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.

---

Definitions:

Immoderation

The action or habit of not restraining oneself from indulgence in activities, often leading to excess or extreme behavior.

Anger

A strong feeling of annoyance, displeasure, or hostility triggered by what is perceived as wrong or injustice.

Big Five Trait

A framework outlining five extensive traits that characterize human personality: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.

Depression

A common and serious mental health condition marked by persistent feelings of sadness, emptiness, or hopelessness.