When a partner leaves the partnership the total assets will not be affected

When the payment of a retiring partner is lesser than his capital balance the difference is treated as a bonus to the remaining partner

A new partner must have the majority of the consent of the existing partner in order to be admitted in the partnership

Dissolution is the termination of the partnership while liquidation is simply a change in the partnerships provision.

Dissolution is always followed by liquidation

When a new partner purchases the interest of an existing partner, the total partnership capital increases.

It is possible to give bonus to both old and new partners.

The total contributed capital is the sum between the old partner's investment and the new partner's contribution. It is always equal to the partnership agreed capital.

Adjustments are not necessarily prior to the withdrawal of a partner

In a contract of partnership, two or more persons bind themselves, contribute money, property, industry, to a common fund with intention of dividing the profits among themselves

A dormant partner is one that does not take active part in the partnership business, though may be known as a partner

In a general partnership, its partner's liability for losses is limited to its investment in the firm

The bonus is not being considered in the computation of profit rather it is mere technical to distribute profit.

The basis on which profits and losses are shared is a matter of agreement among partners and may not necessarily be the same as their capital contribution ratio.

A partnership contract may provide for a special compensation in the form of bonus to the managing partner when the results of operations of the partnerships are favorable.

A new partner cannot be admitted into a partnership without the consent of all the partners.  

When a partner withdraws from a partnership, an audit may be performed and the assets reappraised.

The dissolution of the partnership discharges the existing liability of any partner.

When a partner is admitted, the partnership may continue operations based on the new contract among the partners

In the absence of a specific agreement, the law requires that partnership profits be distributed equally among partners.

Work or services that may either be personal manual efforts or intellectual may be contributed to a partnership

Ownership is easily transferred in a partnership. 

A partnership cannot be established for religious purposes.

Partnership must always have at least two owners.

A proprietorship has a limited life whereas a partnership may have an unlimited life.

Not all of the partners in a general partnership are personally liable for all debts incurred by the partnership.

A proprietorship has a limited life.

Not all of the partners in a general partnership are personally liable for all debts incurred by the partnership.

Accounting for a partnership comes closer to accounting for a sole proprietorship than to accounting for a corporation.

Partners' drawing accounts have normal credit balances

The manner in which profits are to be shared should be specified in the article of partnership.

A partnership should always be constituted in the writing.

Stress na ba kayo? Wala pa tayo sa kalahati 0w0

Public instrument needs to be executed when immovable property or real rights are contributed to the partnership.

The mutual agency means that its partner has the right to bind the partnership to contracts.

As long as the action is within the scope of the partnership, any partner can bring bind the partnership.

When the partnership capital is 3,000 or more, the public instrument must be recorded with the Securities Exchange Commission.

A partnership with a capital of less than 3,000 pesos is valid when it is unregistered with the Securities Exchange Commission.

Two or more persons may form a partnership for the exercise of a profession

There can never be a partnership without contribution of money, property, or industry to a common fund.

Bankruptcy of a partner will dissolve the partnership

A partnership involves mutual agency, unlimited liability for general partner, and limited life.

A partnership and a corporation cannot form a partnership.

A de jure partnership is one which has complied with all the legal requirements of its establishment

In a limited partnership, the general partner's liability is limited to the investment.

The limited partners are liable only to the extent of his personal contributions.

One of the partners in a proposed partnership is a multi-millionaire. The stipulation in the Articles of Partnership that this partner shall be excluded from sharing in the profits of the partnership is disvalid.

Under the partnership form of business, the large amounts of capital can be raised easily.

All partners in a general partnership are personally liable for all debts incurred by a partnership.

An advantage of the partnership form of business is that each partner's potential loss is limited to that partner's investment in the partnership.

A partnership is a legal entity separate and apart from its owner.

The process of valuation for non-cash investment should be fair market value