Which of the Following Statements Is True Regarding the Duty

question 38

Multiple Choice

Which of the following statements is true regarding the duty of care, if any, that one partner owes to another?

• A) The duty of care is not involved in the law of partnership.
• B) The duty of care is owed by each partner to the partnership itself, but partners do not owe a duty of care among themselves.
• C) Partners owe a duty of care among themselves, but only in regard to transactions involving over $5,000.
• D) While partners owe a duty of care to each other, a partner who makes an honest mistake in fulfilling responsibilities to the partnership will not be held liable for the mistake.
• E) Partners owe a duty of care to each other, and a partner is liable to other partners on a strict liability basis for any mistakes or errors made.

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Definitions:

Decision Consequence

The outcome or result that follows from a decision.

Directly Affect

To have an immediate and direct impact or influence on something or someone.

Change Competency

The ability of an individual or organization to effectively manage and adapt to change, encompassing skills such as flexibility, strategic planning, and communication.

Ethics of Organization

The study and application of moral values, principles, and practices within the context of organizational operations and activities.