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    Question

    Which of the following is not a duty of partners under

    the Partnership Act?
    A To indemnify the firm for any loss caused to it by the partner’s misconduct Correct Answer Incorrect Answer
    B To carry on the business of the partnership to the greatest common advantage Correct Answer Incorrect Answer
    C To share profits and losses equally Correct Answer Incorrect Answer
    D To compete with the firm in the same business Correct Answer Incorrect Answer

    Solution

    Explanation: According to Section 9 of the Partnership Act, partners have a duty to carry on the business of the partnership to the greatest common advantage, to be just and faithful to each other, to render true accounts and full information, and to indemnify the firm for any loss caused to it by the partner’s misconduct. Partners also have a duty to share profits and losses equally unless otherwise agreed upon in the partnership agreement. However, partners are not allowed to compete with the firm in the same business.

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