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If the deed prohibits partners from taking personal loans in the firms name, breach of this clause will be what type of issue?

Answer and explanation

Correct answer: Breach of authority and trust

Using the firms name privately is against the deed and trust. It may create unwanted liability for the firm.

Related tags

Authority BreachTrustPrivate LoanPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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