Which of the Following Statements Are TRUE

Multiple Choice

Which of the following statements are TRUE?

A) A prohibition in a partnership agreement on partners incurring a specific obligation will prevent partnership liability arising if one of the partners tries to commit the partnership to such an obligation.
B) An indemnification agreement between partners will always be complete protection against unauthorized liabilities.
C) Partners do not have to worry about individual partners incurring unauthorized liabilities because each partner has a fiduciary duty to act in the best interests of the partnership.
D) Partners often have a high degree of trust and confidence in each other.
E) none of the above