the answers

What should be included in the Memorandum of Association (MOA) of a General Partnership?

<p>Partners' names and particulars, company's name, company's headquarters, company's objects, company's capital and method of dividing the same among partners, company's term, management of the company, partners' resolutions and the quorum required for their issuance, method of distributing the profits and losses among the partners, details of commencement and end dates of the fiscal year, termination of the company, and any other provisions agreed upon by the partners. (C)</p> Signup and view all the answers

According to Article 46, how many days prior to the scheduled date of withdrawal must the partner notify the other partners?

<p>60 days (C)</p> Signup and view all the answers

According to Article 47, when are the profits and losses and the share of each partner determined?

<p>At the end of the company's fiscal year (D)</p> Signup and view all the answers

According to Article 48, under what condition can a partner be required to pay off a debt of the company from his own property?

<p>If the debt cannot be collected from the company (B)</p> Signup and view all the answers

According to Article 49, when is the partner's equity stake in the company valuated?

<p>All of the above (D)</p> Signup and view all the answers

According to Article 50, under what circumstances is the General Partnership not terminated?

<p>All of the above (D)</p> Signup and view all the answers

According to Article 50, what happens if the company's MOA stipulates that the company shall continue to exist among the wishing heirs of a deceased partner?

<p>The heirs become liable for the General Partnership's debts (C)</p> Signup and view all the answers

When does a partner remain liable for the debts and obligations of the General Partnership?

<p>Only for the debts and obligations arising prior to his withdrawal or removal (A)</p> Signup and view all the answers

When does an agreement to relieve a partner of liability for former debts become effective vis-à-vis the creditors?

<p>Immediately upon being recorded with the commercial register (A)</p> Signup and view all the answers

When is a partner still liable for debts and obligations arising after their withdrawal or removal from the company?

<p>Always (A)</p> Signup and view all the answers

When can a partner assign their equity stake without being liable for the company's debts?

<p>When the company's creditors object within 30 days (B)</p> Signup and view all the answers

How much notice must a partner give before unilaterally withdrawing from the company?

<p>60 days (D)</p> Signup and view all the answers

When does withdrawal or removal of a partner become effective vis-à-vis third parties?

<p>Upon publication (B)</p> Signup and view all the answers

When can a partner be required to pay off the company's debt from their own property?

<p>All of the above (D)</p> Signup and view all the answers

How is a partner's equity stake in the company valued in certain circumstances?

<p>Based on a valuation report by accredited valuators (B)</p> Signup and view all the answers

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