The Apparent Authority of a Partner to Bind the Partnership

question 38

Multiple Choice

The apparent authority of a partner to bind the partnership in dealing with third parties:

• A)would permit a partner to submit a claim against the partnership to arbitration.
• B)must be derived from the express powers and purposes contained in the partnership agreement.
• C)will be effectively limited by a formal resolution of the partners of which third parties are aware.
• D)will be effectively limited by a formal resolution of the partners of which third parties are unaware.

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Definitions:

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the effect of compounding interest.

Stated Interest Rate

The interest rate declared on a bond or loan agreement, not necessarily reflecting the market interest rate or effective interest rate.

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specific rate.

Actuarial Information

Data and calculations used by actuaries to assess risks and determine premiums or forecasts for insurance and other industries.