Which of the Following Is NOT True About the Management

question 56

Multiple Choice

Which of the following is NOT true about the management powers of partners?

• A)A partner whose name is not on the signature card filed with the bank does not have apparent authority to issue checks.
• B)A partner's knowledge of material information relating to partnership affairs is imputed to the partnership.
• C)A partner has implied and apparent authority to indorse and cash checks drawn payable to the order of the partnership.
• D)A partner who has the authority to borrow money also has authority to issue negotiable instruments.

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Definitions:

Nondiversifiable Risk

A type of risk that cannot be eliminated through diversification and affects all investments across the market.

Weighted Average

A mean where each value in the data set is multiplied by an assigned weight before the final calculation is performed.

Expected Return

Expected return is the anticipated amount of profit or loss an investment is likely to generate over a specific period.

Company Cost

Expenses incurred by a business in the process of earning revenues, often categorized into fixed and variable costs.