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If the deed requires a partner to bring income earned by using firm connection into the firm, on which income will it apply?

Answer and explanation

Correct answer: Private income from firm connection

The direct answer is option A: private income earned through a connection with the firm. A partner must not make a private profit by using the firm’s name, business connection, property, information, or opportunities without accounting to the firm, when the partnership agreement imposes that duty. Step by step, the earning is linked to the firm; the partner receives it personally; the deed requires such income to be brought into the firm; therefore it is treated as income accountable to the firm. Option A is correct because it directly identifies private income arising from the firm connection. Option B, interest on a personal savings account, is normally an independent personal return and is not automatically connected with the firm. Option C, inherited property, comes from inheritance, not the firm. Option D, a personal gift, comes from a donor and is not a business opportunity. The exact legal treatment depends on the deed and facts, but A is clearly the intended answer. Memory cue: no private gain from a firm opportunity without accounting to the firm.

Related tags

Private ProfitFirm ConnectionPartner Duty

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