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Question

What is the general principle regarding the application of the property of the firm as per the provided information?

A The property of the firm can be used for any purpose agreed upon by the partners Correct Answer Incorrect Answer
B The property of the firm must be held exclusively for the personal use of the partners Correct Answer Incorrect Answer
C The property of the firm can be used for any personal or business purposes without restriction Correct Answer Incorrect Answer
D The property of the firm shall be held and used exclusively for the purposes of the business, subject to the contract between the partners Correct Answer Incorrect Answer
E The property of the firm must be liquidated and distributed among the partners Correct Answer Incorrect Answer

Solution

Partnership Act Application of the Property of the Firm: Subject to the contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purposes of the business.

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