alleryStart learning →Who must indemnify the firm for loss caused by fraud in its business?
AAll other partners
BOutside creditors
CThe tax officer
DThe fraudulent partner
Answer & Solution
Correct answer: D. The fraudulent partner
Section 10 puts the loss from a partner's fraud on that partner personally.
Keep practising Partnership
Browse all Partnership questions for CA Foundation, or explore more Accounting topics.
Related questions
In an LLP, a partner is not liable for what?A private limited company can have at most how many shareholders?Which is a stated disadvantage of an LLP?An LLP must be audited if its contributions exceed?An LLP must be audited if annual turnover exceeds?What minimum capital is needed to form an Indian LLP?What cap applies to the number of partners in an Indian LLP?An Indian LLP enjoys which feature that an ordinary firm lacks?