Which of the Following Is True Regarding the Liability of a Partner

question 37

Multiple Choice

Which of the following is true regarding the liability of a partner for a mistake?

• A) A partner who makes an honest mistake in fulfilling his or her responsibilities to the partnership is not held personally liable for the mistake.
• B) A partner who makes an honest mistake in fulfilling his or her responsibilities to the partnership is held personally liable for the mistake, but only to the extent of his or her capital contribution.
• C) A partner who makes an honest mistake in fulfilling his or her responsibilities to the partnership is held personally liable for the mistake, but only to the extent that he or she shares in profits.
• D) A partner who makes an honest mistake in fulfilling his or her responsibilities to the partnership is held personally liable for the mistake, but only to the extent that he or she shares in losses.
• E) A partner who makes an honest mistake in fulfilling his or her responsibilities to the partnership is held fully personally liable for the mistake.

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Definitions:

Less is More

A design principle emphasizing that simplicity and clarity lead to good design, often associated with the minimalist movement.

De Stijl

Dutch, “the style.” An early-20th-century art movement (and magazine), founded by Piet Mondrian and Theo van Doesburg, whose members promoted utopian ideals and developed a simplified geometric style.

Gerrit Thomas Rietveld

A Dutch architect and furniture designer, recognized for his contribution to the De Stijl movement and designs like the Red and Blue Chair.

Piet Mondrian

A Dutch painter famous for his contribution to the De Stijl art movement, known for his abstract works characterized by horizontal and vertical lines and primary colors.