'Mutual Liability' in Relation to a Partnership Means That

question 29

Multiple Choice

'Mutual liability' in relation to a partnership means that:

• A)Each partner is responsible for their own actions, and is not liable for the actions of the other partners.
• B)Each partner is personally liable for the whole of the debts of the partnership.
• C)Each partner is both the principal and the agent of the other partners, and as such is liable for the actions of the other partners.
• D)Each partner is jointly and severally liable with the other partners for the debts of the partnership.

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Definitions:

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used in the production process.

Trade

The act of buying, selling, or exchanging commodities within domestic or international markets.

Mutually Beneficial

A scenario where all parties involved gain advantages or benefits from an arrangement or transaction.

Flexible Budget

A budget that adjusts or scales according to variations in actual activity levels or output, providing a more realistic comparison of costs and revenues.