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The implied authority of a partner in a firm does not empower him to :
- a)Open a bank account on behalf of the firm
- b)Engaging and discharging employees
- c)Accepting any amount of debts due to the partnership firm
- d)Enter into partnership on behalf of the firm
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The implied authority of a partner in a firm does not empower him to :...
Implied Authority of Partners in a Firm
Partners in a firm have certain rights and responsibilities that are determined by the partnership agreement. They also have implied authority to act on behalf of the firm in certain situations. Implied authority refers to the power that a partner has to take actions that are necessary and customary for carrying out the firm's business.
Restrictions on Implied Authority
However, there are certain restrictions on the implied authority of partners in a firm. The following are some examples of actions that a partner cannot take without the express authority of the other partners:
1. Enter into partnership on behalf of the firm
A partner does not have the authority to admit a new partner into the firm without the unanimous consent of the other partners. This is because admission of a new partner affects the rights and responsibilities of all partners in the firm.
2. Open a bank account on behalf of the firm
A partner cannot open a bank account on behalf of the firm without the express authority of the other partners. This is because the act of opening a bank account involves the use of the firm's funds, and the other partners must be aware of such transactions.
3. Engaging and discharging employees
A partner cannot hire or fire employees without the express authority of the other partners. This is because employees are an important part of the firm's business and their hiring and firing affects the firm's operations.
4. Accepting any amount of debts due to the partnership firm
A partner cannot accept any amount of debts due to the partnership firm without the express authority of the other partners. This is because accepting debts affects the financial standing of the firm and the other partners must be aware of such transactions.
Conclusion
In conclusion, the implied authority of partners in a firm is an important aspect of their role in the business. However, there are certain restrictions on this authority that must be followed in order to protect the interests of all partners in the firm.
Partners in a firm have certain rights and responsibilities that are determined by the partnership agreement. They also have implied authority to act on behalf of the firm in certain situations. Implied authority refers to the power that a partner has to take actions that are necessary and customary for carrying out the firm's business.
Restrictions on Implied Authority
However, there are certain restrictions on the implied authority of partners in a firm. The following are some examples of actions that a partner cannot take without the express authority of the other partners:
1. Enter into partnership on behalf of the firm
A partner does not have the authority to admit a new partner into the firm without the unanimous consent of the other partners. This is because admission of a new partner affects the rights and responsibilities of all partners in the firm.
2. Open a bank account on behalf of the firm
A partner cannot open a bank account on behalf of the firm without the express authority of the other partners. This is because the act of opening a bank account involves the use of the firm's funds, and the other partners must be aware of such transactions.
3. Engaging and discharging employees
A partner cannot hire or fire employees without the express authority of the other partners. This is because employees are an important part of the firm's business and their hiring and firing affects the firm's operations.
4. Accepting any amount of debts due to the partnership firm
A partner cannot accept any amount of debts due to the partnership firm without the express authority of the other partners. This is because accepting debts affects the financial standing of the firm and the other partners must be aware of such transactions.
Conclusion
In conclusion, the implied authority of partners in a firm is an important aspect of their role in the business. However, there are certain restrictions on this authority that must be followed in order to protect the interests of all partners in the firm.
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The implied authority of a partner in a firm does not empower him to :...
Option D is correct because
According to Rights and Duties of Partnership.
A partner of a partnership firm can't enter into another partnership firm
According to Rights and Duties of Partnership.
A partner of a partnership firm can't enter into another partnership firm
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The implied authority of a partner in a firm does not empower him to :a)Open a bank account on behalf of the firmb)Engaging and discharging employeesc)Accepting any amount of debts due to the partnership firmd)Enter into partnership on behalf of the firmCorrect answer is option 'D'. Can you explain this answer?
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The implied authority of a partner in a firm does not empower him to :a)Open a bank account on behalf of the firmb)Engaging and discharging employeesc)Accepting any amount of debts due to the partnership firmd)Enter into partnership on behalf of the firmCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The implied authority of a partner in a firm does not empower him to :a)Open a bank account on behalf of the firmb)Engaging and discharging employeesc)Accepting any amount of debts due to the partnership firmd)Enter into partnership on behalf of the firmCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The implied authority of a partner in a firm does not empower him to :a)Open a bank account on behalf of the firmb)Engaging and discharging employeesc)Accepting any amount of debts due to the partnership firmd)Enter into partnership on behalf of the firmCorrect answer is option 'D'. Can you explain this answer?.
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