Which of the Following Statements Is TRUE

Multiple Choice

Which of the following statements is TRUE?

A) An effective partnership requires a high level of trust and confidence between the partners.
B) 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.
C) An indemnification agreement between partners will always be complete protection against unauthorized liabilities.
D) 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.
E) Partners have contractual risk to partnership contracts entered into by other partners in the course of the partnership business, but they do not have a similar tort risk.