Which of the Following Is True Regarding the Duty of Care,if

question 23

Multiple Choice

Which of the following is true regarding the duty of care,if any,that one partner owes to another?

• A) The duty of care is not involved in the law of partnership.
• B) The duty of care is owed by each partner to the partnership itself, but partners do not owe a duty of care among themselves.
• C) Partners owe a duty of care among themselves, but only in regard to transactions involving over $5,000.
• D) While partners owe a duty of care to each other, a partner who makes an honest mistake in fulfilling responsibilities to the partnership will not be held liable for the mistake.
• E) Partners owe a duty of care to each other, and a partner is liable to other partners on a strict liability basis for any mistakes or errors made.

---

Definitions:

Market Value

The market's current rate for transactions involving the purchase or sale of an asset or service.

Appraisal

The process of professionally estimating the value of a property, often used for taxation or sale purposes.

Purchase Price

The amount of money paid to buy a product or service, including any additional charges.

Business Entity Assumption

A principle that requires a business to be accounted for separately from its owner or other businesses, ensuring that the company's financial statements reflect only its own operations and financial position.