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

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

Answer: (C)

Indemnification is the partner’s right to be reimbursed for expenses incurred on behalf of the partnership. When a partner pays for authorized costs—like travel, supplies, or legal fees tied to the partnership’s work—the partnership should repay those amounts. This protects partners from bearing out-of-pocket costs of running the business and ensures expenses are charged to the partnership, not to the individual partners personally. The other terms refer to safeguards, what must be done, or compliance with laws, rather than the specific reimbursement of expenditures. So indemnification best captures the idea of getting repaid for those partnership-related expenses.