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

question 8

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.

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Definitions:

Double Taxation

Refers to the taxation of the same income or financial transaction at two different levels, such as corporate profits taxed both at the corporate and individual shareholder level.

Dividends

Payments made by a corporation to its shareholders from its profits or reserves.

LLPs

Limited Liability Partnerships, a legal structure for businesses where partners have limited liabilities.

Professional Practice

The conduct and work that someone in a specific profession, committed to ethics and standards, engages in.