Asked by
Brittnie Nolfo
on Nov 10, 2024
Verified
Which of the following is incorrect with respect to the responsibilities of partners to each other?
A) Each partner owes the other partners a fiduciary duty.
B) Partners are free to compete with the partnership providing they do it on their own time.
C) Any information that one partner learns because of his position in the partnership must be used for the benefit of the partnership, not for personal use.
D) Unless the partners have agreed otherwise, profits and losses are shared equally.
E) Unless the partners have agreed otherwise, partners' expenses are to be reimbursed.
Fiduciary Duty
An obligation one party (fiduciary) has to act in the best interest of another (the principal) in situations that require trust, honesty, and loyalty.
Compete
To engage in an effort to win or achieve something, such as business or market share, by excelling over others.
Reimbursed
To be reimbursed means to receive repayment for money that has been spent or lost, usually as a result of conducting business or performing tasks on behalf of another.
- Grasp the concept and legal implications of fiduciary duties within partnerships.
Verified Answer
DA
Learning Objectives
- Grasp the concept and legal implications of fiduciary duties within partnerships.