Question

question 27 (2.5 points)
nina and orly are partners in magnificent marketing consultants. nina takes advantage of an opportunity to make a secret profit on her own behalf when she is negotiating on the firms behalf with a client. nina is liable to her firm for
a) breach of contract.
b) breach of the duty of care.
c) breach of the duty of loyalty.
d) nothing.
question 28 (2.5 points)
kate and lionel are limited partners in dallas dental practice, a limited partnership. just like in a general partnership, in terms of the firms books and information regarding partnership business, kate and lionel are entitled to
a) no access.
b) access to the parts that directly relate to their capital contributions.
c) access in proportion to their participation in management of the firm.

Explanation:

For Question 27:

• Partners have a duty of loyalty to the partnership. This means they must act in the best interests of the firm. Taking a secret profit while negotiating on the firm's behalf is a violation of this duty.
• A breach of contract would require a specific contractual term being violated (not indicated here).
• A breach of the duty of care relates to negligence in performing duties, not self - dealing.

For Question 28:

• Limited partners, like in a general partnership, are entitled to access information regarding the partnership business that directly relates to their capital contributions.
• They are not entitled to no access as they have an investment interest.
• Their access is not based on management participation (as limited partners typically do not participate in management in the same way as general partners).

Answer:

Question 27: C. breach of the duty of loyalty.
Question 28: B. access to the parts that directly relate to their capital contributions.