Name: Lovelyn Quimanhan Bunda Yr. / Sec.

BSAT-3B
1.) What is partnership? How does it differ from a sole proprietorship? Ans. Partnership is a business that is owned by two or more individuals and its owners are called partners. It differ from sole proprietorship in a way that in terms of profits and losses of the partnership it is divided by an agreed percentage by the partners, it also brings greater financial capability to the business, and it offers relative freedom and flexibility of action in decision-making. 2.) What are the characteristics of a partnership? Ans. The characteristics of a partnership are it is formed by the association of two or more persons, the contract arises as the partners enter into an agreement it can be oral or written, it has unlimnited liability, the agreement must be to run a lawful business, the partners share the same amount of profits and losses, and the firm has no legal entity of its own. 3.) Give at least 4 causes for a partnership contract to be dissolved? Ans. The four causes for a partnership contract to be dissolved are if a partner resigns or if a partnership expels a partner, bankruptcy of any partner or the partnership, death of any partner , lastly any event which makes it unlawful for the business of the partnership to be carried on or for the members to carry it on in partnership. 4.) Can an interest of one person in the partnership be transferred to any person without the consent of the other partners? Why? Ans.

5.) Can a creditor run after the personal assets of all partners in an event the partnership assets are not sufficient for the partnership obligations? Why? Ans.

6.) What does an industrial partner contribute to the partnership? Ans. One who contributes his knowledge or personal service to the partnership. 7.) How is the contribution of an industrial partner recorded in the books of the partnership? Ans. The contribution of industrial partner can be recorded in the books of the partnership if his labor as an industrial partner can become a general partner in a limited partnership. And his/her labor can receive share, which must be satisfied first the capitalist partners and divide the profits, as may be just and equitable under the circumstances.

8.) Partnership contracts can be either oral or written. When is there a need for a partnership contract to be made in writing?
Ans. There is a need for a partnership contract to be made in writing to make good sense to put the details of ownership, including the partners rights and responsibilities and their share of profits.