Which term refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership?

Which term refers to the right of a partner to be reimbursed for expenditures incurred on behalf of the partnership?

• A. Precaution
• B. Law-abiding
• C. Indemnification
• D. Acetaminophen

Answer: (C)

Indemnification is the right to be reimbursed for expenditures made for the partnership. When a partner acts on behalf of the partnership—whether paying for supplies, covering travel, or defending the partnership in a matter—indemnification ensures those reasonable costs are repaid. This protection is typically outlined in the partnership agreement and may cover defense costs and other liabilities arising from partnership activities, up to specified limits. Precaution is about safety and taking preventive steps, not about reimbursing expenses. Law-abiding describes adherence to laws, not financial reimbursements. Acetaminophen is a medication, not a business or legal term.

Indemnification is the right to be reimbursed for expenditures made for the partnership. When a partner acts on behalf of the partnership—whether paying for supplies, covering travel, or defending the partnership in a matter—indemnification ensures those reasonable costs are repaid. This protection is typically outlined in the partnership agreement and may cover defense costs and other liabilities arising from partnership activities, up to specified limits.

Precaution is about safety and taking preventive steps, not about reimbursing expenses. Law-abiding describes adherence to laws, not financial reimbursements. Acetaminophen is a medication, not a business or legal term.