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The deed says if a partner takes private benefit from a firm opportunity the benefit must be handed to the firm. Which principle is involved?

Answer and explanation

Correct answer: Duty of loyalty and good faith

A partner owes loyalty to the firm. Taking private benefit from a firm opportunity may violate the deed and duty.

Related tags

Partner DutyGood FaithFirm OpportunityPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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