Which of the Following Is True About Eliminating Partners' Apparent

question 32

Multiple Choice

Which of the following is true about eliminating partners' apparent authority?

• A) Eliminating the apparent authority is not a safe practice during winding up.
• B) Apparent authority cannot be eliminated by merely informing the existing business clients.
• C) Filing a Statement of Dissolution will increase the partners' apparent authority.
• D) The partnership should post notice of the dissolution at its place of business to let third parties know.

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Definitions:

Interstate Commerce Commission

A regulatory agency in the United States created by the Interstate Commerce Act of 1887, originally tasked with regulating the railroads to ensure fair rates and to regulate other modes of transport.

Rule Making

The process by which government agencies formalize and enact regulations or standards that govern behavior within specific industries or areas.

Legislative Authority

The power vested in a legislative body to enact laws, amend them, and repeal them.

Moratorium

A temporary prohibition or suspension of an activity or law, often used during emergencies or when deemed necessary for public welfare.