Asked by Briana Robinson on Jun 03, 2024
Verified
Every partner can bind the business to a contract within the scope of the partnership's regular business operations
A) Partnership
B) Partnership agreement
C) Distribution of remaining cash to partners
D) Mutual agency
E) Equally
F) Death of a partner
G) Liquidation
H) Unlimited liability
Mutual Agency
A principle of partnership where each partner is both an agent and a principal, legally authorized to make business decisions and transactions that can bind the partnership.
Business Operations
Activities involved in the day-to-day functions of a business related to producing and delivering products or services.
- Interpret the key terms and concepts relevant to partnerships, such as mutual agency, liquidation, and unlimited liability.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
Mutual agency means that each partner has the power to bind the partnership to contracts within the scope of the business operations.
Answer: B
The partnership agreement outlines the rights and responsibilities of each partner, including how decisions are made and how profits are divided.
Answer: C
In a partnership, any remaining profits after expenses and salaries are paid out are distributed among the partners.
Answer: H
Partnerships have unlimited liability, meaning that each partner is personally responsible for debts and legal obligations of the business.
Answer: F
If a partner dies, their share of the partnership will pass to their heirs or beneficiaries according to their will or estate plan.
Answer: G
If a partnership decides to dissolve, its assets are liquidated and the proceeds are used to pay off debts and distribute any remaining profits to the partners.
Answer: A and E
Partnerships are typically formed with partners having equal or proportionate ownership in the business. The partnership is a distinct legal entity from its partners.
Answer: B
The partnership agreement outlines the rights and responsibilities of each partner, including how decisions are made and how profits are divided.
Answer: C
In a partnership, any remaining profits after expenses and salaries are paid out are distributed among the partners.
Answer: H
Partnerships have unlimited liability, meaning that each partner is personally responsible for debts and legal obligations of the business.
Answer: F
If a partner dies, their share of the partnership will pass to their heirs or beneficiaries according to their will or estate plan.
Answer: G
If a partnership decides to dissolve, its assets are liquidated and the proceeds are used to pay off debts and distribute any remaining profits to the partners.
Answer: A and E
Partnerships are typically formed with partners having equal or proportionate ownership in the business. The partnership is a distinct legal entity from its partners.
Learning Objectives
- Interpret the key terms and concepts relevant to partnerships, such as mutual agency, liquidation, and unlimited liability.