Which One of the Following Is Incorrect with Respect to the Rights

question 163

Multiple Choice

Which one of the following is incorrect with respect to the rights of partners unless they have agreed otherwise?

• A) All profits are shared equally between the partners.
• B) Reasonable expenses incurred by the partners in the course of business are reimbursed.
• C) All partners have the right to share in management.
• D) No major decision can be taken without unanimous agreement of all the partners.
• E) Partners can sell their share of the partnership to another person without the agreement of the partners.

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Definitions:

Special Relationship

A legal doctrine recognizing elevated duties between parties, such as those between guardians and wards or attorneys and clients, due to their relationship.

Wrongful Act

An action that infringes on the rights of another, often leading to civil liability or criminal penalties.

Duress

A situation in which someone performs an act as a result of violence, threat, or other pressure against the person.

Fraud

The intentional deception or misrepresentation made by one party to gain an unfair advantage or harm another party.