Joint Venturers Do Not Have the Authority as Agents to Enter

question 69

True/False

Joint venturers do not have the authority as agents to enter into contracts for the business that will bind the joint venture.

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Definitions:

Forward Exchange Rate

The agreed-upon exchange rate for currencies to be exchanged on a specified future date.

Swaps

Financial derivatives contracts where two parties agree to exchange one stream of cash flows for another, often used to manage risk or speculate.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Currencies

Systems of money in common use, particularly for people in a nation.