Each Partner Is Obliged to Act in Good Faith for the Common

question 14

Multiple Choice

Each partner is obliged to act in good faith for the common good of the partnership, which includes an obligation to:

• A)Profit personally from their position.
• B)Put themselves in a position of conflict of interest without keeping the other partners informed.
• C)Compete with the partnership.
• D)Fully disclose to the other partners all matters likely to affect the partnership.

---

Definitions:

Compounded Semiannually

Interest that is calculated and added to the principal twice a year, leading to interest on interest.

Present Value

The contemporary value of a future monetary sum or cash flow stream, calculated with a set rate of return.

Compounded Semi-annually

The process of adding interest to the principal sum of a deposit or loan every six months, so that each subsequent interest calculation is based on the original principal plus all accumulated interest.

Ordinary Annuity

A series of equal payments made at equal intervals of time, with the first payment occurring at the end of the period.