what is the responsibility of partners in a partnership organisation mcq

what is the responsibility of partners in a partnership organisation mcq

5 days ago 11
Nature

The responsibilities of partners in a partnership organization generally include the following key duties:

  • Acting in good faith, loyalty, and fairness towards each other and the partnership, avoiding conflicts of interest and self-dealing
  • Sharing profits and losses as agreed in the partnership agreement
  • Contributing capital, property, or services as stipulated in the partnership agreement
  • Participating in management and decision-making processes according to the partnership agreement, which may include unanimous or majority voting or delegated authority
  • Maintaining confidentiality of partnership affairs and refraining from disclosing sensitive information
  • Being jointly and severally liable for the obligations and acts of the partnership done while they are partners
  • Providing full and honest disclosure of relevant information to other partners
  • Covering losses and rendering accurate accounts to partners
  • Acting with reasonable care and diligence in carrying out their duties
  • Complying with the terms of the partnership agreement, which may include dispute resolution procedures and standards of conduct

In summary, partners are responsible for managing the business collaboratively, sharing liabilities and profits, acting with loyalty and care, and following the partnership agreement that defines their specific roles and obligations

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