A partnership agreement of a large auditing firm states that no partner shall provide auditing services except on behalf of the partnership.Violation of this clause is an example of:
A)a breach of a partner's duty to account.
B)a breach of a partner's duty to serve.
C)a breach of a partner's duty of care.
D)conduct that would constitute competing with the partnership.

Question

Quizplus · Accepted Answer

Partnership agreements often define what conduct constitutes competing with the partnership.For example,a partnership agreement of a large auditing firm may state that no partner may provide auditing services except on behalf of the partnership.It may also state that a partner may provide other accounting services not offered by the partnership after disclosure to and approval by the partnership's managing partners.

A Partnership Agreement of a Large Auditing Firm States That