Which of the Following Statements Is TRUE

question 9

Multiple Choice

Which of the following statements is TRUE?

• A)An effective partnership requires a high level of trust and confidence between the partners.
• B)Partners do not have to worry about individual partners incurring unauthorized liabilities because each partner has a fiduciary duty to act in the best interests of the partnership.
• C)An indemnification agreement between partners will always be complete protection against unauthorized liabilities.
• D)A prohibition in a partnership agreement on partners incurring a specific obligation will prevent partnership liability arising if one of the partners tries to commit the partnership to such an obligation.
• E)Partners have contractual risk to partnership contracts entered into by other partners in the course of the partnership business, but they do not have a similar tort risk.

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Definitions:

Chronological Format

A method of organizing content or data based on the sequence of time, from the earliest event to the most recent.

College Graduate

An individual who has completed a course of study at a college or university and has been awarded a degree or diploma.

Work Experience

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Work History

A record of an individual's past employment, detailing positions held, durations, and responsibilities.