Zack was a partner in a management consulting firm that specialized in assisting small businesses in the area of financial planning.The firm did not perform income tax preparation.However,since Zack had personal expertise in tax accounting,he frequently assisted friends as well as some firm clients in preparing their income tax returns.Usually he borrowed the firm's adding machine and other office supplies to perform this work from his home unbeknownst to his partners.Zack may be required to

Question

Quizplus · Accepted Answer

Option B is correct because Zack is using the firm's resources (adding machine and office supplies) to perform work that is outside the scope of the firm's services. Therefore, he should account to the other partners for any money received from his income tax service.
Option D is also correct because any profits earned from completing income tax returns should be turned over to the partnership since the work was done using the firm's resources. 
Therefore, the best choice is E, as both options are correct. 
Options A, C are not applicable in this situation because Zack has not breached any warranty of authority or violated any partnership agreement.

Zack Was a Partner in a Management Consulting Firm That