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Every partner is both an agent and a principal. Identify the characteristic of partnership being referred here.
- a)Mutual Agency
- b)Risk Bearing
- c)Membership
- d)Formation
Correct answer is option 'A'. Can you explain this answer?
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Every partner is both an agent and a principal. Identify the character...
Mutual agency is the right of all partners to represent the company's normal business operations and the authority to bind it to mutual contracts and agreements. In leman's terms, it is the authority given to a person doing business on behalf of the company, usually a business owner or partner.
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Every partner is both an agent and a principal. Identify the character...
Mutual Agency is the characteristic of partnership being referred to here. Let's break down what this means:
Mutual Agency:
- A partnership is an agreement between two or more people to carry on a business together for profit.
- Each partner is both an agent and a principal. As an agent, they can bind the partnership to contracts and obligations. As a principal, they are bound by the actions of the other partners.
- This means that each partner has the power to act on behalf of the partnership and make decisions that affect the partnership as a whole.
- The actions of one partner are considered the actions of all partners, which is why it's important for partners to communicate and make decisions together.
In summary, Mutual Agency is the characteristic of partnership that refers to each partner being both an agent and a principal, with the power to act on behalf of the partnership and make decisions that affect the partnership as a whole.
Mutual Agency:
- A partnership is an agreement between two or more people to carry on a business together for profit.
- Each partner is both an agent and a principal. As an agent, they can bind the partnership to contracts and obligations. As a principal, they are bound by the actions of the other partners.
- This means that each partner has the power to act on behalf of the partnership and make decisions that affect the partnership as a whole.
- The actions of one partner are considered the actions of all partners, which is why it's important for partners to communicate and make decisions together.
In summary, Mutual Agency is the characteristic of partnership that refers to each partner being both an agent and a principal, with the power to act on behalf of the partnership and make decisions that affect the partnership as a whole.
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Every partner is both an agent and a principal. Identify the character...
Mutual Agency is a characteristic of partnership states that 1)-:Every partner as 'An agent' , because he can bind the other partners by his acts .2)-:Every partner as 'A' Principal , because he himself can be bound by the acts of other partners
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Every partner is both an agent and a principal. Identify the characteristic of partnership being referred here.a)Mutual Agencyb)Risk Bearingc)Membershipd)FormationCorrect answer is option 'A'. Can you explain this answer?
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