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Why is a rule about partners' meetings included in the partnership deed?

Answer and explanation

Correct answer: To determine the decision‑making procedure, voting and quorum formalities

A meeting rule in the deed specifies how meetings are called, the quorum required, voting procedure and how decisions are made. This provides clarity and prevents disputes in management. Option C (hiding capital) may seem related to bookkeeping issues but is not a legitimate purpose of a partnership deed — the deed sets lawful governance rules, not schemes to conceal funds. Exam tip: mention quorum, notice period and voting rights when explaining meeting rules.

Related tags

Partnership DeedMeetingsDecision MakingPartnership AccountsPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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