Question

Which of the following is not a duty of a partner? a) To indemnify for fraud b) To dissolve the firm c) To share losses d) To account for any profit earned in competition of firm.

Answer 1

correct option is option no. c

Answer 2

Option B is correct i.e. To dissolve the firm.

• Partnership is a firm in which two or more partners share profit and losses of the form and abide by the rules written in the Partnership Act 1932.
• Partners are given certain functions which they need to perform and they also carry some duties.
• Some of their duties are to indemnify for fraud which means that if the firm has incurred any loss because of him or her partner needs to be fired.
• He does not own the right to dissolve the firm.
• To share losses is also the duty of partners as they share profit so they need to share losses as well.
• They also have the duty to account for any profit earned in competition to the firm.