Question

Every partner is bound to carry on the business of the firm _________.

• A. To the advantage of the working partner
• B. For reasonable advantage
• C. For the advantage of society
• D. To the greatest common advantage

Answer 1

Answer: (D)

To the greatest common advantage

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. The basic existence of partnership agreement lies in Mutual agency relationship which refers to the mutual relationship and understanding between the partners of a business where every partner acts as an agent as well as a boss for the other partner. Therefore, every partner is bound to carry on the business of the firm to the greatest common advantage.