Fred Is a Partner in a Land Development Partnership

question 15

Multiple Choice

Fred is a partner in a land development partnership.He has learned independently of an opportunity to pursue a land development project with Nelly.Nelly refuses to be involved in business with Fred if he associates his partnership in the project.Nelly will do business with Fred only if he is independent of his partners.Fred will have no liability to his partners if

• A)he keeps the opportunity secret.
• B)he is careful to inform any third parties with whom he and Nelly do business that he is not acting on behalf of the partnership.
• C)he ensures that anything he does on the project is outside office hours.
• D)no damages are suffered by the partnership.
• E)none of the above

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Definitions:

Spot Exchange Rate

The existing exchange value for immediate buying or selling of a currency.

Futures Price

The agreed-upon price for the future delivery of a particular commodity, financial instrument, or currency.

Risk-free Rates

Theoretical return rates on an investment assumed to have no risk of financial loss, typically represented by the yield on government securities.

Spot Exchange Rate

The spot exchange rate is the current price at which one currency can be exchanged for another for immediate delivery.