A Third Person Should Recognize That a Partner Has Limited

question 30

Multiple Choice

A third person should recognize that a partner has limited or no authority if:

• A) the partner seeks to act for the partnership concerning a matter not within the usual business of the firm.
• B) the third person knows that the partnership has been terminated.
• C) the partner seeks to pay a personal obligation by issuing a promissory note in the name of the firm.
• D) all of the above.

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Definitions:

Discount Period

The time frame in which a discount is available for early payment of an invoice.

Implied Annual Interest Rate

The interest rate not explicitly stated but inferred from the terms of a financial instrument over a one-year period.

Invoice Price

The initial price listed by the manufacturer or supplier on the invoice, before any discounts, allowances, or additional charges are applied.

Credit Terms

The terms that govern the timing and conditions of payment between buyers and sellers in credit transactions.