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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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