Which of the Following Is True of a Partner's Right

question 40

Multiple Choice

Which of the following is true of a partner's right to compensation?

• A) A partner is always entitled to salary or wages.
• B) The partners may not agree that one or more of them is to be paid a salary, which will not be deducted at the end of the year from his or her profits.
• C) Compensation is never presumed to be the partner's share of the profits.
• D) The partners may agree that one or more of them is to be paid a salary in addition to sharing in profits.

Recognize the roles and obligations of parties in transactions involving negotiable instruments.

Grasp the concept of value and good faith in the context of negotiable instruments.

Explain the shelter principle and its application in negotiable instrument law.

Understand the effects and legal consequences of indorsing negotiable instruments, including liability and transfer of rights.

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Definitions:

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MTBF

Mean Time Between Failures, a reliability metric for products and systems that estimates the average time between operational failures.

System Reliability

The probability of a system or component performing its required functions under stated conditions for a specified period of time.