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If the deed requires every partner to sign the annual accounts report, what is the main purpose?

Answer and explanation

Correct answer: To establish approval and responsibility

The primary purpose of partners signing the annual accounts is to show that each partner has reviewed, approved and accepted responsibility for the accounts. Signatures serve as legal evidence of approval and reduce later disputes by fixing who accepted the statements. Option B (increasing reliability and transparency) is a related outcome but not the direct primary purpose — reliability improves as a consequence of documented approval. Options C and D are irrelevant: signatures do not conceal personal liabilities nor directly change bank loan terms. Exam tip: in deed-related questions look for keywords like ‘‘approval’’ and ‘‘responsibility’’ — these usually indicate the correct answer.

Related tags

Partnership DeedPartner SignaturesAccounts ApprovalPartnership AccountsCorporate GovernancePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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