Partnership Agreements Often Include Provisions That Excuse Partners from Liability

question 35

Multiple Choice

Partnership agreements often include provisions that excuse partners from liability if they act in good faith and with the honest belief that their actions are in the best interests of the partnership.Such a provision is designed to:

• A)promote the formation of partnerships.
• B)eliminate any liability of its partners.
• C)encourage honest partners to take reasonable business risks without fearing liability.
• D)support honest partners,regardless if the risk is reasonable.

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Definitions:

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A query focused on obtaining detailed or precise information about a particular topic or issue.

Closed Question

A type of inquiry that limits responses to a simple "yes" or "no" or another very brief and predefined answer.

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An inquiry that poses a speculative scenario, allowing for expansive and imaginative responses.

Closing Phase

The final stage of a project or process in which objectives are confirmed as met and the project is formally concluded.