[amp_mcq option1=”4%” option2=”5%” option3=”6%” option4=”8% E. 10%” correct=”option1″]<\/p>\n
The correct answer is 6%.<\/p>\n
The rate of interest to be allowed to a partner for Advances\/Loans given, assuming the partnership deed stays silent on the matter, is 6% p.a. This is the rate of interest that is generally considered to be fair and reasonable.<\/p>\n
Option A: 4% is too low. This rate of interest would not be enough to compensate the partner for the use of their money.<\/p>\n
Option B: 5% is a bit low, but it is still a reasonable rate of interest.<\/p>\n
Option C: 6% is the rate of interest that is generally considered to be fair and reasonable.<\/p>\n
Option D: 8% is too high. This rate of interest would be unfair to the other partners, as it would give the partner who made the loan an unfair advantage.<\/p>\n
Option E: 10% is too high. This rate of interest would be considered usury in most jurisdictions.<\/p>\n
In conclusion, the rate of interest to be allowed to a partner for Advances\/Loans given, assuming the partnership deed stays silent on the matter, is 6% p.a.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”4%” option2=”5%” option3=”6%” option4=”8% E. 10%” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47669","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n