Which Statement Is Correct Regarding a Partner's Actual Authority to Bind

question 66

Multiple Choice

Which statement is correct regarding a partner's actual authority to bind a partnership once a partnership is dissolved?

• A) A partner has no actual authority to bind the partnership after the partnership is dissolved.
• B) A partner has actual authority to bind the partnership for 10 days after the partnership is dissolved.
• C) A partner has actual authority to bind the partnership for 30 days after the partnership is dissolved.
• D) A partner has actual authority to bind the partnership for 45 days after the partnership is dissolved.
• E) After a partnership is dissolved, a partner has actual authority to bind the partnership to any third party who has not been given notice of dissolution.

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Definitions:

Risk-free Ventures

Investments that are assumed to have no risk of financial loss.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Decision-making Processes

The steps involved in choosing among alternatives to address a problem or capitalize on an opportunity.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments dictated by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.