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.
Correct Answer:
Verified
Q32: Which of the following is false regarding
Q33: Which of the following is false regarding
Q34: Which of the following does the duty
Q35: Which of the following is a way
Q36: When the articles of partnership are silent,which
Q38: Unless the articles of partnership states otherwise,which
Q39: Which of the following is true regarding
Q40: Which of the following represents a partner's
Q41: Is Wally entitled to a review of
Q42: Which of the following is true regarding
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents