Asked by Krista Martinez on Jul 25, 2024
Verified
The characteristic that means the actions of one partner are binding on all other partners is known as:
A) mutual agency.
B) exclusive agency.
C) unlimited life.
D) limited liability.
Mutual Agency
A principle in partnership where each partner has the authority to bind the partnership in contracts and decisions related to the business's ordinary course.
Unlimited Life
Refers often to entities or corporations that have no predetermined duration for existence, allowing them to operate indefinitely.
Limited Liability
A legal structure that protects company owners' personal assets from being used to fulfill the company's debts and liabilities.
- Acquire knowledge about the effects of mutual agency and the condition of unlimited liability in partnerships.
Verified Answer
KB
Kaur Banwait SainiJul 29, 2024
Final Answer :
A
Explanation :
Mutual agency is the characteristic in partnerships where each partner can act on behalf of the partnership and make decisions that bind all partners.
Learning Objectives
- Acquire knowledge about the effects of mutual agency and the condition of unlimited liability in partnerships.