Which of the following statements is incorrect? (Phil CPA, 93-2)orrect!

A capitalist partner may engage in the same line of business in which the partnership is
engaged.

An industrial partner may not engage in business for himself without the consent of his
co-partner.

An industrial partner who engaged in business for himself by be excluded from the
partnership.

An offending capitalist partner may not be excluded from the partnership.

A and B are partners in a real estate business. A and B were approached by X who
offered to buy a parcel of land owned by the partnership. Thereafter, B sold to A,
B’s share in the partnership. Then, A sold the land to X at a big profit. (Phil CPA,
88-2)

A is liable to B for B’s share in the profits.

A is not liable to B for the latter’s share in the profits.

The sale of the land to X is valid.ou Answered

The partnership is dissolved when A became the sole owner.