Which of the Following Is an Implied Authority of a Partner

question 36

Multiple Choice

Which of the following is an implied authority of a partner winding up the business of an accounting partnership?

• A)Entering into new contracts made after the dissolution
• B)Disposing of the partnership's excess supplies
• C)Making a contract to audit the financial records of a new client
• D)Borrowing money in the name of the partnership

---

Definitions:

Natural Monopolies

Market situations where due to high fixed costs or unique resources, a single firm can supply a product or service more efficiently than any potential competitor, often resulting in regulation.

Public Utilities

Companies that provide essential services such as water, electricity, and gas to the public and are often subject to regulatory oversight.

Short Run

A timeframe in economics during which at least one input (like plant size) is fixed and cannot be changed, focusing on immediate operational decisions.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes.