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The deed states that no partner may carry on a competing business without permission. If a partner does so and earns profit what happens in principle?

Answer and explanation

Correct answer: Profit may have to be given to the firm

Profit from a competing business may violate duty to the firm. The partner may have to account for that profit to the firm.

Related tags

Competing BusinessPartner DutyPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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