Lara is a partner at Matador Services,a management consulting firm.She makes an agreement with Regal InfoTech whereby Matador will provide management consulting services for $75,000 to Regal,on the condition that Regal pays her $5,000 personally.Which of the following is true of this situation?
A)Lara has placed her own interests above those of the partnership.
B)Lara has exceeded her actual authority.
C)Lara is competing against her partnership.
D)Lara has not exercised her duty to serve.

Question

Quizplus · Accepted Answer

A partner may not deal with the partnership when the partner has an interest adverse to the partnership or acts on behalf of another person with any adverse interest.For example,a partner may not profit personally by receiving an undisclosed kickback from a partnership supplier.When a partner receives a secret profit,she has a conflict of interests,and there is a risk that she may prefer her own interests over those of the partnership.

Lara Is a Partner at Matador Services,a Management Consulting Firm