Chuck, Betty, and Bert Form CB&B Partnership to Run a Specialty

question 31

Multiple Choice

Chuck, Betty, and Bert form CB&B Partnership to run a specialty grocery store.Bert is the day-to-day manager of the store, Betty buys the groceries, and Chuck does all the administrative work.Betty decides she would like a new car to use when calling on prospective wholesalers.She makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert.CB&B and the individual partners are:

• A) not bound because buying a car is outside the scope of the partnership business.
• B) bound by Betty's apparent authority to buy a car.
• C) bound by Betty's actual implied authority to buy a car.
• D) bound by estoppel.

---

Definitions:

Ownership Percentage

The fraction of an investment or business enterprise owned by an individual or entity, usually expressed as a percentage.

Bud Ltd.

is not a universally recognized key term; it might refer to a specific entity or business and its significance might vary by context. NO.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but does not control the company outright.

Consolidation Method

An accounting technique used for combining the financial statements of subsidiary companies with the parent company.