Asked by Carol Jasso on Jul 17, 2024
Verified
Which of the following is true of a partnership?
A) Actions of one partner are not binding on all the other partners.
B) Each partner is individually liable for partnership debts.
C) All of the owners always share income and losses equally.
D) Both A and B are correct.
Equally
In a manner that showcases uniformity or parity in distribution, value, or measure among all parties or elements involved.
Individually Liable
A legal concept where an individual is personally responsible for fulfilling the obligations of a contract or debt.
Partnership Debts
Liabilities that are owed by a partnership, which are the joint responsibility of the partnership's members.
- Recognize and delineate the functions and duties of general and limited partners.
- Understand the implications of mutual agency and unlimited liability in partnerships.
Verified Answer
Learning Objectives
- Recognize and delineate the functions and duties of general and limited partners.
- Understand the implications of mutual agency and unlimited liability in partnerships.
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