Which of the Following Is False Regarding the Implied Authority

question 49

Multiple Choice

Which of the following is false regarding the implied authority of partners?

• A) Partners generally have less authority than typical agents.
• B) The implied authority of partners is usually determined by the nature of the business.
• C) Implied authority permits partners to enter into agreements necessary to carry on partnership business.
• D) A partner has the authority to purchase goods necessary to perpetuate the business.
• E) A partner does not have implied authority to sell partnership property without the consent of all other partners.

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Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not reflect its actual market value.

Cumulative

Refers to the total amount accumulated over a period of time or the aggregate of elements collected.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.

Cost of Goods Sold

The total cost of manufacturing or acquiring the products that were sold during a given period.