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Under Section 13(e), the firm must indemnify a partner for payments and liabilities incurred:
AIn the ordinary and proper conduct of the business, and in emergency acts to protect the firm from loss
BOnly with prior board approval
CIn any personal venture
DOnly if profits exist
Answer & Solution
Correct answer: A. In the ordinary and proper conduct of the business, and in emergency acts to protect the firm from loss
Section 13(e) requires the firm to indemnify a partner for liabilities incurred in the ordinary conduct of business and in emergency acts done as a prudent person would to protect the firm.
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