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Title & Description Wizard
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Title & Description Wizard

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Questions and Answers

What is the duty of every partner in a business?

  • To be dishonest and unfaithful
  • To carry on business to the greatest common advantage and render true accounts (correct)
  • To keep relevant information about the firm secret
  • To maximize personal profit
  • What must a partner do if they cause loss to their co-partners through fraud?

  • Deny any wrongdoing and refuse to take responsibility
  • Nothing, it is not their responsibility
  • Blame the other partners for not preventing the fraud
  • Pay for the losses caused by their actions (correct)
  • What is required for a change in nature of business or the introduction of a new partner?

  • Unanimous consent from all partners (correct)
  • Approval from the partner with the largest share in the business
  • No approval necessary, partners can make changes independently
  • Simple majority vote from all partners
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