P and B Were Partners in a Travel Firm

question 8

Multiple Choice

P and B were partners in a travel firm.P wanted to approach their wealthy travel clients and offer to help them to invest in Australia.B said no because he thought the idea was too risky.P secretly went ahead and made a large sum of money over several years.B has found out.He is demanding his share of P's profits.What are B's legal rights?

• A)B is not entitled to a share because he said no to the opportunity and refused to take a risk.
• B)B is not entitled to a share because P has entered a separate joint venture with their travel clients
• C)B is entitled to a share because partners must share any private profits made from opportunities linked to partnership opportunities
• D)B is entitled to a share which is equal to the percentage of liability the partnership faces because of P's secret business.

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Definitions:

1920

A significant year marked by various historical events, including the ratification of the 19th Amendment to the U.S. Constitution, granting women the right to vote.

Withholding Their Labor

A form of protest or collective bargaining where workers refuse to work to gain leverage over their employer, typically for better wages or working conditions.

Extract Concessions

The act of obtaining something of value through negotiation or pressure, especially in a political or business context.

Negotiations

The process of discussing and reaching an agreement between parties with differing interests or perspectives, often involving compromise or conciliation.