alleryAn outgoing (retiring) partner remains liable to third parties for the firm's acts:
AOnly for acts he personally authorised
BUntil public notice of his retirement is given
CNever after retirement
DFor one year only
Answer & Solution
Correct answer: B. Until public notice of his retirement is given
A retiring partner stays liable to third parties for the firm's acts until public notice of his retirement is given.
Keep practising Partnership Accounts
Browse all Partnership Accounts questions for AP Intermediate 2nd Year, or explore more Accountancy topics.
Related questions
Under Section 18, with respect to the business of the firm, a partner is:Under Section 14, which of the following is regarded as property of the firm?Under Section 13(f), a partner must indemnify the firm for loss caused by his:Under Section 13(d), a partner who makes a payment or advance beyond his agreed capital isUnder Section 13(c), where a partner is entitled to interest on the capital he subscribed,Under Section 13(b), in the absence of agreement, partners share profits and losses:Under Section 12(d), every partner (whether active or sleeping) has the right to:Under Section 12(c), a change in the NATURE of the firm's business requires: