Which of the Following Is a Violation of the Fiduciary

question 138

Multiple Choice

Which of the following is a violation of the fiduciary duty of a partner?

• A) Where one partner uses information that he has gained from the partnership for the advantage of the partnership
• B) Where a partner uses the partnership property for partnership business
• C) Where one partner carries on a business unrelated to the partnership with the permission of the partners
• D) When one partner starts another business that is the same as or in competition with the partnership business without the consent of the other partners
• E) Where one partner learns of an investment opportunity in the field of the partnership and tells the partners, but the partners decline on the opportunity so he takes advantage of it himself

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Definitions:

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.