CAF-4 · Chapter 13 · Question 8 of 10
If a partner retires from a firm but the firm continues its business, what must the retiring partner do to avoid liability for the firm's future transactions?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Give a formal public notice of their retirement.
Explanation
A retiring partner continues to be liable to third parties for acts of the firm until a public notice is given of their retirement.
More Relations of partners to third parties MCQs
- Q10Under the principle of 'holding out', if a person who is not a partner verbally represents to a third party that they are a partner, and…
- Q1What is the foundational principle regarding a partner's relationship with third parties in the conduct of the firm's business?
- Q2A minor, Sarah, is admitted to the benefits of a partnership firm. Which of the following accurately describes her liability for the debts…
- Q3When a minor admitted to the benefits of a partnership attains the age of majority, what is the time limit for them to decide whether to…
- Q4If a minor attains majority, elects to become a full partner in the firm, and gives public notice, from what date does their personal…