A Partner of a Firm That Leases Residential Property to College

question 3

Multiple Choice

A partner of a firm that leases residential property to college students allows his daughter to live in a partnership-owned apartment.Based on this situation,this partner:

• A)has a duty to relinquish his management rights for misusing partnership property.
• B)has a duty to account for the use of partnership property.
• C)has a duty to return the personal profits secured through this transaction.
• D)has a right to be indemnified for payments made from his personal funds.

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Definitions:

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing the amount on which future interest is calculated.

Bequest

A transfer of personal property or assets to a beneficiary as dictated by the will of the deceased.

Perpetual Fund

A type of investment fund that has no fixed maturity date, often aiming to provide investors with a steady income indefinitely.

Indexed Annuity

An annuity that earns interest or provides benefits that are linked to the performance of a specified index of the stock market.