Which of the Following Is True of a Partner's Fiduciary

question 25

Multiple Choice

Which of the following is true of a partner's fiduciary duty?

• A) The RUPA's provision regarding the fiduciary duty is not exclusive,but leaves further development of the fiduciary duty of partners to the common law of agency.
• B) The RUPA provides that a partner does not violate the duty of loyalty merely because the partner's conduct furthers the partner's own interest.
• C) The fiduciary duty extends to the formation of the partnership,even when the parties are negotiating at arm's length.
• D) The duty not to compete continues for a reasonable time after dissociation.

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Definitions:

Net Operating Income

Revenue from the primary business activities of a company, with no deductions for interest and taxes.

Variable Manufacturing Overhead

Variable manufacturing overhead refers to the manufacturing costs that vary with the level of production output, such as utilities and certain labor costs.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Cost

A cost that remains constant regardless of the level of goods or services produced within a certain range.