Which of the Following Statements Is True of Partners in a Trading

question 12

Multiple Choice

Which of the following statements is true of partners in a trading partnership?

• A) The partners in such a partnership are an accounting or a service firm.
• B) The partners require actual authority to conduct a business transaction.
• C) The partners are usually engaged in the business of selling and buying commodities.
• D) The partners usually lack the implied power to borrow money.
• E) The partners are required to exercise apparent and actual authority to pledge the credit of their firm.

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Definitions:

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