Asked by
Riley Rhneà
on Nov 10, 2024
Verified
In which one of the following situations has the duty between partners not been breached?
A) X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens a shoe store in Regina as well.
B) X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens up a restaurant in the same city as a sole proprietorship.
C) X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z is the major shareholder in a corporation that sets up a restaurant in the same city.
D) X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z owns 50% of the shares in the company that supplies the restaurant with its food supplies.
E) X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z runs a catering business during the evening using the restaurant's facilities.
Duty Between Partners
The obligations and responsibilities partners have towards each other in a partnership, including honesty, fairness, and loyalty.
Sole Proprietorship
A business structure in which a single individual both owns and operates the business, bearing unlimited liability for its debts.
Major Shareholder
An individual or entity that owns a significant percentage of a company's shares, exerting influence or control over its management.
- Acknowledge the ramifications of non-sanctioned undertakings by associates and how these affect the partnership as a whole and each participant individually.
Verified Answer
SP
Learning Objectives
- Acknowledge the ramifications of non-sanctioned undertakings by associates and how these affect the partnership as a whole and each participant individually.