New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    If a partner carries out business competing with that

    of the firm______.
    A He may account for the profits to the firm. Correct Answer Incorrect Answer
    B He shall account for and pay to the firm all profits made by him. Correct Answer Incorrect Answer
    C He shall immediately stop such business Correct Answer Incorrect Answer
    D He need not provide the profits to the firm. Correct Answer Incorrect Answer
    E C and D. Correct Answer Incorrect Answer

    Solution

    S. 16 PERSONAL PROFITS EARNED BY PARTNERS. Subject to the contract between the partners, - (a) if a partner derives any profits for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm-name, he shall account for that profit and pay it to the firm; (b) if a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.

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