In Many Public Meetings,John Has Proclaimed Himself to Be an Equal

question 86

Multiple Choice

In many public meetings,John has proclaimed himself to be an equal partner of Chan's partnership business.Chan's business ran into financial difficulties.John and Chan approached a creditor to obtain a loan.The creditor gave the loan based on a false presumption that John was a partner in the business too.Can John be made liable for the loan?

• A)Yes,because John is a close acquaintance of Chan;thus,it is his ethical duty to help Chan during her financial trouble.
• B)Yes,because John is a purported partner;public representations of his partner status make him personally liable for the debt.
• C)No,because he is not legally a partner;the creditor should have checked the partnership agreement before advancing the loan.
• D)No,because John did not participate in the business;he was thus not a member of the partnership business.

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Definitions:

Yen

The official currency of Japan, known for being one of the most traded currencies in the foreign exchange market.

International Exchange

The trading of goods, services, and currencies among countries, allowing for the movement of resources across borders.

Current Account

A component of a country's balance of payments that includes the trade balance, net income from abroad, and net current transfers, reflecting the flow of goods, services, primary income, and secondary income.

Trade Deficit

Occurs when a country's imports exceed its exports during a specific time period, indicating that it is spending more on foreign trade than it is earning.