A partner of a firm that leases residential property to college students allows his daughter to live in a partnership-owned apartment.Based on this situation,this partner:
A)has a duty to relinquish his management rights for misusing partnership property.
B)has a duty to account for the use of partnership property.
C)has a duty to return the personal profits secured through this transaction.
D)has a right to be indemnified for payments made from his personal funds.

Question

Quizplus · Accepted Answer

Partners have a duty to account for their use or disposal of partnership funds and partnership property,as well as their receipt of any property,benefit,or profit,without the consent of the other partners.For example,when a partner of a firm that leases residential property to college students allows his daughter to live in a partnership-owned apartment,the partner must collect rent for the partnership from his daughter or risk breaching the duty to account.

A Partner of a Firm That Leases Residential Property to College