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Under Section 16(a), where a partner derives a secret profit from a transaction of the firm or from use of the firm's property, name or business connection, he must:
AShare it only with the managing partner
BKeep the profit
CReturn only half
DAccount for that profit and pay it to the firm
Answer & Solution
Correct answer: D. Account for that profit and pay it to the firm
Section 16(a) requires a partner to account for and pay to the firm any profit he secretly derives from the firm's transactions, property, name or connection.
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